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A Biennial Report on the Total Compensation Package for State of Texas Employees

September 2006

Report Number 07-701

Overall Conclusion

The State of Texas provides a comprehensive total compensation package to employees working in state agencies and higher education institutions.

"Total compensation" is a phrase used to describe the complete rewards and recognition the State provides to employees in exchange for their time, talent, and efforts. The cost to provide this package represents a significant investment for the State of Texas and accounted for 60 percent of total operating expenses in fiscal year 2005.

In addition to payroll and benefit costs, the State provides employees with other rewards that cannot be easily quantified but provide indirect, real, and valuable benefits. Examples of these rewards include employee recognition programs, professional training and career development, a challenging and rewarding work environment, and flexible work schedules.

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