ABSTRACT
For the public sector, a comprehensive package of employee benefits, centered around a pension plan tied to longevity and grade level, was designed to appeal to workers who preferred more moderately progressive compensation compared with the highly variable pay with bonus of the corporate model. A broader based stable compensation package with comprehensive benefits also seemed more compatible for public sector professionals whose motivation was more likely linked to public service outcomes as opposed to individual advancement. Initial grade levels within the public sector would reflect expertise and qualifications upon hiring and then salary would be increased with small increments annually with each year of experience within a grade level. Although governments in the United States were not pioneers in establishing retirement and medical insurance systems for employees, by the start of the twentieth century, efforts were underway to emulate what was happening in Europe in the public sector.
