The largest group of state workers – around 75 percent – get a three percent raise.
According to the Indiana Economic Development Corporation, only four of every five jobs promised has materialized over the last year.
The Indiana Symphony Orchestra locked out the orchestra's musicians after union negotiations failed.
The orchestra says its budget deficit is $10 million, while the union says it is less than $1 million.
Researchers say the traditional model that shows gradual distribution of employee performance has been used since the 1950's.
Roughly 90 percent of state employees will be getting a pay increase in 2012.
State Superintendent Tony Bennett says the Department of Labor will seek to reform the way schools are graded on their yearly performance.