HomeMy WebLinkAbout10-19-2021 Salary StudyCitywide Salary Survey Survey Results Implementation Plan Funding October 19, 2021 Vanessa Audett, Human Resources Steve Groom, Finance Policy Question Should the City Council authorize the Mayor to implement the proposed salary survey implementation plan? Background Last Comprehensive Review Completed in 2008 • Economic Recession Layoffs Under Market Survey Results Never Fully Implemented Cabot Dow Hired 2019 • Global COVID-19 Pandemic Delayed Survey Completion • Economic Uncertainty & Retirements Delayed Implementation Background Employees Dissatisfied • Inadequate Staffing • Heavy Workloads • Under Market Compensation • Inequity Between Labor & Non -Represented Groups • Negative Morale & Increased Dissatisfaction • Voluntary Turnover On Pace to Double from 5Years Ago Turnover History VoluntaryTotal 7% 2% Turnover 9% ��• 5% 4% 9% 4% 6% 10% 5% 0% 5% 4% 1% 5% 7% 2% 9% 5% 2% 7% 7% 2% 9% 8% 2% 10% 7% 3% 10% 11% 3% 14% 12% 2% 14% 9% 2% 11% 12% 3% *15% *2021 YTD Known Through October Implementation Plan Market Adjustments • Plot Classification Salary Survey Midpoint to Closest Existing City Range Midpoint • Plot Employee in New Range Step Closest to Current Pay Without Being Under Current Pay Implementation Costs Monthly Cost $23,157* Annualized Cost $277,884* *costs include conservative benefit costs of 38% Resulting in 89 non -rep market adjustments Funded Through 2021-2022 Budget • Capturing and allocating salary &benefits savings from budgeted yet vacant City positions. Why Implement Now.? Restore Faith of Employees Bring Longtime Under Market Classifications Closer to Market Wages Survey Data is Aging Comparable Data is Changing Salary Survey Shortfalls Group of Classification Not Surveyed • New Positions • Consultant Unable to Match Quality Control • Some Questionable Matches Made What Comes Next.? Staff to Develop On -Going Classification & Compensation Strategy, Policy & Procedure Bring Salary Survey Process In -House • Addressing Classifications Missed In Survey First Align Future Salary Surveys with Budget Process Can We Fund It.? We think so... ... another complex puzzle to solve ... Budget Sudoku MEMOMMUM OUNUMMUMM HOMEMEMME CHOOMMUMH meMmmmmo MOUMMUM m*ono mug It can't just add up, it has to work for the whole puzzle Catch -Up In General How do we catch upon anything? • All at once vs. gradually • With a plan to stay caught up • Savings vs. debt Questions to Answer Savings — as good as revenue Questions to Answer How do we find funding? • Existing Savings this year • Predictable savings next year • Budgeting for unknown vacancies in the future Good News / Bad News Good: We always have salary savings from vacancies Bad: We never know where, AND it may not be where we need it Strategic Solution Savings — • $277,000 is re -deployable in the current year • We can also budget savings generally next year, re -balance once specific vacancies become known Future Budgeting How are future years impacted? • Budget always starts with existing employees, current rates • A bump now will put salaries and benefits on a higher trajectory Finance Recommendation 3-step permanent funding plan Capture and dedicate known savings Identify and capture savings monthly Keep departments whole by pooling within funds Conclusion ✓ Address employee morale ✓ Improve competitive recruiting ✓ Reduce turnover ✓ Funded in current year ✓ Process for redeploying savings ✓ Tool for future budgets Next Steps H R - • Staff to Develop On -Going Classification &Compensation Strategy, Policy &Procedure • Bring Salary Survey Process In -House • Addressing Classifications Missed In Survey First • Align Future Salary Surveys with Budget Process Finance - • Pool salary and benefit savings by fund • Sweep savings and overages monthly • Budget savings similarly in future budgets Questions