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HomeMy WebLinkAboutItem 02 Market Study for Non-Union Employees and Update to Compensation Plan AGENDA ITEM SUMMARY Meeting Date: 4/9/2018 Meeting Type: Work Session Staff Contact/Dept.: Chaim Hertz Staff Phone No: 726-3787 Estimated Time: 30 mins S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: MARKET STUDY FOR NON-UNION EMPLOYEES AND UPDATE TO COMPENSATION PLAN ACTION REQUESTED: Authorize City Manager to update the pay plan for Non-Union employees according to the implementation scenario described below. ISSUE STATEMENT: The City has adopted a compensation strategy that establishes pay plans that are more representative of market forces. The City has completed a market study and is ready to adjust pay plans based on the results. ATTACHMENTS: ATT1: Benchmarks & GEO by Participation DISCUSSION/ FINANCIAL IMPACT: Nonunion employee pay ranges have not increased since January 1, 2015. Similar to last time, the City contracted with Gallagher Benefit Services to perform the market survey and to update the compensation plan. The same group of agencies used in 2010 and 2014 were included, and the same criteria used to determine a comparator organization was utilized again (employer size and complexity; geographic proximity, nature of series provided). The City of Springfield Non-Union General Service positions on average are currently lagging the market 50th percentile of range midpoints by 0.3%. This tells us that our pay plans have remained competitive over the last three years despite the CPI for Portland-Salem increasing by 7.5% over the same time period (2015-2017). There are 55 employees in this group, most of whom are supervisors, managers and directors who perform most of the higher decision-making and risk-taking functions in the City. They are also the group of employees who essentially have no voice in negotiating for the compensation and benefits they will receive. To implement the proposed plan, staff recommends that employees be moved on to the new pay plans July 1 to the closest step that isn’t a decrease. This will result in an average increase of 2.38% in year one with a budget impact of $106, 288. The following two years would follow the consultant’s recommendation of increasing the pay plans by 1.5% per year. Implementing in this manner results in a final overall cumulative increase of 5.38% and a 3 year budget impact of $520,562. This amount falls within budget projections. For the Non-Union Public Safety employees, the consultants have recommended increasing their pay ranges by 3% a year over the next two years to keep from experiencing compression issues with the represented police unit they supervise. With the Lieutenant position receiving an additional 1.5% over the next two years. Total two-year budget impact is $118,042 and within budget projections. BENCHMARK JOBS Non-Union  Accounting Manager  Development & Public Works Director  Finance Director  Information Technology Director  IT Manager  Library Manager  Maintenance supervisor  Managing Civil Engineer  Office Supervisor  Operations Manager  Police Chief Non-Union Protective Service  Police Leiutenant  Police Sergeant SEIU  Accountant  Accounting Technician  Administrative Assistant  Administrative Specialist  Building Inspector  Civil Engineer  Code Enforcement Officer  Court Clerk  Database Administrator  Environmental Services Technician  IT Business Systems Analyst  IT Technician (Service Desk Specialist)  Librarian  Library Technician  Management Analyst  Netowrk Analyst  Planner  Plans Examiner  Principal Engineer  Principal Planner  Surveyor PARTICIPATION & GEOGRAPHIC DIFFERENTIALS BY ORGANIZATION City of Springfield, OR City of Beaverton, OR City of Corvallis, OR City of Eugene, OR City of Grants Pass, OR City of Gresham, OR City of Hillsboro, OR City of Lake Oswego, OR City of Lakewood, WA City of Olympia, WA City of Oregon City, OR City of Salem, OR Clackamas County Jackson County Lane County Marion County Washington County 100% 93.0% 97.8% 99.6% 102.7% 92.9% 92.9% 92.5% 90.3% 95.9% 93.3% 100.4% 93.3% 100.7% 99.6% 100.4% 92.9% Geographic Differential Application Examples: − Beaverton, OR has a higher cost of labor than Springfield, OR; therefore, data reported by the City of Beaverton was adjusted down by 7.0% to normalize the rates of pay in Beaverton to equate to the cost of labor in Springfield. − Grants Pass, OR has a lower cost of labor than Springfield, OR; therefore, data reported by the City of Grants Pass, OR was adjusted upward by 2.7% to normalize the rates of pay in Grants Pass to equate to the cost of labor in Springfield.