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.