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ras.reihrzataxcaavanan 11
City of Atlantic Beach
Classification and Pay Study
Final Report
August 2001
Prepared by:
Karen G. Collins
Michelle Y. Selph
800) 755-8927
tNr&
PALMER & CAY
CONSULTING GROUP
Table of Contents
1 Introduction Page 2
2 Compensation and Benefits Strategy Page 4
3 External Competitiveness Review Page 6
4 Job Classification System Design and Administration Page 9
5 Salary Structure Design Page 14
6 Salary Administration Guidelines Page 19
7 Next Steps Page 23
Introduction
Palmer and Cay Consulting Group (PCCG) was retained by the City of Atlantic Beach (the City)
to evaluate its current compensation program and practices. This report presents our findings
and recommendations.
Our proposal for assistance identified the following objectives:
1. Develop a compensation and benefits strategy—a document which provides a framework for
addressing compensation and benefits programs;
2. Conduct an external competitiveness review of compensation and benefits within the City's
external market (note: see separate report for benefits analysis);
3. Develop and implement a job evaluation/classification system for all positions to establish
internal equity;
4. Establish salary ranges in accordance with internal equity (i.e., results of the job
evaluation/classification system) and external competitiveness (i.e., results of the published
survey analysis);
5. Determine placement of positions within the revised pay plan structure;
6. Review the City's current benefits plan(s) and make recommendations for improvement;
7. Develop new job descriptions/class specifications;
8. Develop policies and procedures (i.e., salary administration guidelines) . that are
professionally sound, administratively simple, and cost effective to maintain the integrity of
the recommended compensation program; and
9. Conduct a cost analysis associated with the implementation of the recommended
compensation program.
Palmer&Cay Consulting Group 2
Introduction (continued)
Task Force
We believe that an important role in the consulting relationship is to transfer to the client as
much of our expertise as possible. We recommended that the City designate a Task Force of
representatives from each function to meet with us to provide input for each project step. Based
on our previous experience with other clients, we believe that this project approach encourages
substantial interaction with the client. In addition to facilitating knowledge transfer with respect
to ongoing program administration and minimizing consulting fees, interaction between the
consultant team and our clients helps ensure that:
The PROJECT AND METHODOLOGIES address the appropriate issues,
The PROJECT FINDINGS have been analyzed and interpreted correctly, and
is
The RECOMMENDATIONS are appropriate to meet the City's needs.
The City appointed a Task Force of representatives from each function. In addition to serving as
a member of the Task Force, George Foster, Human Resources Manager acted as the liaison
between PCCG and the City to ensure the successful completion of the project. As the primary
liaison, Mr. Foster arranged for all meetings, collected and submitted to PCCG any required
written documentation, facilitated all communication between PCCG and the City, and reviewed
all written reports submitted by PCCG to the City.
Palmer&Cay Consulting Group 3
Compensation and Benefits Strategy
The design of an effective compensation program begins with an analysis of the organization's
philosophy, culture, and values. In relationship to compensation, an organization's age (i.e.,
entrepreneurial or mature), its industry (i.e., public sector, financial, service, high-tech, etc.), and
its ability to pay effectively all have an impact on the organization's compensation program.
The first step in evaluating an organization's current compensation program is to articulate the
organization's Compensation and Benefits Strategy. The following process steps were taken
prior to establishing a specific Compensation and Benefits Strategy for the City.
Outline Program Goals & Objectives;
40
Define the City's Culture;
4
Define Job Groups;
4
Select Benchmark Jobs;
4
Define the City's Competitive Market(s); and
4'
Establish Positioning of Total Compensation Relative to Market
The proposed Compensation and Benefits Strategy for the City is described on the following
page.
Palmer&Cay Consulting Group 4
Compensation and Benefits Strategy (continued)
Overall Goal. The overall goal of the City's Compensation and Benefits Strategy is to provide
competitive compensation opportunities that reinforce high performance from all employees and
the achievement of organizational goals.
Competitive Market. The primary competitive market for all City positions is defined as both
public and private sector organizations located in surrounding communities to Atlantic Beach.
For management and specialized positions, the competitive market is broader and may include
cities, counties and/or private employers throughout Florida and/or the southeast region of the
United States.
Base Salary. Base salary range midpoints are targeted "at" market levels (i.e., approximately
the
SOth
percentile). Base salary increases will be based on competitive market increases,
performance and the availability of funds. The City's salary structure will be reviewed on an
annual basis to ensure that the program: (1) is externally competitive; (2) meets our employee's
individual needs; and (3) is cost effective for the City.
Benefits. Benefits will be targeted "slightly above" market levels (i.e., approximately the
60t1i
percentile). The City's benefits program will be reviewed on a periodic basis (i.e., every two (2)
years) to ensure that the program: (1) is externally competitive; (2) meets our employee's
individual needs; and(3) is cost effective for the City.
Internal Equity. Our focus on establishing an equitable compensation program is reflected in
our dedication to considering internal equity, as well as market compensation levels, in
establishing base salary ranges. Therefore,job scope and responsibility requirements each play a
key role in determining compensation levels relative to the external market.
Regulatory Compliance. Our compensation program will be designed and administered in
compliance with all laws, and will provide fair treatment for all employees regardless of race,
color, creed, religion, gender, national origin, age, marital status, family status, disability,
military status, sexual orientation or other differentiating factors.
Palmer&Cay Consulting Group 5
External Competitiveness Review
External Salary Survey
External salary surveys are utilized by employers to determine the necessary compensation levels
to attract and retain employees. There are a variety of purposes an external salary survey may
fulfill, including:
Ensuring external equity (i.e., to determine if current salary rates and benefit plans are
sufficient to attract new employees as well as retain current employees);
Validating job evaluation systems (i.e., to determine if they are providing equal pay for jobs
of equal worth and if they have adequate pay differentials for work of unequal worth); and
Regulatory compliance (i.e., justification for pay practices by utilizing market data when
challenged by lawsuits with respect to discrimination).
Benchmark Jobs
Benchmark jobs were identified to be included as part of the external competitiveness review of
the City's current base salary program. Benchmark jobs are defined as jobs that:
Are well-known in similar organizations;
Are relatively stable;
Represent a large portion of the organization;
Are vital to the organization's success; and
In the aggregate, represent the entire structure of jobs from the highest paying positions
to the lowest paying positions.
Palmer& Cay Consulting Group 6
External Competitiveness Review (continued)
Benchmark Jobs (continued)
For this study, the following forty-four (44) benchmark positions were identified primarily by the
Task Force, including Bargaining Unit representatives, and approved by consultants from PCCG.
1. Accountant 23. Human Resource Assistant
2. Accounting Clerk 24. Lab Technician
3. Administrative Assistant 25. Lifeguard
4. Animal Control Officer 26. Maint/Streets Division Director
5. C Operator Water/Wastewater 27. Meter Reader
6. Chief Building Inspector 28. Painter II
7. City Clerk 29. Park Attendant
8. City Manager 30. Park Maintenance Division Director
9. City Planner 31. Permit Clerk
10. Code Enforcement Officer 32. Police Detective
11. Computer Network Administrator 33. Police Lieutenant
12. Customer Service Representative 34. Police Officer
13. Customer Service Supervisor 35. Police Records Clerk
14. Director of Finance & Administration 36. Police Sergeant
15. Director of Public Safety 37. Public Works Director/Engineer
16. Director of Recreation 38. Public Works Inspector
17. Director of Utilities 39. Purchasing Agent
18. Dual Certified Operator 40. Receptionist
19. Emergency Communications Operator 41. Records Maintenance Clerk
20. General Maintenance Worker II 42. Utility Collection/Distribution Operator
21. Heavy Equipment Operator 43. Utility Billing Supervisor
22. HR Manager 44. Utility Plant Division Director
Palmer&Cay Consulting Group 7
External Competitiveness Review (continued)
Published Salary Surveys
We referenced our extensive database of published survey sources to obtain competitive salary
data for benchmark jobs within the City. In selecting published survey sources to use for the
competitive compensation analysis, PCCG sought survey sources that were:
1. Conducted by an independent party;
2. Well-known and conducted on an annual basis;
3. Provided appropriate scope measures;
Preferred scope measures include: size; geographic location; and industry.
4. Provided a list of organizations that participated in the survey; and
5. Provided an "effective date" for which the data was collected.
This is necessary to "age" the data to a common date.
For the external competitiveness review of City positions, PCCG selected survey sources that
met all of the above criteria.
The following published survey sources were utilized to obtain compensation data relevant to the
City's identified competitive labor market:
Survey Sources
Watson Wyatt,ECS Industry Report on Supervisory Management Compensation
Watson Wyatt,ECS Geographic Report on Office Personnel Compensation
Watson Wyatt,ECS Geographic Report on Professional & Scientific Personnel
Compensation
Watson Wyatt,ECS Geographic Report on Technician and Skilled Trades Personnel
Compensation
Florida League of Cities, Cooperative Salary Survey
Economic Research Institute,Database of Survey Sources
Jacksonville Compensation Association,Annual Compensation and Benefits Survey
St John's River Water Management District (Private Salary Survey Compiled by Palmer &
Cay Consulting Group)
Compilation of salary survey data collected by Palmer& Cay Consulting Group for similar
clients.
Published Survey Data Analysis
Overall, the published survey data analysis revealed that the City's current average salaries are
2.6% below market median (50`h
percentile) and 5.4% below market average.
Palmer&Cay Consulting Group 8
Job Classification System Design and Administration
Definition
Job classification involves identifying jobs that are valued similarly from an internal perspective.
The result is a classification structure that includes a number of classifications or grades into
which all jobs are assigned (i.e., each distinct grade includes jobs that are valued similarly from
an internal perspective).
Methodology
The process associated with the job classification began with identifying how jobs should be
valued. PCCG takes the position that "value" in this context should be defined specifically by
each organization. For example, the set of factors utilized by one organization to "value"jobs
may be different than the set of factors utilized by another organization.
While a wide variety of job evaluation alternatives exist, a simplified point-factor job evaluation
approach was selected to value all City jobs. Point factor approaches are the most frequently
used formal evaluation system in the United States. A simplified point-factor approach offers a
number of distinct advantages:
It is quantifiable and therefore more precise than other evaluation approaches, enabling
evaluators to discriminate between seemingly similar jobs.
The resulting evaluation scores make possible a singular base salary structure based upon job
responsibility.
The point-factor system is simple, straightforward and understandable for both staff and
supervisors.
The point-factor system is flexible and easy to maintain properly.
The point-factor system focuses on scope and responsibility rather than the number and
frequency of specific tasks.
The contrast between simplified and complex point factor systems relates to the number of
factors used; whether or not they are weighted; and the number of degree statements for each
factor. We consider the recommended program to be simpler because it essentially gives each
level under each factor an equivalent rating and limits the number offactors to those that were
considered to representative of the entire spectrum of City job classifications.
Palmer&Cay Consulting Group 9
Job Classification System Design and Administration (continued)
Methodology (continued)
One of the first steps when undertaking a point factor job evaluation study is to identify appropriate
and applicable job evaluation factors for purposes of rating and ranking job classes. Job evaluation
factors, or "compensable factors", are those elements or dimensions an employer recognizes for
purposes of establishing a job structure and, therefore, the determination of relative pay levels.
In identifying job evaluation factors, the following principles were applied:
Important elements of every job were measured by one or more factors;
Each factor has some relationship to job difficulty or job value;
The factors are explainable;
Each factor is measurable;
No two factors measure essentially the same characteristic; and
The total number of factors is limited in proportion to statistical significance and administrative
requirements.
Based on our understanding of the positions within the City and input from the Task Force,
PCCG identified the following eleven (11) factors as appropriate for the City's use in job
classification. Each of the degrees under these factors received equal weighting in terms of our
analysis and in the development of recommendations (i.e., one point for each level under each
factor).
Education
Experience
Complexity of Analysis
Consequence of Error
Decision-Making Responsibility
Inside/Outside Contacts
Risk/Safety Demands
Independence of Action
Work Environment
Strategic Visioning
Type of Supervision
Palmer&Cay Consulting Group 10
Job Classification System Design and Administration (continued)
Once the classification factors were identified, we utilized the following sequence of steps to
develop the classification structure:
A job evaluation questionnaire was made available to all employees covered under the scope
of this project; PCCG input the results into a computer program, which resulted in a
preliminary assignment of jobs into a classification structure.
Supervisors then reviewed the input provided by each of their direct reports and provided.
comments to PCCG.
PCCG incorporated the comments provided by supervisors into the computer program
containing the employee's input.
PCCG then developed a hierarchy of positions from high to low based on input from
employees, supervisors, and experience in developing compensation programs in both the
public and private sector.
Palmer&Cay Consulting Group 11
Job Classification System Design and Administration (continued)
Outputs
The process resulted in all positions being assigned to one of fourteen (14) grades within the
classification structure. The point spread for each salary grade is as follows:
Po1,441 ,,.0 Pax
t" .Total Grade'',
15 - 20 12
21 - 22 13
23 - 24 14
25 - 26 15
27- 28 16
29 - 30 17
31 - 32 18
33 - 34 19
35 - 36 20
37 21
38 22
39 23
40 24
41 25
Palmer&Cay Consulting Group 12
Job Classification System Design and Administration (continued)
Ongoing System Administration
With regards to ongoing administration of this system, the factors in the Job Evaluation
Questionnaire should be utilized to assign a total number of points based on the responses for
each of the twelve factors. For example, if an A.A. degree or equivalent vocational/technical
training (i.e., 2 years formal education) is required for a position, this is the third level and would
be assigned 3 points for the "Education" job factor. Once the points have been totaled for all
twelve factors, the job can then be assigned an appropriate salary grade according to the total
points.
In order for the job classification structure (i.e., placement within the salary ranges) to have
continuing value, it should be kept up to date. While some organizations choose to delegate all
future system administration to a cross-functional Classification Committee, we recommend the
Human Resources Department continue to handle re-classification requests.
Palmer&Cay Consulting Group 13
Salary Structure Design
Salary Structure Design
A salary structure was developed based on both external survey data and internal equity. All
positions were then assigned to a salary range based on their point totals from the job evaluation
process. Specifically, the following process steps were followed:
Benchmark jobs utilized for the City external market analysis were grouped by position
totals.
A regression analysis was run based on point totals versus external market data.
An average competitive salary was determined for each grade based on assigned benchmark
jobs and point totals.
Salary range midpoints were established for each grade based on (1) the midpoint of
competitive salaries associated with each grade; (2) the City's compensation strategy; and (3)
the philosophy that there should be relative consistency in the percentage spread between
midpoints. The midpoint differential between each salary grade ranges from 9%to 14%.
Salary range minimums and maximums were established based on midpoints and resulted in
a spread of 50% to 67% from minimum to maximum for all salary grades.
The difference in midpoint differentials and salary range spreads was supported by the
external market data.
Palmcr R. C' .!',-nol df nn r_.. 4
Salary Structure Design (continued)
Recommended Salary Structure
Range Spread
For Grades 20 - 25, the minimum of each range has been calculated at 75% of the
midpoint, and the maximum of each range has been calculated at 125% of the midpoint,
for a 67% range spread.
For Grades 12 - 19, the minimum of each range has been calculated at 80% of the
midpoint, and the maximum of each range has been calculated at 120% of the midpoint,
for a 50%range spread.
Midpoint Differential
The midpoint differentials range from 9% to 14% and are supported by external market
data.
Point Salary Salary Range-Annual Salary Range Hourly
Total Grade Minimum Midpoint Maximum 11 Tinimum'FMidpointMaximum
15 - 20 12 $ 16,361 S 20,451 $ 24,542 $ 7.87 S 9.83 S 11.80
21 - 22 13 $ 17,834 IS 22,292 1 $ 26,751 $ 8.57 S 10.72 $ 12.86
23 - 24 14 $ 19,439 $ 24,298 $ 29,158 $ 9.35 .5 11.68 $ 14.02
25 - 26 15 $ 21,188 $ 26,485 $ 31,782 $ 10.19 S 12.73 S 15.28
27 - 28 16 $ 23,095 $28,869 $ 34,643 $ 11.10 S 13.88 S 16.66
29 - 30 17 $ 25,174 IS 31,467 $ 37,761 $ 12.10 S 15.13 S 18.15
31 - 32 18 $ 27,439 $;34,299 $ 41,159 $ 13.19 5 16.49 S 19.79
33 - 34 19 $ 29,909 S 37;386 $ 44,863 $ 14.38 S 17.97 $ 21.57
35 - 36 20 $ 31,404 5 41,872 $ 52,341 $ 15.10 5 20.13 $ 25.16
37 21 $ 34,231 $ 45,641 . $ 57,051 $ 16.46 S 21.94 S 27.43
38 22 $ 38,338 S 51,110 $ 63,897 $ 18.43 S 24.58 $ 30.72
39 23 $ 42,939 S 57,252 $ 71,565 $ 20.64 5 27.53 -' $ 34.41
40. 24 $ 48,092 S 64,122 $ 80,153 $ 23.12 S 30.83 IS 38.54
41 25 $ 54,825 $ 73,099. $ 91,374 $ 26.36 S 35.14 S 43.93
Note: Salary structure is based on a 2080/hr work year.
Palmer&Cay Consulting Group 15
Salary Structure Design (continued)
Following is the proposed assignment of the City jobs within the recommended salary strictures.
Salary Rang_e -Annual Salary Range - Hourly
Point Salary
Position Title Total Grade Minimum Midpoint Maximum Minimum Midpoint Maximum
Director of Finance&Admin 41 25 $ 54,825 $ 73,099 $ 91,374 $ 26.36, $ ` 35.14 $ 43.93
Director of Public Safety 41 25 $ 54,825 $ 73,099 $ 91,374 $ 26.36`.$< 35.14` $ 43.93
Public Works Director/Engineer 41 25 $ 54,825 $ 73,099} $ 91,374 $ 26.36 $ 35.14 $ 43.93
Utility Director 41 25 $ 54,825 $ 73,099 $ 91,374 $ 26.36 $ 35,14 $ 43.93
Deputy Police Chief 40 24 $ 48,092 $ 64,122 $ 80,153 $ 23.12 $ 30.83 $ 38.54
Chief Building Inspector(Building Official) 39 23 $ 42,939 , $ 57,252 $ 71,565 $ 20.64 $ 27.53, $ 34.41
HR Manager 39 23 $ 42,939 $ 57,252" $ 71,565 $ 20.64 i $ 27.53 $ 34.41
Recreation Director 39 23 $ 42,939 $ 57,252 $ 71,565 $ 20.64 ' $ 27.53 $ 34.41
Utility Plant Div Dir 38 22 $ 38,338 ' $ 51,118` $ 63,897 $ 18.43 $ 24.58 $ 30.72
Police Lieutenant 38 22 $ 38,338 S 51,1 1 H $ 63,897 $ 18.43; $ 24.58 $ 30.72
Deputy Finance Director 38 22 $ 38,338 $ 51,118 $ 63,897 $ 18.43 $ 24,58 $ 30.72
Planning,Zoning and Community Director 38 22 $ 38,338 $ 51,118 $ 63,897 $ 18.43- $ 24.58 $ 30.72
Police Sergeant 37 21 $ 34,231 $ 45,641 $ 57,051 $ 16.46 i.$ 21.94 $ 27.43
Computer Network Administrator 37 21 $ 34,231 $ 45,641 $ 57,051 $ 16.46E $ 21.94 $ 27.43
Technical Designer 37 21 $ 34,231 -$ 45,641 $ 57,051 $ 16.46 $ 21.94 $ 27.43
Maint/Streets Division Dir 35 20 $ 31,404 $ 41,872 $ 52,341 $ 15.10 $ 20.13 $ 25.16
Water Plant Superintendent 35 20 $ 31,404 $ 41,872; $ 52,341 $ 15.10: $ 20.13 $ 25.16
Util. Collect/Distrib Supervisor 34 19 $ 29,909 $ 37,386' $ 44,863 $ 14.38 $ 17.97, $ 21.57
Police Detective 33 19 $ 29,909 -$ 37,386. $ 44,863 $ 14.38 $ 17,97 $ 21.57
Police Officer 33 19 $ 29,909 $ 37,386 $ 44,863 $ 14.38 $ 17.97 $ 21.57
Accountant 33 19 $ 29,909 $ 37,386 $ 44,863 $ 14.38 $ 17,97 $ 21.57
Deputy Building Official 33 19 $ 29,909 $ 37,386 $ 44,863 $ 14.38 $ 17.97' $ 21.57
Wastewater/Water Operator III/IV 33 19 $ 29,909 $ 37,386 $ 44,863 $ 14.38 $ 17.97 $ 21.57
Public Works Inspector 32 18 $ 27,439 , $ 34,299 $ 41,159 $ 13.19; $ i 16.49 $ 19.79
Park Maintenance Div Director 32 18 $ 27,439 $ 34,299' $ 41,159 $ 13.19 . $ 16.49 $ 19.79
Utility Billing Supervisor 31 18 $ 27,439 $ 34,299; $ 41,159 $ 13.19 $ 16.49 $ 19.79
Wastewater/Water Operator I/II 31 18 $ 27,439 $ 34,299 $ 41,159 $ 13.19 $ 16.49 $ 19.79
Crew Chief 31 18 $ 27,439 $ 34,299 $ 41,159 $ 13.19. $ 16.49 $ 19.79
Palmer& Cay Consulting Group 16
Salary Structure Design (continued)
Following is the proposed assignment of the City jobs within the recommended salary structures (continued).
s ,k S '• Salary Range Annual Salar Range-Hourly34
7 mak " 'I r P
X34
r,..' imp $ ..
44,
v .,
3 Poi•nt Saa s
Position Title a Total, „Grade' ;Minimum Midpoint Maximum ;; Minimum Midpoint Maximum=-.
Administrative Assistant 30 17 $ 25 174
t $
31,407 $ 37.761 $ 12.10,$,.:„,:,1P:13 $ 18.15
Human Resource Assistant 30 17 $ 25.1 74 '$ z 31,467 $ 37,761 $ 12.10 $ '15 13f $ 18.15
Code Enforcement Officer 29 17 $ 25 174 ,•$ 31,467' $ 37,761 $ 12.10 $ 15 13 $ 18.15
Emergency Comm. Operator Super 29 17 $ 25,174 '3,467 $ 37,761 $ 12.10 r$ °15 13" $ 18.15
Purchasing Agent 29 17 $ 25,174 I$ 31,467 $ 37,761 $ 12.10 r.$ 15.13 $ 18.15
Beautification Division Chief 28 16 $ 23 095 $ 2,8,869 $ 34,643 $ 11.10; $ ;13,88; $ 16.66
Cross Connect Admin/GIS Tech 28 16 $ 23 095 „
4„:,.',•,,,'1,;,:-..',
25.--609,,,,i $ 34,643 $ 11.10 $ 13 88 $ 16.66
Lab Technician-PT 27 16 $ 23 095ri'S'::::!:;,f,.;;':',20.,49?. ,,j9 $ 34,643 $ 11.10 $ ,-'13 88 $ 16.66
Customer Service Supervisor 27 16 $ 23 095
i+$
28.869 $ 34,643 $ 11.10
r $ '.
13 88 $ 16.66
Mechanic II 27 16 $ 23 095 $ 28,869 $ 34,643 $ 11.10 $ -.13 88 $ 16.66
Util. Collect/Distrib Operator 27 16 $ 23,095,_$ 28,869,: $ 34,643 $ 11.10 Vi.$ >13 88 $ 16.66
Heavy Equipment Operator 27 16 $ 23,095,C',,,$."::-.',;:
o6
28,869 $ 34,643 $ 11.10 $ `13.88 $ 16.66
Painter II 26 15 $ 21 188 $ 26 485, $ 31.782 $ 10.19;-,,t,;,,,....12,73), 15.28
Emergency Communications Oper 25 15 $ 21 188'•$ 26 485 $ 31,782 $ 10.19 $ 12 73 $ 15.28
Secretary 25 15 $ 21,188 $ +,26,485 ,.$31,782 $ 10.19',..:',
i'' ''''1')-68.,,1
12 73 $ 15.28
Life Guard Captain 24 14 $ 19 439 ,$ 24,298 $ 29,158 $ 9.35 $ 11 68 $ 14.02
Dispatcher/Public Works 23 14 $ 19,439 -$ 24,298 $ 29,158 $ 9.35 $
x:
11,68' $ 14.02
Summer Camp Counselor(Recreation Coord) 23 14 $ 19 439 $ 24 298 $ 29,158 $ 9.351 $ 11 68 $ 14.02
Records Management Clerk 23 14 $ 19 439 24,298 $ 29,158 $ 9.35!$'c''''',:::,''..::;•1!i-:.'6,,,,..,6,:11 14.02
Animal Control Officer 23 14 $ 19 439 ;'.!'$',...1:::,:' ''," 4,,,,,,,--,,,
A`
2 ,2 = s;29,158 $ 9.35168 $ 14.02
Beautification Coordinator-PT-(Board Liaison)2314 $ 19,439
ilf$ 24,29 $ 29,158 $ 9.35 $ '11 ; $ 14.02
Police Records Specialist 22 13 $ 17.63 4 $ 2 292, $ 26,751 $ 8.57‘2:',,41.4, -,1?,'
1Q 7 y $ 12.86
Gardener 22 13 $ 17,834 2 ,292 $ 26,751 $ 8.57 $ 10 72' $ 12.86
Building Permits Technician/Clerk II 22 13 $ 17 834 ,$ 22 292 $ 26,751 $ 8.57 $ '1Q 72' $ 12.86
Life Guard 22 13 $ 17 834 $' 22,292 $ 26,751 $ 8.57 4ri,$ 10 72 $ 12.86
Accounts Payable Clerk 21 13
t -,,
Y 17 834 $ 22 292= $ 26,751 $ 8.57 $ 1Q 72 $ 12.86
General Maintenance Worker II 21 13 $ 17,8-4 $ 22,292 $ 26,751 $ 8.57 $ti '10,72• $ 12.86
Painter I 21 13 $ 11.0'34 29 $ 26,751 $ 8.57$
k _:
10 72 $ 12.86
Park Attendant 21 13 $ 1.7_,.8n3,7 834:::,..
t,,,:,,,,i.:,:::,g,,,,..2:,;:;
74-4:
1
2 26,751 $ 8.57 $ 10 72 $ 12.86
Utility Billing Specialist2113 $ 17,834 r. t , $ 26,751 $ 8.57,,$.„•,1b 72. $ 12.86
up 17Palmer&Cay Consulting Gro
Salary Structure Design (continued)
Following is the proposed assignment of the City jobs within the recommended salary structures (continued).
Salary Range -Annual Salary Range - Hourly
Point Salary
Position Title Total Grade Minimum Midpoint Maximum Minimum Midpoint Maximum
Customer Service Rep 20 12 $ 16,361 t $ 20,4511 $ 24,542 $ 7.87; $ 9.83 $ 11.80
Meter Reader 20 12 $ 16,361 $ 20,4511 $ 24,542 $ 7.87 $ 9.83' $ 11.80
Police Records Clerk 20 12 $ 16,361 $ 20,451' $ 24,542 $ 7.87 $ 9.83 $ 11.80
Recreation Leader 20 12 $ 16,361 ' $ 20,451:4. $
24,542 $ 7.87: $ 9.83: $ 11.80
Receptionist 17 12 $ 16,3611 $ 20,451: $ 24,542 $ 7.87 s $ 9.83` $ 11.80
School Crossing Guard 16 12 $ 16,361 _ $ 20,4511 $ 24,542 $ 7.87- $ 9.83; $ 11.80
Palmer&Cay Consulting Group 18
Salary Administration Guidelines
Maintaining the Salary Structure
The salary structure should be adjusted on an annual basis in line with WorldatWork's (formerly
American Compensation Association)Annual Salary Increase Budget Survey and/or comparable
survey data. For example, if the WorldatWork data indicates an average three percent salary
structure adjustment for the public sector in the southeast region, all City salary ranges should be
adjusted by three percent, if economically feasible. Note: this is a salary structure adjustment--
not an individual salary adjustment. Employees' annual increases should be independent of the
salary structure adjustment.
Cost of Salary Structure Implementation
The current base salary of each employee was compared with the salary range associated with
their classification. The cost associated with base salary increases to immediately implement the
proposed salary structure (i.e., bring all employees to at least the minimum of their new pay
grade), is $58,267.
Address Salary Compression Issues
An analysis was run to determine whether or not pay compression would occur with the adoption
of the recommended salary structure. Pay compression occurs when the pay differences between
employees are too small. For example, supervisors and subordinates may have comparable
salaries because of the close proximity of pay ranges and the greater seniority of the subordinates
or when a highly tenured employee has a similar salary to a newly hired employee. Salary
compression can occur slowly over time when the ratio of salaries between and within job levels
decreases due to adjustments to policies or to the pay structure. According to the Bureau of
National Affairs, compression may occur when:
An organization with adequate pay ranges adjusts those ranges by an equal dollar amount—
This adjustment reduces pay differentials because lower-paid employees receive a
proportionately higher increase then the higher-paid employees.
The market price of labor increases — As wages in the labor market rise, employers must
pay more to new hires in order to bring on qualified personnel. Present employees may
perceive a compression problem if they are not given increases to put them on par with the
new hires.
Overtime pay is paid to subordinates — The Fair Labor Standards Act requires that
nonexempt employees be paid time-and-a-half for hours worked over 40 per week.
Subordinates who work a substantial amount of overtime may raise their pay to the level of
their exempt supervisors. Pay inequity may cause the supervisors to be dissatisfied and may
reduce the incentive of rank and file to seek job advancement.
Palmer&Cay Consulting Group 19
Salary Administration Guidelines (continued)
Automatic pay increases can result in subordinate employees with seniority earning as much
or more than their supervisors with less seniority — This anomaly may discourage
employees from seeking higher level jobs since there would be little incentive for taking on
additional responsibilities and create the appearance that supervisor's jobs are undervalued by
the organization.
To address pay compression we implemented the following formula to appropriately place
current employees within their new pay ranges.
Cost to midpoint
We separated the distance between the minimum and the midpoint in seven (7) equal percentage
increments. We then placed employees at each increment based on years of service (i.e., less
than one year of service was at least at the minimum, one year of service equated to at least the
first increment, etc.) in their current position or left their salary the same, whichever was greater.
For employees with seven or more years of service in their current position we placed the
employees at approximately the midpoint of the range (i.e., slightly under due to equal
percentage increments) or left their salary the same, whichever was greater.
The estimated cost associated with salary increases to adjust employees up to the midpoint of
their assigned salary range (based on tenure in position) is $126,832.
Promotions
Definition. A promotion is the advancement of an employee from his or her current position to
another open job, with greater responsibilities, in a higher pay grade. The promotion is based on
documented, demonstrable increase in the scope of work. The granting of a different title alone,
without a change in pay grade, does not warrant a promotional salary increase.
Salary Adjustments. An employee who receives a promotion to a higher salary grade (either by
taking on a new position or the employee's current position is reclassified to a higher salary
grade) should receive a salary increase at the time the promotion becomes effective, to at least
the minimum of their new pay range or an amount equal to the percentage difference between the
current and new grade midpoints, whichever is greater.
Palmer& Cay Consulting Group 20
Salary Administration Guidelines (continued)
Calculating a Promotional Increase. Since a promotional increase is granted to recognize the
assumption of additional job duties and responsibilities, the size of the increase is calculated as a
function of the size of the promotion, rather than as a percentage of current salary. The formula
used to calculate the promotional increase is as follows:
New Midpoint—Current Midpoint
Current Midpoint Promotional Increase Amount (%*)
Or
an increase to the minimum of the new pay grade, whichever is greater.
Not to exceed 12% unless required to bring employee's salary to the
minimum of the new pay grade.
Demotions
Demotions are defined as reductions in job duties and responsibilities that result in a salary grade
reduction. When an employee is demoted, the employee will receive a decrease in pay equal to
the midpoint differential between the pay grade their job is currently assigned and the newly
assigned pay grade. The formula used to calculate the salary decrease associated with a
demotion is as follows:
New Midpoint— Current Midpoint
Current Midpoint Decrease Amount (%)
Or
a decrease to the maximum of the new range, whichever is greater.
Exceptions to a reduction in pay as a result of an involuntary or non-disciplinary demotion may
be made upon approval of the City Manager.
Lateral Transfers
If or when an employee is either recruited to or assigned another job within the same salary grade
and with essentially the same job responsibility level, he/she will remain at their current salary
level and salary grade to which they are currently assigned.
Palmer&Cay Consulting Group 21
Salary Administration Guidelines (continued)
Trainee Status
If a qualified applicant cannot be found to fill a position, the position may be temporarily
converted to "trainee" status at one (1) grade below that of a permanent position.
a. Starting Rates:
1) If the "trainee" position is filled with an outside applicant (new hire), the starting
salary will be set at the minimum of the grade.
2) If a current employee is promoted to a "trainee" position, the employee will not
receive an increase in salary, unless current hourly rate is below the minimum of the
new range.
b. Merit Increases:
Employees in a"trainee" status are eligible for a merit increase.
c. Promotional Increases:
Upon completion of the "trainee" program, the employee will receive the applicable
promotional increase, or an increase to the minimum of the salary range of the regular
position grade, whichever is greater.
Working Out of Class
Any employee in a permanent position assigned to work in a higher vacant position, or in the
place of an employee who is on personal leave, sick leave, etc., for forty (40) or more hours
within a two (2) week period and who is performing substantially all of the duties of the higher
classification will be paid the starting rate of the higher classification or receive an increase equal
to the midpoint differential of their current grade and the grade of the position they are assigned
to work, whichever is greater.
Annual Appraisals
Managers must prepare and discuss with their immediate subordinates a formal, written
assessment of their performance at a minimum of once per year. The annual performance
appraisal is conducted to assess the employee's performance with respect to established core
responsibilities, achievement of agreed-upon goals, demonstrated commitment to the City's
values and expected behaviors, and overall potential for continued growth. Performance
appraisal results are used to determine the annual performance adjustment to base pay.
Employees who meet and/or exceed expectations are eligible for an annual salary increase.
Palmer&Cay Consulting Group 22
Next Steps
We recommend that the following steps be taken as a result of this study:
1. Implementation of Recommendations
Adopt the recommended compensation and benefits strategy
Adopt the recommended base salary structure and the assignment of each position into a
salary range
Adopt salary administration guidelines
Salary Adjustments:
1) Bring employees to the minimum at the adoption of the new salary structure
2) Implement within range equity adjustments (i.e., address pay compression) as soon as
economically feasible, preferably within the fiscal year.
2. Formal Communication Plan
After the adoption of the final report the City should communicate in writing to all employees
the outcome of the study. At a minimum the following should be communicated:
The adopted compensation and benefits strategy.
The employee's newly assigned range.
Palmer&Cay Consulting Group 23