Classification and Compensation Study
In October, 2022, City Administration and the Department of Human Resources were provided a high-level overview of the city-wide compensation study (excluding public safety – which had a similar study completed previously), including recommendations by Arthur J. Gallagher, Human Resources and Compensation Consulting. The objectives of the study still remain the same, which is to ensure that our job classification system is accurate and our compensation structure system aligns with the labor market. Through use of this study, it is our goal to take actions that continue to retain and attract employees; ensure fair and equitable compensation that aligns with the city’s Diversity, Equity and Inclusion values, and ensure competitiveness with the external market.
As shared with employees in November, 2022, it was no surprise that the study revealed that we are behind the market with many positions. It also revealed that some positions remain competitive within the market and in some instances lead the market. Several scenarios were provided by Gallagher to address compensation gaps with base costs varying from a few million to upwards of $15 million. This is not unlike the implementation of the Public Safety Step Plans, the costs were great and needed to be implemented in phases over three years, a process that is wrapping up FY 24. Likewise, we anticipate this being necessary in implementing the results of this study.
During the process of implementing our compensation study, we are working to be as transparent as possible and share updates when feasible. We are pleased to share that we have advanced on some of the recommendations from Gallagher by utilizing “seed money” that was available in the current budget year to address priority needs in this calendar year. Further implementation will need to be included in budget proposals for FY 24 , FY 25, and FY26.. In this fiscal year, the "seed money" has allowed us to start addressing compensation which we've referred to as our "head start". Under our "head start" efforts we have begun addressing compensation by raising positions to their new minimum salary for meeting the market. These adjustments have impacted 13 positions within our 360+ positions in the job classification and impacted over 150 employees. As we continue to review the Gallagher data, it is our goal throughout the next few years to raise positions to the new market minimum for their position and to work towards advancing employees to their target salary destination. This is the goal; however, it's important to remind employees that this is also contingent upon city revenues and City Council approval.
Attached you will find a copy of the Gallagher Study Final Report. Click here.
To assist employees with identifying their anticipated new salary market minimum for their position, see the attached proposed pay plan along with list of positions in our job classification by clicking here.
Please remember that the overall intent of the compensation study is to ensure that our positions and employee compensation are competitive with the market. We are committed as an employer to seeing this project thru and will do our best to keep you updated as we move forward.
Thank you for your support and patience as we continue this journey to address compensation.