Fort Walton Beach Resolution — 01-20 - Pay & Classification Study — reading text

wage a linear regression program, This data with a quantitative job analysis of each position through the mid-points of the survey data, The proposed salary integration has produced a pay line based upon as a model. was then built using the integrated database structure for all employees of the organization market value" produces a compensation structure The integration of "internal job value" with " as well as internally equitable, This approach that is balanced and that is both externally competitive,  City of Fort Walton Beach Classification & Compensation Report Report & Recommendations The integration of "internal job value" with " market value" produces a compensation structure 0.... that is balanced and that is both externally competitive, as well as internally equitable. This approach does not overvalue or undervalue the labor market, but simply treats it as one element in the process of developing an overall compensation plan. dIi Proposed Pay Plan The pay schedule recommended for the City's positions is one integrated plan that includes 36 75% in width. Pay pay grades. It is consistent with the market, with pay ranges of approximately grades are by 25 point increments, as dictated by the integration of the job factor values and separated the market data, within the software program. At Exhibit 1 is the proposed Grade Order listing. Any recommended At Exhibit 6 is the installation schedule with newly assigned pay ranges. adjustments for part- time employees are based on their respective full-time equivalency. Implementation costs are provided for two viable options. Option 1: Moving all employees to their respective pay range minimums, with a 2.50% COLA, would yield an increase to the current base salary with the III budget of $341, 018. Option 2: Adjusting employee salaries to a designated step placement, 2. 50% COLA, (which includes the cost to minimum) would result in a $ 446, 802 increase to the current base salary budget. The total cost of the adjustment to the recommended new pay scale, then, is ill 238, 704. Although option one is a viable implementation option, the downside of adjusting employee salaries to their pay grade minimums only is the resulting " salary compression" -- employees' salaries clustered around the minimums, both current and eventual new hires. Some organizations may opt to adjust salaries up to the midpoint of the range as this is considered the " market value" of job. Pay a rates between minimum and mid- point are considered appropriate for employees moving towards " full- is to adjust proficiency" ( mid-point being fully proficient). The recommended approach for the City employees' salaries for step placement. Future Adjustments to the Plan To maintain overall currency, the pay structure should be adjusted each year, ( CPI) dependent upon local market conditions. Every two or three years, the organization should re- survey the benchmark positions. The same benchmarks and labor market should be used. Surveys for individual individual positions does positions should, for the most part, be avoided. Specialized survey data for not take into consideration the relationships among all of the positions that is currently reflected in the will be quickly invalidated proposed, comprehensive compensation plan. Relationships among positions if" spot" surveys are allowed to set the rate of individual positions. '  City of Fort Walton Beach Classification & Compensation Report Report & Recommendations I If sufficient change occurs to warrant reclassification, compare the duties to those previously reported, DMG- MAXIMUS should be contacted to place the new positions in the pay plan. i' . III Salary Administration Guidelines based It is recommended that the City Manager establish salary levels and annual salary adjustments on performance for the City' s department heads. The salary administration guidelines set forth below are intended for and applicable to those employees' whose classification falls outside the designation of department head. Adjusting salaries below the salary grade minimum: In general, if a current salary is below a minimum level for the particular salary grade, an all salaries up to the minimum at the adjustment should be made. Some organizations bring and make adjustments beginning of the fiscal year, Others review each situation individually the minimum, We recommend that through the next fiscal year to bring all salaries up to the appropriate level at individual salaries that fall below the new grade minimum be increased to economically feasible, is not the time the new structure is adopted, if economically feasible, If it an their implementation plan should be designed and adopted to move the individuals rapidly within assigned range. Adjusting salaries above the salary grade maximum: established rate for its salary grade, However, Typically, no job is worth more than the maximum In such cases, incumbents may be worth more than the maximum rates of the jobs they occupy. should not be raised above the ximum of the job ma.. they may be underutilized, and their salaries their duties and responsibilities they occupy. Instead, consideration should be given increasing to or moving them to another job, most employers do In such cases where salaries exceed the maximum levels of the salary range, not reduce the salary ofthe incumbent, but rather establish policy a to: structure itself results in Freeze the incumbent' s pay until upward adjustment to the base salary the maximum for the range exceeding the incumbent' s pay, Further increases can then be made up to the range maximum; the incumbent average to Grandfather" the incumbent ( Le., live with the situation, giving leaves the Organization); below average increases until the incumbent changes jobs or  City of Fort Walton Beach Classification & Compensation Report Report & I Recommendaions the new range, then the employee' s salary will be frozen until such time as the salary range is 4 . adjusted higher than the employee' s salary. We recommend that the following steps be taken as a result of this study: 1. Implementation of Recommendations Adopt a compensation strategy, Adopt a base salary structure and the assignment of each position into their recommended ranges, Adopt salary administration guidelines. Salary Adjustments: 1) At least bring employees to the minimum in an expedient manner. 2) Consider within range equity adjustments ( address pay compression), In addition to the compensation and classification review, a general review of City sponsored benefits was also conducted, The results of the review indicate that the benefits provided by the City are comparable to those provided by other agencies surveyed, Therefore, no changes are recommended to the City's current benefits package, After the adoption of the final report, the Organization should communicate in writing to all employees the outcome of the study, At a minimum the following should be communicated: The