Classification and Compensation Plan Review and Update

Transcription

1 MEMORANDUM TO: VIA: FROM: Board of Commissioners Personnel Committee Orah L. Reed, Director of Human Resources DATE: August 22, 2014 SUBJECT: Classification and Compensation Plan Review and Update Background Glynn County s current Classification and Compensation Plan (Pay Plan) structure was implemented in February The Pay Plan was designed by MAXIMUS, INC. with guidance provided the County s Classification and Compensation Committee. MAXIMUS, INC. specialized in human resources solutions and partnered with The Archer Company and utilized the Archer Factor Analysis Classification and Compensation System to establish pay plans. One of the main recommendations made by the consultants at MAXIMUMS was regular maintenance and adjustment of the pay plan to ensure its viability as a long-term solution to the County s compensation needs. This included A comprehensive job analysis and evaluation of new jobs as they are added to the plan and of current jobs that change to determine proper grade placement and salary ranges; Annual adjustment of the pay ranges to maintain parity with the competitive market; A more complete analysis and assessment of the market every three to four years by updating the salary survey and redrawing the pay line. Since implementation of the current Pay Plan, the Human Resources Department has conducted wage surveys every two years to compare the County s salaries to that of other local governments and has made recommendations for adjustments. As a result, the Pay Plan has been adjusted two (2) times: July 2004 and July The Pay Plan was adjusted again in December Employees received increases in their salaries for each adjustment to the Plan. Although the Pay Plan has been adjusted it has not maintained parity with changes in the market. In order to maintain a qualified and motivated workforce, the Pay Plan has to be competitive. A comprehensive review of the Pay Plan will provide Glynn County with the necessary information to properly update it. The Human Resources Department requested proposals to update the Pay Plan

2 from The Archer Company, Condrey and Associates and Fox Lawson & Associates. These firms specialize in human resources consulting including classification and compensation plans. Proposals were received from The Archer Company and Condrey and Associates. Proposals The Archer Company s proposed scope of work includes the following: Review and update of their analysis of County positions to ensure that the classification structure reflects current duties and responsibilities; Re-evaluate classifications using the Archer Job Evaluation System and rebuild internal equity; Review and update of the County s class specifications (job descriptions); Conduct a market survey and analysis for the County and recalculate the pay line and salary ranges; Assist the County with the development of an implementation strategy and identification of implementation costs; Review the findings and draft recommendations with the County Manager and department directors to validate findings and ensure issues are addressed; and Prepare a final report showing classifications, pay grades, updated salary ranges and implementation costs. The project will take approximately four (4) to six (6) months to complete at a cost of $19,680. The Condrey & Associates proposed scope of work includes the following: Develop Work Plan and Schedule of Activities Job Analysis Survey o Develop a detailed questionnaire for completion by position incumbents; o Conduct interviews and job audits to ensure adequate data collection for job analysis ; o Develop job description Job Evaluation Develop a Compensation Structure o Conduct salary survey including up to 25 organizations and 40 benchmark positions; o Collect, review and format published salary data covering relevant public and private sector organizations Develop a Pay Plan o Establish recommended pay grades based on job evaluation results and wage survey o Establish pay steps or ranges in each grade Implement and Administer the Program o Recommend series of career ladders as appropriate o Determine the proper FLSA designation of each position o Present alternative plans to ameliorate salary compression o Provide ongoing technical assistance necessary to maintain the program. The project will take approximately five (5) months to complete at a cost of $74,500. The proposal by Condrey and Associates requires a complete overhaul of the County s Pay Plan, thereby costing more than The Archer Company s proposal. The proposal by The Archer Company builds on the work they conducted in to establish the current Pay Plan.

3 Alternatives 1. Approve contracting with the Archer Company to review and update the County s Pay Plan at a cost not to exceed $19, Approve contracting with Condrey & Associates to update the County s Pay Plan at a cost not to exceed $74, Take no action. Recommendation Staff recommends Alternative 1 approve contracting with The Archer Company to review and update the County s Pay Plan at a cost not to exceed $19,680. Funding Source The County Administrator s Contingency Fund. Recommended Motion for the Personnel Committee I move to recommend that the Board of Commissioners approve contracting with The Archer Company to review and update the County s Pay Plan at a cost not to exceed $19,680 with funding to come from the County Administrator s Contingency Fund. Recommended Motion for the Board of Commissioners I move to approve contracting with The Archer Company to review and update the County s Pay Plan at a cost not to exceed $19,680 with funding to come from the County Administrator s Contingency Fund. Thank you.

4 August 21, 2014 Corporate Headquarters: Charlotte, NC / Rock Hill, SC 454 South Anderson Road, BTC 556 Rock Hill, South Carolina (803) Fax (803) Atlanta, Georgia: 5342 Wendwood Rd, SW Conyers, Georgia (770) Columbus, Ohio: 7652 Sawmill Rd, Suite 295 Dublin, Ohio (614) Chicago, Illinois: 1033 Skokie Blvd, Suite 350 Northbrook IL (847) Orah Reed, Director Glynn County Human Resources 1725 Reynolds Street Brunswick GA Re: Proposal to Update Glynn County s Pay Plan Dear Orah: The Archer Company is pleased to offer our services to update Glynn County s pay plan, which was originally developed using the Archer System and is maintained by the County with assistance from the Archer Company. We continue to enjoy a cooperative relationship between our organizations, and we hope to help the County maintain the integrity of its pay plan well into the future. This letter serves to summarize the services to be provided as part of the proposed study. The proposed scope of work follows the same methodology that would be used to start from scratch and conduct a comprehensive classification and compensation study; however our working relationship with the County makes it possible to streamline the steps and provide these services in a more cost-efficient manner. We will work with the County to make sure the recommendations support operational needs and align with the philosophies of the current administration. A National Human Resources Management & Organizational Development Consulting Firm The proposed scope of work is as follows: 1. Review and update our analysis of County positions to ensure that the classification structure reflects current duties and responsibilities: The Archer Company will: (1) work with Human Resources to obtain a better understanding of operations, classification needs, and utilization of positions; (2) solicit input from County management and department directors regarding the pay plan (what is working, what inequities may exist, how better to structure the plan to support operations, etc.); and (3) recommend changes to classifications as appropriate (add, delete, and/or redefine classifications). Employees may be asked to review their existing job descriptions and/or complete questionnaires as appropriate; employees in new positions or positions which have changed significantly may be asked to complete a questionnaire. 2. Re-evaluate classifications using the Archer Job Evaluation System and rebuild internal equity: The Archer Company utilizes the Archer Matrix Point-Factor Job Evaluation System to objectively measure and determine the relative worth of each classification to the organization. The Archer Company s team of job evaluation experts will review the job evaluation and pay grade recommendations for all jobs in the County s pay plan to ensure that they are consistent with current duties and responsibilities and accurately reflect the complexity of work performed. The job evaluations of individual classifications will be revised as appropriate, and any resulting changes in pay grade recommendations will be reviewed carefully with Human Resources and County Management.

5 Orah Reed, Glynn County Re: Proposal to Update Glynn County s Pay Plan August 21, 2014 Page 2 of 2 3. Revise and update the County s class specifications: The Archer Company will update existing or write new class specifications as appropriate to ensure that the job documentation accurately reflects current job functions and appropriate minimum qualifications. 4. Conduct a market survey and analysis for the County and recalculate the pay line and salary ranges: The Archer Company will work with the County to ensure the list of benchmark positions selected represent the continuum of County positions, and the list of respondents is representative of the local and regional governments with which the County competes for its labor pool. We will utilize updated market data to recalculate the pay line and reset the salary ranges for the upcoming fiscal year. 5. Assist the County with the development of an implementation strategy and identification of implementation costs: The Archer Company will aide the County with the calculation of any implementation costs that may arise as part of the update. 6. Review the findings and draft recommendations with the County Manager and department directors to validate our findings and ensure that issues have been addressed. 7. Prepare a final report showing classifications, pay grades, updated salary ranges, and implementation costs: The reports will include the compiled market data and an explanation of the methodology used to develop our recommendations. We are available to present our findings to County management if appropriate. Project management, fees and timeline: This project will be managed from our office in Atlanta, but will include support from staff in Columbus, Rock Hill, and/or Chicago. Most of the work for this project will be conducted offsite, however we will include up to two onsite meetings with Human Resources and Management as needed. The fee to provide these services will be $19,680 (including all travel and incidental expenses), which will be invoiced on a monthly basis as the work progresses. The County should allow 4-6 months for the completion of this study. Thank you for your continued interest in working with the Archer Company to maintain the County s pay plan. If you have any questions or require further information, please do not hesitate to call me. Sincerely, Chip King Regional Director

6 July 16, 2014 Ms. Orah Reed Human Resources Director Glynn County Board of Commissioners 1725 Reynolds Street, Suite 102 Brunswick, GA Dear Ms. Reed: I have enclosed a proposal to conduct a classification and compensation study for Glynn County Government. If selected, we plan to begin work on the project October , with a preliminary report submitted for review in January 2015 and a final report submitted before February 28, I believe you will agree that confidence is built in a new classification and compensation system by involving management and employees in the process. If selected for this project, we would personally interview approximately 50% of full-time employees covered under this letter of agreement. We believe this high percentage of persons individually interviewed for the study will greatly increase its validity. As you will note from the enclosed proposal, in the employee interview process we utilize a variety of skilled consultants with specific subject matter knowledge of local government, public safety, public finance, public works, information technology, and local government administration. This process leads to a valid and expertly prepared compensation plan that is accepted by the County s employees. I strongly encourage you to check the references we have listed in our proposal packet. I believe you will find that we work very hard to deliver a thoroughly documented and competitive personnel system that meets the needs of management and employees alike. This offer of services is valid until December 31, We will be happy to revise the enclosed memorandum of agreement to meet appropriate legal requirements as deemed necessary by the County or to enter into an appropriate contract initiated by Glynn County. We are looking forward to providing high quality human resource management consulting services to Glynn County. I believe you will find our firm to be highly competent and responsive to the needs of your jurisdiction. Please contact me at (706) if I may provide further information. Sincerely, Stephen E. Condrey, Ph.D., IPMA-CP President

7 Glynn County, Georgia PROJECT UNDERSTANDING, PROPOSED APPROACH, AND METHODOLOGY * For a full description of project activities please see the enclosed draft contract. Individual employees will be apprised of project activities through a series of project orientation sessions as well as personally during the time that they are interviewed for classification purposes. * We anticipate collecting salary data from published sources such as the U.S. Bureau of Labor Statistics, Compensation 2014, published by the International City/County Management Association, as well as other relevant and appropriate published sources. * Condrey and Associates will conduct a salary survey specifically for this project. Approximately 25 organizations will be invited to participate in the survey. The salary data will be collected using a university-based online system. This system makes it easy for the target organizations to quickly and accurately input their salary and, if needed, benefit information. Each organization will be sent an that explains the online salary system as well as access information. The team implementing the online salary survey is available to answer questions and provide support as needed A sample of the web-based salary data collection system can be viewed at : using the access code: FLQSRH * We will provide Glynn County with three implementation plans showing the relative impact of differing funding levels on the compensation plan. This will provide the County with a degree of flexibility in implementing the project. Back-up data will provide individual employee salary calculations for placement in the new plan. Additionally, Condrey and Associates will discern the need for and, if necessary, detail the cost of any equity adjustment to ease employee pay compression. * Three months following project implementation, Condrey and Associates will conduct an employee appeals process. The appeals process will provide employees an opportunity to provide written justification for appealing their classification. Condrey and Associates will reply to all appeals in writing and will conduct telephone or onsite reviews to ascertain the nature of the appeals. We normally have few (if any) classification appeals. * Condrey and Associates utilizes a modified version of the Factor Evaluation System (FES). FES is the most widely utilized point-factor evaluation system and is the basis for most all other point-factor job evaluation systems. We have utilized FES in over 500 organizations of differing functions and degrees of administrative sophistication. We find that FES, when applied skillfully and properly, produces an internally equitable classification plan that is highly acceptable to management as well as the organization s employees. Training in FES application will be provided to Glynn County human resources staff. Also, we provide a full year of followup technical assistance to include additional training to insure that the system is properly maintained. Please note that all FES data calculations are available in electronic format. Also, since FES is in the public domain, there are no copyright or royalty fees associated with its use. Condrey and Associates, Inc. 13

8 Glynn County, Georgia * We will conduct extensive interviews or desk audits with full-time position incumbents (approximately 50%). This will help assure an accurate and internally equitable classification plan that is accepted by management as well as the County s employees. * Condrey and Associates utilizes a system of career ladders as an overlay to the classification system developed through our job evaluation system. These career ladders provide avenues for managerial flexibility as well as individual employee incentive and achievement. We believe this methodology is superior to traditional broad-banding and avoids that system s potential flaws, including those related to equal pay. * Condrey and Associates is very familiar with the Americans with Disabilities Act (ADA). In addition to providing advice to clients in the practical application of ADA, one of the firm s principals conducted the most extensive survey to date of ADA implementation in America s cities. Approximately 300 cities responded to the survey. The results appear in the American Review of Public Administration. * All written products produced for Glynn County project will become the property of the County. This includes the job evaluation system, job descriptions, position questionnaires, salary survey data, and all training materials. These products will also be provided to the client in disk form. Our current software includes Word, Excel, and the Statistical Package for the Social Sciences (SPSS+). There is no additional charge for this service. Condrey and Associates, Inc. 14

9 Glynn County, Georgia SUMMARY OF THE PROPOSED FEE STRUCTURE Condrey and Associates will provide the services outlined in the enclosed draft contract for the fixed cost of $74,500. This fee includes one year of follow-up technical assistance at no additional charge to the jurisdiction. Condrey and Associates, Inc. 15

10 Glynn County, Georgia APPENDIX A Contract for Technical Assistance to Glynn County, Georgia: Proposal for Reviewing and Revising the County s Classification and Compensation System The administration of Glynn County has determined the need for a review and updating of the job classification system and pay plan for selected jobs covered under its personnel system. Objectives Condrey and Associates proposes the following schedule of activities to accomplish four objectives: 1. Review and revise the current personnel classification system and pay plan for all employees covered under this agreement; 2. Produce an updated description of each job (all positions) and produce a classification system based on job content analysis; 3. Collect salary data and produce a recommended pay plan based on job analysis, job evaluation, and survey data; and 4. Train designated personnel in each step of classification and pay plan development to help insure the implementation and maintenance of the system. Phase I -- Developing a Work Plan and Schedule of Activities 1.1 Condrey and Associates, in cooperation with appropriate officials, will generate a work plan of activities and target dates for completion. 1.2 During this phase all the documents detailing the current personnel policies and procedures, job classification system and pay plan will be made available to Condrey and Associates for review and analysis. Phase II -- Job Analysis Survey 2.1 Condrey and Associates will develop a detailed job survey form to be completed by position incumbents. This data will serve as the basis for generating updated job descriptions, job classifications, and job evaluations (ranking of jobs). Condrey and Associates, Inc. 19

11 Glynn County, Georgia 2.2 Condrey and Associates will determine the number of interviews and/or job audits that will need to be conducted to insure adequate data for generating a complete and valid description of each job and job classification. It is anticipated that approximately 50% full-time position incumbents will be interviewed concerning their job duties and responsibilities. 2.3 After the job survey, job audits and interview data are analyzed, a properly formatted job description will be completed for each job. The written job description will draw on four sources of information: (1) current job descriptions, (2) information from the job survey, (3) supervisors review and critique, and (4) interviews and job audits. Phase III -- Job Evaluation 3.1 Condrey and Associates will furnish a job evaluation format of established procedures for ranking jobs and measuring differences in job content. 3.2 Condrey and Associates and appropriate officials will select a format best suited for measuring different levels of knowledge, skills, and abilities required to perform the jobs to be evaluated. Phase IV -- Developing a Compensation Structure Condrey and Associates will: 4.1 Condrey and Associates will conduct a salary survey of organizations specifically for this project. The survey will include up to 25 organizations and 40 benchmark positions. 4.2 Condrey and Associates will collect, review, and format published salary data covering relevant public and private organizations. 4.3 Condrey and Associates will analyze and format the survey data for use in establishing competitive pay levels. 4.4 After the survey data is compiled, Condrey and Associates will review all data generated to this point with appropriate officials to determine what additional information needs to be considered before moving to the next phase. Condrey and Associates, Inc. 20

12 Glynn County, Georgia Phase V -- Developing a Pay Plan Condrey and Associates will: 5.1 Establish recommended pay grades based on the job evaluation results (Phase III) and the wage survey (Phase IV). 5.2 Establish pay steps or ranges in each grade and present the complete recommended pay plan to appropriate officials for review. At this point the plan will reflect the data from Phases III and IV as well as cost-of-living data and the jurisdiction s financial condition and compensation policy. Phase VI -- Implementing and Administering the Program Condrey and Associates will: 6.1 Recommend a series of career ladders and lattices as appropriate. 6.2 Determine the proper FLSA designation of each position. 6.3 Present alternative plans to ameliorate salary compression. 6.4 Be available to provide a reasonable level of ongoing technical assistance necessary to maintain the program. Cost and Duration The cost to Condrey and Associates to provide the services specified in this proposal will be a fixed fee of $74,500. Considering the scope of the project, we anticipate a five (5) month work plan beginning October 1, 2014, with final reports submitted on or before February 28, Follow-up technical assistance will be provided through February 28, 2016 at no additional cost to the County (with the exception of travel-related costs). Formal involvement would terminate February 28, Condrey and Associates, Inc. 21