FY2017 Budget: Employee Compensation

Transcription

1 FY2017 Budget: Employee Compensation GGAF 4/27/2016

2 Compensation Presentation Outline Overview & Approach History FY2017 Planning

3 Compensation Overview Council Strategy: Attract, hire, develop & retain the best people, and compensate them for the value they create Tactics include establishing and consistently administering a competitive compensation program based on performance results

4 Total Rewards From World at Work

5 Compensation Approach Fiscal & Budgetary Policy Competitive Compensation In order to maintain a competitive pay scale, the City has implemented a Competitive Employee Compensation Maintenance Program to address competitive market factors and other issues impacting compensation. The program consists of: Annual Pay Plan Review To ensure the City s pay system is accurate and competitive within the market, the City will review its pay plans annually for any potential market adjustments necessary to maintain the City s competitive pay plans. (Market) Pay for Performance Each year the City will fund performance based pay adjustments for regular non public safety personnel. This merit based program aids in retaining quality employees by rewarding their performance. Pay for Performance adjustments are based on the employee s most recently completed performance evaluation. (Merit) Public Safety Steps Each year the City will fund anniversary step increases for public safety sworn personnel consistent with public safety pay scale design. (Steps)

6 Compensation History FY2016 Fire Market Adjustment January % Firefighter, 2% Driver, 1% all higher ranks Police Market Adjustment January % all ranks Fire & Police Steps On employee anniversary date from 3% to 1.1% depending on rank

7 Compensation History FY2016 Non Civil Service Market Adjustments January 2016 impacts positions with ranges 5% or more below market Employee increase typically 2%, applied to 117 individuals (27% of non Civil Service employees) Merit Increase February % Average increase Based on Performance Evaluation

8 Merit History FY Merit Distribution 17% 1% Below 0% 29% Meets 1% Exceeds 2% Excellent 3% 53%

9 FY2017 Market Summary New: Defined Central Texas jobs vs Texas Area Where do we recruit and lose employees? Most positions (64% of benchmarks) compared to Central Texas Management and specialized municipal professional positions compared to both Central Texas and Texas Area comparators Industry specific comparators used selectively: Bryan Texas Utilities, New Braunfels Utilities, CPS Energy, LCRA, College Station, Waco

10 Market Comparators Central Texas Austin Cedar Park Leander Pflugerville Round Rock Williamson County San Marcos New Braunfels Texas Area Sugar Land Grapevine Denton Flower Mound

11 FY2017 Market Summary Reviewing Pay Structures in March/April 2016 What are we comparing? Range midpoint to market average midpoint Actual salary to market average actual used for some executive, single incumbent positions What do we consider competitive? Within 5% is considered market competitive 5% is considered below market competitive

12 FY2017 Market Summary 228 Non Civil Service job titles 100 Benchmark job titles (44%) Preliminary Results: Within Market: 72% Below Market: 28%

13 Market Implementation Benchmarks tied back to non benchmarks in job family Approximately 43 job titles to reclassify impacting 87 employees (20% of non Civil Service employees) Methodology:

14 FY2017 Market Summary Civil Service Market Review all ranks against Central Texas comparators Compare Minimum to minimum common practice for step systems Considering changes to structures including early career step acceleration for ranks of Firefighter and Police Officer Topic of discussion with Chiefs and in Meet & Confer

15 FY2017 Planning Plan to continue Competitive Employee Compensation Maintenance Program in order to attract and retain the best people including: Market Merit Steps Specific recommendations will be developed as part of the City Manager s proposed budget

16 Questions