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2024-02-20 VIII A,Compensation Study Results, Ex.9Lt 1 1 w� Classification and Compensation Study = for the City 4 Evergreen Solutions, LLC of Okeechobee, FL Presentation of Results Presented by: Rob Williamson February 20, 2024 Agenda • Study Process • Compensation Philosophy • Compensation Outlook • Compensation Review • Implementation Recommendations and Costs • Next Steps Study Process Completed Tasks: ✓ Conducted Kick off call and Project Leadership Team interviews. ✓ Finalize study goals and timeline ✓ Assessed conditions of the current pay system. ✓ Conducted external equity analysis by surveying the market to determine competitive salary ranges. Study Process (Continued) ✓ Created a proposed pay plan using existing internal equity and update to be competitive externally. ✓ Conducted reviews with Project Leadership Team ✓ Developed optional methods for implementing the revised plan/pay ranges; and selected most appropriate. ✓ Estimated annualized salary cost for implementing the revised plan. Compensation Philosophy Reviewed the compensation philosophy: rD- e—s ld') Market M* Competitive with the market Position Pay Practices Equitable, Flexible & Fiscally Responsible L_-.g Pay Plan Open -Range Pay Plan not steps Design Pay nceasep N* Experience & Performanc Methods 0 Compensation Outlook PRIVATE SECTOR WAGE GROWTH W/ TREND LINE Dept. of Labor Statistics 6 5 4 3 2 1 --- -- --- -- -- ---- 2018 2019 2020 2021 2022 2023 Compensation Outlook PUBLIC SECTOR WAGE & BENEFIT GROWTH Department of Labor Statistics I s El 2 Compensation Outlook Florida Cost of Living South Florida Inflation Some of the Highest in the Nation, Driven by Elevated Shelter Costs B% Snenr16.0% 7% m x j c 8% C 5% m 4% V. 3% Mc 0 2% 1% 0% 4. J5 � Metro Sources: Bureau or labor Statisks. Macrobond. Coster. June 2023 Furls a LW" - C Appuel d � anercoezase� _ a Al tw= 8.8% U Food a eeveia0es - 3 M Educstm a Canarunutm - c C Reoeasm , ►looter Cale ' Household Funusrungs 3 ■ opwatms Housmad Fwnshngs a SupPras ■ rianspouum - -10% •5% 0% S% 10% 16% 20% South Florida Consumer Price Index Component Annual Change costar - Map: Irina Ivanova • Source: Bureau of Labor Statistics Compensation Review Conducted a salary survey; collected salary range data from 14 of 21 approved market peers: • All City classifications used for survey. • Average number of matches for each classification of 8.2. • Not all peers had matches for all classifications. In those instances, internal equity and/or secondary data used to aid in placement. 0 Adjusted for cost of living. Compensation Review (Continued) ** Peers listed in Bold indicate the peer responded to the afth" survey. f City of Arcadia City of Avon Park City of Clewiston City of LaBelle Town of Lake Placid City of Lakeland City_ of Palatka City of Port St. Lucie City_,____ of Sebastian _._w. City of Sebring City of Stuart City of Vero Beach City of Wildwood Okeechobee County Desoto County Glades County Hardee County Highlands County Indian River County Martin County St. Lucie County E Compensation Review (Continued) MARKET RESULTS Market Survey indicates the City is behind the market average at the minimum, midpoint &maximum for the 60th percentile. *This reflects the market competitiveness of your current pay ranges not annual employee salaries. 10 Key Study Considerations 1. No employees are recommended for a salary decrease as a result of this study. 2. Methodology - the Bring to Minimum implementation brings all employees into the new market competitive pay ranges. 3. Collaborative - Employees and Project Leadership Team assisted in identifying concerns. 4. The proposed implementation costs and employee adjustments are distributed throughout the fiscal year. 11 Key Recommendations 1. Adopt the proposed pay plan creating numeric pay grades and market competitive pay ranges. 2. Reassign classifications to pay grades based on the market results and internal equity. Some positions will see larger adjustments than others due to the market response and regional specific market factors. 3. Select an implementation methodology that aligns with the compensation philosophy, reduces competitive disadvantages and aligns with the financial priorities of the City 4. Place employees within their newly recommended market ompetitive pay grades. i Evergreen Solutions. LLC 12 Recommendation & Costs �����--����LL� ��_���vy 13 Next Steps • Job Description update —update current job descriptions to align with essential functions, minimum qualifications and FLSA. • Job Force Manager Training —training for staff to perform ongoing pay plan maintenance. • Provide Draft and Final Reports —provide reports that memorialize the work and study findings. • Project Close-out 14 Thank You! Rob Williamson Project Manager Evergreen Solutions, LLC 2878 Remington Green Circle Tallahassee, Florida 32308 850.383.0111 phone 850.383.1511 fax www.ConsultEvergreen.com 15