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Provided by: India Riedel. Finance Director piS-f-rihtI /L4
7/2/2024 * r ' •
Implementation of Class Parity based on Evergreen Solutions Compensation Study
Proposed Budget Impact
Full cost of Class Parity with 3.4% COLA $ 186,787
33% of Class Parity with 3.4% COLA $ 128,630
Full cost of Class Parity with 4% COLA $ 202,480
33% of Class Parity with 4% COLA $ 144,333
Changes in personnel at PD
Change Lieutenant to Major $ 5,000
Change Officer to Corporal $ 2,500
S:\INDIA\BUDGET\2025 Budget\Salary Info\Salary Options cost rev 2024 07 02
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Katie Rogers , IZ ca yi
SAticity
From: Heather Prince
Sent: Tuesday, July 2, 2024 8:46 AM
To: Lane Gamiotea
Cc: Katie Rogers
Subject: FW: [EXTERNAL]FW: City of Okeechobee Final Report P1232
Attachments: FR - 6-25-24 - COMPENSATION STUDY FOR THE CITY OF OKEECHOBEE.pdf
Lane,
Attached is the final report for the compensation study completed by Evergreen.
Heather Prince 1 Human Resources Generalist
CITY OF OKEECHOBEE
55 SE 3RD AVENUE, OKEECHOBEE, FL 34974
PHONE: (863) 763-3372 EXT. 9796
FAX: (863) 763-1686
Under Florida law, email addresses are public records. If you do not want your email address released in
response to a public records request, do not send electronic mail to this entity. Instead, contact this office by
phone or in writing, Florida Statute 668.6076.
CITY OF OKEECHOBEE ELECTRONIC DEVICE DISCLAIMER: Florida has a very broad public records law.
Most written communications to or from local officials regarding city business are public records available to
the public and media upon request. Your correspondence via e-mail, text message, voice mail, etc., may
therefore be subject to public disclosure.
From: Rob Williamson <Rob@consultevergreen.com>
Sent:Tuesday,June 25, 2024 1:22 PM
To: Gary Ritter<gritter@cityofokeechobee.com>
Cc: Heather Prince<humanresources@cityofokeechobee.com>;Jacqueline Boer
<executiveassistant@cityofokeechobee.com>; India Riedel <iriedel@cityofokeechobee.com>; Rob Williamson
<Rob@consultevergreen.com>; Karl Fuchs<Karl@consultevergreen.com>; Daniel Tejada
<dtejada@consultevergreen.com>
Subject: [EXTERNAL]FW: City of Okeechobee Final Report P1232
Gary,
Attached is the Final report,with the Benefits Survey Summary folded into the report with the suggested changes. I
added a specific recommendation related to benefits that speaks to the family coverage issue. I hope this is what
you are looking for.
With gratitude,
Rob Williamson
Project Manager
Evergreen Solutions, LLC
850-565-0658
rob_AcQs_uitevergreen.com
1
• •
From:Jackie Barnes<Jackie@consultevergreen.com>
Sent:Tuesday,June 25, 2024 10:42 AM
To: Rob Williamson<Rob@consultevergreen.com>
Cc: Karl Fuchs<Karl@consultevergreen.com>; Daniel Tejada<dtejada@consultevergreen.com>; Brenda Whurr
<Brenda@consultevergreen.com>
Subject: RE: City of Okeechobee Final Report P1232
IT'S ATTACHED.
Jackie Barnes
.4
Office Manager
Evergreen SQ_lution , LLC
2528 Barrington Circle, Unit 201
Tallahassee, FL 32308
Office: (850) 383-0111
Evergreen Cell: (850) 688-4456
Solutions Email: jackieCaconsultevergreen.com
Partnering with public-sector clients to effect positive change
From: Rob Williamson <Rob@consultevergreen.com>
Sent: Monday,June 24, 2024 4:35 PM
To:Jackie Barnes<Jackie@consultevergreen.com>
Cc: Rob Williamson<Rob@consultevergreen.com>; Karl Fuchs<Karl@consultevergreen.com>; Daniel Tejada
<dtejada@consultevergreen.com>; Brenda Whurr<Brenda@consultevergreen.com>
Subject: City of Okeechobee Final Report P1232
Jackie,
Please use the attached chapters to make a Final Report.
With gratitude,
Rob Williamson
Project Manager
Evergreen Solutions, LLC
850-565-0658
rob@consu ltevergreen.com
2
•
Compensation Study for the
City of Okeechobee, FL
FINAL REPORT
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Evergreen Solutions. LLC
June 25, 2024
• •
EVERGREEN SOLUTIONS, LLC
Table of Contents
PAGE
1.0 INTRODUCTION 1-1
1.1 Study Methodology 1-1
1.2 Report Organization 1-2
2.0 ASSESSMENT OF CURRENT CONDITIONS 2-1
2.1 Analysis of Pay Plan 2-1
2.2 Classification Range Analysis 2-3
2.3 Quartile Analysis 2-5
2.4 Compression Analysis 2-8
2.5 Summary 2-11
3.0 MARKET SUMMARY 3-1
3.1 Market Data 3-3
3.2 Salary Survey Results 3-4
3.3 Salary Survey Conclusion 3-8
4.0 BENEFITS SURVEY RESULTS 4-1
4.1 Employee Insurance Coverages and Miscellaneous Benefits 4-2
4.2 Health Plans 4-2
4.3 EAP,Tuition Reimbursement, 529 Plans, and Financial Planning 4-7
4.4 Retirement 4-8
4.5 Employee Leave, Holidays, and Compensatory Time 4-9
4.6 Summary 4-12
5.0 RECOMMENDATIONS 5-1
5.1 Classification Recommendations 5-1
5.2 Compensation Recommendations 5-2
5.3 Compensation and Classification System Administration 5-7
5.4 Summary 5-10
• •
EVERGREEN SOLUTIONS, LLC
Chapter 1 - Introduction
The leadership of City of Okeechobee, FL (the "City") in keeping with its commitment to
attracting and retaining the employees necessary to provide high quality services determined
that its current compensation system and structure needed to be updated to better reflect
best practices and improve market competitiveness. Evergreen Solutions, LLC ("Evergreen")
was selected by the City during August of 2023 as its partner to in order to accomplish this
goal. This engagement sought to evaluate the strengths and weaknesses of the City's current
system, conduct a job and pay grade analysis to study internal equity, collect peer salary data
to study external equity, and adjust the current compensation system to better reflect the
market. This study and the analysis contained within provides City leadership with valuable
information related to their employee demographics, opinions, and market data, as well as
internal and external equity.
The primary focus of this study was to reestablish external equity. External equity relates to
the differences between how an organization's classifications are valued and the
compensation available in the marketplace for the same skills, responsibilities, and duties.
This component of the study aims to address how the City is positioned in the market relative
to other local area government organizations with similar positions and to develop
recommendations that allow the City to recruit and retain quality employees.
1.1 STUDY METHODOLOGY
Evergreen Solutions combines qualitative and quantitative data analysis to produce
recommendations that maximize the fairness and competitiveness of an organization's
compensation structure and practices. It is important to note that the data utilized in the study
represents a snapshot in time.As market conditions can change rapidly, it is important for the
City to conduct regular market surveys to ensure their external market position does not
decay. A full compensation and classification review is recommended approximately every
three to five years. Some examples of project activities included:
• Conducting a project kick-off meeting
• Conducting an external market salary survey
• Conducting a benefits survey
• Developing recommendations for compensation management
• Developing recommendations for compensation changes
• Creating draft and final reports
Evergreen Solutions,LLC Page 1-1
• •
Chapter 1-Introduction Compensation Study for the City of Okeechobee,FL
Kickoff Meeting
The kickoff meeting provided an opportunity to discuss the history of the City,finalize the work
plan, and begin the data collection process. Data collection included the gathering of relevant
background material including existing pay plans, organization charts, policies, procedures,
training materials, classification specifications, and other pertinent material.
Salary Survey
The external market for this study was defined as identified local government organizations
with similar positions as well as similar characteristics, demographics, and service offerings.
Specific benchmark positions in the City were surveyed, although not all positions had
matching positions at the peer organizations. The data were then analyzed comparing City
classifications to the jobs performing the same duties at peer organizations to gain a fuller
understanding of their market position.
Benefits Survey
The benefits chapter provides a comprehensive comparison of the employee benefits offered
by the City of Okeechobee, FL to the approved market peers.This deliverable was added after
the conclusion of the classification and compensation study and uses the same market peers.
This chapter is designed to give a clear understanding of how the various benefits available
to city employees compare to the local labor market to aid in determining a compensation
strategy based on the total compensation offered by the City by emphasizing the value these
benefits add to their overall compensation package. The Benefits Summary portion, in
particular, highlights the core components of the benefits program, including health
insurance, retirement plans, leave policies, and other supplementary benefits. This summary
serves as a concise guide, presenting key information in an accessible manner to help
employees and stakeholders appreciate the full spectrum of benefits provided by the City.The
goal of this survey is to gain a clearer understanding of the competitive market position the
City occupies and underscore the City's commitment to the well-being and financial security
of its employees, reflecting the broader goals of fostering a supportive and attractive work
environment.
Recommendations
Evergreen developed recommendations for the City to consider in order to help maximize the
effectiveness and efficiency of its current compensation structure. Evergreen provided the
City with a variety of recommendations for the future at various costs. Plans ranged from
minor tweaks to the current compensation system to wholesale changes to the entire
organizational structure. These plans were designed to fix the issues identified in this report,
while continuing to build on the strengths the City currently exhibits.
1.2 REPORT ORGANIZATION
This report includes the following additional chapters:
Evergreen Solutions,LLC Page 1-2
• •
Chapter 1-Introduction Compensation Study for the City of Okeechobee,FL
• Chapter 2 - Assessment of Current Conditions
• Chapter 3 - Market Summary
• Chapter 4 - Benefits Summary
• Chapter 5 - Recommendations
Chapter 2-Assessment of Current Conditions
An assessment of current conditions was conducted to help Evergreen better understand the
current standing of the City pay plan, demographics, and compensation structures. This
assessment should be considered a snapshot in time and is reflective of the conditions
present within the City upon the commencement of this study. By leveraging this information,
Evergreen was able to gain a better understanding of the strengths and weaknesses of the
current compensation system. When combined with the market results, the Assessment of
Current Conditions helped provide a basis for recommendations. A full summary of the
Assessment of Current Conditions can be found in Chapter 2 of this report.
Chapter 3- Market Summary
A salary survey was designed by Evergreen and approved by the City's human resources
department.The external market was defined by Evergreen and approved by the City's Project
Leadership Team made up of the City Manager, HR Director and Finance Director. After the
results were received, the data were analyzed to compare the City to the overall results.
Combined with the Assessment of Current Conditions, the market survey gave Evergreen the
information needed to understand the City's position relative to its labor market. A full
summary of the market results can be found in Chapter 3 of this report.
Chapter 4 - Benefits Summary
A benefits survey was designed by Evergreen and the external market was defined in
collaboration with the City's Project Leadership Team made up of the City Manager, HR
Director and Finance Director. After the results were received, the data were analyzed to
compare the City to the overall benefits offerings. This benefits summary is meant to provide
valuable information the City can use when determining total compensation and desired
position in the local market.A complete summary of the benefits data can be found in Chapter
4 of this report
Chapter 4 - Recommendations
During the recommendations phase, Evergreen provided several different solution options
based on their current relationship to market.Solutions were provided that only require minor
tweaks to the current compensation system, as well as some solutions that would require
more significant changes to the City's current structure. Evergreen has provided the City with
recommendations that can both leverage the current compensation structure and also help
expand its ability to recruit and retain talent in the most competitive classifications. A full
explanation of the recommendations can be found in Chapter 5 of this report.
Evergreen Solutions,LLC Page 1-3
• •
EVERGREEN SOLUTIONS, LLC
•s Chapter 2 — Assessment of Current
k Conditions
The purpose of this chapter is to provide a statistical analysis of the compensation system in
place at the City of Okeechobee at the start of this study. The assessment is divided into the
following sections:
2.1 Analysis of the Pay Plan
2.2 Classification Range Analysis
2.3 Quartile Analysis
2.4 Compression Analysis
2.5 Summary
The analysis represented in this chapter represents a snapshot in time - this chapter was
built off employee information collected in August of 2023. Every organization changes
continuously, so this chapter is not meant to be a definitive statement on continuing
compensation practices in the City. In fact, while the study was going on, there were several
classification changes and employee roster changes that occurred. As a result, some of the
classification titles included in this chapter may differ from those found later in this report.
This Assessment of Current Conditions(AOCC) is meant to represent the conditions that were
in place when this study began. The data contained within provide the baseline for analyses
through the course of this study but are not sufficient cause for recommendations in isolation.
By reviewing employee data, Evergreen gained a better understanding of the structure and
methods in place and identified issues for both further review and potential revision.
2.1 ANALYSIS OF THE PAY PLAN
The purpose of analyzing the pay plan used within the City is to help gain an overview of the
compensation philosophy as it existed when the study began. The City had a system in place
that categorized classifications by level and type of work. This system used classifications
instead of pay grades to represent classifications of varying level and responsibility. Exhibit
2A displays the City's pay plan summarized for ease of comparison. The exhibit provides the
name; each classifications pay range on the plan; the value of each pay grade at minimum,
midpoint, and maximum; the range spread for each classifications pay range - which is a
measure of the distance between the minimum and maximum of the range; the midpoint
progression between ranges; and the number of employees per classification.
The City's pay plan includes 26 occupied classifications that hold 57 employees. The pay
range spreads are set to a static 44.3 percent.
y Evergreen Solutions,LLC Page 2-1
• •
Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee,FL
D(HIBIT 2A
PAY PLAN SUMMARY
Pay Plan Grade Minimum Midpoint Maximum Range Employees
Spread
General Account Supervisor $ 43,238 $ 51,624 $ 62,434 44% 1
General Admin Secretary $ 37,882 $ 45,221 $ 54,664 44% 3
General Admin Sect/Occ $ 38,618 $ 46,100 $ 55,731 44% 1
General Chief of Police $ 71,968 $ 85,975 $ 104,121 45% 1
General City Clerk/Personnel $ 56,288 $ 67,228 $ 81,371 45% 1
General Code Enforcement $ 42,162 $ 50,337 $ 60,873 44% 2
General Crossing Guard $ 38,618 $ 46,100 $ 55,731 44% 1
General Deputy City Clerk $ 38,618 $ 46,100 $ 55,731 44% 1
General Dispatcher 1 $ 36,409 $ 43,460 $ 52,527 44% 3
General Equipment Mechanic I $ 39,808 $ 47,523 $ 57,458 44% 1
General Executive Assistant $ 41,979 $ 50,119 $ 60,608 44% 1
General Finance Director $ 58,034 $ 69,315 $ 83,904 45% 1
General Gen Svcs Coordinator $ 43,057 $ 51,408 $ 62,172 44% 1
General Lead Operator $ 42,667 $ 50,942 $ 61,607 44% 1
General Maintenance Foreman $ 47,452 $ 56,663 $ 68,550 44% 1
General Maintenance Operator $ 37,882 $ 45,221 $ 54,664 44% 6
General Police Detective 80 $ 49,160 $ 61,162 $ 71,027 44% 4
General Police Detective:84 $ 49,160 $ 61,162 $ 71,027 44% 11
General Police Lieutenant $ 57,073 $ 68,165 $ 82,481 45% 2
General Police Officer 1 $ 49,160 $ 61,162 $ 71,027 44% 2
General Police Records Clerk $ 39,246 $ 46,851 $ 56,643 44% 1
General Police Sergeant $ 54,297 $ 64,846 $ 78,481 45% 4
General Police Sgt Detective $ 54,297 $ 64,846 $ 78,481 45% 1
General Police Svcs Coord $ 43,238 $ 51,624 $ 62,434 44% 1
General Police/Fire Dispatch $ 36,409 $ 43,460 $ 52,527 44% 4
General Public Works Dir $ 77,181 $ 92,207 $ 111,684 45% 1
Total - - - - - 57
Comparing the summary data in Exhibit 2A to best practices, several observations can be
made regarding the City's pay plan. Based on the analysis of the pay plan,the following facts
can be observed:
• The City range spreads are slightly narrower than you would typically see in the market
today.
• The classifications are not assigned into pay grades, rather, they each have their own
individual pay ranges. The number of employees in each classification is widely varied.
Multiple classifications have a single incumbent while others have more than ten.
• The minimum pay within a range is $36,409 while the maximum of any pay range is
$111,684.
4 Y. , Evergreen Solutions,LLC Page 2-2
• •
Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee,FL
2.2 CLASSIFICATION RANGE ANALYSIS
The City lacks an established pay plan and so we used the individual classifications and their
ranges to make determinations about where certain employees landed within their specific
ranges. First, however, we made note of the groups of classifications that had the same or
similar ranges.
Exhibit 2B displays the grouping of the classifications in which we found the same or similar
ranges. The exhibit shows the groupings of classifications such as "Dispatcher 1" and
"Police/Fire Dispatch" having the same range of $36,409 - $52,527. This range contains a
total of 7 employees between the two classifications. We also showed groupings of
classifications with very similar ranges (midpoints that are within $1,000 of one another.) An
example is the classifications "Police Record Clerk" and "Equipment Mechanic I" whose
ranges only differ by$672 at the midpoint.
EXHIBIT 2B
CLASSIFICATIONS WITH SAME/SIMILAR RANGES
Range Employees
Pay Plan Classification Minimum Midpoint Maximum Employees
Spread per range
General Dispatcher1 $ 36,409 $43,460 $ 52,527 44% 3 7
General Police/Fire Dispatch $ 36,409 $43,460 $ 52,527 44% 4
General Admin Secretary $ 37,882 $45,221 $ 54,664 44% 3
General Maintenance Operator $ 37,882 $45,221 $ 54,664 44% 6 9
General Crossing Guard $ 38,618 $46,100 $ 55,731 44% 1
General Admin Sect/Occ $ 38,618 $46,100 $ 55,731 44% 1 3
General Deputy City Clerk $ 38,618 $46,100 $ 55,731 44% 1
General Police Records Clerk $ 39,246 $46,851 $ 56,643 44% 1 2
General Equipment Mechanic I $ 39,808 $47,523 $ 57,458 44% 1
General Executive Assistant $ 41,979 $50,119 $ 60,608 44% 1
General Code Enforcement $ 42,162 $50,337 $ 60,873 44% 2 4
General Lead Operator $ 42,667 $50,942 $ 61,607 44% 1
General Gen Svcs Coordinator $ 43,057 $51,408 $ 62,172 44% 1
General Account Supervisor $ 43,238 $51,624 $ 62,434 44% 1 3
General Police Svcs Coord $ 43,238 $51,624 $ 62,434 44% 1
General Maintenance Foreman $ 47,452 $56,663 $ 68,550 44% 1 1
General Police Detective 80 $ 49,160 $61,162 $ 71,027 44% 4
General Police Detective:84 $ 49,160 $61,162 $ 71,027 44% 11 17
General Police Officer 1 $ 49,160 $61,162 $ 71,027 44% 2
General Police Sergeant $ 54,297 $64,846 $ 78,481 45% 4
General Police Sgt Detective $ 54,297 $64,846 $ 78,481 45% 1 5
General City Clerk/Personnel $ 56,288 $67,228 $ 81,371 45% 1
General Police Lieutenant $ 57,073 $68,165 $ 82,481 45% 2 3
General Finance Director $ 58,034 $69,315 $ 83,904 45% 1 1
General Chief of Police $ 71,968 $85,975 $ 104,121 45% 1 1
General Public Works Dir $ 77,181 $92,207 $ 111,684 45% 1 1
7
Evergreen Solutions,LLC Page 2-3
• •
Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee,FL
In addition to assessing the number of employees at minimum and maximum, an analysis
was conducted to determine the number of employees below and above their ranges
midpoint. The percentages refer to the percentage of employees in each classifications pay
range that are above and below midpoint. Exhibit 2C displays the results of this analysis: a
total of 42 employees are compensated below their pay range midpoint-which is 73.7
percent of all employees for the City. There are 15 employees compensated above the
midpoint of their pay range, which is 26.3 percent of all employees.
EXHIBIT 2C
EMPLOYEES ABOVE AND BELOW MIDPOINT BY CLASSIFICATION
Grade Employees #<Mid %<Mid #>Mid %>Mid
Account Supervisor 1 1 100.0% 0 0.0%
Admin Secretary 3 3 100.0% 0 0.0%
Admin Sect/Occ 1 1 100.0% 0 0.0%
Chief of Police 1 0 0.0% 1 100.0%
City Clerk/Personnel 1 0 0.0% 1 100.0%
Code Enforcement 2 2 100.0% 0 0.0%
Crossing Guard 1 1 100.0% 0 0.0%
Deputy City Clerk 1 1 100.0% 0 0.0%
Dispatcher 1 3 3 100.0% 0 0.0%
Equipment Mechanic I 1 0 0.0% 1 100.0%
Executive Assistant 1 1 100.0% 0 0.0%
Finance Director 1 0 0.0% 1 100.0%
Gen Svcs Coordinator 1 0 0.0% 1 100.0%
Lead Operator 1 1 100.0% 0 0.0%
Maintenance Foreman 1 0 0.0% 1 100.0%
Maintenance Operator 6 6 100.0% 0 0.0%
Police Detective 80 4 3 75.0% 1 25.0%
Police Detective: 84 11 9 81.8% 2 18.2%
Police Lieutenant 2 0 0.0% 2 100.0%
Police Officer 1 2 2 100.0% 0 0.0%
Police Records Clerk 1 1 100.0% 0 0.0%
Police Sergeant 4 2 50.0% 2 50.0%
Police Sgt Detective 1 1 100.0% 0 0.0%
Police Svcs Coord 1 0 0.0% 1 100.0%
Police/Fire Dispatch 4 4 100.0% 0 0.0%
Public Works Dir 1 0 0.0% 1 100.0%
Total 57 42 73.7% 15 26.3%
....M*
Evergreen Solutions,LLC Page 2-4
• •
Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee,FL
2.3 QUARTILE ANALYSIS
The last part of the Classification Range Analysis is a detailed look at how salaries are
distributed through pay ranges, through a quartile analysis. Here, each pay range is divided
into four segments of equal width, called quartiles. The first quartile represents the first 25
percent of the pay range; the second quartile represents the part of the range above the first
quartile up to the mathematical midpoint; the third quartile represents the part of the range
from the midpoint to 75 percent of the pay range; and the fourth quartile represents the part
of the range above the third quartile up to the pay range maximum. Employees are assigned
to a quartile within their pay range based on their current salary.
The quartile analysis is used to determine the location of employee salary clusters. Quartile
analysis helps identify whether clusters exist in specific quartiles of pay ranges. Additionally,
the amount of time the employee has spent at the organization is also analyzed, to observe
any relationship between organizational tenure and salary progression.This information,while
not definitive alone, can shed light on any root issues within the current compensation and
classification plan when combined with market data and employee feedback.
Exhibit 2D shows the number of employees that are in each quartile of each range, as well as
the average overall tenure (i.e., how long an employee has worked for the City) by quartile.
Overall, data provides that 70.2 percent of employees fall into Quartile 1 of their respective
range; 8.8 percent fall into Quartile 2; 14.0 percent fall into Quartile 3; and 7.0 percent fall
into Quartile 4. While this distribution does not lead to a conclusion, data for average tenure
do lead to determinations on the relationship between tenure and salary.
Specifically, overall average tenure increases as quartile increases; the average tenure in
Quartile 1 is 4.3 years; in Quartile 2 is 10.6 years; in Quartile 3 is 19.3 years; and in Quartile
4 is 25.3 years. This would seem to indicate that employees are moved through their pay
ranges equitably, or at the very least a positive linear relationship exists between tenure and
pay.
Exhibit 2E displays a graphical representation of the data contained in Exhibit 2D. Each pay
range is divided into up to four sections representing the percentage of employees, in those
classifications pay range, who belong in each quartile. For example, Supervisor has zero
employees in Quartiles 2, 3, or 4. That classification is represented by a 100 percent red bar,
showing that 100 percent of the Account Supervisor employees are in Quartile 1. The
classification "Police Detective: 80" has employees in three quartiles, however, and is
consequently represented with bars displaying all three colors, corresponding to the
percentage of employees for each pay range in each quartile.
%y _. • Evergreen Solutions,LLC Page 2-5
Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee
EXHIBIT 2D
QUARTILE ANALYSIS AND TIME WITH THE ORGANIZATION
GRADE Total Average 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile
Employees Tenure #Employees Avg Tenure #Employees Avg Tenure #Employees Avg Tenure #Employees Avg Tenure
Account Supervisor 1 8.7 1 8.7 0 - 0 - 0 -
Admin Secretary 3 2.8 3 2.8 0 - 0 - 0 -
Admin Sect/Occ 1 0.1 1 0.1 0 - 0 - 0 -
Chief of Police 1 26.7 0 - 0 - 1 26.7 0 -
City Clerk/Personnel 1 34.1 0 - 0 - 0 - 1 34.1
Code Enforcement 2 2.6 2 2.6 0 - 0 - 0 - III
Guard 1 9.0 1 9.0 0 0 0 -
Deputy City Clerk 1 1.2 1 1.2 0 - 0 - 0 -
Dispatcher 1 3 15.7 3 15.7 0 - 0 - 0 -
Equipment Mechanic I 1 11.8 0 - 1 11.8 0 - 0 -
Executive Assistant 1 0.8 1 0.8 0 - 0 - 0 -
Finance Director 1 17.7 0 - 0 - 1 17.7 0 -
Gen Svcs Coordinator 1 11.8 0 - 0 - 1 11.8 0 -
Lead Operator 1 8.4 1 8.4 0 - 0 - 0 -
Maintenance Foreman 1 23.1 0 - 0 - 1 23.1 0 -
Maintenance Operator 6 1.4 6 1.4 0 - 0 - 0 -
Police Detective 80 4 4.6 2 0.9 1 1.3 1 15.2 0 -
Police Detective:84 11 5.5 9 2.6 0 - 1 17.2 1 19.9
Police Lieutenant 2 23.4 0 - 0 - 1 19.5 1 27.3
Police Officer 1 2 9.3 2 9.3 0 - 0 - 0 -
Police Records Clerk 1 11.8 0 - 1 11.8 0 - 0 -
Police Sergeant 4 12.4 2 4.6 1 17.0 1 23.3 0 -
Police Sgt Detective 1 14.9 1 14.9 0 - 0 - 0 -
Police Svcs Coord 1 19.9 0 - 0 - 0 - 1 19.9 •
Police/Fire Dispatch 4 1.8 4 1.8 0 - 0 - 0 -
Public Works Dir 1 10.9 0 - 1 10.9 0 - 0 -
Overall 57 8.4 40 4.3 5 10.6 8 19.3 4 25.3
Evergreen Solutions,LLC Page 2-6
Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee
EXHIBIT 2E
QUARTILE PLACEMENT BY CLASSIFICATION
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Evergreen Solutions,LLC Page 2-7
• •
Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee
Studying the data from the following exhibits can reveal certain patterns. One thing that can
be observed is that there are very few employees who have reached the 4th quartile. This can
indicate a younger workforce that has not progressed fully through their pay range. You will
also notice that many of the employees are in the first quartile,which can indicate many newer
employees. This can be an indication of high turnover, so it is a good idea to take a deeper
look at the specific positions that are primarily in quartile one.
2.4 COMPRESSION ANALYSIS
Pay compression can be defined as the lack of variation in salaries between employees with
significantly different levels of experience and responsibility. Compression can be seen as a
threat to internal equity and morale. Two common types of pay compression can be observed
when the pay of supervisors and their subordinates are too close, or when the pay of highly
tenured staff and newly hired employees in the same job are too similar.
According to the Society for Human Resources Management (SHRM), specific examples of
actions that may cause pay compression include the following:
• Reorganizations change peer relationships and can create compression if jobs are not
reevaluated.
• In some organizations, certain departments or divisions may be relatively liberal with
salary increases, market adjustments, and promotions while others are not.
• Some employers have overlooked their Human Resources policies designed to
regulate pay, paying new hires more than incumbents for similar jobs under the mantra
of"paying what it takes to get the best talent."
• Many organizations have found it easy to hire people who have already done the same
work for another organization, eliminating the need for training. Rather than hiring
individuals with high potential and developing them for the long term,they have opted
for employees who could "hit the ground running"—regardless of their potential.
Exhibit 2F indicates the ratio of subordinate to supervisor salaries by classification graphically
and Exhibit 2G displays these results numerically. Employees were grouped into categories
reflecting whether their actual salary was less than 80 percent, less than 95 percent, or
greater than 95 percent of their supervisor's salary. Less than 80 percent would indicate that
the ratio of an employee's salary to his supervisor's salary would yield a result of less than
0.8. For example, an employee with a salary of$79,000.00 and a supervisor with a salary of
$100,000.00 would yield a ratio of 0.79 and be placed into the Less than 80 percent
category.
An analysis of the data would quickly reveal that while most positions in the City are in a great
position, with plenty of space between employee and supervisor salaries,there are still some
employees with salaries more than 95 percent of their supervisor's salary. Anywhere red
appears on Exhibit 2F is somewhere that warrants an examination of supervisor vs. employee
salary.
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Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee
EXHIBIT 2F
EMPLOYEE TO SUPERVISOR SALARY RATIO BY PAY CLASSIFICATION
100%
90%
80°4,
70% •
60%
50% 1 II III
40%
30%
20%
10%
0% •
0, �0 LL o•,., e 0 ~ .. ` 0, 0, 0, 0, .,<, ok qO 0�' l� Cs' .Je la r
O`� �a \O 0ce ,it, oe• ec` ;a ` a� i` 'DKe e' Oa ce C>e e Lt> 00 aC
eJfieec 0 eQ0e`C` ra `y e O l ce eJ ce ` a . eC
oQ ce` he ,,cr 6c( � e- a e P' 0ok09cco OQ & 6, eoO cf., pe ( cp .lo
�� eo •`eQ c�o `,‘,` � ,c5:Q ,� Je ` Loasoece ` e�e e\ \ce eo ,ce , i Je c
o a� a� `r `c, ae� co , ec J� caocc, \e cac e �O •cQoiP \`` \ ,
coP P LOeQ ce F` SI ,ce `ee cz 0 -< \`cQo ,ee <z
Pc � LO
?� � �+� eo .cso Q Qo Qo Qo Qo
�Q L � a■Less than 80% 80%<X<95% ■95%<X< 100% •Greater than 100%
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Chapter 2-Assessment of Current Conditions Compensation Study for the City of Okeechobee
EXHIBIT 2G
EMPLOYEE TO SUPERVISOR SALARY RATIO BY PAY CLASSIFICATION
Grade Less than 80% 80%<X<95% 95%<X<100% Greater than 100%
Account Supervisor 1 0 0 0
Admin Secretary 3 0 0 0
Admin Sect/Occ 1 0 0 0
Chief of Police 0 0 0 0
City Clerk/Personnel 0 0 0 0
Code Enforcement 2 0 0 0
Crossing Guard 1 0 0 0
Deputy City Clerk 1 0 0 0
Dispatcher 1 3 0 0 0
Equipment Mechanic I 0 1 0 0
Executive Assistant 0 0 0 0
Finance Director 0 0 0 0
Gen Svcs Coordinator 0 0 0 0
Lead Operator 1 0 0 0
Maintenance Foreman 1 0 0 0
Maintenance Operator 6 0 0 0
Police Detective 80 1 3 0 0
Police Detective: 84 5 6 0 0
Police Lieutenant 0 2 0 0
Police Officer 1 2 0 0 0
Police Records Clerk 1 0 0 0
Police Sergeant 2 1 1 0
Police Sgt Detective 1 0 0 0
Police Svcs Coord 1 0 0 0
Police/Fire Dispatch 4 0 0 0
Public Works Dir 0 0 0 0
Total 37 13 1 0
4'
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Chapter 2-Assessment of Current Conditions Compensation Study for City of Okeechobee
2.5 SUMMARY
There were many observations made with respect to the City's compensation system in place
at the beginning of the study.
• Range spreads, generally recommended to be between 50-70 percent, vary across
several classifications and ranges. The City's pay plan have range spreads of 44 to 45
percent.
• More than half of employees are paid below their pay ranges midpoint.
• More than half of employees (70.2 percent) are in Quartile 1 of their classifications
pay range. This can indicate a workforce with a high turnover or that has recently
expanded with many new hires. Further analysis is required to determine the cause of
this imbalance.
• Most City employees are paid less than 80.0 percent of their supervisors' salaries.
This analysis acts as a starting point for the development of recommendations in subsequent
chapters of this report. Paired with market data, Evergreen can make recommendations that
will ensure that the City's compensation system is structurally sound in terms of best practice,
competitive with the market, and treats all employees equitably moving forward.
7
.t
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EVERGREEN SOLUTIONS, LLC
Chapter 3 - Market Summary
The purpose of the market summary chapter is to benchmark the City's compensation
practices against those of its market peers; in order to establish how competitive the City is
with the market. To complete this market study, Evergreen compared pay ranges of select
benchmark positions that the City possesses against the compensation of positions
performing those same duties within peer organizations. By aggregating the differences in pay
ranges across all the positions, a reasonable determination is made as to the City's
competitive position within the market.
It is important to note that individual salaries are not analyzed in this methodology, since
individual compensation can be affected by a number of variables such as experience and job
performance. For this reason, Evergreen looked at average pay ranges across the entire
classification to make the most accurate comparison.The results of this market study should
be considered reflective of the current state of the market at the time of this study; however,
market conditions can change rapidly. Consequently, it is necessary to perform market
surveys of peer organizations at regular intervals in order for an organization to consistently
monitor its position within the market. Furthermore,the market results detailed in this chapter
provide a foundation for understanding the City's overall structural standing to the market.
The rates reflected in this chapter, while an important factor, are not the sole determinant for
how classifications were placed into the proposed salary ranges outlined in Chapter 5.
Evergreen conducted a comprehensive market salary survey for the City, which included
soliciting 21 target peer organizations (13 cities and eight counties) for all the City's
benchmark positions. Of the 21 total organizations contacted, 14 responded and provided
data for the benchmark positions. Target peers were selected based on a number of factors,
including geographic proximity, resource level,job overlap,and size.Target organizations were
also identified for their competition to the City for employee recruitment and retention efforts.
Only the targets highlighted in bold provided data for the purpose of this study. The list of
market peers that provided data for the purpose of this study is highlighted in bold type and
included with all approved peers in Exhibit 3A.
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Chapter 3-Market Summary Compensation Study for the City of Okeechobee
EXHIBIT 3A
APPROVED MARKET PEERS
Market Peers
City of Avon Park
Highlands County
Indian River County
DeSoto County
City of Clewiston
City of Sebastian
Martin County
City of Sebring
City of Wildwood
City of Stuart
Okeechobee County
City of Arcadia
City of Port St. Lucie
City of Lakeland
City of LaBelle
Town of Lake Placid
City of Palatka
City of Vero Beach
Glades County
Hardee County
St. Lucie County
Gilbert Motors
Because the data collected for the market summary was from various regions, it was
necessary to adjust peer responses relative to the City based on cost-of-living. For all
organizations that fell outside the City's immediate region, a cost-of-living adjustment was
applied to the reported pay ranges to ensure a market average was attained in terms of the
spending power an employee would have in the City's local area. Evergreen utilizes cost-of-
living index information from the Council for Community and Economic Research. The City is
set as the foundation from which all other peers are compared so there is no cost-of-living
factor for the City in the exhibit. The cost-of-living index figures for the City and each of the
market peers are located in Exhibit 3B.
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Chapter 3-Market Summary Compensation Study for the City of Okeechobee
EXHIBIT 3B
RESPONDENTS WITH COST-OF-LIVING ADJUSTMENTS
Market Peers Cost of Living COL
Index Factor
City of Okeechobee 96.4
City of Arcadia 92.8 1.039
City of Avon Park 95.6 1.008
City of Clewiston 91.5 1.054
City of LaBelle 91.5 1.054
Town of Lake Placid 95.6 1.008
City of Lakeland 95.0 1.015
City of Palatka 94.1 1.024
City of Port St. Lucie 97.8 0.986
City of Sebastian 110.7 0.871
City of Sebring 95.6 1.008
City of Stuart 115.0 0.838
City of Vero Beach 110.7 0.871
City of Wildwood 99.3 0.971
Okeechobee County 96.4 1.000
DeSoto County 92.8 1.039
Glades County 95.8 1.006
Hardee County 95.5 1.009
Highlands County 95.6 1.008
Indian River County 110.7 0.871
Martin County 115.0 0.838
St. Lucie County 97.8 0.986
3.1 MARKET DATA
The results of the market study are displayed in Exhibit 3C, which includes the benchmark job
titles and the market average salaries for each position at the minimum, midpoint, and
maximum points of the pay ranges. Also included within the exhibit are the percentage
differentials of the City's pay ranges at each respective point, relative to the market average
pay. A positive percent differential is indicative of the City's pay range exceeding that of the
average of its market peers; alternatively, a negative percent differential indicates the City's
compensation for a given position lagging behind the average of its peers. The exhibit also
includes the average pay range for the market respondents for each position, as well as how
many responses each benchmark received. We have only included all positions observed to
market but only those classifications returning at least five responses can we included in the
overall market calculations. The market position is presented at the 60th percentile placing
the pay ranges slightly above the market average.
_„e14f
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Chapter 3-Market Summary Compensation Study for the City of Okeechobee
EXHIBIT 3C
MARKET SURVEY RESULTS
Survey Avg
Classification Survey Minimum Survey Midpoint Survey Maximum #Resp.
Range
Average %Diff Average %Diff Average %Diff
ACCOUNT CLERK $ 33,674.97 13% $ 43,747.95 5% $ 55,115.40 1% 56% 8
ADMINISTRATIVE SECRETARY $ 33,287.63 12% $ 42,627.33 6% $ 51,839.16 5% 58% 12
CITY CLERK $ 72,539.86 -29% $ 95,421.70 -42% $ 118,303.53 -45% 57% 7
CODE ENFORCEMENT OFFICER $ 42,019.47 0% $ 53,728.72 -7% $ 66,649.23 -9% 54% 12
DISPATCHER $ 36,631.83 -1% $ 47,340.53 -9% $ 58,475.23 -11% 54% 7
EQUIPMENT MECHANIC I $ 35,505.75 11% $ 46,939.91 1% $ 57,064.33 1% 55% 11
EQUIPMENT MECHANIC II $ 40,451.58 13% $ 51,342.53 8% $ 62,750.96 7% 54% 9
EXECUTIVE ASSISTANT $ 42,986.77 -2% $ 54,808.32 -9% $ 66,629.86 -10% 55% 8
FINANCE DIRECTOR $ 75,479.62 -30% $ 98,191.28 -42% $ 121,129.70 -44% 54% 7
MAINTENANCE FOREMAN $ 41,771.94 12% $ 54,723.23 3% $ 66,526.45 3% 58% 5
MAINTENANCE OPERATOR $ 33,128.93 13% $ 42,338.50 6% $ 53,884.73 1% 62% 6
POLICE LIEUTENANT $ 69,166.50 -21% $ 84,577.08 -24% $ 99,753.15 -21% 43% 7
POLICE OFFICER $ 49,904.35 -2% $ 64,363.75 -5% $ 79,792.81 -12% 63% 8
POLICE RECORDS CLERK $ 33,320.34 15% $ 44,194.70 6% $ 53,727.22 5% 59% 10
POLICE SERGEANT $ 59,200.82 -9% $ 72,067.49 -11% $ 86,481.38 -10% 46% 6
POLICE/FIRE DISPATCH $ 36,631.83 -1% $ 47,340.53 -9% $ 58,475.23 -11% 54% 7
PUBLIC WORKS DIRECTOR $ 83,009.07 -8% $ 107,127.34 -16% $ 131,245.60 -18% 55% 10
Overall Average -0.7% -8.2% -10.0%
3.2 SALARY SURVEY RESULTS
Market Minimums
It is important to assess where an organization is relative to its market minimum salaries, as
they are the beginning salaries of employees with minimal qualifications for a given position.
Organizations that are significantly below market may experience recruitment challenges with
entry-level employees.As seen in Exhibit 3C,the City is currently.7 percent behind the market
average minimum, when considering positions with sufficient responses. The City's
benchmark positions ranged from 30 percent below to 15 percent above at the market
minimum.
The following points are regarding the City's position relative to the market average minimum:
• Of these 17 positions, nine were below market, averaging 11 percent below. These
nine classifications represent roughly 65 percent of the surveyed positions that met
the criteria for inclusion.
• Of the nine positions below market, five were more than 5 percent below the average
market minimum. These positions are displayed in Exhibit 3D.
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Chapter 3-Market Summary Compensation Study for City of Okeechobee
EXHIBIT 3D
CLASSIFICATIONS MORE THAN 5 PERCENT BELOW THE MINIMUM
Classification
Survey Minimum
Average % Diff
FINANCE DIRECTOR $75,479.62 -30.1%
CITY CLERK $72,539.86 -28.9%
POLICE LIEUTENANT $69,166.50 -21.2%
POLICE SERGEANT $59,200.82 -9.0%
PUBLIC WORKS DIRECTOR $83,009.07 -7.6%
• Of these 17 positions,seven were above market, averaging 13.0 percent above.These
seven classifications represent roughly 41 percent of the surveyed positions that met
the criteria for inclusion.
• Of the seven positions above market, all were at least 10 percent above the average
market minimum. These positions are displayed in Exhibit 3E.
EXHIBIT 3E
CLASSIFICATIONS ABOVE THE MINIMUM
Classification Survey Minimum
EQUIPMENT MECHANIC I $ 35,505.75 11%
MAINTENANCE FOREMAN $ 41,771.94 12%
ADMINISTRATIVE SECRETARY $ 33,287.63 12%
MAINTENANCE OPERATOR $ 33,128.93 13%
ACCOUNT CLERK $ 33,674.97 13%
EQUIPMENT MECHANIC II $ 40,451.58 13%
POLICE RECORDS CLERK $ 33,320.34 15%
Market Midpoints
The market midpoint is exceptionally important to analyze,as it is often considered the closest
estimation of market average compensation. As employees acquire important job skills,
experience and needed certifications to improve competencies, they become more
marketable in a competitive labor market. Maintaining a competitive market position at the
midpoint is vital for employee retention.As seen in Exhibit 3C,the City is currently 8.2 percent
below the market average midpoint, when considering positions with sufficient responses.
The City's benchmark positions ranged from 42 percent below to 8 percent above at the
market midpoint.
The following points are regarding the City's position relative to the market average midpoint:
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Chapter 3-Market Summary Compensation Study for City of Okeechobee
• Of these 17 positions, 10 were below market, averaging 17 percent below. These 10
classifications represent roughly 59 percent of the surveyed positions that met the
criteria for inclusion.
• Of the 10 positions below market, five were more than 10 percent below the average
market minimum. These positions are displayed in Exhibit 3F.
EXHIBIT 3F
CLASSIFICATIONS MORE THAN 10 PERCENT BELOW THE MIDPOINT
Classification Survey Midpoint
Average % Diff
CITY CLERK $95,421.70 -42%
FINANCE DIRECTOR $98,191.28 -42%
POLICE LIEUTENANT $84,577.08 -24%
PUBLIC WORKS DIRECTOR $107,127.34 -16%
POLICE SERGEANT $72,067.49 -11%
• Of the 17 positions, 7 were above market, averaging 7 percent above. These seven
classifications represent roughly 41 percent of the surveyed positions that met the
criteria for inclusion.
• Of the seven positions above market,four were more than 5 percent above the average
market midpoint. These positions are displayed in Exhibit 3G.
EXHIBIT 3G
CLASSIFICATIONS MORE THAN 5 PERCENT ABOVE THE MIDPOINT
Classification Survey Midpoint
Average %Diff
EQUIPMENT MECHANIC II $ 51,342.53 8%
MAINTENANCE OPERATOR $ 42,338.50 6%
ADMINISTRATIVE SECRETARY $ 42,627.33 6%
POLICE RECORDS CLERK $ 44,194.70 6%
Market Maximums
The pay range maximum averages, and how they compare to the City's, are also detailed in
Exhibit 3C. As seen in Exhibit 3C, the City is currently 10 percent below the market average
maximum, when considering positions with sufficient responses. The City's benchmark
positions ranged from 45 percent below to 7 percent above the market maximum.
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Chapter 3-Market Summary Compensation Study for City of Okeechobee
The following points are regarding the City's position relative to the market average maximum:
• Of these 17 positions, nine were below market, averaging 19 percent below. These 9
classifications represent roughly 53 percent of the surveyed positions that met the
criteria for inclusion.
• Of the 9 positions below market, seven were more than 10 percent below the average
market maximum. These positions are displayed in Exhibit 3H.
EXHIBIT 3H
CLASSIFICATIONS MORE THAN 10 PERCENT BELOW THE MAXIMUM
Classification Survey Maximum
Average % Diff
CITY CLERK $118,303.53 -45%
FINANCE DIRECTOR $121,129.70 -44%
POLICE LIEUTENANT $99,753.15 -21%
PUBLIC WORKS DIRECTOR $131,245.60 -18%
POLICE OFFICER $79,792.81 -12%
DISPATCHER $58,475.23 -11%
POLICE/FIRE DISPATCH $58,475.23 -11%
• Of these 17 positions, seven were above market, averaging 3 percent above. These
seven classifications represent roughly 41.2 percent of the surveyed positions that
met the criteria for inclusion.
• Of the seven positions above market,three were 5 percent or more above the average
market maximum. These positions are displayed in Exhibit 31.
EXHIBIT 31
CLASSIFICATIONS 5 PERCENT OR MORE ABOVE THE MAXIMUM
Classification Survey Maximum
Average %Diff
EQUIPMENT MECHANIC II $ 62,750.96 7%
ADMINISTRATIVE SECRETARY $ 51,839.16 5%
POLICE RECORDS CLERK $ 53,727.22 5%
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Chapter 3-Market Summary Compensation Study for City of Okeechobee
3.3 SALARY SURVEY CONCLUSION
The local labor market for the Okeechobee area is evolving and shows consistent challenges.
Continued population growth, ongoing construction in support of needed infrastructure
improvements, housing affordability and increased demand for services key among them. To
reestablish a competitive market position, the City will need to place pay ranges where the
market is going instead of where it is today. Historically, the City has established a market
competitive position only to see that immediately erode as the market continues to outpace
compensation policies placing the City in a constant state of reacting to ongoing, well-
established regional trends.
The standing of individual classifications pay range relative to the market should not be
considered a definitive assessment of actual employee salaries being similarly above or below
the market; however, such differentials can, in part, explain symptomatic issues with
recruitment and retention of employees.
The main summary points of the market study are as follows:
• The City's pay ranges are lagging the market average at the minimum, midpoint and
maximum of the range. approximately.
• These market positions place the City at a competitive disadvantage in the local and
regional labor market.
• The City is particularly vulnerable at the midpoint of the salary range, making it more
difficult to retain tenured employees in the future.
The results of the market summary chapter are pivotal in the formulation of recommendations
by Evergreen Solutions. By establishing the City's market position relative to its peers,
Evergreen is better able to propose recommendations that enable the City to occupy its
desired competitive position.
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EVERGREEN SOLUTIONS, LLC
is
''1 Chapter 4 - Benefits Survey Results
As an added component of this compensation study, Evergreen analyzed the key benefits
offerings for the City of Okeechobee. A benefits analysis, like a salary evaluation, represents
a snapshot in time of what is available in peer organizations. The Benefit Survey can provide
the organization with an understanding of the total compensation(salary and benefits)offered
by its peers. It is important to realize that there are intricacies involved with benefits programs
that are not captured by a benefits survey alone.
This information should be used as a cursory overview and not a line-by-line comparison since
benefits can be weighed differently depending on the value to the organization. It should also
be noted that benefits are sometimes negotiated and acquired through third parties, so one-
to-one comparisons can be difficult. The analysis in this chapter highlights aspects of the
benefits survey that provide pertinent information and had high completion rates by target
peers. When the benefits data is aggregated, observations and reasonable findings can be
determined to help with forming recommendations to improve total compensation for the City.
The data and findings in this chapter should be used as a guide to reduce or eliminate any
compensation practices that place the City at a competitive disadvantage. The ultimate goal
is providing a total compensation framework this is equitable and competitive.
Exhibit 4A provides a list of the 21 target peers from which full or partial benefits data were
obtained for this analysis.
EXHIBIT 4A
BENEFITS SURVEY RESPONDENTS
Target Name
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
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
1
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
4.1 EMPLOYEE INSURANCE COVERAGES AND MISCELLANEOUS BENEFITS
Exhibit 4B displays a basic overview of peer organization size, benefits as a percentage of
total compensation, and the average number of health plans offered. Market peers have an
average of 881 full-time employees, 133 part-time employees and 2.3 health plans offered
(HMO, PPO, High or Low, or any other type of plan). Comparatively, Okeechobee has 54 full-
time employees, 5 part-time employees and two health plans, one PPO plan and a Health
Savings Account.
EXHIBIT 4B
OVERALL BENEFITS INFORMATION
Organization Demographics Peer Average City of Okeechobee
Full-Time Employees 881 86.90% 54 91.50%
Part-Time Employees 133 13.10% 5 8.50%
Benefits as a Percentage of Total Compensation 29.70% -
Average Number of Health Plans Offered 2.3 2
4.2 HEALTH PLANS
Exhibit 4C displays data on the types of health plans offered by peers. As can be seen, 7.7%
of peers offer a HMO plan, 38.5 percent offer a PPO plan, 18.2 percent offer a Health Savings
Account plan, and 75.0 percent offer some other type of plan. Individual employee's premium
paid by the employer is, on average, 94.2 percent for PPO plans, 84.9 percent for HMO plans,
and 84.5 percent for other plans. For employee plus child plans, employers contribute 69.0
percent and in employee plus spouse plans, employers contribute 66.3 percent for PPO plans
in each instance. Regarding an HMO plan,for employee plus child plans, employers contribute
51.5 percent and in employee plus spouse plans, employers contribute 44.2 percent in each
instance For employee plus family plans, employers contribute 61.5 percent for PPO plans,
31.2 percent for HMO plans, and 80 percent for other plans. Shown at the bottom of Exhibit
4C, Evergreen surveyed respondents for health plan deductible and co-pay amounts.
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
EXHIBIT 4C
OVERVIEW OF HEALTH PLANS OFFERED BY PEERS
Health Plan Premiums&Deductibles Peer HMO Peer PPO Peer MA Other Plans
Average Average Average Average
Percentage of peers offering each plan 7.70% 38.50% 18.20% 75.00%
DOLLAR AMOUNT(monthly)of employee premium
$852.15 $902.46 $741.59
paid by employer
PERCENTAGE(monthly)of employee premium
paid by employer 84.90% 94.20% 84.50%
DOLLAR AMOUNT(monthly)of employee premium
paid by employee $151.57 $53.22 $27.08 $130.29
PERCENTAGE(monthly)of employee premium 15.10% 5.80% 15.50%
paid by employee
Individual Maximum Deductible in Network - $1,186.67 $2,000.00 $1,290.63
Individual Maximum Deductible Out of Network $2,103.33 $5,000.00 $2,285.71
DOLLAR AMOUNT(monthly)of employee plus $852.15 $1,215.73 - $1,162.43
child premium paid by employer
PERCENTAGE(monthly)of employee plus child
51.50% 69.00% 74.30%
premium paid by employer
DOLLAR AMOUNT(monthly)of employee plus
child premium paid by employee $801.40 $572.05 $201.11 $370.34
PERCENTAGE(monthly)of employee plus child 48.50% 31.00% 25.70%
premium paid by employee
Employee Plus Child Maximum Deductible In
$2,791.67 $4,000.00 $2,685.71
Network
Employee Plus Child Maximum Deductible Out of
Network $5,645.83 $6,850.00 $4,807.14
DOLLAR AMOUNT(monthly)of employee plus
spouse premium paid by employer $852.15 $1,224.72 $1,279.58
PERCENTAGE(monthly)of employee plus spouse
44.20% 66.30% 72.90%
premium paid by employer
DOLLAR AMOUNT(monthly)of employee plus
spouse premium paid by employee $1,074.85 $665.75 $548.51 $435.64
PERCENTAGE(monthly)of employee plus spouse 55.80% 33.70% 27.10%
premium paid by employee
Employee Plus Spouse Maximum Deductible in
$2,791.67 $4,000.00 $2,685.71
Network
Employee Plus Spouse Maximum Deductible Out
of Network $5,645.83 $6,850.00 $4,807.14
DOLLAR AMOUNT(monthly)of employee plus
family premium paid by employer $852.15 $1,377.23 $1,442.96
PERCENTAGE(monthly)of employee plus family 69.70/
premium paid by employer 31.20% 61.50% °
DOLLAR AMOUNT(monthly)of employee plus
family premium paid by employee $1,876.34 $880.41 $681.89 $597.03
PERCENTAGE(monthly)of employee plus family
premium paid by employee 68.80% 38.50% 30.30%
Employee Plus Family Maximum Deductible in
Network - $2,533.33 $4,000.00 $2,787.50
Employee Plus Family Maximum Deductible Out of
Network $4,533.33 $6,850.00 $4,807.14
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
For comparison purposes, a summary of the plans offered by Okeechobee is displayed in
Exhibit4D. Okeechobee offers two health plans one PPO plan and one High Deductible plan
to all Full-Time employees as well as retirees. Okeechobee covers 100 percent of the
premiums for individual coverage for both plans, 57 percent of the premiums for employee
plus child for the PPO plan and 58.1 percent for the HSA plan. Okeechobee also covers 45.6%
for employee plus spouse for the PPO plan and 46.4% for the HSA plan. Okeechobee covers
35.7 percent of the premiums for employees plus family for the PPO plan and 36.4 for the
HSA plan. Initial review of the overall health care employer contribution shows Okeechobee
lags the market average for each category except individual coverage.
EXHIBIT 4D
HEALTH PLANS OFFERED BY THE
CITY OF OKEECHOBEE
City of Okeechobee
Hearth Plan Premiums&Deductibles
PPO HSA
Which employee groups or bargainingunits are covered by each
health plan? FT/Retirees FT/Retirees
PERCENTAGE (monthly)of Employee premium paid by 100% 100%
employer
DOLLARAMOUNT (monthly)of Employee premium paid by
employer $1,089.27 $942.42
PERCENTAGE (monthly)of Employee Plus Child premium
57% 58.10%
paid by employer
DOLLARAMOUNT (monthly)of Employee Plus Child
premium paid by employer $1,239.27 $1,092.42
PERCENTAGE (monthly)of Employee Plus Spouse premium
paid by employer 45.60% 46.40%
DOLLARAMOUNT (monthly)of Employee Plus Spouse
premium paid by employer $1,239.27 $1,092.42
PERCENT (monthly)of Employee Plus Family premium paid 35.70% 36.40%
by employer
DOLLARAMOUNT (monthly)of Employee Plus Family
premium paid by employer $1,239.27 $1,092.42
Individual maximum Deductible $500.00 $2,500.00
Employee Plus Child maximum Deductible $1,500.00 $5,000.00
Employee Plus Spouse Maximum Deductible $1,500.00 $5,000.00
Employee Plus Family Maximum Deductible $1,500.00 $5,000.00
Evergreen surveyed peers' dental, vision, short-term disability, long-term disability, and life
insurance coverages.
Exhibit 4E shows that 46.2 percent of peers offer an employer paid dental insurance for
employees, while 100.0 percent offer one or more employees paid dental plan options. The
average monthly cost to peers for employee only dental coverage is $17.28. The employee's
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
premiums for optional employee paid plans averaged $24.56 for employee only coverage
while the average employee cost for employee plus dependent coverage is $78.54.
Okeechobee does not offer an employer pay dental option; however, it does offer a separate
employee paid option.
EXHIBIT 4E
DENTAL COVERAGE QUESTIONS
City of Okeechobee City of Okeechobee
Peer Percentage Offcering a Peer Percentage Offering Offering a Separate
Question Separate Employer Paid Plan OffePaidring OptionEmployer Employee Paid Option Employee Paid
Option
Does your organization offer
employees Dental 46.20 4 No 100% Yes
insurance?(%Yes)
Monthly Cost to Employer $17.28 $24.56 $31.79
for Individual coverage?
Monthly Cost to Employer
for Employee Plus - - $78.54 $83.99
Dependent coverage?
Exhibit 4F shows that 21.4 percent of peers offer an employer paid vision insurance for
employees, while 100 percent offer one or more employees paid vision plan options. The
average employer cost for employee plus dependent coverage is $6.13. The employees'
premiums for optional employee paid plans averaged $7.43 monthly for employee only
coverage. Okeechobee does not offer employer paid vision insurance but does offer employee
paid vision insurance. The Okeechobee employees' monthly premiums for optional employee
paid plans for employee plus dependent coverage is $16.16.
EXHIBIT 4F
VISION COVERAGE QUESTIONS
Peer Percentage City of Okeechobee
City of Okeechobee Peer Percentage
Offering a Offering a
Question Separate Employer Offering Employer Offering Employee Separate Employee
Paid Paid Option
Paid Plan Paid Option
Does your organization offer
employees Vision insurance?(%Yes) 21.40% No 100'- Yes
Monthly Cost to Employer for
$6.13 $7.43 $5.24
Individual coverage?
Monthly Cost to Employer for $5.24 $16.16
Employee Plus Dependent coverage?
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
For short-term disability coverage, 25.0 percent of responding peers offer an employer paid
plan and 58.3 percent offer an employee paid plan as displayed in Exhibit 4G. Okeechobee
does not offer employer paid short-term disability coverage but does offer employee paid
short-term disability coverage. The monthly cost to Okeechobee for employer paid employee
only coverage depends on salary.
EXHIBIT 4G
SHORT-TERM DISABILITY COVERAGE QUESTIONS
Does your Monthly Cost to What Percent of
Short-Term Disability organization offer Employer for Salary Does
the following? Individual coverage? Employee Receive?
Employer Paid 25.00% - 60%
City of
Okeechobee No -
Coverage Plans
Employee 60/°
Paid 58.30% °
City of
Yes - 60%
Okeechobee
Like short-term disability coverage, 33.3 percent of responding peers offer an employer paid
long-term disability plan and 67 percent offer an employee paid plan as displayed in Exhibit
4H. On average, employer paid plans pay 60 percent of salary at the time of a disability and
employee paid plans paid an average of 60 percent of salary. Okeechobee provides an
employer paid long-term disability plan that gives employees 60 percent of salary.
EXHIBIT 4H
LONG-TERM DISABILITY COVERAGE QUESTIONS
Does your Monthly Cost to What Percent of
Long-Term Disability organization offer Employer for Salary Does
the following? Individual coverage? Employee Receive?
Employer Paid 33.30% - 60%
City of
Coverage Okeechobee Yes 60%
Plans Employee Paid 67% - 60%
City of
Okeechobee No
Exhibit 41 summarizes the life insurance offerings of responding peers and Okeechobee.
Overall, 100 percent of the responding peers offer life insurance and 100 percent indicated
that they offer optional dependent coverage. Regarding the cost to the employer for individual
coverage, it depended on the peer. One stated it gave up to $9 and another said 3 cents for
every thousand dollars. Okeechobee offers employer-paid life insurance and additional
dependent coverage.
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
EXHIBIT 41
LIFE INSURANCE
Peer
Life Insurance Percentage Peer Average City of Okeechobee
Yes
Is employer-paid life insurance offered? 100.00% Yes
Cost(monthly)to employer for individual coverage - Depends on Peer $29.95
Dollar amount of death benefit - $28.571.43 $75,000
Is Optional dependent coverage offered? 100.00% - Yes
Can the employee purchase(additional)life insurance
if desired? 100.00% - Yes
*In some cases,ranges were provided;cannot be averaged.
4.3 EAP, TUITION REIMBURSEMENT, 529 PLANS, AND FINANCIAL PLANNING
Exhibit 4J displays specific information on Employee Assistance Programs. As shown, 100
percent of participating peers offer EAP. For 100 percent of respondents, benefits are
available to family members in addition to the employee. On average, peers provide 5.8 EAP
visits per year. Okeechobee offers EAP with 5 annual visits and allows the benefits to be
available to family members in addition to the employee.
EXHIBIT 4J
EMPLOYEE ASSISTANCE PROGRAMS
EAP Peer Peer Average City of
Percentage Yes Okeechobee
Is an EAP offered? 100.00% - Yes
Are benefits available to family members as
well as the employee? 100.00% Yes
Number of Annual EAP Visits Provided - 5.8 5
Exhibit 4K Tuition Reimbursement. 42.9 percent of the responding peers indicated that they
have provisions to provide some type of tuition reimbursement for employees. On average,
peers' tuition reimbursement limit was$2,000.00. Okeechobee offers tuition reimbursement
with an undisclosed reimbursement limit.
EXHIBIT 4K
TUITION REIMBURSEMENT
Peer City of
Tuition Reimbursement Percentage Yes Peer Average Okeechobee
Is Tuition Reimbursement offered? 42.90% - Yes
Tuition Reimbursement Limit - $2,000.00 N/A
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
4.4 RETIREMENT
Exhibit 4L displays that the average number of plans offered by peers is 2.3 while Okeechobee
has 2 plans.
EXHIBIT 4L
NUMBER OF RETIREMENT PLANS
City of
Retirement Plans Peer Average Okeechobee
How many types of retirement
plans/systems are used by your 2.3 2
organization?
Exhibit 4M provides retirement details. On average, participating peers offer 5.2 years to fully
vest.COLA is offered to retiree pensions for 50 percent of participating peers.This COLA varies
for all participating peers. As shown, 25 percent of participating peers' retirement plans offer
a disability provision. For participating peers, organization contribution to this retirement
option varied by job type while the employee contributes, on average, 13 percent of their
salary.
Like the market peers, Okeechobee offers a retirement plan to employees. However,
Okeechobee requires 10 years for Police to become fully vested. The City also seems to be
lagging the market slightly related to the percentage of salary employees contribute to their
retirement which lands between 5-6% depending on the department, whereas, on average,
peers only contribute 2.5%. Okeechobee should consider reducing the time it takes for
employees to get vested in the retirement plan, if allowed, and increase the employer
contribution to the retirement plan as a way to immediately create an advantage in the
market.
EXHIBIT 4M
RETIREMENT DETAILS
Retirement Plans Peer Average City of Okeechobee
Years to Fully Vest 52 5 years. 10 years for Police
COLA Offered to Retiree Pensions(%Yes) 50.00% Police:0.5%every other year
Does the organization's retirement plan offer
25.00% Yes
a disability provision?(%Yes)
What percent of salary does the organization
contribute to this retirement option? 13.00% Varies
What percent of salary does the employee 5%for Public Safety
2.50%
contribute to this retirement option? 6%for General Employees
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
Exhibit 4N shows that 66.7 percent offer additional retirement options. Of respondents, all
peers provide their employees with a D.R.O.P. retirement option. All peer respondents offer a
401k,401a,403(b), 457, or similar plan. Okeechobee does offer a D.R.O.P. retirement option
but does not offer 457 Plans.
EXHIBIT 4N
RETIREMENT OPTIONS
Employers If so,how
Retirement Provisions Peer Percentage contribute much City of
Yes to these percentage is Okeechobee
options? contributed?
Do you provide additional retiremei
options? 66.70% Yes
Is D R 0 P.offered? 100 00"c - Yes
Is a 401k.401a.403(b).or 457
offered? 100.00% - Yes
Is a type of plan other than a 401k. 0% No
401a.403(b)or 457 offered?
Exhibit 40 All participating peers offer health, dental and life insurance to retired employees.
Okeechobee offers health, dental, and life insurance to retired employees.
EXHIBIT 40
INSURANCE FOR RETIREES
Peer City of
Insurance for Retirees Average Okeechobee
Does your organization offer health insurance to retired
100.00% Yes
employees?
Does your organization offer dental insurance to retired
employees? 100.00% Yes
Does your organization offer life insurance to retired employees? 100.00% Yes
4.5 EMPLOYEE LEAVE. HOLIDAYS, AND COMPENSATORY TIME
Exhibit 4P provides the average minimum and maximum accrual rates—the average years of
service required to achieve the maximum accrual rate for Personal Leave, Sick Leave,
Annual/Vacation Leave, and Paid Time off(PTO) leave for respondents.
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
EXHIBIT 4P
LEAVE TIME ACCRUAL
Peer Years of service Minimum Years of service Maximum Maximum
Leave Accrual Organization Percentage required to begin Accrual Rate required to begin Accrual Rate Accrual in
Yes accruingthe in Hours accruingthe in Hours Hours Days
minimum rate? (Monthly) maximum rate? (Monthly) (Cap)
Peer Average 27.30% 0 8 - 8
Personal Leave City of
Okeechobee Yes
Peer Average 87.50 0 7.5 3.3 8.6 191.9
Sick Leave City of
Okeechobee Yes 0 8 0 8 960
Annual/ Peer Average 86.70% 0.1 6.4 17.4 15.3 222.33
Vacation Leave City of ,,s 0 8 15 13.3 272
Okeechobee
Peer Average 30.00 0 14 19 21.3 256.1
Paid Time Off City of
Okeechobee No - - - -
As shown, 27.3 percent of peers reported that employees accrue personal leave while 30.0
percent of peers reported that employees accrue paid time off.87.5 percent of peers reported
offering sick leave and 86.7% of peers reported offering annual/vacation leave.
Okeechobee offers sick leave, personal leave, and annual/vacation leave and does not offer
paid time off. It would seem the City is slightly ahead of market when comparing total leave
and accrual.
Exhibit 4Q summarizes respondent policies regarding sick and vacation leave payout. Sick
leave is paid out upon voluntary in 77.8 percent of responding peer organizations. No peers
count unused sick leave towards retirement. Vacation leave is paid out upon voluntary
separation in 87.5 percent of responding peer organizations, and vacation leave is paid out
upon involuntary separation in 28.6 percent of responding peer organizations.
Okeechobee does pay out sick leave upon voluntary but not upon involuntary separation.
Okeechobee does pay out vacation leave upon voluntary but not upon involuntary separation.
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
EXHIBIT 4Q
SICK AND VACATION LEAVE PAYOUT
Sick and Vacation Leave Policies Peer Peer City of
Percentage Yes Average Okeechobee
Is unused sick leave paid out upon
voluntary separation? 77.80 i Yes
Max hours of sick leave paid out upon
voluntary separation 1888.1
Is unused sick leave paid out upon
14.30% No
involuntary separation?
Max hours of sick leave paid out upon
0.3
involuntary separation
Can unused sick leave count towards
0.00% -
retirement?
-
Max hours of sick leave that can count
towards retirement
Is unused annual/vacation leave paid 87.50% - Yes
out upon voluntary separation?
Max hours of annual/vacation leave - 333.3 240
paid out upon voluntary separation
Is unused annual/vacation leave paid
out upon involuntary separation? 28.60% No
Max hours of annual/vacation leave 360
-
paid out upon involuntary separation
The specific paid holidays are shown in Exhibit 4R. On average, peers offer 11.4 holidays to
employees, compared to 12 offered by Okeechobee.
EXHIBIT 4R
HOLIDAYS
Holidays Observed by Peer Percentage Cityof
Peer Organizations Yes Okeechobee
New Year's Day 100.00% Yes
New Year's Eve 25.00% No
Martin Luther King.Jr.Day 100.00% Yes
Lincoln's Birthday 0.00% No
Washington's
Birthday/Presidents Day 25.00% No
Good Friday 0.00% Yes
Memorial Day 100.00% Yes
Independence Day 100.00% Yes
Labor Day 100.00% Yes
Veteran's Day 93.80% Yes
Thanksgiving Day 100.00% Yes
Day after Thanksgiving 93.80% Yes
Christmas Eve 100.00% Yes
Christmas Day 100.00% Yes
Personal Holiday 40.00% No
Employee Birthday 13.30% Yes
Total Number of
Holidays 11.4 12
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Chapter 4-Benefits Survey Results Compensation Study for City of Okeechobee,FL
Exhibit 4S shows that all participating peers offer longevity pay and merit raises. None offer
merit bonuses. Okeechobee offers merit raises and longevity pay but does not offer merit
bonuses or any other incentive pay programs.
EXHIBIT 4S
INCENTIVE PAY PROGRAMS
Types of Longevity Pay, Bonuses, or Peer Percentage Yes City of
Incentive Pay Programs Okeechobee
Does your organization offer: Longevity Pay? 100.00% Yes
Does your organization offer: Merit Raises? 100.00% Yes
Does your organization offer: Merit Bonuses? 0.00% No
Does your organization offer: other programs? - -
4.6 SUMMARY
The City of Okeechobee's total benefits offerings are generally comparable to those of
neighboring cities and approved public sector market peers solicited in this benefits survey in
terms of overall coverage options. However, when analyzing individual benefits, it was
observed Okeechobee is slightly below market peers in some key areas. Specifically, the City
would seem to be at a competitive disadvantage to the market when it comes to employer
health care contributions for family and dependent-care coverage.
Notably, in family health plan coverage, Okeechobee contributes 35.7% towards employee
and family PPO plans, which is significantly lower than the market average of 61.5%.
Additionally, Okeechobee lacks an employer-paid dental plan, which is a standard benefit in
the market. A benefits specific recommendation is provide in Chapter 5 of this report.
It is essential for Okeechobee to integrate benefits offerings into its overall compensation
strategy to maintain competitiveness. While competitive salaries are crucial, benefits that fall
behind market standards can erode the value of the salary and undermine the City's ability to
attract and retain talent.The shrinking gap between public and private sector benefits further
emphasizes the need for Okeechobee to enhance its benefits packages to stay competitive
in the recruitment landscape.
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EVERGREEN SOLUTIONS, LLC
Chapter 5 - Recommendations
After reviewing the information provided in the preceding sections of this report, Evergreen
developed recommendations to improve the City of Okeechobee's(City)current compensation
and classification system. The recommendations, as well as the findings that led to each
recommendation, are discussed in detail in this section.The recommendations are organized
into three sections: classification, compensation, and administration of the system.
5.1 CLASSIFICATION RECOMMENDATIONS
An organization's classification system establishes how its human resources are employed to
perform its core services. The classification system consists of the titles and descriptions of
the different classifications, or positions, which define how work is organized and assigned. It
is essential that the titles and descriptions of an organization's classifications accurately
depict the work being performed by employees in order to ensure equity within the
organization and to enable comparisons with positions at peer organizations. While the
primary focus of this study was to prioritize the market competitiveness of the City,
recommendations to modernize current classifications were also offered. The purpose of the
classification analysis is to identify such issues as incorrect titles, outdated job descriptions,
and inconsistent titles across departments. Recommendations are then made to remedy the
identified concerns based on human resources best practices.
In the analysis of the City's classification system, Evergreen Solutions worked closely with the
City Project Leadership Team to identify classification changes needing an update to better
align with essential functions and best practices.The recommended improvements would not
have been possible without the diligent efforts of the City Project Leadership Team who was
engaged throughout the process.
FINDING
The classification system being utilized by the City was generally accurate and the titles
described the work being performed by employees. However, there were several
classifications observed in the study process and in collaboration with staff where Evergreen
is recommending updated titles.
Additionally, several of the City's classifications require some modification to better describe
the work being performed to ensure the work is consistent with essential job functions.
RECOMMENDATION 1: Update existing class description to reflect the new classification
titling.
During the internal equity assessment, consideration of the relationships between and the
type of work being performed by the City's employees in their classifications was reviewed and
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
analyzed. Specifically, titling was evaluated to identify roles that may no longer be consistent
with HR best practices. This work helped identify areas for improvement within the current
classification structure and titling.
In conjunction with the City making the proposed title changes, Evergreen recommends the
City update classification descriptions to ensure they accurately reflect the work being carried
out by employees. Following the implementation of the recommended title changes, an
updated FLSA status for the roles based on the new, updated content contained within the
description should be completed. Overall,there were 7 classifications recommended for a title
change or a new classification was added to the pay plan as a result of the study. These
recommendations are provided in Exhibit 5A.
EXHIBIT 5A
RECOMMENDED CLASSIFICATION CHANGES
Classification Recommended Title
ADMINISTRATIVE SECRETARY ADMINISTRATIVE ASSISTANT
ADMINISTRATIVE SECRETARY/OCC ADMINISTRATIVE ASSISTANT/OCC
POLICE/FIRE DISPATCH CERTIFIED DISPATCHER
CODE ENFORCEMENT CODE ENFORCEMENT OFFICER
GENERAL SERVICES COORDINATOR GENERAL SERVICES DIRECTOR
DISPATCHER 1 POLICE DISPATCHER
POLICE/FIRE DISPATCH POLICE DISPATCHER II
5.2 COMPENSATION RECOMMENDATIONS
The compensation analysis consisted of two parts: an external market assessment and an
internal equity assessment. During the external market assessment,the City's compensation
for all benchmark classifications was compared to average compensation offered by peers in
the City of Okeechobee labor market. The external assessment consisted of comparing the
City against its peer organizations within its market and revealed the City is currently lagging
the market at the 60th percentile. Given the unique characteristics and location of the
Okeechobee labor market, Evergreen recommends the City modernize their compensation
philosophy to place salaries slightly above the average at the 60th percentile of the market. In
effect, to place compensation where the market is trending instead of where the market is
today. This philosophy will help the City take a more proactive versus reactive approach to
compensation to aid in recruitment and retention.
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
FINDING
The City currently maintains a pay plan with pay ranges lagging the market and Evergreen
found there were instances of wage compression based on years in current classification and
years of service to the City.
RECOMMENDATION 2: Adopt a new, market responsive compensation structure and assign
all positions to it equitably.
Evergreen has provided an updated pay plan for the City's consideration. The new structure
consists of creating numeric pay grades and a slight increase in the pay ranges to more
strategically align classifications with the current market. The proposed pay plan offers
consistent market competitive pay ranges and progression between pay grades of 6-10%.
Evergreen is recommending slightly wider pay ranges of 50% to better align with the market
response.The details of the proposed plans are located in Exhibits 5B-5F.
EXHIBIT 5B
PROPOSED PAY PLAN ANNUAL
Grade Minimum Midpoint Maximum Range Midpoint
Spread Progression
101 $ 38,229.45 $ 47,786.81 $ 57,344.18 50.0% -
102 $ 40,523.22 $ 50,654.02 $ 60,784.83 50.0% 6.0%
103 $ 42,954.61 $ 53,693.26 $ 64,431.92 50.0% 6.0%
104 $ 45,531.89 $ 56,914.86 $ 68,297.83 50.0% 6.0%
105 $ 48,263.80 $ 60,329.75 $ 72,395.70 50.0% 6.0%
106 $ 51,159.63 $ 63,949.53 $ 76,739.44 50.0% 6.0%
107 $ 54,229.21 $ 67,786.51 $ 81,343.81 50.0% 6.0%
108 $ 57,482.96 $ 71,853.70 $ 86,224.44 50.0% 6.0%
109 $ 60,931.94 $ 76,164.92 $ 91,397.90 50.0% 6.0%
110 $ 67,025.13 $ 83,781.41 $ 100,537.69 50.0% 10.0%
111 $ 73,727.64 $ 92,159.55 $ 110,591.46 50.0% 10.0%
112 $ 81,100.41 $ 101,375.51 $ 121,650.61 50.0% 10.0%
113 $ 89,210.45 $ 111,513.06 $ 133,815.67 50.0% 10.0%
114 $ 98,131.49 $ 122,664.36 $ 147,197.24 50.0% 10.0%
115 $ 107,944.64 $ 134,930.80 $ 161,916.96 50.0% 10.0%
116 $ 118,739.10 $ 148,423.88 $ 178,108.66 50.0% 10.0%
UNG - - - - -
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
EXHIBIT 5C
PROPOSED PAY PLAN HOURLY
Range Midpoint
Grade Minimum Midpoint Maximum
Spread Progression
101 $ 18.38 $ 22.97 $ 27.57 50.0% -
102 $ 19.48 $ 24.35 $ 29.22 50.0% 6.0%
103 $ 20.65 $ 25.81 $ 30.98 50.0% 6.0%
104 $ 21.89 $ 27.36 $ 32.84 50.0% 6.0%
105 $ 23.20 $ 29.00 $ 34.81 50.0% 6.0%
106 $ 24.60 $ 30.74 $ 36.89 50.0% 6.0%
107 $ 26.07 $ 32.59 $ 39.11 50.0% 6.0%
108 $ 27.64 $ 34.55 $ 41.45 50.0% 6.0%
109 $ 29.29 $ 36.62 $ 43.94 50.0% 6.0%
110 $ 32.22 $ 40.28 $ 48.34 50.0% 10.0%
111 $ 35.45 $ 44.31 $ 53.17 50.0% 10.0%
112 $ 38.99 $ 48.74 $ 58.49 50.0% 10.0%
113 $ 42.89 $ 53.61 $ 64.33 50.0% 10.0%
114 $ 47.18 $ 58.97 $ 70.77 50.0% 10.0%
115 $ 51.90 $ 64.87 $ 77.84 50.0% 10.0%
116 $ 57.09 $ 71.36 $ 85.63 50.0% 10.0%
UNG - - - - -
EXHIBIT 5D
PROPOSED POLICE PAY PLAN
PD1 $ 49,900.00 $ 62,375.00 $ 74,850.00 50.0% -
PD2 $ 52,395.00 $ 65,493.75 $ 78,592.50 50.0% 5.0%
PD3 $ 58,500.00 $ 69,423.38 $ 87,750.00 50.0% 6.0%
PD4 $ 67,000.00 r$ 83,750.00 $ 100,500.00 50.0% 10.0%
PD5 $ 73,700.00 $ 92,125.00 $ 110,550.00 50.0% 10.0%
PD6 $ 81,070.00 $ 101,337.50 $ 121,605.00 50.0% 10.0%
UNG - - - -
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
EXHIBIT 5E
PROPOSED POLICE PAY PLAN HOURLY(2184 HOURS)
PD1 $ 22.85 $ 28.56 $ 34.27 50.0% -
PD2 $ 23.99 $ 29.99 $ 35.99 50.0% 5.0%
PD3 $ 26.79 $ 31.79 $ 40.18 50.0% 6.0%
PD4 $ 30.68 $ 38.35 $ 46.02 50.0% 20.6%
PD5 $ 33.75 $ 42.18 $ 50.62 50.0% 10.0%
PD6 $ 37.12 $ 46.40 $ 55.68 50.0% 10.0%
UNG - - - - -
EXHIBIT 5F
PROPOSED POLICE PAY PLAN HOURLY(2080 HOURS)
PD1 $ 23.99 $ 29.99 $ 35.99 50.0% -
PD2 $ 25.19 $ 31.49 $ 37.78 50.0% 5.0%
PD3 $ 28.13 $ 33.38 $ 42.19 50.0% 6.0%
PD4 $ 32.21 $ 40.26 $ 48.32 50.0% 20.6%
PD5 $ 35.43 $ 44.29 $ 53.15 50.0% 10.0%
PD6 $ 38.98 $ 48.72 $ 58.46 50.0% 10.0%
UNG - - - 0.0% -
Implementation of the new compensation structure requires two steps. First, all positions
were assigned to an appropriate pay grade within the overall plan. To determine what pay
grade each position was assigned, Evergreen used the following factors: analysis of the
current compensation structure, the results of the market study, recommendations from the
City Project Leadership Team as well as consideration for both existing and newly created
internal relationships between classifications.Assigning pay grades to classifications requires
a balance of internal equity and desired market position, and recruitment and retention
concerns also played a role in the process. Thus, the market results discussed in Chapter 3
were a primary factor but not the sole criteria for the proposed pay ranges. The placement of
classifications into the plan was done by prioritizing market competitiveness and fiscal
responsibility while maintaining internal equity.
RECOMMENDATION 3: Evergreen recommends the City adopt the Bring to Minimum
methodology to transition employee salaries into the proposed pay plan taking the first step
to reestablishing a market competitive position.
The second step in implementing the proposed structure is to transition employee salaries
into their new recommended pay ranges. This step can be taken via a variety of methods,
each with their own strengths and drawbacks. Evergreen discussed several options to help
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
reduce or eliminate wage compression and bring employees to a competitive position in the
market. Evergreen recommends a parity option to reduce wage compression and establish a
new pay plan that is fair and competitive. The implementation options and associated costs
are for base salary adjusted for cost of living. These costs are shown in Exhibit 5G.
EXHIBIT 5G
IMPLEMENTATION OPTIONS AND COST SUMMARY
Number of Average
Total Salary- Adjustment for %of
Implementation Option Employees
Only Cost Adjusted Impacted Payroll
Employees
Bring to Min $ 23,631.86 18 $ 1,312.88 0.8%
Tenure Parity $ 220,459.67 45 $ 4,899.10 7.7%
Bring to Minimum
This methodology places employees into the new pay ranges at the minimum of the proposed
pay range. If an employees' current annual salary exceeds the new minimum, no adjustment
is given;and,as such, no employee salary is reduced as a result of this implementation option.
The benefit of this option is that employees are moved into new, market competitive pay
ranges.The negative is this option does not correct any instances of wage compression which
currently exist throughout the City. In some instances, wage compression could be
exacerbated from only implementing the Bring to Minimum option. The cost to implement this
option is$23,531.86 and impacts 18 employees.
30-Tenure Parity
30-Year Tenure Parity - This option consists of placing employees into their proposed pay
ranges based on their "Tenure years." The parity effectively divides the pay range by 30 and
places employees within their range based on their overall organizational tenure. For example,
an employee who has been with the City for fifteen years would be placed at the midpoint of
the range. If an employee's current salary is higher than their tenure parity projected salary,
no adjustment is made, and as such, no salaries are decreased as part of this adjustment.
This methodology seeks to re-align employee salaries on the basis of years of overall tenure
and can space out compressed employee salaries along the range based on this factor. The
cost to implement this option is $220,459.67 and impacts 45 employees.
FINDING
The City's overall benefits offerings, when compared to the market, place the City at a
competitive disadvantage to the market.
RECOMMENDATION 4: Evergreen recommends the City increase the employer contribution
for all health care coverage options equitably and utilize the market data provided in Chapter
4 of this report to modernize all key benefits offerings.
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
The results of the Benefits Survey added to this project following the completion of the salary
survey revealed the City is lagging the market for some key benefits. For total compensation
to be competitive in the market, pay and benefits must be considered equally with a goal of
providing equitable compensation for all employees. For example, the City currently provides
competitive benefits for employees with individual coverage but lags the market for
dependent coverage creating an external equity deficit, For those employees requiring
dependent care coverage, their total compensation erodes considerably compared to
employees performing a similar role for market peers and this places the City at a competitive
disadvantage. When considering the external market surveys for compensation and benefits
reveal the City is lagging the market in both areas, the City could anticipate the following
impacts: increased turnover, extended vacancies, a reduced pool of qualified applicants,
reduced productivity, burnout and lower employee engagement.
As it relates to benefits, there are many factors today's employees consider when making a
decision to maintain employment or see employement elsewhere. Some of these factors
include annual salary, health and retirement benefits, including employer vs employee
contribution to those benefits. Other factors include career development opportunities, the
volume and intensity of work, workplace diversity, flexible scheduling, work/life balance and
employee recognition. Organizations with compensation policies that align with the demands
of today's workforce have better employment engagement, higher retention, more qualified
applicants and ultimately provide better services to citizens.
5.3 COMPENSATION AND CLASSIFICATION SYSTEM ADMINISTRATION
Any organization's compensation and classification system will need periodic maintenance.
The recommendations provided in this chapter were developed based on conditions at the
time the study was conducted. Without proper upkeep of the system, the potential for
recruitment and retention issues may increase as the compensation and classification system
becomes dated and less competitive. What follows are recommendations for the City to
consider when evaluating policies related to compensation and how employees would
progress within the plan.
RECOMMENDATION 5: Conduct small-scale salary surveys as needed to assess the market
competitiveness of hard-to-fill classifications and/or classifications with retention issues and
adjust pay grade assignments if necessary.
As the South Florida labor market continues to evolve, a small number of classifications' pay
grades may need to be reassigned more frequently. If one or more classifications are
exhibiting high turnover or are having difficulty with recruitment, the City should collect salary
range data from peer organizations to determine whether an adjustment is needed for the
pay grade of the classification(s).
RECOMMENDATION 6: Conduct a comprehensive classification and compensation study
every three to five years.
While small-scale salary surveys can improve the market position of specific classifications, it
is recommended that a full classification and compensation study be conducted every three
to five years to preserve both internal and external equity for the City. The scope of work for
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
this compensation study provided a broad assessment of the classification structure for the
City. Regular evaluation and updates to compensation is important and equally important is
constantly looking for changes to classification that occur over time. While the increments of
change may seem minor, they can compound over time potentially placing the City in a poor
position for recruiting and retaining quality employees.
While the previous two recommendations intend to maintain the competitiveness over time
of the classification and compensation structure as a whole, it is also necessary to establish
procedures for determining equitable pay practices for individual employees. Policy
modifications should be linked to desired organizational outcomes and an established
compensation philosophy set forth by the elected City Council. What follows are suggestions
for the City to consider in an effort to keep improving and establishing itself as a leading public
sector employer.
RECOMMENDATION 7: Revise policies and practices for moving employees' salaries through
the pay plan, including procedures for determining salaries of newly hired employees and
employees who have been promoted, demoted, or transferred to a different classification.
Evaluation and updating of current compensation policies is necessary as pay plans can
evolve over time and the desired compensation philosophy of the City may change as well.
The method of moving salaries through the pay plan and setting new salaries for new hires,
promotions, demotions, and transfers depends largely on an organization's compensation
philosophy. However, it is important for the City to have established guidelines for each of
these situations and that they are followed consistently for all employees. Common practices
for progressing and establishing employee salaries are outlined below. The current policies
may differ from the proposed policies outlined in this section so consideration should be given
to modernizing existing policies to meet the demands of a growing City in a dynamic labor
market. Employment Policy should strive to find a balance between accountability and
flexibility. The City Council should use their role to create policies that give staff the flexibility
to achieve desired outcomes while simultaneously fostering a culture of accountability and
operational excellence. City leadership should take action to achieve Council approved goals
and policies and be given the autonomy to recognize and reward higher performers and
remove poor performers from the organization.
Salary Progression
As outlined above, Evergreen recommends City enact the second phase of implementing the
new pay plan which would involve a one-time salary adjustment for employees to ensure they
are placed in the proper percentile of their new market competitive salary range. Evergreen is
recommending Hybrid Parity as the preferred implementation option to bring employees into
their new, market competitive pay ranges while also minimizing instances of wage
compression. While this major adjustment should be performed when the City has the
financial resources to do so, the City should continue to adjust salaries annually when
financially feasible. Evergreen offers the following recommendation for the City to consider
that would serve as the basis for salary adjustments in the future at three distinct levels.
• Structural: Adjustment to the ranges should be made annually and with the aim of
adjusting for the changes in cost of living. Evergreen recommends the City tie the
annual compensation structure movement to the local change in the Consumer-Price-
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Chapter 5-Recommendations Compensation Study for the City of Okeechobee,FL
Index(CPI). This annual adjustment will ensure the City's pay ranges do not rapidly fall
out of line with that of its peers; however, when conducting the small-scale surveys
referenced above, the City should also collect pay plan movement and anticipated
movement from its peers to gauge if market movement is keeping pace with CPI
movement.
• Classification:As a result of the market surveys,the City may identify classifications or
job families that are experiencing considerable market movement and as a result,
reassignment of the pay grades should be considered when this occurs. Alternatively,
if the City identifies classifications that have become hard to recruit and retain, pay
grade reassignment should also be considered to ensure the City is competitive for
both recruiting new talent and retaining existing employees.
• Individual:To tie into the adjustment of the structure, Evergreen recommends the City
adjust employee salaries annually for Cost-of-living adjustment (COLA). This
adjustment would be done for all employees who receive a satisfactory performance
evaluation,and the percentage adjustment would need to be at least 1.0 - 2.0 percent
more than the movement of the compensation structure in any given years, in order to
allow for employee progression into the range. Moreover, based on the feedback from
employees and the City's desire to recruit and retain a high-quality workforce,
Evergreen recommends the City grant additional adjustment to employees who receive
above average performance evaluations. The City should exercise a differentiated
percentage for high performers that meet the financial constraints of the budget while
still providing a meaningful incentive for high performance. This may require
adjustments to the current performance evaluation system. Continued training of City
leadership responsible for performing these annual reviews is critical to ensure
consistency and linkage to Council approved operational and service outcomes.
Bottom line, a performance based annual review and adjustment is only effective if
aligned with Council approved operational and service goals. This linkage allows the
Council to focus on policy and employees to focus on day-to-day operations.
New Hires
A new employee's starting salary largely depends on the amount of education and experience
the employee possesses beyond the minimum requirements for the job. Typically, an
employee holding only the minimum education and experience requirements for a
classification is hired at or near the classification's pay grade minimum. An upper limit to the
percentage above the minimum that can be offered to a new employee with only the minimum
requirements should be established, where approval is needed to offer a starting salary that
is a higher percentage above minimum. Another threshold should be established as the
maximum starting salary possible without approval for new employees with considerable
experience and/or education above the requirements for the position. It is common for the
midpoint to be used as the maximum starting salary for most classifications. Once the City
has performed the initial implementation adjustment for current employee salaries, new
employee starting salaries should take into consideration internal equity, meaning that new
hires should be offered comparable salaries to existing employees in the classification with
similar levels of education and experience. Another important consideration for a City of
Okeechobee 's size is a City policy of how outside experience will be valued when recruiting
new employees. Evergreen recommends the City modernize the policy pertaining to
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experience gained outside of Okeechobee by assigning a percentage value to the verified
outside experience a potential new hire brings with them to the City. By valuing outside
experience based on an established policy, it would allow the City to expand the pool of
applicants when recruiting to fill open positions.
RECOMMENDATION 8: Evergreen recommends the City implement a critical classification
program and compensate those classifications that qualify 10 percent above their current
base rate of compensation.
Critical Classifications
The City's leadership team should assess all classifications each year to determine those that
should be categorized as "critical" based on market data collected for that year,turnover and
evolving organizational priorities. In the first year, it is recommended that the critical class
supplement be 10 percent for those classifications with more than 30 percent turnover
and/or a market rate percent difference of 20 percent or more (after accounting for the new
salary range assignments). Furthermore, if adopted by the City, a critical class supplement
could be increased to a larger percent of base pay. For example, if the City in the future
experiences considerable competitive pressure in hiring candidates for a specific
classification. Some of the pressure may relate to the pay ranges, but other factors such as
the available supply of labor, compared to demand of experienced candidates may also be
present and/or benefits offerings. As a result, the base pay of the associated classification
would be increased so long as the external market pressures remain prevalent.
5.4 SUMMARY
The City and the surrounding area continue to undergo a period of considerable growth and
this will continue to impact the local labor market and available resources. The City should be
commended for its desire and commitment to provide not only competitive and fair
compensation for its employees but to help resolve any compensation issues keeping the City
from achieving leaderships desired operational outcomes. Okeechobee, with continued
improvement, will set the standard for fiscally responsible public sector employment in the
region. Throughout this study the City project leadership team were engaged, and their
collaboration was instrumental in delivering defensible recommendations and results. The
new pay plan places a higher priority on market competitiveness due to the current conditions
and trends in the labor market but also includes key classification changes that will modernize
operations.The recommendations in this report establish a new market competitive pay plan,
externally and internally equitable classification titles and pay grade assignments, and system
administration practices that will provide the City with a responsive compensation and
classification system for years to come. While the upkeep of this recommended system will
require effort, the City will find that having a competitive compensation system that
encourages strong recruitment and employee retention is worth this commitment. With the
implementation of these proposed changes,the City will move one step closer to establishing
itself as the standard for municipal employment in the region.
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