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HomeMy WebLinkAboutCompensation/Benefits Strategy Table of Contents 1 2 3 4 5 6 Project Background, Objectives and Approach Employee Feedback Compensation and Benefits Strategy External Competitive Analysis Salary Structure Adjustment Implementation Project Background, Objectives and Approach PALMER &: CAY CONSULTING GROUP (PCCG) was retained by Albemarle County (the County) to conduct an independent study to assess its current compensation and benefits programs and practices. This report presents our findings and recommendations. Driving forces behind this project included: · Assuring that the compensation program assists the County in attracting and retaining high quality employees; · Verifying and updating the external competitiveness of compensation; · Ensuring that resources allocated to compensation are effectively and efficiently managed; and · Simplifying the compensation program and developing administrative guidelines. PALMER & CAY CONSULTING GROUP 1 Project Background, Objectives and Approach Our proposal for assistance identified the following objectives: Assist in the finalization of the compensation and benefits survey; Conduct focus groups and/or interviews to obtain employee perception of compensation and benefits plan(s); Meet with a Planning Team to determine the appropriate format for final report; Meet with a Planning Team to review employee feedback; Input all survey data into an approved format; Finalize format for final report through an iterative process with the Planning Team; Provide recommendations for improving current compensation plan(s); Provide a cost analysis associated with recommendations; and Provide an implementation plan for achieving Board approved recommendations. current PALMER & CAY CONSULTING GROUP 2 Project Background, Objectives and Approach Planning Team We believe that an important role in the consulting relationship is to transfer to the client as much of our expertise as possible. We recommended that the County designate a Planning Team of representatives from each function to meet with us on a regular basis to provide input for each project deliverable. Based on our previous experience with other clients, we believe that the project approach should incorporate substantial interaction with the client. In addition to facilitating knowledge transfer with respect to ongoing program administration and minimizing consulting fees, interaction between the consultant team and our clients helps ensure that: The PROJECT AND METHODOLOGIES address the appropriate issues, · The PROJECT FINDINGS have been analyzed and interpreted correctly, and · The RECOMMENDATIONS are consistent with the data, build on effective approaches utilized elsewhere, and are appropriate to meet the Countv's needs. In addition to the Planning Team, Michael Thompson, Director of Human Resources, and Lorna Gerome were designated as the Project Managers and were the primary liaisons between PCCG and the County. PALMER & CAY CONSULTING GROUP 3 Project Background, Objectives and Approach Project Approach The Planning Team met on a consistent basis (i.e., two to three times a month over a six month period) to come to an agreement on each element of information that was utilized to develop the proposed Compensation and Benefits strategy. To provide the Boards with an understanding of the due diligence behind the proposed Compensation and Benefits strategy we have outlined the process below. Major milestones are noted in italics. · The Planning Team finalized a long-term list of benchmark jobs to be surveyed to annually establish the external competitiveness of the County's current compensation and benefits. · The Planning Team finalized a list of specific organizations to participate in an annual external competitiveness review. · A survey instrument was designed by the County to obtain specific information from survey participants with respect to compensation and benefits. · The County conducted a private survey to obtain compensation and benefits information for the external competitiveness review. This consisted of placing phone calls to all targeted survey participants and sending the finalized survey to those organizations that agreed to participated in the survey. · Focus Group Meetings and Group Meetings. · Palmer & Cay consultants input the data received from participating organizations in the compensation and benefits survey. · Palmer & Cay consultants compared the County's current compensation and benefits to the external market data received from the private survey and to published survey data (note: published survey data utilized to supplement the private survey data was for the Virginia/Charlottesville area). · The Planning Team reviewed the data collected by Palmer & Cay and the external competitiveness review conducted by Palmer & Cay and supported the findings. The overall findings concluded that the County's current cash compensation is approximately 4.5% below market (i.e., the 2000/2001 salary structure(s)) and its' current benefits program is approximately 5% above market. · Palmer & Cay consultants had every Planning Team member submit in writing their personal view as to where the County should target its' compensation and benefits programs. · Palmer & Cay consultants developed a proposed Compensation and Benefits strategy based on the following: The County's organizational goals and objectives expressed by the Planning Team; Employee feedback from focus groups, e:mails and interviews; The external market as identified by the Planning Team; The importance of internal equity as identified by the Planning Team; and The desired positioning versus the external market for both cash compensation and benefits as identified by the Planning Team. PALMER & CAY CONSULTING GROUP 4 · The Planning Team voted and approved the proposed Compensation and Benefits strategy. PALMER & CAY CONSULTING GROUP Employee Feedback To obtain a broad perspective of employees' perceptions regarding the strengths and weaknesses of Albemarle County's current compensation and benefits programs, PCCG consultants conducted focus group sessions with a cross-section of employees representing both School and County positions. Large group meetings were also held to give all employees an opportunity to ask questions and provide input to the compensation study. In addition, all employees were provided a toll-free telephone number and e-mail address to reach the PCCG consultants to provide individual input. Employees provided input relative to the following topic areas: · Strengths and Weaknesses of the Current Compensation Program - Salary Program - Performance Appraisal Process · Strengths and Weaknesses of the Current Benefits Programs - Medical, Dental Vision - Time off - Retirement - Benefits Employees Desire · Overall Comments Key interview findings relative to each topic area are summarized in this section. To ensure PCCG consultants received the best information possible, employees were assured their comments would be kept confidential, and therefore we have reported only dominant themes found across all employee groups. It should be noted that these findings represent opinions of the interviewees. Some of them represent a consensus view, while others are simply a comment or perspective we felt to be of relevant consideration. PALMER & CAY CONSULTING GROUP 6 Employee Feedback (cont.) Strengths + d- and Weaknesses of the Current Compensation Program Merit increases Flexibility entering employment - The majority of employees feel they are paid less than employees in similar positions at other organizations. - Employees expressed the difficulty the County has recruiting employees: [] The labor market has undergone drastic changes; unemployment is low and there is a much smaller pool of applicants. [] Starting salaries are not high enough to attract & retain qualified applicants. - Employees do not feel satisfied with the current salary administration system: [] It is difficult to calculate the amount of increase employees receive because there are too many factors involved. ~ Employees feel there is much variance between departments. z2 Tenured employees do not view placement in range as "fair" when determining increases. [] Goal seems to be to reach "midpoint", which is considered a fair market rate. Some employees feel this is working, while others feel it causes them to be "tied-in" to their job. - Some employees would prefer to see a cost-of-living increase of the same amount granted to all employees. - Some employees feel the County should address cost of living in its salary administration. - Internal transfers occur between School and County positions, because perception is that salaries are often higher at the Schools for similar positions. - Employee perception is that the salary program is very inflexible. - Employees feel inequities exist between departments in terms of workloads and staffing ratios. - Position classification issues exist; employee perception is that getting a reclassification is frustrating and the outcomes often political. - Employees in some positions feel there is little opportunity for advancement. - There is flexibility in hiring new employees, but no adjustments are made for existing employees. - While pay compression issues have been addressed in the past, the problem persists. - Some employees emphasized the need to look at actual salaries, not just salary scales, when conducting the compensation review. - For certain School positions, employees feel inequities exist when considering the overall hours worked. PALMER & CAY CONSULTING GROUP ? Employee Feedback (cont.) Strengths and Weaknesses of the Current Compensation Program (cont.) - The re-certification stipend for teachers is insufficient and has not been increased in twelve years. - Job descriptions are vague and out-dated. - Employees do not understand the difference between levels of jobs and how to get from one level to the next (i.e., OA3 to OA4). - Compensatory time is an issue; some employees feel they are not getting appropriate credit. Strengths + + and Weaknesses of the Current Performance Management Program Employees feel the process works well in certain departments. System provides a sense of security and helps you learn improvement. of areas needing - Employees do not have faith in the existing "pay for performance" system. - Some employees feel they are penalized for doing a good job because it only leads to more responsibility. - Demoralizes the "exceptional" performer. - Goals are not necessarily established ahead of time. - Some employees feel performance evaluation is a very helpful process, while others feel the process is arbitrary and subjective. - Employees would like to see more accountability for supervisors delivering merit increases. - The performance management process appeared to be administered inconsistently, with some departments having a better experience with the process than others. Strengths and Weaknesses of the Current Benefits Programs Medical + + + Overall employees seem satisfied with their medical coverage. Flexible spending accounts. The cost of single coverage is felt to be below market. Employees feel the cost sharing is too high. Family coverage is too expensive, especially for lower paid employees. No coverage for "life partners". The referral process for healthcare is difficult. Flexible spending accounts are considered beneficial, but employees would like to have more communication about the program. PALMER & CAY CONSULTING GROUP Employee Feedback (cont.) Strengths and Weaknesses of the Current Benefits Programs (cont.) Dental - Cost-sharing for dental insurance is considered high. - Coverage is inadequate. The majority of employees felt the vacation, holidays and sick leave were adequate. Both employees and supervisors acknowledged abuse of sick leave. There is no incentive to not use sick leave accumulation. Retirement + Deferred compensation is viewed as beneficial. + Overall favorable responses towards VRS Plan. - No investment options. - No match on deferred comp plan. - No participation for part-time employees. all Benefits Employees Would Like to Have · Better prescription coverage (e.g., birth control) · Vision · Health/Fitness center · Ability to opt out of medical coverage · Early retirement option · Donation of sick leave · Investment options for retirement · Better snow day policy · Increased stipend amount for teacher re-certification · Increased tuition reimbursement · Change in payroll cycle (more frequent) · Incentive (i.e., bonus) for not using sick time. Overall Comments · When asked to rate their balance of benefits to salary on a scale of 1 to 10, with salary being a 1, benefits being a 10 and an even distribution being 5, employee responses varied greatly with individual needs or preferences. · A general, overall observation was that the balance weighed more heavily on benefits when it came to the current compensation program, and an even distribu'tion when it came to desired compensation program. PALMER & CAY CONSULTING GROUP ' ' 9 Compensation and Benefits Strategy The design of an effective compensation program begins with an analysis of the organization's philosophy, culture and values. In relationship to compensation, an organization's age (i.e., entrepreneurial or mature); its industry (i.e., education, public service, government, high-tech, financial, etc.); and its ability to pay effectively all have an impact on the organization's compensation program. The first step to evaluating an organization's current compensation program is to articulate the organization's Compensation and Benefits strategy. At a minimum, the Compensation and Benefits strategy should include the following: · Overall Goal--a broad statement of the organization's attitude toward employee compensation; · External Market--a definition of the external labor market; · Positioning of Compensation and Benefits--establishing the targeted positioning of both compensation and benefits to the identified external market; and · General Salary Guidelines--outlining the strategy for distributing individual base salary increases. Following is the Compensation and Benefits strategy that was developed for the County by the Planning Team with PCCG consultants facilitating the process. PALMER & CAY CONSULTING GROUP 1 1 Compensation and Benefits Strategy Overall Goal. The overall goal of the County's Compensation and Benefits strategy is to provide competitive compensation opportunities that reinforce high performance from all employees and the achievement of organizational goals. Therefore, the County's overall compensation and benefits programs should: · Support the mission, goals, and interests of the County, its customers and employees. Enable the County to attract and retain qualified and high-performing employees who are: Flexible and adaptable - Achievers Service-oriented Customer-oriented · Motivate and empower employees to act in the best long-term interests of the County and its customers. · Reward employee innovation and performance. · Maintain both internal equity and external competitiveness. · Support teamwork throughout the County in meeting common objectives. · Promote ease and flexibility in compensation and benefits program administration. Competitive Market. The primary competitive market for all County positions is defined as Counties and School systems of similar size within the State of Virginia and/or are located in the same geographic region of the State of Virginia, and for positions that are not unique to government and/or education industry, the competitive market also includes local private employers within the Charlottesville area. Base Salary. Base saIa~d range midpoints are targeted at approximately market levels (i.e., @100th percentile). Base salary increases will be based on competitive market increases and the availability of funds. The County's salary structure will be reviewed on an annual basis to ensure that the program: (1) is externally competitive; (2) meets our employee's individual needs; and (3) minimizes costs to the County. Internal Equity. Our focus on establishing an equitable compensation program is reflected in our dedication to considering internal equity, as well as market compensation levels, in establishing base salary ranges. Therefore, iob scope and responsibility requirements will each play a key role in determining compensation levels relative to the external market. Benefits. Benefits will be targeted slightly above the County's competitive market (i.e., @105th percentile). The County's benefits program will be reviewed on an annual basis to ensure that the program: (1) is externally competitive; (2) meets our employee's individual needs; and (3) minimizes costs to the County. PALMER & CAY CONSULTING GROUP 12 External Competitive Analysis External Salary Survey External salary surveys are utilized by employers to determine the appropriate compensation levels to attract and retain employees. There are a variety of purposes an external salary survey may fulfill, including: · Ensuring external equity (i.e., to determine if current salary rates are sufficient to attract new employees as well as retain current employees); Validating job evaluation systems (i.e., to determine if they are providing equal pay for jobs of equal worth and if they have adequate pay differentials for work of unequal worth); and Regulatory compliance (i.e., justification for pay practices by utilizing market data when challenged by lawsuits with respect to discrimination). A survey specifically designed for the County helped ensure that (1) the appropriate organizations were surveyed, (2) the appropriate jobs were surveyed, (3) the matches of external organization jobs with County jobs were roughly equivalent, and (4) the appropriate questions were asked (i.e., relative to specific compensation and benefits components). Comparable Organizations The methodology associated with external salary survey administration begins with identification of the appropriate comparable organizations that define the County's competitive labor market. The Planning Team identified Counties and School systems of similar size within the State of Virginia and/or are located in the same geographic region of the State of Virginia as the primary competitive labor market for the County. In addition, for positions that are not unique to government and/or education industry, the competitive market also includes local private employers within the Charlottesville area. Benchmark Jobs Once comparable organizations were identified, the next process step involved identifying benchmark jobs to include in the private survey. Benchmark jobs are defined as jobs that: · Are well-known in similar organizations; · Are relatively stable; · Represent a large portion of the organization; · Are vital to the organization's success; and · In the aggregate, represent the entire structure of jobs from the highest paying positions to the lowest paying positions. For this study, a total of sixty-four (64) benchmark positions were identified by the Planning Team for inclusion in the private salary survey. The County then: (1) developed a brief description for each benchmark position, (2) identified the specific compensation and benefits PALMER & CAY CONSULTING GROUP 13 components to include in the survey, (3) designed a survey instrument, and (4) administered the survey to selected organizations. PALMER &: CAY CONSULTING GROUP 14 External Competitive Analysis (cont'd) We are pleased to report that there were twenty-seven (27) survey participants. In addition to the County survey data collected from these survey participants, we referenced our database of published surveys. Detailed information on the published survey sources used can be found on in this section of the report. We are confident that the external compensation analyses prepared for benchmark positions reflect general market conditions. Compensation data for the following sixty-four (64) positions was obtained from the compensation survey and are presented in this section of the report. Account Clerk After School Head Teacher After School Teacher Assistant Principal - Elementary Auto/Bus Equipment Mechanic II Bookkeeper Building Official Bus Driver Bus Driver Supervisor Chief of Police Commercial Building Inspector Communications Officer Communications Supervisor Custodial Supervisor II Custodian Director of Curriculum Development Director of Fiscal Services Director of Parks and Recreation Director of Planning and Comm. Dev. Director of Social Services Director of Transportation Electrician Eligibility Worker Engineering Inspector II Firefighter/EMT Food Service Associate Food Service Manager I General Maintenance Worker I Grounds/Facilities Maintenance Worker I Human Resources Specialist Iii HVAC Mechanic Instructional Coordinator Maintenance Mechanic Management Analyst II Office Associate II Office Associate IV Parks Foreman Payroll Supervisor Planner Police Lieutenant Police Officer Police Records Clerk Principal - Elementary School .Principal - High School Principal - Middle School Programmer/Analyst Real Estate Clerk School Nurse School Secretary Senior Account Clerk Senior Accountant Senior Appraiser Senior Civil Engineer Senior Eligibility Worker Senior Maintenance Mechanic Senior Planner Senior Support Analyst Social Worker Social Worker Supervisor Support Analyst Systems Analyst Teacher Teaching Assistant Zoning Inspector PALMER & CAY CONSULTING GROUP 15 External Competitive Analysis (cont'd) Private Survey Participants We are pleased to report that the following twenty-seven (27) organizations participated in the survey (listed alphabetically): 1. AIMR (Association for Investment Mgmt. & Research) 2. Augusta County Public Schools 3. City of Charlottesville 4. City of Harrisonburg 5. City of Lynchburg 6. City of Roanoke 7. City of Staunton, VA 8. City of Williamsburg 9. County of Louisa 10. County of Montgomery 11. Fluvanna County 12. Green County 13. Greene County Public Schools 14. Hanover County 15. James City County 16. Loudoun County Public Schools 17. Lynchburg City School 18. Madison County 19. Martha Jefferson Hospital 20. Nelson County School Board 21. Orange County 22. Prince William County 23. Pdnce William County Public Schools 24. Rockingham County Public Schools 25. Spotsylvania County 26. Staunton City Schools 27. Williamsburg - James City County Public Schools The survey process also resulted in the development of compensation worksheets for each benchmark iob (see Appendix A). Each survey participant received a copy of the survey results. PALMER tgr CAY CONSULTING GROUP 16 External Competitive Analysis (cont'd) Following is a summary of the general information received from the County private survey. Employee Infoi'mation: Total Number of 1,315 72 338 i!" :186gi i:; 1,563 6,483 Employees : ::, . % of Full-Time · ~' .... Employees - 82% 59% 69% /i:i~50/oi',!. 93% 100% % of Pad-Time 17% 0% 8% ' ii:' ', 1;4~,~:/'31% 41% Employees ,, , , Th e information provided by survey participants describes plan provisions in effect as of: 5/00 8/98 9/00 PALMER & CAY CONSULTING GROUP 17 External Competitive Analysis (cont'd) Exhibit I -Private Salary Survey Results - Average Exhibit 1 provides a comparison of the results of the private salary survey, published survey data, and private and published survey data combined to the County's average annualized salaries. For each salary comparison, the midpoint is the average base salary for all responding organizations to the private salary survey and the average for published survey data. Please note that the salary information reported has been annualized to a 2080-hour work year to ensure an equal comparison of salaries. PALMER & CAY CONSULTING GROUP 18 Albemarle CoUnty Summary of Survey Analyses Exhibit 1 Average Annual Salary Account Clerk $ 20.103 After School Head Teacher $ 28.870 After School Teacher $ -22.818 Assistant Principal - Elementary $ 52.042 Auto/Bus Equipment Mechanic II $ 28.915 Bookkeeper $ 27.413 Building Official $ 57.624 Bus Driver $ 22.485 Bus Driver Supervisor $ 36.162 Chief of Police $ 77.041 Commercial Building Inspector $ 32.550 Communications Officer $ 24.580 Communications Supervisor $ 34.111 Custodial Supervisor II $ 30.488 Custodian $ 19.536 Director of Curriculum Development $ 74.283 Director of Fiscal Services $ 66.234 Director of Parks and Recreation $ 69.218 Director of Planning and Comm. Dev. $ 76.949 Director of Social Services $ 71.498 Director of Transportation $ 76.706 Electrician $ 23.860 Eligibility Worker $ 28.260 Engineering Inspector II $ 30.034 Firefighter/EMT $ 33.939 Food Service Associate $ 16.286 Food Service Manager I $ 26.437 General Maintenance Worker I $ 17.063 Grcunds/Facilities Maintenance Worker I $ 18.050 Human Resources Specialist Ill $ 31.854 HVAC Mechanic $ 28.130 Instructional Coordinator $ 57.171 Maintenance Mechanic $ 26.735 Management Analyst I $ 40.467 Office Associate II $ 20.721 Office Associate IV $ 28.835 Parks Foreman $ 23.950 Payroll Supervisor $ 43.143 Planner $ 33.023 Police Lieutenant $ 54.092 Police Officer $ 29.429 Police Records Clerk $ 21.652 Principal - Elementary School $ 66.054 Principal - High School $ 78.794 Principal - Middle School $ 66.763 Programmer/Analyst $ 38.696 Real Estate Clerk $ 19.214 School Nurse $ 25.958 School Secretary n/a Senior Account Clerk $ 29.044 Senior Accountant $ 36.961 Senior Appraiser $ 43.751 Senior Civil Engineer $ 51.932 Senior Eligibility Worker $ 35.341 $ 28.927 Senior Planner $ 44.477 Senior Support Analyst $ 40.482 Social Worker $ 320544 Social Worker Supervisor $ 51.223 Support Analyst $ 35,038 Systems Analyst $ 39.649 Teaching Assistant $ 20.093 $ 28.064 23.017 n/a n/a 56.177 32.996 31.311 51.006 25.996 40.501 83.734 34.271 24.013 33,350 28,254 18.909 74.870 78.082 56.026 67.292 76.192 61.349 34.864 27.559 44.491 27.429 17.208 33.772 25.312 21.868 43,657 30,909 65.065 32.613 45.523 24.915 27.73O 35,622 37.963 40.421 50.871 30.500 22,039 67.337 76.454 69.811 45.303 26.071 37.312 28.197 30.314 43.791 46.481 56.319 34.099 35.624 43.161 50.193 33.854 48.191 44.109 54.698 19.714 32.297 OVERALL VARIANCE FOR BENCHMARK POSITIONS: (7.6%) 23,661 n/a n/a n/a 28,796 26,911 n/a 25,833 Wa Wa 38,6,56 Wa Wa 29,911 18.907 n/a n/a n/a n/a n/a n/a 40~215 n/a 45.638 26.702 16.904 29.097 28,147 21.998 39.442 36.420 n/a 33.888 41.974 22.995 28.782 35.988 54,086 n/a n/a 19,146 n/a n/a n/a 53,219 19.099 30.310 21 .O74 27.598 54.032 57,547 60.991 n/a 39.905 68.258 43.038 41,114 51.798 36.692 56.368 16.960 n/a (12.3%) 23.339 n/a n/a 56.177 30.896 29.111 51.006 25.915 40.501 83.734 36.464 24.013 33.360 29.083 18,9o8 74,870 78,082 56.026 67.292 76.192 61.849 37,539 27.559 45.065 27.066 17,058 31,434 26,730 21,933 41,549 33,664: 65.065 33.251 43.749 23.955 28.256 36.631 36.976 47.245 50.871 30,500 29.592 67.337 76.454 69.811 49.261 22.585 33.811 24.636 28.956 48.912 52.014 58.655 34.099 37.764 55.710 46.616 37.484 49.995 40.400 55,533 18.337 32.297 (8.0%) Note: All salaries adjusted for a 2080 hour work year. 19 External Competitive Analysis (cont'd) Exhibit 2 - Private Salary Survey Results - Average with Salary Differentials~ Exhibit 2 provides a comparison of the results of the private sala~ survey, published survey data, and the private and published survey data combined to the County's average annualized salaries. For each salary comparison, the midpoint is the average base salary for all responding organizations to the private salary survey, adjusted by the salary differential associated with the location of each responding organization compared to Charlottesville, VA and the average for published survey data. Please note that the salary information reported has been annualized to a 2080-hour work year to ensure an equal comparison of salaries. Salary differential is the difference between the average salaries for similar positions between two cities, ?ALMER & CAY CONSULTING GROUP 20 Albemarle County Summary of Survey Analyses Exhibit 2 Average Annual Sahry with Salary Di~erent~'al Adjustments Account Clerk $ 20.103 After School Head Teacher $ 28,870 After S~I Teacher $ 22.818 Assistant Principal - Elementary $ 52.042 Auto/Bus Equipment Mechanic II $ 28.915 Bookkeeper $ 27,413 Official $ 57,624 Bus Driver $ 22.485 Bus Driver Supervisor $ 36.162 Chief of Police $ 77,041 Commercial Building Inspector $ 32,550 Communications Officer $ 24,580 Communications Supervisor $ 34,111 Custodial Supervisor II $ 30,488 Custodian $ 19,536 Director of Curriculum Development $ 74,283 Director of Fiscal Services $ 66,234 Director of Parks and Recreation $ 69,216 Director of Planning and Comm. Dev. $ 76,949 Director of Social Services $ 71,498 Director of Transportation $ 76,706 Electrician $ 23.860 Eligibility Worker $ 28.260 Engineering Inspector II $ 30,034 Firefighter/EMT $ 33,939 Food Service Associate $ 16,286 Food Service Manager I $ 26,437 General Maintenance Worker I $ 17,063 Grounds/Facilities Maintenance Worker I $ 18,050 Human Resources Specialist III $ 31,854 HVAC Mechanic $ 28,130 Instructional Coordinator $ 57,171 Maintenance Mechanic $ 26,735 Management Analyst II $ 40,467 Office Associate II $ 20,721 ~IV $ 28.835 man $ 23,950 Payroll Supervisor $ 43.143 Planner $ 33,023 Police Lieutenant $ 54.092 Police Officer $ 29,429 Police Records Clerk $ 21,652 Principal - Elementary School $ 66,054 Principal - High School $ 78,794 Principal - Middle School $ 66.763 Programmer/Analyst $ 38,696 Real Estate Clerk $ 19,214 School Nurse $ 25.958 Sch~31 Secretary n/a Senior Account Clerk $ 29,044 Senior Accountant $ 36,961 Senior Appraiser $ 43,751 Senior Civil Engineer $ 51.932 Senior Eligibility Worker $ 35,341 Senior Maintenance Mechanic $ 28,927 Senior Planner $ 44,477 Senior Support Analyst $ 40,482 Social Worker $ 32,544 Social Worker Supervisor $ 51.223 Support Analyst $ 35,038 Systems Analyst $ 39,649 Teaching Assistant $ 20,093 $ 28.064 OVERALL VARIANCE FOR BENCHMARK POSITIONS: 22.986 n/a n/a 56,169 32,994 31,266 51,332 26.090 40,382 24.173 33,267 28,359 19,030 75,331 78,743 56,626 67,778 75,688 62,118 34.793 27,421 44,175 27,412 17,051 33,800 25,679 22.062 43,772 30,884 65,511 32,577 46.071 24,894 27,957 38,695 37,877 40,887 51,313 30,768 22,192 67,735 76,908 70,233 45.201 26,261 37,391 28,230 30.232 44,282 46,819 57,048 33.881 35,922 42.938 49,928 33,671 47,863 43,609 54.766 19.654 32,836 (7,8%) 23,661 n/a n/a n/a 28,796 26,911 n/a 25,833 n/a n/a 38,656 n/a 29,911 18,907 n/a n/a n/a n/a n/a n/a 40,215 n/a 45.638 26.702 16,904 29,097 28,147 21,998 39,442 36,420 n/a 33,888 41,974 22,995 28,782 34,640 35.988 54,068 n/a n/a 19,146 n/a n/a n/a 53,219 19,099 30,310 21,074 27,598 54,032 57,547 60.991 n/a 39.905 68,258 43,038 41,114 51,798 36,692 56,368 16,960 n/a (12.3%) 23,324 n/a n/a 58,169 30,895 29,089 51,332 25.962 40,382 83.624 36.445 24,173 33,267 29.135 18,968 75,331 78.743 58.626 67,778 75.688 62.118 37,504 27.421 44.907 27,057 16.978 31,448 26,913 22.030 41.607 33,652 65,511 33,233 44,023 23,945 28,370 36.688 36,933 47.478 51,313 30,768 20,669 67,735 76.908 70,233 49,210 22,680 33,851 24.652 28.915 49,157 52.183 59,020 33,881 37,913 55.598 46,483 37,393 49,831 40,150 55,567 18.307 32,836 (8.2%) Note: All salaries adjusted for a 2080 hour work year. 21 External Competitive Analysis (cont'd) Exhibit 3 -Private Salary Survey Results - Average with Geographic Differentials2 Exhibit 3 provides a comparison of the results of the private salary survey, published survey data, and the private and published survey data combined to the County's average annualized salaries. For each salary comparison, the midpoint is the weighted average base salary for all responding organizations to the private salary survey, adjusted by the geographic differential associated with the location of each responding organization compared to Charlottesville, VA and the average for published survey data. Please note that the salary information reported has been annualized to a 2080-hour work year to ensure an equal comparison of salaries. 2 Geographic differential is the cost of living differences between two cities. PALMER & CAY CONSULTING GROUP 22 Albemarle County Summary of Survey Analyses Average Annual Salary with Geographic Di~rential Adjustments School Teacher $ 22.818 Elementary $ 52,042 II $ 28.915 $ 27.413 Official $ 57,624 $ 22.485 ius Driver Supervisor $ 36.162 $ 77.041 $ 32,550 )fficer $ 24.580 pervisor $ 34,111 II $ 30.488 $ 19,536 of Curriculum Development $ 74,283 Director of Fiscal Services $ 66.234 Director of Parks and Recreation $ 69,218 )irecter of Planning and Comm. Dev. $ 76.949 Services $ 71,498 :)irector of Transportation $ 76.706 !lectrician $ 23,860 , Worker $ 28.260 Engineering Inspector II $ 30,034 Firefighter/EMT $ 33.939 Food Service Associate $ 16.286 Food Service Manager I $ 26,437 General Maintenance Worker I $ 17.063 Grounds/Facilities Maintenance Worker I $ 18.050 Human Resources Specialist III $ 31,854 HVAC Mechanic $ 28.130 Instructional Coordinator $ 57,171 Maintenance Mechanic $ 26,735 Management Analyst tl $ 40.467 Office Associate II $ 20.721 Office Associate IV $ 28.835 Parks Foreman $ 23,950 Payroll Supervisor $ 43,143 Planner $ 33.023 Police Lieutenant $ 54.092 Police Officer $ 29.429 Police Records Clerk $ 21,652 Principal - Elementary School $ 66,064 Principal - High School $ 78.794 Principal - Middle School $ 66.763 Programmer/Analyst $ 38,668 Real Estate Clerk $ 19.214 $ 25,958 School Secretary Fda Clerk $ 29,044 Senior Accountant $ 36,961 Senior Appraiser $ 43.751 Senior Civil Engineer $ 51.932 Senior Eligibility Worker $ 35,341 Senior Maintenance Mechanic $ 28.927 Senior Planner $ 44.477 $ 40,482 Social Worker $ 32.544 Social Worker Supervisor $ 51,223 Support Analyst $ 35,038 Systems Analyst $ 39.649 Teaching Assistant $ 20,093 $ 28.064 OVERALL VARIANCE FOR BENCHMARK POSITIONS: 22.914 $ 23,661 n/a Wa Fda n/a 57,335 Wa 33,512 $ 28,796 32.177 $ 26,911 50,442 n/a 27.478 $ 25,833 41,219 n/a 84.000 Fda 33,941 $ 35,656 23,804 n/a 32.890 Wa 28.240 $ 29.911 19.207 $ 18,907 78.448 Fda 82.412 n/a 57,791 n/a 67,012 n/a 74,107 Fda 64.359 n/a 35,385 $ 40,215 27.006 Wa 41.249 $ 45,638 27,558 $ 26.702 17.408 $ 16,904 34.654 $ 29,097 26.547 $ 28,147 21.859 $ 21,998 43.725 $ 39.442 31.404 $ 38,420 68,967 n/a 33.438 $ 33,888 43.097 $ 41,974 24,424 $ 22,995 27.432 $ 28,782 40,006 $ 34,640 37,807 $ 35,988 39,505 $ 54,068 50,215 Fda 30.685 Wa 23.122 $ 19,146 70,538 Fda 79.952 n/a 73,163 Fda 45,217 $ 53,219 25.132 $ 19,099 38,580 $ 30,310 29,716 $ 21.074 29.695 $ 27,598 44,029 $ 54,032 48,340 $ 57,547 56.040 $ 60,991 33,668 Wa 35.514 $ 39.905 42.120 $ 68,258 51,773 $ 43,038 32.999 $ 41,114 46.767 $ 51,798 44,596 $ 36,692 52.793 $ 56.368 20,474 $ 16,960 33.411 n/a (8.2%) 02.3%) $ $ $ $ $ $ $ $ S $ $ S $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Exhibit 3 23,288 n/a Wa 57,336 31,154 29,544 50,442 26,656 41,219 84,000 23.804 32,890 29,076 19,057 78,448 82,412 57,791 67.012 74,107 64,359 37,800 27,006 27.130 17,156 31,875 27.347 21,928 41,583 33,912 68.967 33.663 42,536 23,710 28,107 37,323 36.898 46,787 50,215 30;565 21,134 70,538 79.952 73,163 49.218 22.116 34,445 25,395 28,647 49,031 51.944 58,516 33,668 37,709 55.189 47,406 49,283 40,644 54,580 18,717 33.411 (8.6~ Note: All salaries adjusted for a 2080 hour work year 23 External Competitive Analysis (cont'd) Exhibit 4 -Private Salary Survey Results - Median~ Exhibit 4 provides a comparison of the results of the private salary survey, published survey data, and private and published survey data combined to the County's average annual salaries. For each salary comparison, the midpoint is the median base salary for all responding organizations. Please note that the salary information reported has been annualized to a 2080-hour work year to ensure an equal comparison of salaries. ~ The market median is the point at which half the reported salary data is above and half the reported salary data is below when you rank order the reported salary survey data from high to Iow. PALMER & CAY CONSULTING GROUP 24 Albemarle County Summary of Survey Analyses Exhibit 4 Median Annual Salary Account Clerk $ 20,103 Head Teacher $ 28,870 After School Teacher $ 22,818 Principal - Elementary $ 52,042 Equipment Mechanic I1 $ 28,915 Bookkeeper $ 27,413 Building Official $ 57,624 Bus Driver $ 22.485 Bus Ddver Supervisor $ 36,162 Chief of Police $ 77,041 Commercial Building Inspector $ 32,550 Communications Officer $ 24,580 Communications Supervisor $ 34,111 Custodial Supervisor II $ 30,488 Custodian $ 19,536 Director of Curriculum Development $ 74,283 Director of Fiscal Services $ 66,234 Director of Parks and Recreation $ 69.218 Director of Planning and Comm. Dev. $ 76.949 Director of Social Services $ 71,498 Director of Transportation $ 76,706 Electrician $ 23,860 Eligibility Worker $ 28,260 Engineering Inspector II $ 30,034 Firefighter/EMT $ 33,939 Associate $ 16,286 ;ervice Manager I $ 26,437 General Maintenance Worker I $ 17,063 Grounds/Facilities Maintenance Worker I $ 18,050 Human Resources Specialist Ill $ 31,854 HVAC Mechanic $ 28,130 Instructional Coordinator $ 57,171 Maintenance Mechanic $ 26,735 II $ 40,467 Office Associate II $ 20,721 IV $ 28,835 Foreman $ 23,950 $ 43,143 $ 33,023 $ 54,092 $ 29,429 Clerk $ 21,652 ¥ School $ 66,054 School $ 78.794 $ 66,763 $ 38,696 Estate Clerk $ 19,214 ~1 Nurse $ 25.958 n/a $ 29,044 $ 36,961 $ 43.751 Civil Engineer $ 51,932 Eligibility Worker $ 35,341 anic $ 28.927 Planner $ 44,477 enior Support Analyst $ 40.482 $ 32,544 ~pervisor $ 51,223 $ 35,038 $ 39.649 Assistant $ 28,064 ;E FOR BENCHMARK POSITIONS: 22,464 n/a n/a 56,622 32,179 27,900 50,196 27,124 40,764 81,770 33,319 23,087 30,846 27,350 18,325 71,009 68,844 56,444 66,875 74,568 65,785 36,300 26,944 43,238 27,813 17,477 31,556 23,049 21,316 41,085 33,199 63,435 29,606 47,070 24,219 26,339 38,650 37,975 38,502 51,870 29,048 22,592 63,173 70,375 65,420 42,639 26,009 40,213 26,308 28,744 43.680 44,091 57,543 34,049 35,590 39,592 n/a 32.005 44,768 n/a 54.995 17,610 32,655 (4.7%) 23,501 n/a n/a Wa 28,286 27,176 Wa 25,358 n/a n/a 38,045 Wa Wa 30,790 19,216 n/a n/a n/a n/a n/a n/a 38,791 n/a 44,957 26,213 16,777 31,234 27,454 23,070 39,285 35,570 n/a 33,550 41,333 23,123 27,274 35,468 39,774 53,274 n/a n/a 21,997 n/a n/a n/a 51,474 18,708 29,787 20,656 27,112 54,016 56.718 63,704 n/a 38,789 67,322 42,716 40.489 51.066 36,194 56,108 16,590 n/a (12.4%} 22.982 Wa Wa 56,622 30,233 27,540 50.196 26,241 40,764 81,770 35,682 23,087 30,846 29,070 18,770 71,009 66,875 74,568 65,785 37,545 26,944 44,098 27,013 17,127 31,395 25,252 22,193 40,185 63,435 31,578 44,202 23,671 26,806 37,059 35,875 45,888 51,870 29,048 22,295 63,173 70.375 65,420 47,057 22.359 35,000 23,483 27,928 48,848 50,405 60,624 34,009 37,189 53,457 42,716 36,247 47,917 36,194 55,551 17,100 32,655 (6.2%) Note: All salaries adjusted for a 2080 hour work year. 25 External Competitive Analysis (cont'd) Exhibit 5 -Private Salary Survey Results - Median with Salary Differentials Exhibit 5 provides a comparison of the results of the private salary survey, published survey data, and private and published survey data combined to the average annualized salaries. For each salary comparison, the midpoint is the median base salary for all responding organizations to the private salary survey, adjusted by the salary differential associated with the location of each responding organization compared to Charlottesville, VA, and the median of published survey data. Please note that the salary information reported has been annualized to a 2080-hour work year to ensure an equal comparison of salaries. PALMER & CAY CONSULTING GROUP 26 Albemarle County Summary of Survey Analyses Median Annual Salary with Salary Differential Adjustments ~x~ount Clerk $ 20,103 ~ $ $ $ 28,870 $ 22.818 Elementary $ 52,042 II $ 28,915 $ 27.413 )uilding Official $ 57.624 $ 22,485 $ 36.182 $ 77.041 i Inspector $ 32.550 Officer $ 24,580 $ 34,111 $ 30,488 $ 19,538 $ 74,283 ~)irector of Fiscal Services $ 66,234 ~)irector of Parks and Recreation $ 89,218 and Comm. Dev. $ 76,949 Director of Social Services $ 71,498 Director of Transportation $ 76,706 Electrician $ 23,860 Eligibility Worker $ 28,280 Engineering Inspector II $ 30,034 Firefighter/EMT $ 33,939 Food Service Associate $ 16,286 Food Service Manager I $ 28,437 General Maintenance Worker I $ 17,063 Grounds/Facilities Maintenance Worker I $ 18,050 Human Resources Specialist 111 $ 31,854 HVAC Mechanic $ 28,130 InstmcUonal Coordinator $ 57,171 Maintenance Mechanic $ 26,735 Management Analyst II $ 40,467 Office Associate II $ 20,721 Office Associate IV $ 28,835 Parks Foreman $ 23,950 Payroll Supervisor $ 43,143 Planner $ 33,023 Police Lieutenant $ 54,092 Police Officer $ 29,429 Police Records Clerk $ 21,652 Principal - Elementary School $ 66,054 Principal - High School $ 78,794 Principal - Middle School $ 68,763 Programmer/Analyst $ 38,696 Real Estate Clerk $ 19,214 School Nurse $ 25.958 School Secretary n/a Senior Account Clerk $ 29.044 Senior Accountant $ 36,961 Senior Appraiser $ 43,751 Senior Civil Engineer $ 51,932 Senior Eligibility Worker $ 35.341 SeniOr Maintenance MeChanic $ 28.927 Senior Planner $ 44,477 Senior Support Analyst $ 40,482 Social Worker $ 32,544 Social Worker Supervisor $ 51.223 Support Analyst $ 35,038 Systems Analyst $ 39.649 Teaching Assistant $ 20,093 $ 28.064 22.795 n/a Wa 57,125 32.592 28,685 51,150 26.533 40.307 80,331 33,638 23.699 30,846 26,562 18,235 72,143 70,634 57.912 66,424 73.971 66.518 38.010 27.100 42,692 27.577 17.402 32.440 23.648 22,123 41,467 31.937 65,064 30,022 47,070 23,565 26.339 38,993 37,020 39.195 51.455 29.048 22.795 64.816 72.274 66.057 41,488 25,866 40,213 27.045 28,744 43.680 44,151 59,588 33,776 34.629 38.743 Wa 31,749 44,330 n/a 37.468 = 18,067 32,3941 23.501 Wa Wa 28,286 i 27,176' 25,358 n/a 38,045 n/a fda 30.790 19.216 Wa Wa Wa Wa n/a n/a 38,791 n/a 44,957 26.213 16.777 31.234 27.454 23.070 39.285 35,570 n/a 33.550 41.333 23.123 27,274 35,468 39,774 53.274 n/a Wa 21.997 n/al Wa n/a 51.474 18.708 29.787 20,668 27.112 54,016 56.718 63,704 n/a 38.789 67.322 42.716 40.489 51.066 36.194 56.108 16.590 Wa OVERALL VARIANCE FOR BENCHMARK POSITIONS: (4.4%) (12.4%) $ 23,148 Wa n/a $ 57,125 $ 30.439 $ 27,930 $ 51,150 $ 25.946 $ 40.307 $ 80,331 $ 35.842 $ 23,699 iS 30.846 $ 28,676 $ 18.750 $ 72.143 $ 70,634 $ 57,912 $ 66.424 $ 73,971 $ 66,518 $ 37,400 $ 27.100 $ 43.925 $ 26.895 $ 17.090 $ 31.837 $ 25,551 $ 22.596 $ 4O.376 $ 33,753 $ 65,064 $ 31.786 $ 44.202 $ 23,344 $ 26.806 $ 37,231 $ 38.397 :$ 46,235 iS 51,455 iS 29,048 $ 22,396 $ 64.816 $ 72,274 $ 66,057 $ 46.481 $ 22,287 $ 35.000 $ 23,852 $ 27.928 $ 48,848 $ 50.435 $ 61.636 $ 33.776 $ 36.709 $ 53,033 $ 42,716 $ 36.119 $ 47,698 $ 36.194 $ 46,788 $ 17,329 $ 32,394 Exhibit (6.2',4, Note: All salaries adjusted for a 2080 hour work year. 27 External Competitive Analysis (cont'd) Exhibit 6 -Private Salary Survey Results - Median with Geographic Differentials Exhibit 6 provides a comparison of the results of the private salary survey, published survey data, and private and published survey data combined to the average annual salaries. For each salary comparison, the midpoint is the median base salary for all responding organizations to the private salary survey, adjusted by the geographic differential associated with the location of each responding organization compared to Charlottesville, VA and the median for published survey data. Please note that the salary information reported has been annualized to a 2080-hour work year to ensure an equal comparison of salaries. PALMER & CAY CONSULTING GROUP 28 Albemarle County Summary of Survey Analyses Exhibit 6 Median Annual Salary with Geographic Differential Adjustments $ 20.103 After School Head Teacher $ 28.870 After School Teacher $ 22.818 Assistant Principal - Elementary $ 52.042 Auto/Bus Equipment Mechanic II $ 28.915 Bookkeeper $ 27.413 Building Official $ 57.624 Bus Driver $ 22.485 Bus Driver Supervisor $ 36.162 Chief of Police $ 77.041 Commercial Building Inspector $ 32.550 Communications Officer $ 24.580 Communications Superwsor $ 34.111 $ 30.488 Custodian $ 19.536 Director of Cun'iculum Development $ 74.283 Director of Fiscal Services $ 66.234 Director of Parks and Recreation $ 69.218 Director of Planning and Comm. Dev. $ 76.949 Director of Social Services $ 71.498 Director of Transportation $ 76.706 Electrician $ 23.860 Eligibility Worker $ 28.260 Engineering Inspector II $ 30.034 Firefighter/EMT $ 33.939 Food Service Associate $ 16.286 Food Service Manager I $ 26.437 General Maintenance Worker I $ 17.063 Grounds/Facilities Maintenance Worker I $ 18.050 Human Resources Specialist III $ 31.854 HVAC Mechanic $ 28.130 Instructional Coordinator $ 57.171 Maintenance Mechanic $ 26.735 Management Analyst I $ 40.467 Office Associate II $ 20.721 Office Associate IV $ 28,835 Parks Foreman $ 23,950 Payroll Supervisor $ 43,143 Planner $ 33,023 Police Lieutenant $ 54.092 Police Officer $ 29.429 Police Records Clerk $ 21.652 Principal - Elementary School $ 66.054 Principal - High School $ 78.794 Principal - Middle School $ 66.763 Programmer/Analyst $ 38.696 Real Estate Clerk $ 19.214 School Nurse $ 25.958 School Secretary n/a Senior Account Clerk $ 29.044 Senior Accountant $ 36.961 Senior Appraiser $ 43.751 Senior Civil Engineer $ 51.932 Senior Eligibility Worker $ 35.341 Senior Maintenance Mechanic $ 28.927 Senior Planner $ 44.477 Senior Support Analyst $ 40.482 Social Worker $ 32.544 Social Worker Supervisor $ 51.223 Support Analyst $ 35.038 Systems Analyst $ 39.649 Assistant $ 20.093 $ CEFORBENCHMARK POSITIONS: 22,086 $ 23,501 n/a n/a n/a n/a 55,345 n/a 33,727 $ 28,286 50,834 $ 27,176 51.745 n/a 26.875 $ 25.358 42.997 n/a 82.072 n/a 33,708 $ 38,045 22,131 n/a 32,200 n/a 28,066 $ 30,790 17.820 $ 19.216 76.595 n/a 76.797 n/a 61.424 n/a 72.946 n/a 74.344 n/a 68.163 fda 34.775 $ 38.791 27.733 n/a 40.473 $ 44.957 25.586 $ 26.213 17.080 $ 16.777 34.869 $ 31.234 26.575 $ 27.454 22.274 $ 23.070 40.968 $ 39.285 32.668 $ 35.570 69.216 n/a 30.327 $ 33.550 41.899 $ 41.333 23.467 $ 23.123 27.195 $ 27.274 39.734 $ 35.468 38.624 $ 39.774 i 40.138 $ 53.274 49.095 fda 30.811 n/a 23.006 $ 70.114 78.619 n/a 72.407 n/a 41.879 $ 51.474 24.091 $ 18.708 40.213 $ 29.787: 29.070 $ 20.658: 28.744 $ 27.112 i 43.680 $ 54.016 43.145 $ 56.718 56.226 $ 63.704 34.554 n/a 35.669 $ 38.789 40.789 $ 67.322 n/a $ 42.716 31.861 $ 40.489 47.008 $ 51.066 n/a $ 36.194 54.995 $ 56.108 20.304 $ 16.590 32.097 n/a (6.7%) (12.4%) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 22.793 n/a n/a 55.345 31.007 29.005 51.745 26.117 42.997 82.072 35.877 22.131 32.20O 29.428 18.518 76.595 76.797 61.424 72.946 74.344 68.163 36.7831 27.733 42.715 25.890 16.929 33.052 27.015 22.672 40.127 34.119 69,216 31.939 41.616 23.295 27.234 37.601 39.199 46.706 49.095 30,811 22,502 70,114 78,619 72,407 46,677 21.400 35.000 24.864 27.928 48.848 49.932 59.965 34.554 37.229 54.056 42.716 36,175 49.037 36.194 55.551 18.447 32.097 (7.8%) Note: All salaries adjusted for a 2080 hour work year. 29 Salary Structure Adjustment (excluding Teachers) Methodology The County's salary structure was adjusted based on the Planning Team's proposed Compensation and Benefits strategy and the external competitive analysis. Specifically, the following process steps were followed: · Benchmark jobs utilized for the private survey were grouped within each current assigned grade. The average external market data available for each pay grade was compared to the current market midpoint. · The County's overall positioning to the external market, based on this comparison of market to current midpoints was calculated. Exhibit 7on the following page compares the midpoints of the County's current salary structure to the average external market data available for each pay grade. For comparison purposes we utilized the median data for the market with both salary differentials and geographic differentials. We adjusted the County's salary structure 4.5% to correspond with the County's Compensation and Benefits strategy of targeting its' salary structure midpoints to approximately at market. Exhibit 7 also compares the adjusted salary structure midpoints to the average external market data available for each pay grade. Exhibit 8 outlines the current teacher's salary structure as compared to market minimum, midpoint and maximum. PALMER & CAY CONSULTING GROUP 30 Albemarle County Salary Structure Midpoint Comparison to Market Exhibit 7 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 i $ 16,924 iS 18,157 iS 19,481 iS 20,902 iS 22,425 $ 24,061 $ 25,815 $ 27,696 $ 29,716 $ 31,884 $ 34,2O7 $ 36,702 $ 39,379 $ 42,249 $ 45,329 $ 48,634 $ 52,180 $ 55,984 $ 60,067 $ 64,444 $ 69,143 $ 74,185 $ 79,594 $ 85,397 $ 91,624 $ 19,304 $ 19,773 $ 24,895 $ 22,376 $ 25,379 $ 28,923 $ 31,300 $ 29,180 $ 37,977 $ 32,628 $ 39,272 $ 34,042 $ 44,562 $ 49,609 $ 47,544 $ 50,831 $ 50,468 $ 65,780 $ 72,291 $ 72,O78 (12.3%) (8.2%) (16.0%) 0.2% (5.2%) (10.7%) (11.5%) 1.8% (16.0%) 4.8% (6.5%) 15.7% (5.2%) (8.6%) 2.3% 2,7% 10.9% (2.0%) (4.4%) 2.9% $ 20,589 $ 20,073 $ 25,178 $ 23,400 $ 26,472 $ 30,998 $ 32,250 $ 29,966 $ 38,285 $ 32,579 $ 39,089 $ 33,426 $ 42,459 $ 49,876 $ 49,798 $ 52,942 $ 51,307 $ 67,974 $ 72,283 $ 74,922 (17.8%) (9.5%) (17.0%) (4.2%) (9,1%) (16.7%) (14.1%) (o.8%) (16.7%) 5.0% (6.1%) 17.8% (0.5%) (9.1%) (2.3%) (1.4%) 9.1% (5.2%) (4.3%) (1 .o%) $ 17,700 $ 18,990 $ 20,375 $ 21,860 $ 23,454 $ 25,163 $ 26,998 $ 28,966 $ 31,078 $ 33,343 $ 35,774 $ 38,382 $ 41,180 $ 44,182 $ 47,403 $ 50,858 $ 54,566 $ 58,544 $ 62,812 $ 67,391 $ 72,303 $ 77,574 $ 83,229 $ 89;297 $ 95,8O7 (8.3%) (4.0%) (12.2%) 4.8% (0.8%) (6.7%) (7.5%) 6.5% (12.2%) 9.6% (2.3%) 21 .O% (0.9%) (4.4%) 7.0% 7.3% 16.0% 2.4% 0,0% 7.6% (14.0%) (5.4%) (13.2%) 0.2% (4.9%) (12.9%) (10.2%) 3.7% (12.9%) 9.8% (1.8%) 23.2% 4.1% (5.O%) 2.1% 3.1% 14.1% (0.9%) 0.0% 3.5% 31 Albemarle County Private CompenSation Benefits Survey Comparison of Teacher Salary Range Minimum, Midpoint and Maximum to the External Market Exhibit 8 14 t.026 1.153Teacher 15001 $ 26,650 $ 35,065 $ 43,479 $34,753 8 I I Teacher 1500 12 1.026 1.153 Teacher 1500 2 0.962 0.984 Teacher 1365 5 1.028 1.105 Teacher 1400 7 0.992 0.958 Teacher 1421 9 1.001 0.943 Teacher 1386 26 1.03 1.154 Teacher 10/mo 27 1.03 1.154 Teacher 1500 Companies: g Incumbents: 7621 Low: 25th Percentile: 50th PercenUle: Average: 75th Percentile: High: 28,000 $ 36,315 $ 44,629 $35,582 25,000 $ 32,500 $ 40,000 $35,875 31,777 $ 46,875 $ 61,973 $43,849 28,150 $ 35,825 $ 43,500 28,500 $ 40,949 $ 53,397 31,684 $ 52,718 $ 73,751 28.740 $ 37,625 $ 46,510 28,080 $ 35,432 $ 42,783 $ 25,000 $ 32,500 $ 40,000 $54,753 $ 28,000 $ 35,432 $ 43,479 $35,375 $ 28,150 $ 36,315 $ 44,629 $35,729 $ 28,509 $ 39,256 $ 50,002 $37,515 $ 28,740 $ 40,949 $ 53,397 $37.869 $ 31,777 $ 52,718 $ 73,751 $43,849 0 9 08 4846 3 $27.067 $ 35,104 $ 43,141 $34,396 $24,167 $ 31,417 $ 38,667 $34,679 $33,758 $ 49,794 $ 65,832 $46,580 $29,155 $ 37.104 $45,054 $29,082 $ 41,784 $ 54,487 $33,147 $ 55,152 $ 77,157 $28,740 $ 37,625 $ 46,510 $27,144 $ 34,250 $ 41,357 $24,167 $ 31,417 $38,667 $33,595 $27,067 $ 34,250 $ 42,030 $34,196 $28,740 $ 37,104 $ 45,054 $34,538 $28,669 $ 39,570 $ 50,470 $37,312 $29,155 $ 41,784 $ 54,487 $37,654 $33,756 $ 55,152 $ 77,157 $46,580 27,067 $ 35,104 $ 43.141 $ 34,396 24,795 $ 32,234 $ 39,672 $ 35,581 32,473 $ 47,902 $ 63,331 $ 44.810 29,972 $ 35,143 $ 46,315 28,849 $ 41,450 $ 54,051 33,180 $ 55,207 $ 77,234 29,602 $ 38,754 $ 47,905 27,958 $ 35,278 $ 42,598 $ 24,795 $ 32,234 $ 39,672 $ 34,396 $ 27,067 $ 35,104 $ 43,122 $ 34,450 $ 28,849 $ 38,143 $ 46,315 $ 35,024 $ 28,925 $ 39,872 $ 50,819 $ 37,314 $ 29.972 $ 41.450 $ 54,051 $ 37,888 $ 33,180 $ 55,207 $ 77,234 $ 44,810 27,067 $ 35,104 $ 43,141 $ 34,396 27,864 $ 36,223 $ 44,583 $ 39,985 33,216 $ 48.997 $ 64,779 $ 45,834 32,217 $ 41,000 $ 49,784 27,860 $ 40,029 $ 52,198 31.258 $ 52,008 $ 72,759 33,166 $ 43.419 $ 53,673 31.324 $ 39,525 $ 47,726 $ 27,067 $ 35.104 $ 43,141 $ 34,396 $ 27,854 $ 39,082 $ 47,726 $ 37,650 $ 31,258 $ 40,029 $ 49,784 $ 39,360 $ 30A08 $ 41.710 $ 53,011 $ 39,737 $ 32,217 $ 43,419 $ 53.673 $ 41,447 $ 33,216 $ 52,008 $ 72,759 $ 45,834 ALBEMARLE COUNTY COMPARED TO MARKET: To Market Median (50th Percentile): To Market Average: 0.3% 6.1% 9.4% 5.1% (1.0%) (1.8%) (2.3%) 0.1% (1.8%) 3.8% 8.4% 8.7% (1.5%) (2.6%) (3.3%) 0.6% (2.t%) 1.0% 5.4% 7.2% (2.4%) (3.4%) (3.9%) 0.6% (g.7%) (3.7%) (1.9%) (4.6%) (7.2%) (7.6%) (7.9%) (5.5%) 32 Implementation We recommend that the following steps be taken as a result of this study: 1. Implementation of Recommendations Adopt a Compensation and Benefits strategy that applies to ali employees County-wide. · Adopt a base salary structure adjustment based on the approved Compensation and Benefits strategy. · Adopt salary administration guidelines. · Salary Adjustments: (1) Bring employees to the minimum in an expedient manner (2) Consider the general increase (3) Consider within range equity adjustments (address pay compression) After the adoption of the final report the County should communicate in writing to employees the outcome of the study. At a minimum the following should be communicated: · The adopted Compensation and Benefits strategy. · The new salary administration guidelines. all 2. Formal Communication Plan A formal communication plan should be implemented which introduces the County's Compensation and Benefits strategy and any changes/modifications to the current compensation program. This should include: · How salary levels are determined; Salary ranges by job title; · The minimum, midpoint, and maximum for each salary range and how the overall structure was developed; and · How salary increases are determined and how often they are provided. 3. Address Salary Compression Issues An analysis was run to determine whether or not pay compression occurs with the adoption of the recommended salary structure. Salary compression occurs when the pay differences between employees are too small. For example, supervisors and subordinates may have comparable salaries because of the close proximity of pay ranges and the greater seniority of the subordinates or when a highly tenured employee has a similar salary to a newly hired employee. It was determined that pay compression would occur with the adoption of the recommended Compensation and Benefits strategy. PALMER & CAY CONSULTING GROUP 33 Implementation (cont'd) Causes of Salary Compression Salary compression is a consideration irt establishing as well as maintaining a pay structure. Salary compression can occur slowly over time when the ratio of salaries between and within job levels decreases due to adjustments to policies or to the pay structure. According to the Bureau of National Affairs, compression may occur when: An organization with adequate pay ranges adjusts those ranges by an equal dollar amount This adjustment reduces pay differentials because lower-paid employees receive a proportionately higher increase then the higher-paid employees. The market price of labor increases - As wages in the labor market rise, employers must pay more to new hires in order to bring on qualified personnel. Present employees may perceive a compression problem if they are not given increases to put them on par with the new hires. Overtime pay is paid to subordinates - The Fair Labor Standards Act requires that nonexempt employees be paid time-and-a-half for hours worked over 40 per week. Subordinates who work a substantial amount of overtime may raise their pay to the level of their exempt supervisors. Pay inequity may cause the supervisors to be dissatisfied and may reduce the incentive of rank and file to seek job advancement. Automatic pay increases can result in subordinate emPloyees with seniority earning as much or more than their supervisors with less seniority - This anomaly may discourage employees from seeking higher level jobs since there would be little incentive for taking on additional responsibilities and create the appearance that supervisor's jobs are undervalued by the organization. We conducted a cost analysis to determine the cost associated with addressing pay compression. The estimated cost to adjust employees up to the midpoint of their assigned salary range (based on tenure) is $931,610. It should be noted that the cost analysis only considers overall tenure with the County, rather than time in position. PALMER & CAY CONSULTING GROUP 34 Appendix A: Individual Organization Information- Worksheets This section includes the individual compensation worksheets for each benchmark position. The columns are defined below: TERM DEFINITION ..Org Code The random number assigned to each participating organization Salary Differential The salary differential applied to the corresponding organization to "normalize" the data to Charlottesville, VA Geographic Differential The geographic differential applied to the corresponding organization to "normalize" the data to Charlottesville, VA Benchmark Position Titles of benchmark positions included in the survey Scheduled Hours Per Year The total number of scheduled hours per year for the position ..M' .m~..u.m of Salary Range.. The minimum annual salary for the position Midpoint of Salary Range The midpoint of the annual salary range for the position Maximum of Salary Range The maximum annual salary for the position Number of Incumbents The total number of employees for which compensation data is reported for each organization FLSA Status Indicates whether the position is exempt or non-exempt in the organization Average Annual Salary The average annual salary for all incumbents in the position Minimum Annual Salary The minimum annual salary for the position adjusted to a 2080 hour work year for an equal comparison "Midpoint Annual Salary The midpoint of the annual salary range for the position adjusted to a 2080 hour work year for an equal comparison Maximum Annual Salary The maximum annual salary for the position adjusted to a 2080 hour work year for an equal comparison Average Annual Salary The average annual salary for all incumbents in the position adjusted to a 2080 hour work year for an equal comparison 'Midpoint with Salary The midpoint of the annual salary range for the position adjusted to Differential a 2080 hour work year for an equal comparison and adjusted by a salary differential to "normalize" the data to Charlottesville, VA Midpoint with Geographic The midpoint of the annual salary range for the position adjusted to Differential a 2080 hour work year for an equal comparison and adjusted by a geographic differential to "normalize" the data to Charlottesville, VA Average Annual Salary with The average annual salary range for the position adjusted to a 2080 Salary Differential hour work year for an equal comparison and adjusted by a salary differential to "normalize" the data to Charlottesville, VA Average Annual Salary with The average of the annual salary range for the position adjusted to Geographic Differential a 2080 hour work year for an equal comparison and adjusted by a geographic differential to "normalize" the data to Charlottesville, VA PALMER & CAY CONSULTING GROUP 35