Loading...
HomeMy WebLinkAbout2001-01-10 (Afternoon) · · · -"11~ C~o= ~>-010 C:'O "0 '0 ~ w C:: --' ""' I~ ~ ::r ~-~ ~ ~|Z =~ o_.m ~o_. o~ ~-0 ~.~ 8~ 0 m m ~ o~ C 0 'T 3 ~ 0 1/8/01 Albemarle County ?A~..~.9~ CoNS~LI]'ING Compensation and Benefits Strategy Karen G. Collins, Principal Tom MacKay, Principal Completed Steps Planning Team: - Proposed base salary structure adjustment - Proposed process for addressing pay compression - Cost analyses - Proposed source for budget increase for 2001 '2002 and subsequent years CAY 2 1/8/01 Compensation and Benefits Strategy PALMER Overall Goal - Support mission, goals & interests - Attract and retain high-performing employees - Motivate and empower employees, - Reward innovation and performance - Maintain internal equity and external competitiveness - Support teamwork - Promote ease and flexibility Compensation and Benefits C~N S%gdF~NG GROUP Strategy Competitive Market - Counties and Schools of similar size within the State of Virginia and/or the same geographic region, of Virginia - Local private employers Base Salary - At market levels (i.e., 100TM percentile) Internal Equity Benefits - Slightly above market levels (i.e., 105th percentile) 1/8/01 Median (, .7%) (12.4%) (6.2%) o, DifferentialsMedian with Salary ,4.4%) (12.4~o, I (6.2~o, Median with Oeographic3ifferentials (6.7%) (12.4Yo)[ (7.8~o) Average (7.6%) (12.37)/ (8.0~) Average with SalarYDifferentials (7.8%) (12.3Yo)/ (8.21/o) Average with (8.2%) (12.3%) / (8.6Yo) Geographic Differentials ...................../ .E. xternal Competitiveness Review PALMEr~ & C~ Salary differential is the difference between the average salaries for similar [ between two locations (i.e., cost of labor). Geographic differential is the cost of living differences between two locations (i.e., cost of goods). Proposed Base Salary Structure Adjustment- 2000/2001 'Classified PALMER & CAY · Adjust Base Salary Scale 4.5% on July1,2001 · Cost associated with employees base salary being raised to the new minimum: @ $63,301 Note: This analysis does not include the teacher's scale 1/8/01 pay compression C, LASSIFIED Addressing competitive placement relative to market · Initial adjustment of employee's base salaries based on years in position · Spread employees from minimum to midpoint CON,9.~TING GR()UP Note: This analysis does not include the teacher's scale Pay Compression CLASSIFIED Total Cost- Cash & Benefits GENERAL SCHOOLS GOVERNMENT Cost to midpoint $378,594 $247,975 coNs~zt~6 c~ouP Note: This analysis does not include the teacher's scale 4 1/8/01 Proposed Market Adjustment to Teacher's scale for July 1, 2001 · Adjust current scale to market data ¢__.1.25% · Set first step to $30,000 · Create differential between steps 1 though 3 · Approximate cost (cash & benefits): Total Compensation: $668,746 PALMER & ©XY Proposed cost to take effect July 1, 2.0.01 to be externally compebbve Adjustment to Midpoint for General Government: $ 378,594 Adjustment to Midpoint Classified School Employees: $ 247,975 Cost Associated with Teacher Scale adjustment: $ 668,746 Total Increase in Cost for July 1, 2001' $1,295,315 Note: This analysis is to establish employees at ;:~;~ market competitive rates and would be in · addition to the salary budget increase for PALMER&CAY CO~<~S~izr~6 O/<Oi3 2001/2002 lO 1/8/01 Proposed Methodology for Salary Budget Increase · WorldatWork (American Compensation Association) · Geographic Region: Eastern · Scope Measure: Educational Services/Public Administration · Review Other Sources (i.e, Bureau of Labor & Statistics) PALMER & Cz~ C©NSt.~[,TING CJROLW WorldatWork Geographic General Merit Other Total /Scope Increase/ Increase Increase Increase COLA Eastern: Education 3.3% 3.9% 1.0% 4.3% Public Admin. 2.8% 3.3% N/A 4.1% Southern: Education 2.2% 3.8% 3.2% 4.1% Public Admin. 3.3% 3.6% 2.8% 4.6% National: Education 2.9% 3.7% 2.0% 4.2% Public Admin. 3.0% 3.7% 2.4% 4.8% 1/8/01 Cost Analysis The following slides outline the total cost by schools and general government associated with: · Establishing market competitive salary scales in accordance with our adopted compensation and benefits strategy, · Addressing pay compression, and · A proposed merit pool for 2001/2002 using the maximum 4.2% proposed by consultant ?ALMER & CAy 13 Preliminary Cost Analysis GENERAL GOVERNMENT Cost of Market Adjustment to Midpoint: $ 247,975 Cost of 4.2% COLA/Merit Base Salary Increase · $ 846,309 Total Cost of COLA/Merit Base Salary Increase & Adjustment to Midpoint for July 1,2001' $1,094,284 PALMER&CAY CON SL'rLTING GRO 14 7 1/8/01 Preliminary Cost Analysis SCHOOL CLASSIFIED* Cost of Market Adjustment to Midpoint: $ 378,594 Cost of 4.2% COLA/Merit Base Salary Increase: $1,066,283 Total Cost of COLA/Merit Base Salary Increase & Adjustment to Midpoint for July 1,2001' $1,444,877 ASEP and Food Service are fee based services which will not require funding with tax dollars, the cost for these programs can be provided, they are included in these calculations. This analysis does not include the teacher's scale 15 Prelimina_ry.Cost Analysis for July 1,200~ Teachers · COSt to move to 2000/01 market scale for cash and benefits - $668,746 · Cost associated with 4.2% salary increase for cash and benefits - $1,908,940 TOTAL COST FOR TEACHERS for July 1, 2001' PALMER&CAY CDNSULTD,1G GROUP $2,577,686 16 1/8/01 ITotal Proposed Cost for July 1, 2001(numbers for examPle are based on 4.2%M~,rit Pool) Total Cost of COLA/Merit Base Salary Increase & Adjustment to Midpoint for General Govt: $1,094,284 Total Cost of COLA/Merit Base Salary Increase & Adjustment to Classified School Employees: $1,444,877 Total Cost For Teachers: $ 2,577,686 Total Increase in Cost for July 1, 2001' $ 5,116847 P~J_MER & C~ 17 Next Steps PALIVIF~ & CAY CONSUI~FJlqG rJR(')UP · Adopt adjusted current salary structures · Adopt methodology for addressing pay compression · Adjust salary structures for 2001/2002 · Communication to employees 18 9 1/8/01 Benefits of Recommendations PALMER & C~ CONS[~i~TING GROI..~ · Ability to Attract, Retain, and Motivate: - Flexible - Simple to administer - Compatible with performance- based pay - Internally equitable - Externally competitive 19 Albemarle Count_y Compensation and Benefits Strategy Karen G. Collins, Principal TOm MacKay, Principal Compensation & Benefits Strategy Overall Goal [] External Market · Internal Equity · Positioning of Compensation and Benefits [] General Salary Guidelines 2 Planning Team ~ii:i ii CONSULTING GROUP [] Mr. · Ms. · Mr. [] Mr. · Ms. · Ms. · Mr. · Mr. · Mr. [] Mr. ,, " Ms. " Ms. [] Mr. IVIr, · Mr. · Ms. · Mr. Mr. Ken Boyd- School Board Member Jo Dixon -Teacher, AEA Lindsay Dorrier- Board of Supervisors Tom Foley- Assistant County Executive Carolyn Fowler- Human Resources, Chamber of Commerce Lorna Gerome - Compensation & Benefits Coordinator Steve Koleszar- School Board Member Larry Lawwill- Principal Charles Martin - Chairman of the Board of Supervisors John Miller- Police Chief Frank Morgan - Assistant Superintendent for Support Services Maria Muntner-Teacher, AEA Margie Shephard -Teacher, AEA Willie Smith Director of Transportation Michael Thompson - Director of Human Resources John Wells - Assistant Director of Information Services Roxanne White - Assistant County Executive Paul Wright- Investment Broker, Conservative Coalition Jackson Zimmerman - Director of Fiscal Management 3 Project Approach Finalized Benchmark Jobs Finalized Survey Instrument Conducted Private Survey Focus Groups & Group Meetings External Competitiveness Review Planning Team Supported Findings [] Developed Proposed Compensation and Benefits Strategy Planning Team Approved Proposed Compensation and Benefits Strategy 4 Compensation and Benefits Strategy !::: i~ CONSULTING GROUP ,~ : [] Overall Goal - Support mission, goals & interests - Attract and retain high-performing employees - Motivate and empower employees - Reward innovation and performance - Maintain internal equity and external competitiveness - Support teamwork Promote ease and flexibility 5 CONSULTIN( ;: Compensation and Benefits Strategy [] Competitive Market - Counties and Schools of similar size within the State of Virginia and/or the same geographic region of Virginia - Local private employers Base Salary At market levels (i'e., t00th percentile) Internal Equity Benefits - Slightly above market levels (i.e., 105th percentile) 6 Recommendation [] Adopt Proposed Compensation and Benefits Strategy CONSULTING GROUP' 7 External Competitiveness Review Private Published Private/ Survey Analysis Survey Survey Published Data Data Data Median (4,7%) (12,4%)(6,2%) Median with Salary (4,4%) (12,4%)(6,2%) Differentials Median with Geographic (6,7%) (12,4%)(7,8%) Differentials Average (7,6%) (12,3%)(8,0%) ?? Average with Salary (7,8%) (12,3%)(8,2%) Differentials i~i Average with (8,2%)(12,3%)(8,6%) !;i Geo.qraphic Differentials 8 Next Steps Planning Team: - Proposed base salary structure adjustment - Proposed process for addressing pay compression - Cost analyses - Proposed budget increase for 2001/2001 - Finalize salary administration guidelines · Maintain Current Benefit Framework - DeveloP Strategy for Anticipated Medical Care Cost Increases [] Develop Timing and Action Calendar [] Communication 9 Benefits of Recommendations [] Ability to Attract, Retain, and Motivate: - Flexible - Simple to administer - Compatible with performance- based pay -Internally equitable - Externally competitive 10