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NEW PAY PLAN BASED ON COMPENSATION/CLASSIFICATION STUDY RESULTS BY EVERGREEN SOLUTIONS.
Presented by: William P. Buchanan, County Manager.
RECOMMENDED ACTION: Approve the recommendation to adopt the new pay plan, make applicable employee adjustments, and authorize the necessary budget transfers from the Classification and Compensation Contingency within the appropriate funds.
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Background: Evergreen Solutions was retained by Sedgwick County to conduct a Classification and Compensation Study of all positions in the organization. This analysis provides the County with invaluable information related to their employee demographics, opinions and market data; as well as internal and external equity.
Compensation Study Project Goals:
• Conduct a study that will help the County’s recruitment efforts to attract and retain the number and types of employees needed by the various County agencies.
• Implement a system that is reasonable and proportionate to the County’s resources.
• Maintain a model that will play a positive role in motivating County employees to perform to the best of their abilities, as well as provide an incentive for employees to improve their knowledge and skills.
The attached document outlines the new pay plan structure and ranges. Employees will be moved to the minimum of the proposed pay range if their current salary falls below the range on July 13, 2014. Employees falling within the proposed pay range will receive a 1.26% market-based adjustment to their base wages as of July 13, 2014. Employees moved to the minimum of the proposed range should receive at least a 1.26% increase. Wages will be increased by 1.26% if movement to the minimum is lower than 1.26%. Future maintenance of title changes or equity slotting will be the responsibility of the HR Director/HR Department.
Alternatives: Do not approve the adoption of the new pay plan and keep employee wages unchanged.
Financial Considerations: The recommendations to adjust the pay plan structure increase the overall cost of the Sedgwick County pay plan. If the recommendations as presented are approved, the total cost to implement the plan for 2014 is estimated at $1.2 million for all funds. Within County property-tax funds, the estimated impact is $750,000.
The 2014 adopted budget included a $2.0 million Compensation & Classification Contingency to make budget authority available pending the findings and recommendations of the market pay study. Of this, $1.88 million is available within County property tax funds. Budget authority will be transferred from the Contingency to the appropriate fund centers to fund the adjustments as implemented. Based on the estimated impact of the recommendations on the County General Fund, BOCC authorization is required to transfer approximately $700,000 from the Contingency to the appropriate departmental fund centers.
For those positions within grant funds, departments will need to fund the increases through existing budget authority or will need to request additional budget authority as appropriate.
Legal Considerations: The authority for this action is K.S.A. 19-101, et seq. A simple majority vote is required.
Policy Considerations: Policy 4.2001 states:
Range Reallocation
1. Range reallocation occurs when a major change in the position content occurs, or when the incumbent in the position relinquishes or assumes substantial responsibilities.
2. If, as a result of re-evaluation, a position is changed to a higher salary range the incumbent’s base salary will be moved to the new job range minimum if the current salary is below the new job range minimum, and the department may make a recommendation of up to a four (4) percent salary increase above the minimum. When current base salary is already above the new job range minimum, the pay increase will be determined as follows. If the incumbent’s current salary is below the new midpoint, he/she may receive a four (4) percent salary increase. If current salary is above midpoint, the employee may receive a two (2) percent salary increase. The increase will be based on placement on the new range compared to midpoint. The department may also make a recommendation based on a comparison of incumbents assigned to the same pay range, amount of increase not to exceed four (4) percent.
3. If an incumbent relinquishes substantial responsibilities a re-evaluation may result in the position being changed to a lower salary range. If the incumbent’s base salary is above the new maximum of the pay range the base salary may be frozen (unchanged) or moved to the new maximum, if compensation is above maximum of the new range.
N. Market Adjustment
1. Market Adjustment occurs when a job classification salary range is increased or decreased based on market study analysis.
2. When a position is changed due to market place value, the incumbent’s base salary will not change unless the current base salary falls below the minimum of the new pay range. Incumbents may be frozen (unchanged) or moved to the new maximum, if compensation is above maximum of the new range.
Outside Attendees: N/A
Multimedia Presentation: