RECOMMENDATIONS TO ADDRESS SALARY COMPRESSION

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2 RECOMMENDATIONS TO ADDRESS SALARY COMPRESSION Steven R. Cover Deputy City Manager A P R I L 1 6,

3 Goal: Identify rules of engagement for addressing salary compression Identify a plan that: Is sustainable Uses available resources wisely Offers predictability, which is desired by public safety personnel Provides clarity for the organization 2

4 Lead: Steven R. Cover, DCM Members: James Cervera, Police Chief David Hutcheson, Fire Chief Edward Brazle, EMS Chief Stephen Williams, Director of ECCS Regina Hilliard, Director of Human Resources William Edwards, Manager of HR/Staffing & Compensation Monica Kopin, Human Resources Coordinator Jonathan Hobbs, Administrator Budget & Mgmt. Services 3

5 HOW WE GOT HERE: EFFORTS TO ADDRESS In total, vertical and/or horizontal compression adjustments have been provided 14 times since 1997 Predominate vertical salary compression methodology: ensure supervisors have higher salary than lower rank personnel Horizontal methodology has varied. Total cost: $25 million 4

6 Concerns: VERTICAL COMPRESSION USING CURRENT METHODOLOGY This method addresses salary compression only for the present time: the next promotion could cause vertical salary compression to recur. The supervisor receives the compression adjustment even if the lower rank personnel had a special skill (i.e., medic) that the supervisor did not. No recognition of the value of tenure in lower rank personnel in comparison to new supervisor Costly to maintain 5

7 RECENT SALARY COMPRESSION EFFORTS Recommended method to address vertical provided July 10, 2018 not implemented. Instead: July 19, 2018: Vertical compression adjustments provided Methodology: $1 above highest paid in lower rank Cost: $1.6 million Employees Impacted Citywide: 250 Public Safety Employees Impacted: 68 Average increase provided: $5,226 Highest compression adjustment: $19,573 September 13, 2018: Horizontal compression adjustments provided Methodology: $100 per year in title Cost: $1.97 million Employees Impacted Citywide: 2,700 Public Safety Employees Impacted: 1,054 Average increase provided: $568 Highest compression adjustment: $1,000 6

8 RECENT SALARY COMPRESSION EFFORTS Current status of salary compression in Public Safety: Five newly promoted Police Sergeants compressed by Master Police Officers Eight newly promoted Fire Captains compressed by Master Firefighter Medics Vertical adjustments have resulted in new horizontal compression with recent promotions Five new Battalion Officers and one new Fire District Officer are causing horizontal compression Four new Police Lieutenants and four new Police Captains are causing horizontal compression 7

9 RESULT OF VERTICAL COMPRESSION ADJUSTMENTS Placement in pay range quartiles Title 1 st 2 nd 3 rd 4 th Fire District Officer 2 4 Fire Battalion Officer Fire Captain Master Firefighter Firefighter Police Captain 7 5 Police Lieutenant Police Sergeant Master Police Officer Police Officer EMS Division Officer EMS Brigade Officer EMS Captain 6 4 Senior Paramedic 3 11 Paramedic

10 RESULT OF VERTICAL COMPRESSION ADJUSTMENTS Correlation of Salary to time in title Salary to Title Svc EMS FIRE POLICE SHERIFF Lieutenant/Brigade/Battalion Sergeant/Captain Sr Line Title(s) Entry Line Title (non-recruit) Higher correlation values indicate a stronger relationship between salary and time in title 9

11 PROPOSAL Focus on three primary components: Placement on the pay range Merit Increases Professional Development Plans 10

12 PROPOSAL Ensure public safety supervisors reach the midpoint of their assigned pay range within three years following promotion to supervisory title City Council-approved merit increases will help meet midpoint goal. Merit increases have been provided annually since 2016 (FY17) 3% merit increase is proposed for July 2019 (FY20) 11

13 PROPOSAL Example using Fire Captain, pay range midpoint $74,963 Promoted to Fire Captain December 2018 Salary upon promotion: $65,540 3% Merit Increase July 2019: $67,790 Difference from midpoint: $7,173 50% to midpoint: $3,587 Salary as of July 2020: $71,377 2% Merit Increase and midpoint difference of $2,087 provided July New salary: $74,963 Total increase within 18 months of promotion to Fire Captain: $9,423 12

14 PROPOSAL Implement Professional Development Plans in Police, Fire and EMS Allows two functioning levels prior to Master Officer Provides a 5% increase in pay three years sooner Implements meaningful criteria to enhance skills Professional Development Plan implemented in Police Police Officer I and Police Officer II levels created 72 Police Officers successfully completed requirements for progression to POII February % pay increases provided upon progression 13

15 PROPOSAL Eliminate the medic classification (Firefighter Medic, Master Firefighter Medic) Provide Firefighters/Master Firefighters a 10% base pay increase upon obtaining EMT-I or Paramedic credentials For credentialed Master Firefighters who approach the pay range maximum, provide a medic stipend of up to $3,900 14

16 PROPOSAL Apply same proposed midpoint methodology to employees in non-public safety supervisory titles Will require a future City code change for supervisor promotions to require 10% pay increase upon promotion 15

17 PROPOSAL Advantages of proposal: Focuses on the supervisor s position in the pay range rather than the salary of those who report to them Provides clarity to public safety personnel, the City Manager, and City Council Accepts that employees may have a higher salary than supervisors for a brief period of time (typically 5 years maximum depending on merits provided) Provides an added level of predictability desired by public safety personnel Pay adjustments use available resources responsibly Sustainable in the long-term 16

18 PROPOSAL Challenges/feedback on the proposal: Success of the proposal is dependent on continued funding It s a CHANGE from how we ve been doing it 17

19 QUESTIONS? 18