Copyright © 2014 by The Segal Group, Inc. All rights reserved.

City of Sierra Vista, AZ.City Council Presentation

August 12, 2014

2014 COMPENSATION AND CLASSIFICATION STUDY

Presented by: Linda G. Wishard, Senior Consultant

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Job AnalysisJob Analysis

Job EvaluationJob Evaluation

Custom Market Survey

Custom Market Survey

Salary Structure

Salary Structure

System Administration

System Administration

Goals & Objectives

Goals & Objectives

COMMUNICATIONCOMMUNICATION

Project Overview

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Job Analysis and Classification Review (FLSA Report)

Job Evaluation

Custom Compensation Survey

Market Comparisons

Development of New Classification/Compensation Plan

Key Deliverables of the Study

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A thorough review of all classifications completed

Job Description Questionnaires (JDQs) collected to provide accurate and up-to-date job documentation.

Job Evaluation to clarify job relationships and groupings (Internal Equity). Job Evaluation Manual (JEM) completed by supervisors for all positions.

Updated classification system and job titles that reflect current duties, job requirements, and scope of responsibilities.

FLSA Review completed and report provided.

Job Classifications

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Job Evaluation

Job Evaluation System to establish internal equity completed

Evaluation of positions using factors that are typically paid-for, measurable qualities, and features or requirements common to all jobs.

Performance at an acceptable level is assumed.

Considered what the job requires most of the time under normal circumstances.

Factors consistently applied across departments.

Ratings based on JDQ, Job Evaluation Manual, and Subject Matter Experts.

Results in an internal hierarchy of jobs defining relative value.

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Compensable Factors

Formal Education This factor measures the minimum formalized training or education that is required for entry into the position.

ExperienceBased on the minimum education required for the job, this factor measures the degree of experience required for entry into the position.

Interpersonal SkillsThis factor measures the job requirements of interaction with others outside direct reporting relationships.

Management/SupervisionThis factor measures the managerial requirements for achieving results through people.

Technical Skills This factor measures the job difficulty in terms of the application of the knowledge required by the job.

Working ConditionsThis factor measures the surroundings or physical conditions under which the work must be performed.

Freedom to ActThis factor measures the degree of freedom to exercise authority as well as assesses the impact of actions.

Fiscal ResponsibilityThis factor measures the accountability for the annual budget and financial management for a department or assigned area of responsibility.

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Benchmark Organizations

In addition to published private sector data (ERI), a total of thirty (30) organizations were requested to participate in the customized survey. Those organizations providing a complete or partial response to the survey included the following noted in “red”:

CITY OF SIERRA VISTA - BENCHMARK ORGANIZATIONS       

Cities/Towns Counties1 City of Apache Junction 20 Cochise County2 City of Avondale 21 Maricopa County3 City of Chandler 22 Pima County4 City of Douglas 23 Pinal County5 City of Flagstaff Other Organizations6 City of Glendale 24 Arizona Department of Public Safety7 City of Goodyear 25 Arizona Department of Transportation8 City of Maricopa 26 Chochise College (Admin Positions)9 City of Mesa 27 Fort Huachuca Moral, Welfare and Recreation

10 Ciy of Peoria 28 Fry Fire District (Fire only)11 City of Prescott 29 Northwest Fire District (Fire only)12 City of Scottsdale 30 Sierra Vista Regional Medical Center (Admin Positons)13 City of Surprise Private Sector Data14 City of Tempe Private Sector data from Economic Research Institute Salary

Assessor15 City of Tucson16 Town of Gilbert  17 Town of Marana  18 Town of Oro Valley  19 Town Sahuarita    

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Base Pay & Structure Analysis Completed

Use of Geographic Differential to adjust for regional differences in cost of labor.

Aged data (3.5%) to October 1, 2014.

Use of weighted average salaries for data point of comparison for general jobs.

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 ERI

Indicator    ERI

Indicator  City of Sierra Vista 93.6   City of Sierra Vista 93.6  

Benchmark OrganizationERI

IndicatorGeo Diff

% Benchmark OrganizationERI

IndicatorGeo Diff

%

Arizona Department of Public Safety 97.2 -3.60% City of Tempe 97.7 -4.10%Arizona Department of Transportation 97.2 -3.60% City of Tucson 93.2 0.40%City of Apache Junction 96.1 -2.50% Cochise College (Admin Positions) 93.6 0.00%City of Avondale 97.9 -4.30% Cochise County 93.2 0.40%City of Chandler 97.8 -4.20% Fort Huachuca Moral, Welfare and Recreation 93.6 0.00%City of Douglas 93.2 0.40% Fry Fire District (Fire only) 93.6 0.00%City of Flagstaff 92.2 1.40% Maricopa County 97.2 -3.60%City of Glendale 97.8 -4.20% Northwest Fire District (Fire only) 93.2 0.40%City of Goodyear 97.3 -3.70% Pima County 93.2 0.40%City of Maricopa 96.7 -3.10% Pinal County 96.2 -2.60%

City of Mesa 97.4 -3.80%Sierra Vista Regional Medical Center (Admin Positons) 93.6 0.00%

City of Peoria 97.7 -4.10% Town of Gilbert 97.3 -3.70%City of Prescott 91.6 2.00% Town of Marana 92.7 0.90%City of Scottsdale 97.4 -3.80% Town of Oro Valley 92.7 0.90%City of Surprise 97.2 -3.60% Town of Sahuarita 92.7 0.90%

Geographic Differentials for Benchmark Organizations (Source: ERI)

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Market Competitiveness*

Base Salary Grade Midpoint

General Positions:

Nonexempt- 8.7%*-2.1%*

Exempt - 4.3%*-2.9%*

Senior Management -13.6%* -15.5%*

*Competitiveness varies by position

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Market Competitiveness*

Base Grade Grade

SalaryMinimum Maximum

Public Safety Positions:

Fire- 18.8%* -16.5%*-10.8%*

Police -19.3%* -18.7%-10.2%*

*Competitiveness varies by position

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Salary Structure Design

Use geographically adjusted, weighted average salaries as midpoint target for structures.

Use job evaluation for placement of positions in structures.

Using market data, develop structures competitive with market at 100% of benchmark average salaries.

Update range spreads (from entry to maximum rate of pay) to reflect market trends (Non-Exempt – 45%; Exempt – 50%; Senior Management – 50%).

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PROPOSED NON-EXEMPT PAY STRUCTURE

NON-EXEMPT STRUCTURE

Grade

Pay Range

Minimum Midpoint Maximum

200 $26,638 $32,631 $38,625

201 $27,970 $34,263 $40,556

202 $29,368 $35,976 $42,584

203 $30,837 $37,775 $44,713

204 $32,379 $39,664 $46,949

205 $33,997 $41,647 $49,296

206 $35,697 $43,729 $51,761

207 $37,482 $45,916 $54,349

208 $39,356 $48,212 $57,067

209 $41,324 $50,622 $59,920

210 $43,390 $53,153 $62,916

211 $45,560 $55,811 $66,062

212 $47,838 $58,601 $69,365

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PROPOSED EXEMPT PAY STRUCTURE

EXEMPT STRUCTURE

Grade

Pay Range

Minimum Midpoint Maximum

104 $39,248 $49,060 $58,872

105 $41,995 $52,494 $62,993

106 $44,935 $56,168 $67,402

107 $48,080 $60,100 $72,120

108 $51,446 $64,307 $77,169

109 $55,047 $68,809 $82,570

110 $59,451 $74,313 $89,176

111 $64,207 $80,258 $96,310

112 $69,343 $86,679 $104,015

113 $75,584 $94,480 $113,376

114 $82,387 $102,983 $123,580

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PROPOSED SENIOR MANAGEMENT PAY STRUCTURE

SENIOR MANAGEMENT

Grade

Pay Range

Minimum Midpoint Maximum

I $97,234 $121,543 $145,851

II $111,819 $139,774 $167,729

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PROPOSED PUBLIC SAFETY (Exempt)PAY STRUCTURE

FIRE EXEMPT

Grade

Pay Range

Minimum Midpoint Maximum

F5 $77,511 $92,350 $107,188

F6 $90,932 $110,103 $129,273

POLICE EXEMPT

Grade

Pay Range

Minimum Midpoint Maximum

P4 $79,639 $92,838 $106,038

P5 $88,487 $106,940 $125,393

P6 $103,664 $124,035 $144,406

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PROPOSED PUBLIC SAFETY (Non-Exempt) STEP PAY STRUCTURE

FIRE NONEXEMPT STRUCTURE POLICE NONEXEMPT STEP STRUCTURE

Grade F1 F2 F3 F4 Grade P1 P2 P3

Rank FirefighterFire

InspectorFire

Engineer Captain Rank Officer Corporal Sergeant

2% Steps 2% Steps      

1 $40,192 $46,308 $51,246 $59,210 1 $47,075 $51,782 $66,489

2 $40,996 $47,235 $52,271 $60,394 2 $48,016 $52,818 $67,819

3 $41,816 $48,179 $53,316 $61,602 3 $48,977 $53,874 $69,175

4 $42,652 $49,143 $54,383 $62,834 4 $49,956 $54,952 $70,558

5 $43,506 $50,126 $55,470 $64,091 5 $50,955 $56,051 $71,970

6 $44,376 $51,128 $56,580 $65,372 6 $51,974 $57,172 $73,409

7 $45,263 $52,151 $57,711 $66,680 7 $53,014 $58,315 $74,877

8 $46,168 $53,194 $58,866 $68,013 8 $54,074 $59,482 $76,375

9 $47,092 $54,258 $60,043 $69,374 9 $55,156 $60,671 $77,902

10 $48,034 $55,343 $61,244 $70,761 10 $56,259 $61,885 $79,460

11 $48,994 $56,450 $62,469 $72,176 11 $57,384 $63,122 $81,049

12 $49,974 $57,579 $63,718 $73,620 12 $58,532 $64,385 $82,670

13 $50,974 $58,730 $64,992 $75,092 13 $59,702 $65,672 $84,324

14 $51,993 $59,905 $66,292 $76,594 14 $60,896 $66,986 $86,010

15 $53,033 $61,103 $67,618 $78,126 15 $62,114 $68,326  

16 $54,094 $62,325 $68,970 $79,689 16 $63,356 $69,692  

17 $55,176 $63,571     17 $64,624 $71,086  

18 $56,279 $64,843     18 $65,916 $72,508  

19 $57,405 $66,140    

20 $58,553      

21 $59,724      

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Segal Waters - Recommendations

Adopt proposed Classifications, based on job analysis and job evaluation results (internal equity – hierarchy of jobs).

Adopt the proposed pay structures (Exempt, Non-Exempt, Senior Management) at 100% market average based on 50/50 weighting of Custom Survey and Published data.

Adopt the proposed step pay structure for Non-Exempt Public Safety.

Adopt proposed pay administrative guidelines.

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Segal Waters’ Recommendations (Continued)

Adopt adjustment to incumbent pay to minimum of proposed ranges:

o Estimated cost: $118,634.41o Affects 40 employees

Adopt adjustment to closest step for Non-Exempt Public Safety:o Estimated cost: $85,694.56o Affects 104 employees

Adopt adjustment of 2.0% of the new range minimum for each full year of service (TIP - time in position):

o Estimated cost: $308,174.79o Affects 115 employees

Total Estimated Cost: $512,453.76**Does not include associated benefits costs.

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Segal Waters’ Recommendations (Continued)

Two-Year Implementation Plan – Optional

Year 1 - Adopt adjustments to move employees to the Minimum of Range or Closest Step

o Estimated cost: $204,328.97o Affects 144 employees

Year 2 - Adopt adjustment of 2.0% of the new range minimum for each full year of service (TIP - time in position):

o Estimated cost: $308,174.79o Affects 115 employees

*does not included associated benefits costs

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QUESTIONS?