Personnel Board Chairman Lorenzo Howard and member Diane Thomas gave the results of the Compensation and Classification study by consultant Evergreen Solutions, LLc. In July 2011 the company was retained by the city council to "conduct a comprehensive study of all positions in the city to address internal and external equity:"
"Internal equity relates to the fairness of the city's compensation practices among its current employees and how well the compensation of each position reflects the relative value of that role to the city."
("External equity" means a pay comparison with other cities and the private sector.)
NO PAY GRADES OR SALARY RANGES
The study found that the city currently "has no set pay structure that places employees into set pay grades."
Howard: "We have no formalized pay system."
Study: "In sum, the city lacks a modern pay plan which would have the structural foundation to serve the city well. An organized pay system is useful because it gives employees something to work towards and also helps clear confusion about future salary increases or equity among different pay grades."
Because there are currently no pay grades, it was impossible to compare relative pay levels here with that of other cities, according to the study.
Study: "... because the city has no set salary ranges ... it is impossible to gauge where its employees are in relation to market averages."
EMPLOYEE MORALE AFFECTED
Chairman Howard said that the "perception of favoritism" when it comes to pay is contributing to morale problems in the city's workforce.
Study: "Without an established pay plan, the city leaves itself open on multiple fronts -- from competition from outside organizations with more attractive pay plans, to decreased employee morale due to uncertainty and inconsistency with regards to who gets paid what and why."
Study: "Employees observe a general state of disorganization in how individuals are compensated."
Howard: "We do not have a salary administration process ... there is no structure ... creates a lot of issues when employees start asking about details ... sometimes created animosity ... this person's getting this ... why don't I get this?"
RECOMMENDS FORMAL PAY PLAN
The study concluded the city has "significant disparities in pay among its 20 departments."
The consultant recommended the city adopt a formal pay plan that is "based on job requirements not the person."
"Based on Evergreen Solutions' analysis, the compensation structure was generally below market as a result of the city having no centrally controlled compensation plan or series of pay grades. As a result ... recommend the development of a formal pay plan to better address the city's needs."
For its current 373 employees, the study proposes the city adopt a pay plan with 23 pay grades: grades 10-32. The salary range for lowest (10) being $15,600-$24,960 -- and for the highest (grade 32), $76,579-$122,526.
The total number of job titles city-wide are proposed to be decreased from the current 193 to 141, according to committee member Thomas. No lay offs or pay reductions are proposed.
Howard: "We're not proposing cutting anyone's pay ... we're not getting into that .. ."
MERIT PAY SYSTEM/COST OF LIVING RAISE RECOMMENDED
The study also recommended evaluating the feasibility of implementing a merit-based pay plan where pay is based on "performance-based evaluations."
Study: "At present, the city utilizes a more fluid and individualized approach for determining individual salaries. While flexibility may appear attractive, it opens the door for inconsistency and accusations of preferential treatment."
Because employees have not received a pay increase for 3 years; and the cost of living has increased by 2.6% during that time frame (according to federal data), the study recommends a 2.6% COLA in 2013 for "each employee -- if the city possesses the resources to adjust pay in this across-the-board fashion."
The cost to the city would be about $306,000 annually.
(Publisher's note: Employees received a 1.5% bonus for 2012, in lieu of a COLA)
HR DEPARTMENT TOO SMALL
The study concluded the city's one person Human Resources Department (Pandora Heathcoe) is too small to handle such a large workforce.; and that all pay and personnel matters should be primarily handled and coordinated ("centralized") by the HR Department -- and less by the various Department Managers and supervisors.
Study: "Administration of the human resources function will continue to be a challenge as long as there is only one dedicated full time professional to coordinate and manage the system ... it is difficult to imagine the city's 350+ employees will be consistently handled without at least one additional human resources employee ... ."
EMPLOYEE FEEDBACK SOLICITED
City Council President Mixon asked the city administrator and department supervisors to explain the new plan to their employees to solicit feedback -- before the council votes on the recommendations at a future council meeting.
Mixon commented to the Times later: "When I first became the Personnel Board liaison, I began working on getting this study done. It has taken almost 3 years. The last thing to do now, is to have it approved by the Council and put into an Ordinance that must be followed. We should be able to get this accomplished within the next 45 days."