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HomeMy WebLinkAboutResolution 2003-021 RESOLUTION NO. 2003-021 WHEREAS, the City Council of the City of North Richland Hills recognizes that one of the City's greatest assets is the employees who make it their career to serve the citizens of North Richland Hills; and WHEREAS, the City Council believes that all employees should be treated in a fair and equitable manner regardless of position; and WHEREAS, the City Council endeavors to compensate City employees at a market competitive level in order to retain and attract quality individuals; and WHEREAS, the City Council recognizes the need to annually conduct surveys to determine market changes; and WHEREAS, the City Council authorizes the City Manager to make necessary adjustments to maintain the system in a manner consistent with the compensation system policies and procedures; and WHEREAS, the City Council believes that employees progression through their pay range should be based on the acceptable performance of their duties and include the opportunity for an annual merit increase; NOW, THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, THAT the attached wage and salary administration guidelines, implementation plan, and pay structures from Waters Consulting Group is hereby adopted effective March 15t 2003 and the related market adjustment for sworn Police and Fire employees is effective January 11 , 2003. ,.","""\\\\\ ........'" CH I A \11 .:?-.....).. ?-\ '-'ih ^'Ir ":-.,(,'~vll .:F n... " / "ý III -:::<'~"n '%Il ATTEST: ff~.I \ý ~ :::~I .,(f)~ ;;/.L. r ,- ~ ~ -; a - , h ¡rT1~ ~¿¿~ I' . ~ /¿~~f City Secretary 1/1,/ . -;------ ,.j-Õ7 1'111 '7y~,.,,:- \\\\\\\'\\;(\"- ~,. PASSED BY THE CITY COUNCIL this the 24th day of February, 2003. ã;~ Oscar Trevino, Mayor City of North Richland Hills, Texas Executive Summary Section I Background The Waters Consulting Group, Inc. (WCG) was retained by the City of North Richland Hills, Texas to perform a comprehensive study of the City's current classification and compensation program, The City has made a commitment to develop an internally equitable classification system and a market-based compensation program for all City employees, The need for current and accurate job analysis has resulted in the establishment of an on- going job evaluation system designed to support internal equity considerations in conjunction with a market competitive position, This report presents the fmdings and recommendations of our research and analysis, The report is organized into five sections as follows: · Section I · Section IT · Section III · Section IV · Section V Executive Summary Project Methodology Implementation Plan and Recommendations Salary Administration Guidelines Supporting Appendices Project Elements An organization's compensation plan is one of the most important elements of its human resources program. The compensation plan supports virtually every other component of the human resources function including recruitment and retention, training, workforce planning and resource allocation, and performance management. The compensation plan ensures the City's ability to: · Attract and retain qualified, high-performing talent for all positions · Compete with similar employers for employees · Effectively and efficiently manage fmancial resources Section I . Page 1 City of North Richland Hills, Texas Executive Summary Section I · Defme compensation opportunities for positions which accurately reflect differences and similarities in levels of responsibility and accountability within the organization By choosing to review its current practices, the City has made a commitment to upgrade its classification and compensation programs. Based on the identified needs of the City, this multi-phase project was structured to achieve the following objectives: · Develop a compensation program that is internally equitable and externally competitive for all positions covered by the scope of the project · Compose descriptions for positions covered by the study · Design and apply an on-going point-factor job evaluation system to establish objective and accurate internal relationships between positions · Develop and complete a salary data collection process using a customized Salary Survey · Build market-based salary plans that balance and support internal fairness · Provide recommendations for implementation of the system based on the City's financial resources as well as the goals and objectives of the City · Provide effective salary administration guidelines for continued program maintenance, including supporting software This project involved participation by employees at all levels within the organization. Input from employees ranged from initial employee briefmgs on the project scope and methodology, employee job questionnaires, targeted employee interviews, department director and City Council questionnaires and briefings, and participation of employees on various committees. The resulting tangible products are: . New descriptions for all regular City positions. Using the questionnaires received from employees, new descriptions were written for City positions. The descriptions include a brief description of the job, its essential functions, physical and non-physical requirements, minimum qualifications, supervisory and budget responsibility, and scope of authority. Draft descriptions were distributed for review and Section I . Page 2 City of North Richland Hills, Texas Executive Summary Section I editing and a final copy, both electronically and printed copy, are being provided to the City. . A point factor job evaluation system that reflects the City's values, culture, and management approach. In order to detennine the internal worth of all positions within the City, each non-sworn position was evaluated utilizing a point factor job evaluation methodology. Ajob evaluation system is a systematic method of establishing a hierarchy of jobs in the organization based on objective and measurable compensable factors. Eight factors were used in this process to establish the relative value of a job in the organization and to assign the position to a pay grade: o Knowledge: The minimum foanalized training or education that is required for entry into the position. o Experience: Based on the minimum education required for the job, the degree of experience required for entry into the position. o Organizational Control: The managerial requirements for achieving results through people. o Freedom to Exercise Authority: The degree of freedom to exercise authority as well as an assessment of the impact of those actions. o Human Relations Skills: The job requirements for interactions with others outside direct reporting relationships. o Complexity: The job difficulty in terms of the application of the knowledge required by the job. o Budget Responsibility: The position's accountability for the annual budget for one's department or assigned area of responsibility . o Working Conditions: The surroundings or physical conditions under which the work must be performed. Each factor has levels and each level has points associated with the level. All evaluated jobs received points for each rating and the total points received were used to establish the relative value of jobs and the Section I . Page 3 City of North Richland Hills, Texas Executive Summary Section I hierarchy of jobs in the organization. Jobs were then assigned to pay grades based on position in the hierarchy. · Comprehensive salary review of City benchmark positions. To determine the external market value of positions within the City, salary data from relevant selected cities was utilized. WCG worked closely with the City to determine the relevant benchmark organizations and positions. In previous years, the City has utilized ten cities as benchmark organizations. They are: · Arlington · Carrollton · Duncanville · Grapevine · Irving Bedford Denton Euless Hurst Lewisville A review of the demographics of these cities was conducted to ensure that they continued to satisfy standard practices for use as benchmark organizations. Seventy-nine City positions were compared to salary survey infonnation from the identified markets. The number of benchmark jobs was expanded ÍÌ"om forty-two used in previous years. Current plans were then compared to the market data. The data has shmvn the following positions of pay plans in relation to the market data collected: General Government Employee Pay Plan Appointed Pay Plan Public Safety Pay Plan 97% of Average Benchmarks 89% of Average Benchmarks 97% of Average Benchmark . New and revised salary plans which improve internal equity and external competitiveness. Using the grades that benchmark positions were assigned to during the job evaluation process, regression lines were then drawn for the General Government Employee and Appointed Pay Plans that blended the data to establish a progression of the midpoint between grades and create the pay plans. The pay line establishes the midpoint of pay grades and a range establishing the minimum and maximum of each grade around the midpoint is designed using standard compensation practices. An illustration of this Section I . Page 4 City of North Richland Hills, Texas Executive Summary Section I technique, a standard compensation methodology, is shown below for the General Government Employee Pay Plan. Proposed General Government Pay Plan vs. Market 60000 55000 50000 45000 40000 35000 30000 25000 20000 15000 910 911 912 913 914 915 916 917 - Proposed Min - Proposed Mid Proposed Ma.'C · Market All pay lines were drawn to create plans that reflect structures at approximately 100% of the market. The result is market competitive pay plans for all regular non-sworn City positions that can be maintained and updated by the City's Human Resources Department. The Public Safety Pay Plan was updated based on the average midpoint for the market benchmark. The point factor evaluation system was not used to evaluate sworn positions since an existing hierarchy is already in place that is consistent with public sector public safety organizations. However market data was collected to ensure that ranks for both police and fire sworn positions were assigned to the appropriate pay grade based on market data. The pay plan was then adjusted by 2.83% to maintain a market competitive position. . An implementation plan that takes into account the City's financial resources and goals and objectives. The implementation recommendations listed below have been developed based on establishing pay plans that are approximately 100% of market data. The recommendations provide guidance on placement of employee salaries into pay plans: Section I . Page 5 City of North Richland Hills, Texas Executive Summary Section I o Employees in the Public Safety Pay Plan are recommended to receive a 2.83% pay adjustment to retain their relative position within their pay range o Employees in the General Government and Appointed Plans are recommended to be placed in their designated pay grade and any employee whose pay is below the minimum of their proposed pay range would be brought up to the new minimum of the designated pay range. o Employees in the General Government and Appointed Plans whose current pay is already within the ranges of the proposed plan for their position would receive an adjustment using a matrix based on time in position and position in their new pay grade. The purpose of this adjustment is to minimize pay compression with future new hires. The objective of the adjustment is to move employees with tenure in their current position closer to the market average (the midpoint of the pay range) without compressing their pay with other employees. It is recommended that the City provide adjustments to employee base pay during implementation of the new systems to avoid new hires being brought into grades at a base rate similar to employees that have more tenure in the same position. A copy of the matrix used for the proposed adjustments is in Attachment G. . Applicable policies, procedures and guidelines to provide for ongoing administration and maintenance. A series of recommendations to provide procedures for various personnel actions that may occur once the study is approved have been provided. The recommendations cover actions relating to new hires, promotions, reclassification or creation of new positions, demotions, and salary adjustments. Recommendations also include standards and procedures for continued administration of the pay plans to maintain their competitive positions. . Training and software to support the new programs. The pay module of the proprietary software, HRNavigator, will be installed with the approved pay plans. Staff will be trained on the use of the system to continue to update and maintain the plans. Section I . Page 6 City of North Richland Hills, Texas Executive Summary Section I Implementation Plan and Recommendations The key elements are: 1) Upon fonnal approval of the compensation system by the City Council, the new and updated pay plans and related salary guidelines should be applied to all current and new employees hired in the City effective with the first full pay period in calendar year 2003. 2) The City should implement the pay plans as illustrated in Appendix E. The market identified and established as a part of this study should continue to be surveyed annually and used as a basis for future adjustments to the pay plans. 3) When the salary plan is updated on an annual basis, all employees with acceptable perfonnance who are below the proposed minimum of their salary range should be brought to the new minimum. It is also recommended that all other employees with acceptable perfonnance receive adjustments to their base pay at the same rate as the plan movement unless the base rate is at or above the proposed ma.ximum of the adjusted range. 4) No individuals should receive salary increases that would put their salaries above the maximum of the salary ranges. It is recommended that the City implement the practice of providing lump sum payments to employees that are at or above the maximum of their pay range to allow participation in the performance pay program. 5) No individual should experience a decrease in pay as a result of changes in plans. Instead, an employee who is at or above the ma.ximum should have their pay frozen until the plan "catches up" with the individual's base pay. 6) An implementation plan has been provided for determining initial adjustments for employees at various salary levels in the new plans. Providing perfonnance is acceptable, the implementation plan provides for employee salaries in the General Government and Appointed Pay Plans to be increased to the minimum of their designated pay range if their current rate of pay is below the new range. Employees in the General Government and Appointed Pay Plans would receive an adjustment based on the proposed pay matrix to minimize employee pay compression. Public Safety employee pay would move with the plan Section I . Page 7 · .~. City of North Richland Hills, Texas Executive Summary Section I adjustment of 2.83%. The following costs for the recommended increases for pay adjustments are: Assign positions to new ranges and adjust employee salaries if below the minimum Move Public Safety employee pay 2.83% General Government and Appointed Adjustment to address compression Total Costs $ 100,441 $ 235,942 $ 299,721 $ 636.104* *Includes benefits related costs All employees with satisfactory performance ratings would continue to be eligible to receive a minimum 4% merit increase at their anniversary date. 7) During future budget cycles, the overall amount allocated to fund the system should be determined in the context of fiscal constraints and the City's competitive position. 8) Effective with the implementation of these programs, evaluation of new positions should follow the administrative procedures as outlined in the Salary Administration Guidelines. All requests for reviews of current positions as well as the review of proposed new positions should require the completion of a new job description questionnaire and review by the Director of Human Resources and the City Manager's Office to ensure appropriate placement in the classification system. A new description should be completed for all new positions. 9) Requests for review of an individual employee's classification should also require the completion of a job evaluation questionnaire that can be used to determine if movement to another existing position or development of a new position is justified. All requests to create new positions or review existing positions and employee placements should be coordinated with the budgetary process and be conducted on an annual basis. 10) It is recommended that the City Council adopt a resolution that provides direction to the City Manager and Human Resources Department to implement the recommendations of this study and maintains the system and pay plans accordingly. Section I . Page 8 North Richland Hills, Texas Salary Administration Guidelines Section IV Basic Philosophy and Objectives Philosophy North Richland Hill's compensation philosophy is to establish and administer an equitable program that provides consistent treatment for all employees. Job responsibility, job perfonnance and market information are the key considerations in detennining employee salaries. WCG recognizes the City is dedicated to providing an atmosphere that demonstrates a commitment to service, excellence, and customer satisfaction. WCG's challenge during this project has been to recommend a compensation strategy that constitutes a good '"fit" to the City's management philosophy. The purpose of the City's compensation program is to attract, retain, and motivate employees by offering pay opportunities commensurate with their position's internal and external value. The compensation program provides a framework to inspire the development and progress of each employee. Objectives The objectives of the City's compensation program are: · To clearly define the essential functions of each position through written descriptions. · To reinforce employee perception of fair compensation between positions and with comparable positions outside the City. · To establish a program that is understandable to employees, fiscally sound and cost effective, and easily administered and maintained. · To establish a salary range for each position that is based on a systematic blending of the position's internal worth to the City and it's external value in the market. · To provide a methodology that allows the Mayor and City Council to detennine annual market-based adjustments consistent with the City's ability to pay. Section IV . Page 1 North Richland Hills, Texas Salary Administration Guidelines Section IV Compensation Policy The City's compensation program design is based on the following values: 1. Competition The City will provide total compensation opportunities (direct pay, indirect pay (e.g., benefits), career opportunities, etc.) that are a blend of those offered by its competitors. 2. Salary Ran2es Each position in the City will be assigned to a pay plan that will have a salary range defined by minimum and maximum dollar limits. The salary range defines the pay opportunities for the position. Plans have been designed for General Government, Appointed, and Public Safety positions. The General Government and Appointed plans have open ranges with no steps. The Public Safety Plan has ranges with steps that are 4% from the minimum to the maximum of the range. For employees with acceptable perfonnance, after the compensation program is fully installed, employees in the Public Safety Plan should be on a step within the salary range for their position. All salary ranges will be reviewed annually and revised to reflect the City's changing competitive position, economic conditions, and compensation objectives. This annual review is detailed in the section "Annual Salary Plan Adjustment and Adjustment Guidelines for City Employees" and will be subject to the budgetary guidelines established by the City Council. The proposed salary plans are detailed in Appendix D. 3. Descriptions Each position title in the City will have a written description. Descriptions should be reviewed on an as needed basis and on a periodic schedule defined by Human Resources. The description will be modified, if warranted, through documentation provided by an updated job description questionnaire. The job description questionnaire is the basis for position evaluation and' all changes to descriptions. 4. Job Evaluation Each non-sworn position in the City will be placed in a pay plan at a grade level and accompanying salary range utilizing a point factor Section N . Page 2 , North Richland Hills, Texas Salary Administration Guidelines Section IV evaluation methodology. The Human Resources Director, under the direction of the City Manager, is responsible for position evaluation and placement in the appropriate pay plan and pay grade. The Human Resources Department will continue to oversee the evaluation of all non-sworn positions and approve recommendations for new positions and the revision of current positions. Review and approval of all job evaluation results is the responsibility of the Director of Human Resources under the direction of the City Manager. 5. Administration Under the supervision of the City Manager or the Manager's designee, the Human Resources Director will manage and administer the pay program. The Pay Program Administrator is responsible for: A. Recommending changes in the basic philosophy and objectives of the compensation policy, which ensure compliance with all relevant laws and regulations. B. Ensuring that descriptions are current and accurate. C. Ensuring that position evaluations are performed in a timely manner. D. Conducting annual market reviews to recommend salary increase budgets and salary plan adjustments. E. Coordinating the implementation and periodic review of the Salary Administration Guidelines. Descriptions A description is a written document that describes the essential functions of a position, focusing on the general purpose and the principal duties and responsibilities of the position. Every position in the City will have a written description using the standard format adopted by the City during the study. All descriptions will be prepared from the Job Description Questionnaire (JDQ). Section IV . Page 3 North Richland Hills, Texas Salary Administration Guidelines Section IV Description Objectives The description is a working document, subject to periodic review and modification. It is intended to describe the major functions of the position, not to provide a complete listing of all possible tasks and responsibilities. The main purposes of the description are: · To serve as a means of communication between the supervisor and the employee to clarify the responsibilities and expectations of the position · To serve as the basis for position evaluation · To provide documentation for validating salary survey matches · To serve as a basis for the City's performance appraisal process · To identify qualifications for purposes of recruitment, selection and training The Human Resources Department will be responsible for maintaining all descriptions and copies thereof. Job Evaluation for City Employees Job evaluation is a process of determining the relative worth of all positions in an organization. Each non-sworn position in the City has been evaluated utilizing a customized point factor job evaluation. Recognizing that the requirements, responsibilities and expectations of positions periodically change, re-evaluation may be required. The City should continue to employ this system for future position evaluation activity. Reclassification! New Positions As new positions are approved, or if a request for reclassification of an existing position is made, the Director of Human Resources will prepare evaluation recommendations for the City Manager's Office to review and approve. The process for requesting new positions or reclassifying a position will be completed on an annual basis in conjunction with the budgetary process. All requests for the addition of new positions should receive initial approval by the City Manager's office prior to evaluating the position and determining the fiscal impact. Requests to evaluate both new and existing positions should be submitted in writing to the Human Resources Department and include a job description questionnaire and rationale for modifying or creating a new position. Section IV . Page 4 North Richland Hills, Texas Salary Administration Guidelines Section IV The evaluation by the Human Resources Director will be based on the factors and levels defmed in the Job Evaluation Systems (Appendix B). Once all factors have been considered, a grade will be assigned using the Job Evaluation Point System and Grade Conversion Table. The recommendation of the Human Resources Director will be forwarded to the City Manager's Office in writing, noting the overall rationale for the recommended grade, as well as recapping the rating of each factor. The Director of Human Resources will present this recommendation to the City Manager or his designee. The Human Resources department will maintain a copy of the recommendations and an updated Job Evaluation Summary showing all positions and grade assignment. Evaluation of any position more than once in any twelve-month period, will require the written approval of the Director of Human Resources prior to initiating the job evaluation process. In the future, the City may also choose to create a city-wide Job Evaluation Team to assist in the job evaluation review process. Requests for The following details the procedure for a department to request a review of Review an assigned position: 1) Through the appropriate chain of command, the supervisor or manager submits a written request to their Department Director. This written request should contain a JDQ and documented rationale for the proposed change. A sample Request Form is included in Appendix E. 2) Upon review by the Department, the request is submitted to the Human Resources Director accompanied by a written recommendation ITom the Department Director. 3) The Human Resources Director will use the appropriate evaluation manual to compare the proposed factors of the job to the factors of comparable jobs. The Director will make a recommendation to retain the current evaluation, create a new evaluation score, or create a new position. The resulting recommendation and rationale will be forwarded in writing to the City Manager's Office. Section N . Page 5 North Richland Hills, Texas Salary Administration Guidelines Section IV 4) The Human Resource Director will recalculate any new evaluation scores using the Job Evaluation Point System and Grade Conversion Table. If the resulting score does not change the pay grade detennined by total points, the employee/department will be infonned of the decision. If the new score changes the pay grade detennined by total points, the Human Resources Director will implement the recommendation and calculated pay grade after review and approval. It is the responsibility of the Human Resources Director to maintain and administer the Evaluation Process. 5) If the request is to reclassify an individual to another existing position, the Human Resources Department will conduct an analysis of the request and recommend placement of the individual in another position or confinn appropriateness of the current placement. Individual employee reclassification requests will only be conducted on an annual basis, in conjunction with the budget process. The request should include the completion of a Request for Review Fonn and a Job Description Questionnaire. Only those jobs that have significant changes in duties and responsibilities should be considered for reclassification. Special circumstances, such as departmental reorganizations, may be reviewed off-cycle when approved by the City Manager's Office. Annual Salary Plan Adjustment and Salary Increase Guidelines for City Employees During the nonnaI budget process, the Human Resources Director is responsible for developing recommendations regarding plan adjustments and employee salary increases. As these recommendations reflect the compensation policy of the City, the final decision will rest with City Council, and should be made in the context of the total financial outlook for the City. When determining the adjustments to make, the City will need to consider the impact of these adjustments both on the salary plan and individual salaries. The following should be taken into consideration when deciding plan adjustments and employee salary increases: Section IV . Page 6 Salary Administration Guidelines Section IV North Richland Hills, Texas Position Within the Market Market Movement Individual Movement Within the Range The City has adopted a strategy of achieving and maintaining a market- competitive position of approximately 100% of the designated market average. Therefore, the City will need to allocate a certain amount in the upcoming budget year to maintain this position in anticipation of market movement. Changes to the defInition of the City's targeted competitive position will affect how much of the budget must be allocated to maintain a specifIc competitive position. The plans recommended in this report will help the City achieve a market position that is, on average, approximately 100% of the market average as of the effective date of the survey (October, 2002). Annual market reviews should be conducted to assess the City's relative position to the market. The market is dynamic. Therefore, once a competitive position is achieved, the City must allocate funds suffIcient to maintain that position. Although commonly referred to as "Cost of Living," a more accurate description of this figure is "Cost of Labor", as the market may not move in a direct relationship to inflation or cost of living indexes. Cost of Labor increases are detennined by salary surveys. Once the City has achieved a competitive position, the percentage allocated for changing market position is the percentage movement of salaries in that market. For example, if salaries have increased on average by four percent (i.e., Cost of Labor equals four percent), the salary plan would need to be adjusted upward by four percent, to maintain the organization's position relative to the market. This would be . accomplished by moving the entire plan by four percent. The City should consider a two-year market review cycle. For fiscal year 2003-04, the Human Resources Department should survey the designated benchmark organizations to detennine average actual plan movements completed in October, 2003 and make recommendations for plan adjustments. The following fiscal year, the Human Resources Department should complete a full salary survey and make plan adjustment recommendations based on calculated averages :&om its benchmark organizations. Plans may move at the same rate or at different rates, based on the market data and the City's fInancial condition. With the exception of market considerations, it is expected employees will move through their salary ranges over time. The nature of the increases provided to employees to achieve such movement should be directed by policy set by the City Council. North RicWand Hills currently has a pay Section N . Page 7 Salary Administration Guidelines Section IV North Richland Hills, Texas Financial Status Other Policy Considerations for perfonnance system and awards increases based on acceptable perfonnance. Should this continue to be the philosophy of the City, guidelines should be established defining how ratings will be translated to increases. The City may consider expanding its pay for perfonnance approach to allow varying percent increases dependent on levels of perfonnance where outstanding perfonners receive higher increases than strong perfonners. It is recommended that the City continue its policy of providing annual perfonnance reviews for Appointed employees, and bi- annually for General Government employees. Pay for perfonnance increases should follow each review and should be based on the perfonnance evaluation results. Employees receiving bi-annual reviews will receive one-half of the annual increase at each review. Pay for perfonnance increases should continue to be funded at the minimum 4% level with exceptional perfonnance levels eligible for additional compensation and detennined each year as part of the budget process. Funding levels should be based on the City's financial capabilities and merit pay practices of the benchmark cities. One of the functions of the budget process is to consider the competing priorities for limited revenue resources. Once the aforementioned factors are computed, it may be detennined the City's current financial status cannot support the total cost. Conversely, in a positive financial condition, the City may consider increasing the percentage allocated for the above factors. Clearly, the City's financial status will affect both plan adjustments and individual salaries. It is recommended employees be paid no less than the minimum of the salary range established for their position. It is recommended that increases do not establish employee salaries that exceed the salary range maximum for their position. However, it is also recommended that the City provide employees with a lump sum payment in lieu of a base pay merit increase on the anniversary date when employees are at the maximum of their pay range. It is further recommended that the lump sum be no more than 2% of the maximum of the employee's pay range. Section IV . Page 8 -------~-- Salary Administration Guidelines Section IV North Richland Hills, Texas Salary Survey Data Collection and Analysis Guidelines Minimum Standards Competitive Labor Market As previously mentioned, market reviews should be conducted on an annual basis to gather current labor market information. Reliable labor market information can be used by an organization for a variety of purposes including: pricing jobs, determining competitive position, identifYing trends, measuring market movement, diagnosing compensation challenges, monitoring internal equity, and defending current pay practices. Market data collection can be accomplished by several means. However, it is important that methodologies balance consistency with the flexibility to respond to changes in the competitive environment. Listed below are suggestions on how to collect and analyze market data. Various factors such as cost, time, reliability, confidentiality, and availability of published surveys influence decisions regarding survey data collection. The City should establish a minimum set of standards for determining acceptable survey practices, and selection and use of published survey material. To ensure reliable and defendable data, the City should focus on the accuracy and completeness of the survey data over accessibility and convenience. Guidelines should be defined regarding sample size, participant or survey peer group definition, position-matching procedures, and procedures for data analysis. The City may adopt the procedures used by WCG to complete this study or use another set of procedures. Currently the City has adopted a set of Cities that will be used in public sector market data collection. For future comparisons, the City should also consider the use of published private sector salary data to ensure continue a market competitive position. As covered in Section II, a labor market is generally the identified group of employers with which the organization most likely competes for qualified employees. The survey data collected by the City should continue to be representative of the competitive labor market. Factors that should be considered in selecting organizations for survey purposes include the following: · Employer size and complexity · Geographic proximity · Nature of services provided Section N . Page 9 North Richland Hills, Texas Salary Administration Guidelines Section IV Data Collection Market data can be obtained by purchasing published surveys, participating in surveys, using a third-party consultant specializing in survey data collection, designing and conducting custom surveys, or using Web-based sources. North Richland Hills has selected ten cities in the Dallas-Ft. Worth metropolitan area for its source of data and has established seventy-nine benchmark positions for comparison. Data Analysis The methodologies used by organizations to analyze survey data often vary. However, the common goal of all methodologies should be to produce meaningful information from which strategic compensation decisions can be made. Listed below are the practices, procedures, and rules WCG utilizes and recommends to the City for analyzing data: · Actual base salaries and salary ranges are the most common pay variables analyzed for determining an organization's competitive position. Actual pay rates reflect what is being paid in the market, and are important if an organization is making market-based decisions about pay. Salary ranges defme what opportunities exist externally and the intent of other organizations. Salary range information may be more appropriate in the decision making process for single incumbent positions where actual pay may be influenced by a very high or low reported salary. Average market midpoint was used for the Public Safety Plan since pay opportunities is critical for sworn Public Safety pay. · If data is collected from multiple sources with different effective dates, it should be aged to a common point in time. An annual aging factor (i.e., the rate at which market rates are increasing) must be defmed and stated in a monthly format. This will allow data to be aged an appropriate number of months from it's collection point to the programs implementation point. Note, aging data over one year old is strongly discouraged. · To build a large, reliable sample of market data, the City is encouraged to utilize no less than ten sources of survey data in its market data analysis.e Section IV . Page 10 ---·--'-·--·'··~"_'__>'__M._____.___,,_.___..____,_..___. North Richland Hills, Texas Salary Administration Guidelines Section IV Promotion Guidelines A promotion is defined conceptually as the assumption of substantially expanded duties and responsibilities. For purposes of salary administration, a promotion occurs when the new position is a higher pay grade than the previous position. Promotions are subject to a one-year probationary period. During this period, the employee's perfonnance in the new position is closely monitored and evaluated. The employee's Department Head/Supervisor completes a written perfonnance appraisal at the end of the review period. The results of this appraisal detennine whether the promotion status becomes official thereby ending the probationary status. If the promotion does not become official the employee will be returned to their previous or a comparable position. Pay will also be reduced. A promoted employee shall be compensated within the new range under the same guidelines as new employees. In all cases, the amount of a promotional increase should: o be a minimum of 5% or an amount sufficient to reach the salary range minimum for the new position, whichever is greatest o under all circumstances the employee's new rate of pay should be on a step in the new range assignment for the Public Safety Plan o be detennined using the same guidelines for establishing a rate of pay for a new hire The review period does not require any delay in the promotional pay increase. The increase should become effective on the first day the employee assumes the new position and should not be affected by any previous increases. All promotions and promotional increases shall be coordinated with the Department Head and approved by the Human Resources Director. Section IV . Page 11 North Richland Hills, Texas Salary Administration Guidelines Section IV Adjustment Guidelines The purpose of adjustments is to respond to situations that might affect the external competitive position or adversely affect internal equity. All proposed adjustments must have the approval of the Department Director and the Human Resources Director. Minimum Salary At the beginning of the first full pay period of the calendar year, all employees should be at least at the minimum of the salary range for their positions. If an employee's salary is below the minimum of the salary range, the salary will be adjusted to the minimum, effective on the first full pay period in the new calendar year. Transferred An employee who moves to a new position in the same pay grade will not receive an increase in compensation. Employees Reclassified and Demoted Employees If an employee's position is reevaluated to a higher pay grade, the promotion guidelines should be applied to detennine the employee's new rate of pay. If an employee is in a position that is re-evaluated to a lower pay grade the employee's salary will be adjusted to at least the maximum of the range in the new salary grade. If an employee is demoted to a lower pay grade due to perfonnance or disciplinary issues, pay will be reduced to the maximum of the pay range or 5%, whichever is greater. However, if an employee is in a trial period for a new job and has been receiving the pay for the new position, the pay will be reduced to the previous level if the employee is returned to a previous position due to lack of perfonnance during the promotional trial period or if the employee requests the move to the previous position. Starting Salary Guidelines There are several considerations in deciding what to offer someone to come to work for the City. These considerations are broken down into two parts: the total offer and the salary offer. The Total What is offered to a person in exchange for hislher time, talent, services, Offer and judgment are compensation, benefits, challenging problems, effective working environment, career opportunities, and so on. For example, a Section N . Page 12 Salary Administration Guidelines Section IV North Richland Hills, Texas The Salary Offer partial listing of some of the tangibles and intangibles include: 1) the benefits package, 2) the security of a stable organization, 3) the work environment, and 4) location and community. The hiring Department Head/Supervisor should consider all of these factors and, in particular, the monetary value of all benefits offered by the City. The total package is what should be explicitly communicated in extending the offer. This will aid the applicant in evaluating and making a realistic decision. Based on the City's ability to pay, the application of survey data and the process of evaluation, the salary range for each position has been assigned, thereby defining the pay opportunities for each position. New employees with the minimum experience level for the position should nonnally be compensated at the minimum of the approved salary range. Individuals with exceptional qualifications, extraordinary work experience or depth of skill level may be compensated above the entry rate within the salary range. Additionally, market conditions or specific job duties can create situations requiring a need to provide compensation above the minimum of the salary range. All such decisions should be contingent upon available funding. The following guidelines apply to starting salaries: In all cases: · The starting salary should be at least the minimum of the new salary range; · All starting salaries must be coordinated with the appropriate Department Head and the Human Resources Director; · Using guidelines and procedures established by the Human Resources Director, a starting salary between entry and the midpoint can be authorized by the Department Director with review by the Human Resources Director and approval by the Assistant City Manager. Appropriate documentation reflecting the required justification and approval for the action should be maintained in the department with a copy forwarded to the Human Resources Department. · A request for a starting salary above the midpoint of the pay range should be approved by the City Manager or designee after review by the Human Resources Director. The documentation should be maintained in the personnel file of the incumbent and in the Human Resources Department. Section IV. Page 13 North Richland Hills, Texas Salary Administration Guidelines Section IV One-Year Review All new hires will be placed on a one-year review (or probationary) period. Period The review period is designed to: · Allow the City an opportunity to observe the new employee's ability to perfonn the assigned duties · Focus the Department Head/Supervisor's attention on the need for intensive training. The employee's progress should be monitored, documented, and discussed with the employee throughout this review period. Section N . Page 14 ~Z ::!:5en J:c..lliM 0)-)-0 ~~g~ ..Jenc..- J:w::E.c ~owo e:::-w; J:>O::E ....ffi>(1) e:::ene:::> O..Jw~ Z<cen(1) LLO::::..J1e OW>W )-Z- ....WO Õ" I'-- "<t "<t 0 N ..- "<t I'-- >< ~ I'-- 00 C'! 0) """: ~ <.C! C'II M "<t LO I'-- 00 ..- M I'-- ::E ..- ..- ..- ..- ..- N N N ffl ffl ffl ffl ffl ffl ffl ffl ~ N L.() I'-- ..- L.() 00 CD 00 <.C! M C'! "': 00 <.C! C? ..- ... 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