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Home My WebLink About2006 07 17 Other Distributed by Staff Pay Study Date: July 17, 2006 The following Document was distributed by Staff during the July 17, 2006 Workshop. RECEiVED JUN 2 8 2006 CITY OF VV1NTER SPRINGS F tnance Director COMPENSATION STUDY UPDATE City of Winter Springs 111'Irr~ 2006 ~ Cody & -A:MociatedJ .Jnc. MANAGEMENT CONSULTANTS 305 Jack Drive; Cocoa Beach, Florida 32931 (321) 783-3720; FAX (321) 783-4353 E-mail: CodyAssociates@aol.com Cody & Associates, Inc. Cody & -.AddOcia!ed, J-nc. MANAGEMENT CONSULTANTS 305 Jack Drive, Cocoa Beach, Florida 32931 (321) 783-3720; FAX (321) 783-4353 E-mail: CodyAssociates@aol.com June 22, 2006 Mr. Ronald Mclemore City Manager City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708 Dear Mr. Mclemore: We have completed our assignment and are submitting the final report of our Compensation Study for all positions in the service of the City. This report has been prepared as an accounting of our assignment and to record our approach. The recommendations and comments in the report reflect our objective appraisal based on analysis and discussion to the extent possible within the scope of the assignment. . Our objective was to develop a Classification and Pay Plan that is equitable to both the employees and to the taxpayers of the City. We appreciate this opportunity to be of service to you and express our thanks for the cooperation and courtesy which was extended to us by all of your employees during the Study. Respectfully Submitted, "'1 f ~ d'f9lS"'" -. N. E. Pellegrino Principal Partner COMPENSATION STUDY City of Winter Springs Table of Contents Section Paae LETTER OF TRANSMITTAL INTRODUCTION........................................................................................... 1 STUDY ASSIGNMENT AND OBJECTIVES ................................................. 2 II SALARY PHASE ................... ........................... ........ .................................... 4 A. SALARY SURVEy..... ...... ... .................. .............. ................................. 4 1. Selection of Survey Classes..................................................... 4 2. Identification of Labor Market................................................... 4 3. Management, Administrative, Professional Positions............... 5 4. Secondary Information............................................................. 6 5. Survey Method ........ ................ ....... .................... ...................... 6 8. DEVELOPMENT OF THE SALARY SCHEDULES ............................. 7 C. GENERAL SALARY FINDINGS AND COMMENTS ............................ 7 D. OTHER SALARY SURVEY CONSIDERATIONS ................................ 7 E. RECOMMENDATIONS........................................................................ 8 III FRINGE BENEFIT ANALYSIS ..................................................................... 9 IV IMPLEMENTATION...................................................................................... 11 ENCLOSURE 1 - RECOMMENDED COMPENSATION PLAN (By Department) ENCLOSURE 2 - RECOMMENDED COMPENSATION PLAN (Internal Relationship) ENCLOSURE 3 - SALARY SCHEDULE Cody & Associates, Inc. INTRODUCTION This Report, on the Study of the Salaries for the City of Winter Springs, contains details of all elements of the Study. In preparing this report, Cody & Associates, Inc. has used its best efforts and has taken reasonable care. To an extent, the Report relies on information and data received from third parties in which Cody & Associates, Inc. has assumed the accuracy and completeness thereof. Cody & Associates, Inc. cannot guarantee that any particular result will follow from any action taken on the Basis of this Report. The information and opinions expressed in this Report have significance only within the context of the entire Report. No parts of this report should be used or relied upon outside of that context. This Study is not an end in itself, but a vital element in a sound management program for the City. A good overall management system requires continuous work and polishing, once the plan is implemented. Adjustments will continually have to be made to reflect changes in the labor market place in order to maintain a current and equitable classification system and pay plan. Cody & Associates, Inc. 1 I STUDY ASSIGNMENT AND OBJECTIVES The City of Winter Springs, Florida, retained the services of Cody & Associates, Inc. to conduct a Pay Study for all positions under their jurisdiction. In our approach to updating the Pay Plan, we were concerned with the following basic obiectives: A. Formulating a Pay Plan that will assist in reducino turnover costs and promote careers with the City. B. Designing a Pay Plan that will attract Qualified personnel to render the services that the City provides. C. Establishing objective, standardized, methods establishing salary ranges, and determining individual salary levels. D. Establishing equitable relationships of one job to another within the work force (equal pay for equal work). E. To ensure fair and equal compensation opportunities for equal contributions to Cody & Associates, Inc. 2 the effective operations of the City. F. Designing current Salary Ranaes which are competitive with reasonably similar positions in the labor market where the City recruits for employees and which are consistent with the economic conditions in Seminole County and surrounding counties. G. Establishing or maintaining normal lines of promotion to and from the various classes of positions in the Personnel System. H. Assuring that department heads, supervisors and other employees have an opportunity to participate in the Survey. To achieve these objectives, we divided the assignment into two (2) major segments: A. Wage Survey. B. Report Preparation and Presentation. Cody & Associates, Inc. 3 II SALARY PHASE The Salary Study included the following: A. SALARY SURVEY The objective of this survey was to determine what must be provided in terms of salaries in order to obtain or retain personnel; in other words, to be competitive with other employers recruiting from the same labor market. The steps included: 1. SELECTION OF SURVEY CLASSES (Bench Marks) / We tried to utilizeras many as possible of the present classes in the salary survey in order to get the best possible data. These benchmark jobs represented all of the occupations and levels in the City's organiza- tion and those occupations which could be compared with other employers. 2. IDENTIFICATION OF LABOR MARKET The relevant labor markets to be surveyed were identified. One market was the local operating area of Seminole and adjoining counties for the Cody & Associates, Inc. 4 positions which are recruited from this geographical location. We included both public and some private agencies in the survey from the following areas: Seminole County; Seminole County Sheriff's Department; City of Longwood; City of Maitland; City of Lake Mary; City of Winter Park; City of Casselberry; City of Apopka; City of Altamonte Springs; City of Sanford; City of Ocoee; City of Oviedo; Seminole Community College; State of Florida (Local Offices); Survey of Area (Seminole County) Businesses; Florida Labor Departments Occupational Wage and Benefit Survey. 3. MANAGEMENT. ADMINISTRATIVE and PROFESSIONAL POSITIONS For management, administrative, and some professional positions where the City must remain competitive on a State-wide basis, our staff studied salary data from other comparable oovernmental aoencies in the Region and State. Another source used was the Florida League of Cities Cooperative Salary Survey 2004. This information was used as guide, along with local data in arriving at our recommendations to determine general pay levels. We realize that there are significant differences in Cost of Living in other areas of the State in comparison to Seminole County, so, when using data outside of Seminole County, we made appropriate adjustments to this data to reflect the Cost of Living differences. The formula used was: Cost of Living Index difference (between reporting cities and Winter Springs) X Reported Salary Range = Adjusted Salary Cody & Associates, Inc. 5 Range. The Cost of Living data source used was the most recent "Florida Price Level Index 2005". These Cost of Living adjustments afford greater validity to the survey data. 4. SECONDARY INFORMATION Secondary salary data included regional surveys recently completed by our company and information from our data base. This information was used as a Quide in developing the salary schedule recommendations. 5. SURVEY METHOD In compiling this data, we not only obtained their minimum and maximum salaries but the number of positions in each classification. This separates the larger agencies from the smaller ones and equitably indicates what the market is. Another step we use in our calculations, in order to provide the most accurate data possible, is to apply the standard deviation principle. The standard deviation is the most commonly used indicator of variability of a distribution of data. The usual and most accepted interpretation is in terms of the percentage of cases included within one standard deviation below the mean to one standard deviation above the mean. This range on the scale includes about two-thirds e13) of the cases in the distribution. Data was entered into our data base and then edited to ensure that the data was reasonable and representative and had been . accurately reported and recorded. Responses were eliminated when they appeared atypical or exhibited extreme values in wages. Cody & Associates, Inc. 6 B. DEVELOPMENT OF THE SALARY SCHEDULES The objective of this aspect of the Study was to compile the results of the salary survey and to design appropriate salary schedules and plans for all the positions covered. C. GENERAL SALARY FINDINGS AND COMMENTS We found most of the minimum and maximum (retention) rates were below the survey results. Therefore, ranges were adjusted to reflect the survey results. A complete list of the recommendations can be found in Enclosure 1 and 2. D. OTHER SALARY SURVEY CONSIDERA TlONS The salaries in Seminole County and the surrounding counties have had a moderate increase over the past few years. Seminole County is ranked as the thirteenth (13th out of 67 counties) cost of living area in the State, according to the recent Florida Price Level Index Study. This means that Seminole County is 0.44% below the State-wide average cost of living. This was considered in the overall analysis of the State-wide salary data collected for certain jobs and drawing appropriate comparisons. Cody & Associates, Inc. 7 The salary increase considerations for the next fiscal year throughout the region and State of other governmental agencies range from approximately three to five percent (3 Y2 %-5%) on an average. E. RECOMMENDA TIONS 1. Adopt the recommended salary ranaes and schedules as submitted in this report. when it is economicaJ/v feasible to do so (Enclosures 1 and 2). 2. Cody & Associates, Inc. will assist the City further in the implementation process, as requested. Cody & Associates, Inc. 8 III FRINGE BENEFIT ANALYSIS A. APPROACH In compiling information for the Fringe Benefit phase of the Study we proceeded as follows: 1. Fringe benefit data was analyzed from the same agencies used in our salary survey in order to ensure "total compensation" was addressed in developing salary recommendations. 2. Data from other Florida agencies including all agencies used in the Salary Survey was also secured. This data was used to determine the trends being set~the benefits area and as a guide post in our overall analysis of fringe benefits. 3. The total benefit package was evaluated taking into consideration that some agencies may be providing more of one benefit but less in other areas. B. FINDINGS AND RECOMMENDATIONS The overall benefit package offered by the City remains competitive. Cody & Associates, Inc. 9 1. We continue to see insurance premiums rise. Approximately 15% to 35% yearly on average throughout the State and Nation. This trend will continue and must be monitored closely by the City. Winter Springs contributes 28% to the cost of dependent coverage. Most cities surveyed did not contribute to dependent coverage. We have seen the trend of passing more and more of the premium cost for dependents to the employee. In the days ahead, the City may need to consider reducing or eliminating its contribution to dependent coverage. 2. CONTINUE TO MONITOR FUTURE FRINGE BENEFITS CAREFULLY Fringe benefits are obviously very costly and their impact on the total budget expenditures is becoming greater every year. Unfortunately, fringe benefits are forgotten once awarded and in most cases are not viewed as part of the total compensation package by employees. The City should continue to monitor its benefits as a percentage of total compensation and remind employees of their total compensation on a routine basis. Cody & Associates, Inc. 10 IV IMPLEMENTATION To implement the proposed Classification and Pay Plan, we recommend the following: 1. Adopt the Class Titles, Class Descriptions, and Salary Schedule as recommended in this report. 2. Adjust the salaries of employees who fall below the minimum recom- mended to the minimum rate. 3. 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SALARY SCHEDULE ENCLOSURE 3 RECOMMENDED SALARY SCHEDULE PAY GRADE MINIMUM MIDPOINT MAXIMUM 11 15,049 18,981 22,913 12 15,802 19,930 24,058 13 16,592 20,926 25,260 14 17,421 21,972 26,523 15 18,292 23,071 27,850 16 19,207 24,225 29,243 17 20,167 25,436 30,705 18 21,176 26,708 32,239 19 22,234 28,043 33,852 20 23,346 29,445 35,544 21 24,513 30,918 37,322 22 25,739 32,464 39,188 23 27,026 34,087 41,147 ... 24 28,377 35,791 43,204 25 29,796 37,581 45,365 26 31,286 39,460 47,633 27 32,850 41,433 50,015 28 34,493 43,505 52,516 29 36,218 45,680 55,141 30 38,028 47,964 57,899 31 39,930 50,362 60,793 32 41,926 52,879 63,832 RECOMMENDED SALARY SCHEDULE PAY GRADE MINIMUM MIDPOINT MAXIMUM 33 44,022 55,524 67,025 34 46,224 58,300 70,376 35 48,535 61,215 73,894 36 50,961 64,276 77,590 37 53,510 67,489 81,468 38 56,185 70,864 85,543 39 58,995 74,407 89,819 40 61,944 78,127 94,310 41 65,042 82,034 99,025 42 68,293 86,135 103,976 43 71,709 90,713 109,716 44 75,294 95,247 115,200 45 79,059 100,010 120,960