[PPT] - Agenda Study Process County of Northampton's Compensation PowerPoint Presentation

SLIDE 1

Compensation and Classification Study for the County of Northampton, VA Final Presentation

October 22, 2019

Evergreen ~tions.

LLC

SLIDE 2

Agenda

Study Process
County of Northampton's Compensation Philosophy Review
County of Northampton's Current Compensation Review Results
Implementation Recommendation
Additional Recommendations

1

SLIDE 3

Study

Process

Deliverables Completed:

~

Employee outreach and summarized findings.

~

Reviewed current conditions of the compensation system.

~

Reviewed the County's compensation philosophy.

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Analyzed internal equity by reviewing Job Assessment Tools (JAT); developed proposed class structure.

~

Conducted a customized salary survey to analyze the external competitiveness of the current compensation system.

~

Utilized internal and external equity results to develop a new pay plan, and assigned pay grades to each classification.

2

SLIDE 4

Study

Process (cont.)

Completed (cont.):

./ Developed a recommended implementation option and

estimated annualized salary costs to implement the new pay plan .

./ Reviewed all classifications for Fair Labor Standards Act (FLSA)

status;

./ Finalized study results; provided draft & final reports; ./ Revised job descriptions utilizing existing descriptions and input

from employee JATs and MITs.

3

SLIDE 5

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SLIDE 6

Compensation

Conducted a salary survey:

Salary range data collected from 22 of

29 peers.

Peers are organizations with similar

jobs where employees potentially are recruited to/from.

Additional weight given to those

responses from more rural peers listed in red

Analyzed external (market) equity for

58 benchmarked classifications selected by the County.

* Did not respond

5

SLIDE 7

Compensation (cont.)

Salary range data collected for total of 58 benchmark classifications

(subset of al/ classifications) and compared the data at the range average:

Northampton County was overall:

8.9% behind the peers at the minimum, 13.3% behind at the midpoint, and 16.0% behind at the maximum*.

*

Overall average differences calculated for 39 of

58 benchmark classifications in current pay grade

Results do not indicate that al/ benchmarks (classifications) were ahead or behind.

6

SLIDE 8

Compensation (cont.)

Developed new, competitive step plan:

202

$

17,829 $ 19,834 $ 21,840

23% 5%

7

203

$ 21,000 $ 26,980 $ 32,960

57% 5% 28

. ~

New pay plan uses HR best practices I 204

$

22,050 $ 28,329 $ 34,608 57%

5% 28 205

$ 23,153 $ 29,746 $ 36,339

57% 5% 28 206

$

24,310 $ 31,233 $ 38,156 57%

5% 28

~

Increased number of grades - 18 to 22 I 207

$ 25,769 $ 33,718 $ 41,668

62% 6% 30 208

$ 27,315 $ 35,741 $ 44,168

62% 6% 30

~

Annual step increments of 1.5%.

209

$

28,954 $ 37,886 $ 46,818 62%

6% 30

210

$ 30,691 $ 40,159 $ 49,627

62% 6% 30

~

Increasing range spreads and grade

211

$ 32,532 $ 42,568 $ 52,604

62% 6% 30

.

212

$ 34,484 $ 45,122 $ 55,761

62% 6% 30

progression:

213

$ 36,898 $ 48,281 $ 59,664

62% 7% 30

Range spreads: Grade 202: 23%

214

$ 39,481 $ 51,661 $ 63,840

62% 7% 30

Grades 203 - 206: 57%

215

$ 42,245 $ 55,277 $ 68,309

62% 7% 30

Grades 207 - 223: 62%

216

$ 45,202 $ 59,146 $ 73,091

62% 7% 30 217

$ 48,366 $ 63,287 $ 78,207

62% 7% 30 218

$ 52,235 $ 68,350 $ 84,464

62% 8% 30

Progression:

5% for grades 202-206

219

$ 56,414 $ 73,817 $ 91,221

62%

SOlo

30

6% for grades 207-212

220

$ 60,927 $ 79,723 $ 98,518

62%

SOlo

30

7% for grades 213-217

221

$ 65,802 $ 86,101 $106,400

62% 8% 30

8% for grades 218-223

222

$ 71,066 $ 92,989 $114,912

62% 8% 30 223

$ 76,751 $100,428 $124,105

62%

SOlo

30

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SLIDE 9

202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222

Compensation (cont.)

.

. .

. . Step 0 to 1 after successful completion of 6-Month Probation (5% raise to minimum)

~

$ 17,829 $18,720 $19,240 $19,760 $20,280 $20,800 $21,320 $21,840 $ 21,000 $22,050 $22,381 $22,716 $23,057 $23,403 $ 23,754 $ 24,110 $ 24,472 $ 24,839 $ 25,212 $ 25,590 $ 25,974 $ 26,363 $26,759 $27,160 $ 27,568 $ 22,050 $23,153 $23,500 $23,852 $24,210 $24,573 $24,942 $25,316 $25,696 $26,081 $26,472 $26,869 $27,272 $27,682 $28,097 $28,518 $ 28,946 $ 23,153 $ 24,310 $ 24,675 $25,045 $25,421 $25,802 $26,189 $26,582 $26,980 $27,385 $27,796 $28,213 $28,636 $29,066 $29,502 $29,944 $ 30,393 $ 24,310 $25,526 $25,909 $26,297 $26,692 $27,092 $27,498 $27,911 $28,329 $28,754 $29,186 $29,624 $30,068 $30,519 $30,977 $31,441 $ 31,913 $ 25,769 $ 27,057 $ 27,463 $27,875 $28,293 $28,717 $29,148 $29,585 $30,029 $30,480 $30,937 $31,401 $31,872 $ 32,350 $ 32,835 $33,328 $ 33,828 $ 27,315 $28,681 $29,111 $29,547 $29,991 $30,441 $30,897 $31,361 $31,831 $32,308 $32,793 $33,285 $33,784 $34,291 $34,805 $35,327 $ 35,857 $ 28,954 $ 30,401 $ 30,857 $ 31,320 $ 31,790 $ 32,267 $ 32,751 $ 33,242 $ 33,741 $ 34,247 $ 34,761 $35,282 $35,811 $36,349 $36,894 $37,447 $ 38,009 $ 30,691 $32,226 $32,709 $33,200 $33,698 $34,203 $34,716 $35,237 $35,765 $36,302 $36,846 $37,399 $37,960 $38,529 $39,107 $39,694 $ 40,289 $ 32,532 $34,159 $34,671 $35,192 $35,719 $36,255 $36,799 $37,351 $37,911 $ 38,480 $ 39,057 $39,643 $40,238 $40,841 $41,454 $42,076 $ 42,707 $ 34,484 $36,209 $36,752 $37,303 $37,863 $ 38,430 $ 39,007 $ 39,592 $40,186 $40,789 $41,401 $42,022 $42,652 $43,292 $43,941 $44,600 $ 45,269 $ 36,898 $38,743 $39,324 $39,914 $40,513 $41,121 $41,737 $42,363 $42,999 $43,644 $44,299 $44,963 $45,638 $46,322 $47,017 $47,722 $ 48,438 $ 39,481 $41,455 $42,077 $42,708 $43,349 $43,999 $44,659 $45,329 $46,009 $46,699 $47,399 $48,110 $48,832 $49,565 $50,308 $51,063 $ 51,829 $ 42,245 $44,357 $45,022 $45,698 $46,383 $47,079 $47,785 $48,502 $49,229 $49,968 $50,717 $51,478 $52,250 $53,034 $53,830 $54,637 $ 55,457 $ 45,202 $47,462 $48,174 $48,897 $49,630 $50,375 $51,130 $51,897 $52,676 $53,466 $54,268 $55,082 $55,908 $56,747 $57,598 $58,462 $ 59,339 $ 48,366 $50,784 $51,546 $52,319 $53,104 $53,901 $54,709 $55,530 $56,363 $57,208 $58,066 $58,937 $59,821 $60,719 $61,630 $62,554 $ 63,492 $~m $~W

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$64,607 $65,576 $66,560 $67,558 $ 68,572 $ 56,414 $59,235 $60,123 $61,025 $61,941 $62,870 $63,813 $ 64,770 $ 65,742 $ 66,728 $ 67, 729 $ 68,745 $ 69, 776 $ 70,822 $ 71,885 $ 72,963 $ 74,057 $ 60,927 $63,974 $64,933 $65,907 $66,896 $67,899 $68,918 $69,952 $71,001 $72,066 $73,147 $74,244 $75,358 $76,488 $77,636 $78,800 $ 79,982 $ 65,802 $69,092 $70,128 $71,180 $72,248 $73,331 $74,431 $ 75,548 $ 76,681 $77,831 $78,999 $80,184 $8i,386 $82,607 $83,846 $85,104 $ 86,381

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$82,816 $84,058 $85,319 $86,598 $87,897 $89,216 $90,554 $91,912 $ 93,291 $93,526 $94,929 $96,353 $ 97,798 $99.265 $100.754

~ ..•.••.••.•.........••.•.••.•.

Steps 1 to 30 = 1.5%

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SLIDE 10

Compensation (cont.)

202 203 $ 27,981 $ 28,401 $ 28,827 $ 29,259 $ 29,698 $ 30,144 $ 30,596 $ 31,055 $ 31,521 $ 31,993 $ 32,473 $ 32,960 204 $ 29,380 $ 29,821 $ 30,268 $ 30,722 $ 31,183 $ 31,651 $ 32,126 $ 32,607 $ 33,097 $ 33,593 $ 34,097 $ 34,608 205 $ 30,849 $ 31,312 $ 31,782 $ 32,258 $ 32,742 $ 33,233 $ 33,732 $ 34,238 $ 34,751 $ 35,273 $ 35,802 $ 36,339 206 $ 32,392 $ 32,878 $ 33,371 $ 33,871 $ 34,379 $ 34,895 $ 35,418 $ 35,950 $ 36,489 $ 37,036 $ 37,592 $ 38,156 207 $ 34,335 $ 34,850 $ 35,373 $ 35,904 $ 36,442 $ 36,989 $ 37,544 $ 38,107 $ 38,678 $ 39,258 $ 39,847 $ 40,445 $ 41,052 $ 41,668 208 $ 36,395 $ 36,941 $ 37,495 $ 38,058 $ 38,629 $ 39,208 $ 39,796 $ 40,393 $ 40,999 $ 41,614 $ 42,238 $ 42,872 $ 43,515 $ 44,168 209 $ 38,579 $ 39,158 $ 39,745 $ 40,341 $ 40,946 $ 41,561 $ 42,184 $ 42,817 $ 43,459 $ 44,111 $ 44,772 $ 45,444 $ 46,126 $ 46,818 210 $ 40,894 $ 41,507 $ 42,130 $ 42,762 $ 43,403 $ 44,054 $ 44,715 $ 45,386 $ 46,066 $ 46,757 $ 47,459 $ 48,171 $ 48,893 $ 49,627 211 $ 43,347 $ 43,998 $ 44,658 $ 45,327 $ 46,007 $ 46,697 $ 47,398 $ 48,109 $ 48,830 $ 49,563 $ 50,306 $ 51,061 $ 51,827 $ 52,604 212 $ 45,948 $ 46,637 $ 47,337 $ 48,047 $ 48,768 $ 49,499 $ 50,242 $ 50,995 $ 51,760 $ 52,537 $ 53,325 $ 54,125 $ 54,936 $ 55,761 213 $ 49,165 $ 49,902 $ SO,651 $ 51,410 $ 52,181 $ 52,964 $ 53,759 $ 54,565 $ 55,384 $ 56,214 $ 57,057 $ 57,913 $ 58,782 $ 59,664 214 $ 52,606 $ 53,395 $ 54,196 $ 55,009 $ 55,834 $ 56,672 $ 57,522 $ 58,385 $ 59,260 $ 60,149 $ 61,051 $ 61,967 $ 62,897 $ 63,840 215 $ 56,289 $ 57,133 $ 57,990 $ 58,860 $ 59,743 $ 60,639 $ 61,548 $ 62,472 $ 63,409 $ 64,360 $ 65,325 $ 66,305 $ 67,300 $ 68,309 216 $ 60,229 $ 61,132 $ 62,049 $ 62,980 $ 63,925 $ 64,883 $ 65,857 $ 66,845 $ 67,847 $ 68,865 $ 69,898 $ 70,946 $ 72,011 $ 73,091 217 $ 64,445 $ 65,411 $ 66,393 $ 67,388 $ 68,399 $ 69,425 $ 70,467 $ 71,524 $ 72,596 $ 73,685 $ 74,791 $ 75,913 $ 77,051 $ 78,207 218 $ 69,600 $ 70,644 $ 71,704 $ 72,780 $ 73,871 $ 74,979 $ 76,104 $ 77,246 $ 78,404 $ 79,580 $ 80,774 $ 81,986 $ 83,215 $ 84,464 219 $ 75,168 $ 76,296 $ 77,440 $ 78,602 $ 79,781 $ 80,978 $ 82,192 $ 83,425 $ 84,677 $ 85,947 $ 87,236 $ 88,544 $ 89,873 $ 91,221 220 $ 81,182 $ 82,399 $ 83,635 $ 84,890 $ 86,163 $ 87,456 $ 88,768 $ 90,099 $ 91,451 $ 92,822 $ 94,215 $ 95,628 $ 97,062 $ 98,518 221 $ 87,676 $ 88,991 $ 90,326 $ 91,681 $ 93,056 $ 94,452 $ 95,869 $ 97,307 $ 98,767 $100,248 $101,752 $103,278 $104,827 $106,400 222 $ 94,690 $ 96,111 $ 97,552 $ 99,016 $100,501 $102,008 $103,539 $105,092 $106,668 $108,268 $109,892 $111,540 $113,214 $114,912 $116,930 $118,683 $ 120,464 $ 122.271 $124.105

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SLIDE 11

Implementation

Developed options to transition employees to new pay plan

All options include costs of

moving employees from current salary to no less than the new grade minimum.

Step placement is based on total tenure with the County.

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SLIDE 12

Implementation (cont.)

Step Placement Option

Employees are placed in steps based on total tenure with the County at the rate
f 1 step for each 2 years of service with additional capping mechanisms in

place.

Employees with less than 2 years of service placed in step 1
Employees with at least 2 years but less than 4 are placed in step 2.
Initial step is capped at 10 unless employee already compensated at higher step

level (no employee's salary is reduced).

Adjustments are capped at 8.5% in phase I (unless needed to get to minimum)
Steps are reduced until adjustment is less than 8.5% in phase one.
Employees who had adjustments due to 8.5%

cap are caught up to initial calculated step (plus one step for each year) by the end of 3 year phase in period described on next slide.

Total annualized estimated cost = $221,999 (No Phasing)
Number of employees receiving adjustments = 122
Average per employee $1,819 or 6.9% if implemented in one

phase.

Total annualized estimated cost without above capping

mechanism = $313,407

* Cost estimates are salary only and do not include the cost of

benefits.

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SLIDE 13

Implementation (cont.)

Staff Recommended Option (Step Placement Phased in over 3 years)

Effective January 1, 2020 all employees are brought to the step described in previous slide. On January 1,2021 employees move an additional step or steps depending on number of steps pushed back by the capping mechanisms described in previous slide. The third and final step adjustment is applied on January 1, 2022.

Phase 1 estimated cost =

$ 161,984 - Avg. $1,327 or 5.00/0

# employees who would receive adjustments = 122

~-~

--- -
Phase 2 estimated cost =

$ 106,923 - Avg. $884 or 2-

.90/0

# employees who would receive adjustments =

121

Phase 3 estimated cost =

$ 78,243 - Avg. $652 or 2.00/0

# employees who would receive adjustments =

120

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SLIDE 14

Implementation Plan

Adopt compensation and classification plan structure

recommended by the Evergreen study.

Communicate study results to the employees.
Review pay practices; revise as necessary to align with

compensation philosophy and be competitive with peers.

Administer and maintain the new plan; communicate accordingly,

and make pay grade/step adjustments as necessary.

Evergreen recommends a comprehensive study every five years.

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SLIDE 15

Thank You

Evergreen Solutions, LLC 2878 Remington Green Circle Talla.hassee, Florida 32308 850.383.0111 www.ConsultEvergreen.com 14