Arlington County Government Total Compensation FY2020 1 Total - - PowerPoint PPT Presentation

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Arlington County Government Total Compensation FY2020

Total Compensation Goals

Pay, Benefits and Retirement options that attract, retain, reward and motivate current and future employees in labor market that is at full employment. We want to maintain:

• Competitiveness
• Affordability
• Sustainability

Age Years of Service

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Employee Demographics

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Exit Interviews

Top 10 reasons people left Arlington County

* Employees ranked their top five reasons

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Exit Interviews

Local Government 29% Government (unspecified) 17% Retail / Service Industry 14% Federal Government 12% Police (unspecified) 10% Health Care 7% Education / Non-Profit 5% State Government 5% IT 2%

What industry are you moving to?

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Compensation Maintenance Plan

• Implementation over five years

Goals

• Create accurate job descriptions
• Ensure competitive salary ranges
• Establish future alignment with market
• Provide affordable salary improvement

• The process includes:

– Employee communications/ recorded kick-off meetings – Updating of position descriptions:

• Interviews, employee observations and/or questionnaires
• Employees and managers provide feedback on updated position

descriptions

– Evaluate market competitiveness

• Based upon the County’s Total Compensation Philosophy
• Employees can provide additional employer comparators

– Implementation

• When classes found to be behind, salary ranges will be adjusted,

and employees receive an increase

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Job Family Study Process

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FY20 Proposed Budget Items for General Employees

• Continued Open Range Pay Plan
• 3.25% increase up to max of grade ranges
• 2% Increase to Each Grade
• General Employees’ salary range will increase by 2.0%

Pay Structure Adjustments - Range Max Increase

Jurisdiction FY15 FY16 FY17 FY18 FY 19 Total % Avg Annual Range Max Increase City of Alexandria 1.00% 1.00% 1.00% 2.30% 0.00% 5.30% 1.06% Fairfax County 2.29% 1.10% 1.33% 1.65% 2.25% 8.62% 1.72% Prince William County 1.00% 3.00% 1.00% 1.00% 0.00% 6.00% 1.20% Arlington County 0.00% 0.00% 1.75% 0.00% 1.00% 2.75% 0.55%

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FY20 Proposed Budget Items for Public Safety Employees

• Continued Open Range Pay Plan
• 5.5% merit increase up to max of grade ranges
• Implementation of Kelly Day for Fire Department
• Provides an extra day off per 28-day cycle
• Reduces the workweek to a level closer to other

jurisdictions

• Reduces burn-out and some overtime costs
• Adds 36 uniformed employees over four

years; adding nine new FTEs per year

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Proposed Public Safety Entry Pay Increases

Dept FY19 Leading Entry Rate Leading Entry Rate Jurisdiction FY19 ACG Entry Rate FY19 ACG Entry Rate

• vs. Market

FY20 ACG Proposed Entry Minimum FY20 ACG Proposed Entry Rate

• vs. Market

FIR $55,672 Fairfax $50,648

• 9.9%

$55,723 +0.1% POL $55,919 MWAA $54,933

• 1.8%

$56,035 +0.2% SRF $51,938 Arlington $51,938 +0.7% $51,938 +0.7%

Note: The FY20 salaries do not include any adjustments in other jurisdictions’ budget proposals.

Competitive Metrics

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*Projected employees at max by end of FY19 is 19% for General and 21% for Public Safety.

Total Comp Element FY2016 FY2017 FY2018 FY2019 to Date

Benchmark classes lagging at maximum (General) 16% 18% 24% 29% Employees hired

• ver midpoint

(General) 43% all 75% MAPs 24% all 80% MAPs 42% all 73% MAPs 39% all 75% MAPs Turnover 10.5% 7.4% non- retirement 9.3% 5.9% non- retirement 11.5% 7.6% non- retirement 5.5% 4.1% non- retirement Employees at max 11% (Gen.) 20% (PS) 10% (Gen.) 16% (PS) 16% (Gen.) 19% (PS) 11% (Gen.) 20% (PS)*

Comparison of Proposed FY 2020 Comp Adjustments in the Region

Merit Increases Structure Change (Range Increase) Average Increase Other Arlington 3.25% General 3.5% (PFP) 5.5% (PS) 2% 3.46% Fairfax 1.25% - 3.0% General 5% Step (PS) 1.0% COLA (to range & to pay) N/A Funding for specific job classes Alexandria 2.3% - 5% None - General/PS 5% - 12% - Exec 2.84% Prince William 3.0% General 3.0% Public Safety N/A N/A N/A 1%-2% one-time bonus for EEs at max Loudoun 3.0% N/A N/A Comp Study

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Health Care and Leave & Other Benefits Groups have completed their work

• Recommendations proposed for July 1 implementation

are on the following slides Retirement Work Group currently meeting

• Improved Financial Wellness and Retirement Readiness
• Sustainability
• Portability

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Benefits Study Work Group Update

High Option Dental Plan

• Higher annual limit ($2,500 vs. $1,500)
• Covers adult orthodontia (separate limits)
• 50/50 premium cost sharing

Employee-paid Long-term Disability Insurance

• Coordinates with our existing County-paid Disability

Income Program

• Replaces 60% of salary
• Employee pays 100% of premium

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FY20 Proposed New Benefits

RETIREMENT

• Purchase Credit for Military Service
• Recruiting tool
• Former active-duty military may purchase up

to 4 years of service credit in pension system

• Employee will pay full cost of purchase

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FY20 Proposed Changes to Current Plans

HEALTH CARE

• Change to coinsurance for prescription drug coverage
• Pay a percentage of cost, up to a maximum

amount.

• Generic drugs remain $10 or less
• Certain preventive generic drugs at no cost

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FY20 Proposed Changes to Current Plans

• Proposed for July 2020
• Lower biweekly premiums, higher deductible
• Preventive care at no cost to the employee
• Out-of-Pocket expenses covered through

Health Savings Account (HSA)

• HSA can only be used with Consumer

Directed Health Plans (CDHP)

• County and employee contributions
• Build up savings for future health care

expenses, including in retirement

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Consumer Directed Health Plan with Health Savings Account

Alexandria Arlington Fairfax Prince William Major health plan 0% 0% 5% 1.6% Cost Sharing

Individual 2-Party/Family

City/Employee

80/20 80/20

County/Employee

80/20 75/25

County/Employee

85/15 75/25

County/Employee

95/5 75/25

FY20 Proposed Health Care Increases Across the Region

• 1.9% increase for Kaiser premiums
• 0% increase for current dental plan

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• Paid Parental Leave
• Adoption Assistance
• Up to $5,000 reimbursement for expenses
• Dependent Care FSA Reimbursement
• Up to $500 per year

Family Friendly Benefits

• CPHD conducted survey of County and APS employees
• ~ 1,900 responses
• 56% of respondents have no children under 18

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Workforce Housing Initiative Survey Participant Profile

Household Gross Annual Income

“Missing Middle”

• 55% spend more than 30% of their income on

housing costs

• 41% of renters say they would like to purchase a

home in Arlington, but most don’t believe they can find something affordable

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Workforce Housing Initiative Survey Key Takeaways

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Live Where You Work Grants

Looking Ahead

• Continue the compensation maintenance plan

for years 3-5

• Evaluate pay policies for hiring and internal

movement

• Look for opportunities to simplify pay scales

Pay

• Communicate benefit plan additions/changes
• Educate employees on upcoming CDHP and HSA
• Develop Retiree Work Group Recommendations

Benefits

• Pilot application referral without names
• Continue Unconscious Bias training
• Barrier Analysis

Diversity & Inclusion

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Looking Ahead