HomeMy WebLinkAbout2018 Classification-Compensation Study Final Report STAFF REPORT
CITY OF PALM DESERT
ADMINISTRATIVE SERVICES DEPARTMENT
MEETING DATE: June 28, 2018
PREPARED BY: Lori Carney, Director of Administrative Services
REQUEST: Request to receive and file the final report for the 2018 Classification
and Compensation Study; approve the proposed position
classification system and establish a salary policy utilizing the 70th
percentile of the defined labor market.
Recommendation
By Minute Motion:
1. Receive and file the final report for the 2018 Classification and
Compensation Study; and
2. Approve the proposed position classification system; and
3. Establish a salary policy targeting the 70th percentile of the defined labor
market, for benchmark position salaries.
Strategic Plan Objective
The City's Strategic Plan, Envision Palm Desert Forward Together, the updated
General Plan, and the mission and values of the City were incorporated into the Study
and served as guidance in developing an effective and contemporary classification and
compensation system. An appropriately classified and compensated workforce is
essential in accomplishing the goals outlined in the aforementioned documents and to
provide a high level of service to the community.
Executive Summary
At its May 25, 2017, meeting the City Council authorized a contract with Koff and
Associates to complete a comprehensive Classification and Compensation Study (the
Study). The Study encompassed a review of all positions within the City for the purpose
of revising and/or developing position classifications and a market study to determine the
City's standing in the labor market.
The outcome of the Study is the result of an intensive review, as well as dialogue with
City staff at all levels; the results of which were used to develop the recommended
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Classification and Compensation Study - 2018
June 28, 2018
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classification plan and salary structure. The attached final report contains information
on the methodology, philosophy and results of the Study.
Discussion
Classification and Compensation Study:
The City uses a Classification System for workforce planning, recruitment, compensation,
legal documentation and a variety of other purposes. The Classification System proposed
is the outcome of the 2018 Classification and Compensation Study conducted by Koff
and Associates (Koff). The classification system recommended by Koff provides a
uniform foundation to the City's personnel management system, a defensible and
understandable rationale for assigning employees to identified job classifications and an
equitable basis for identifying comparable compensation data based on the level and
complexity of the work performed.
The original Request for Proposals and staff report awarding the contract to Koff outlined
the following goals:
• Through a process including surveys and employee and management interviews,
review all employee classifications and revise, delete or add classification
descriptions as appropriate;
• Recommend broad and narrow classification groups, job families and flexible
staffing aligned with modern public sector systems, the City's missions, goals and
strategies;
• Recommend and analyze comparator agencies, benchmark classes for
compensation study;
• Recommend salary structure and classification compensation assignment based
on City Council Salary Policy direction and external and internal equity;
• Provide a final report including documentation of the above, methodology and
classification policy.
The enclosed final report incorporates the outcomes of the comprehensive classification
and compensation study and represents hundreds of hours of staff and consultant study,
including interviews with employees, management and employee team meetings,
Executive Management review and the consultant's expertise in public sector employee
classification and compensation.
Palm Desert Salary Policy:
A Salary Policy is used by a City to establish their percentile rank in the competitive labor
market, as defined by a list of comparator agencies. The City Council has indicated its
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Classification and Compensation Study - 2018
June 28, 2018
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desire to develop a Salary Policy targeting the 70th percentile of the labor market for
assigning classification ranges and salaries. The salary schedule and recommended
classification plan included in this report are consistent with this policy.
Implementation:
The City Manager recommends the following strategy for implementation:
• Adopt the Classification System presented in this report, including Titles,
Classification Specifications, and methodology for analyzing future classification
changes;
• Assignment of all employees to the appropriate classification within the new plan;
• Create a Two-Tier Salary Ranges and Grade/Step Table:
o Tier 1 - Employees hired or appointed prior to June 30, 2018 remain in their
existing salary grade, moving through the steps as eligible and without "Y-
rating" (grandfathering in current employees);
o Tier 2 — Employees hired or appointed to their position after July 1 , 2018
are assigned to the proposed Salary Ranges and Grade/Step table;
o Tier Exception:Employees hired or appointed to their positions prior to June
30, 2018, but whose existing salary range has a top step lower than the
proposed salary range, will be assigned to the recommended Tier 2 Grade.
Fiscal Impact
Implementation of the proposed Classification System, with associated Salary Ranges
and Grade/Step Table, targeted to the 70th percentile of the labor market will result in first
year and ongoing salary and benefits savings. While conducting the Study the City put off
filling vacancies, resulting in 11 position vacancies, which will be filled at new lower salary
ranges. In addition, through attrition, as new employees are hired they will be placed in
the new salary schedule, resulting in salary and benefits savings.
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Classification and Compensation Study - 2018
June 28, 2018
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The exact amounts of the savings are dependent on turn-over rates, which have
historically held at 6-8% annually, but which fluctuate depending on the economy and
employee demographics. Staff estimates that year one, (Fiscal Year 2018-2019), savings
may be $500,000 or more.
LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER
REVIEW
N/A
t C �
Robert ri Carne
Hargreaves Director f net Moore Lauri Aylaian
Legal Counsel Administrative Services Director of Finance City Manager
ATTACHMENTS:
Koff and Associates Classification and Compensation Plan Final Report dated
June 18, 2018