In FY2016, the City began the process to undergo an employee compensation study. The Council recognized that employee wages were some of the lowest in the County and had the desire and commitment to rectify the inequities of the pay and classification system. Funds for such a study were included within the FY17 budget.
On April 5, 2017, the Council approved moving the study ahead by authorizing a contract with Management Advisory Group (MAG). The goal of the project was to provide the foundation for an appropriate competitive, comprehensive classification and compensation system based on the current compensation levels for similar public/private sector employers, municipalities, and local market competitors. The scope of was for a pay program that is fair, equitable with both public and private employers in the surrounding geographic market area from which the City recruits in order to attract, motivate, and retain quality employees.
In reviewing the City’s compensation, MAG reviewed job profiles to include, data responsibility, judgement, people responsibility, work complexity, asset responsibility, education, impact of decisions, equipment usage, physical demands, communications, math, hazards, safety of others and experience. Benchmark positions were surveyed against similar positions in Palm Beach County, Palm Beach County Schools, the Towns of Palm Beach, and Jupiter, and the Cities of Delray Beach, Boynton Beach, West Palm Beach, Boca Raton, Palm Beach Gardens and Wellington.
The study has been completed and presented to the City. The materials presented include new pay scales, revised job descriptions, a review of exempt/non-exempt status, a manual of instructions and training materials, actual training to appropriate personnel to administer the proposed compensation and classification systems, and access to the technology required as well as the availability of software for that purpose at no additional cost.
The study resulted in the following findings:
· Human Resources currently functions in a traditional or transactional mode: The focus is on the day-to-day mechanics of keeping the organization running.
· Human Resources must adopt a more transformational mode of operating: Strategic Human Resources management supports the City’s long-term operational goals relating to Human Capital management.
· City should invest in a modern Human Resources Information Management System (HRIS) to reduce reliance on manual processes and systems.
· Implement a Pay-for-Performance program to advance employees through their respective salary ranges.
· Study results indicate that the City is on average -4.5% below the market for entry-level salaries; and -7.3%below the market in relation to maximum salary levels.
· Transition employees to the proposed pay plans as developed by Management Advisory Group (MAG) on April 1, 2018. Implementation Cost is $1.7million.
· The implementation Cost of $1.7million does include the cost of a 3% COLA for General Employees.