BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY. Bulk Item: Yes No X Department: Human Resources

Transcription

1 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: May 1, 2014 Division: Employee Services Bulk Item: Yes No X Department: Human Resources Staff Contact Person: Teresa Aguiar X4458 AGENDA ITEM WORDING: Presentation and approval of findings and recommendations of Classification and Compensation Study Report from Evergreen Solutions, LLC. ITEM BACKGROUND: On April 17, 2013, the BOCC directed staff to develop an RFP to solicit interest to conduct the study. On June 19, 2013, the BOCC approved the draft request for proposal. On September 17, 2013, the BOCC the initial contract with an amendment approved November 20, 2013, to allow additional time to complete the study and to allow completion of the job descriptions at the end of the contract term instead of the beginning. Further, additional in person meetings with the staff and BOCC were approved. Department Head and Committee meetings were held on 11/21/13 to go over the initial compensation survey and resulting grade recommendations. January 9, 2014 additional Department Head and Committee meetings were held to review the report. January 22-24, 2014 Commissioners were briefed on the progress of the report and additional survey data and benefit data was requested. Evergreen published the final report and final Department Head and Committee meetings were held April 17, Commissioners were also briefed on April 24, The study is now completed with recommended solutions for the BOCC to consider and approve. On average, at the minimum of the public sector salary ranges, the County is 10.8 percent below market across all matched classifications. On average, at the midpoint of salary ranges, the County is 14.3 percent below the public sector market across all matched classifications. The Benefits Survey indicated the following: The County is comparable to the market with respect to the benefits portion of total compensation. Although the County only offers one type of PPO health plan, the percentage of premiums paid for individuals is comparable to all other peer organizations; however, the premiums paid for dependents is higher than the market average. Annual/Vacation leave and sick leave accrual is slightly higher than peer respondents. Maximum leave accrual rates are higher than market peer organizations. Paid holidays are just lower than the County s peers. Life insurance benefits are ahead the market average. In summary, the public sector market average for benefits as a percentage of total compensation is 23%, while the County s average for benefits as a percentage of total compensation is somewhat richer at 27%. Taking into account the benefit difference, the County s pay plan (grades with minimum, midpoint, and maximum salaries) has been adjusted by 11.01% to establish the minimum pay grade of 100. Range spreads have been broadened to 55% for more in-grade salary progression, with each separated by 5.23%. Employees

2 were slotted into the grades to produce the recommended salary adjustments. Two steps have been given by Evergreen. Step 1 (red): Bring employees to minimum. The cost to implement Step 1 is $86, Step 2 (orange): Bring employees to minimum and give employees a salary adjustment based on the number of years at the county they have been in their current position. The cost to implement Step 1 and 2 is: $284, Finally, the recommendation on long term implementation of the pay plan is as follows: 1. Conduct a pay plan analysis every 3-5 years. 2. Implement the new grades and salary ranges, along with either step 1 or step 1 and Each year on Oct 1 (if budget warrants), at a minimum, adjust the pay plan min, mid, and max by Consumer Price Index (CPI) and simultaneously, authorize a cost of living adjustment for all employees equal to CPI so employees at minimum are not below the minimum if pay grades are adjusted annually. 4. Each year on Oct 1 (if budget warrants), at a minimum, continue the newly implemented (2014) Performance Based Raise System. PREVIOUS REVELANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: 1. Implement Step 1 (red) at a cost of $86, Direct staff to implement long term pay plan adjustments annually increasing pay ranges based on Consumer Price Index (CPI). 3. Subject to budget funding availability and implementation of #2 above, annually increase salaries based on (CPI). 4. Subject to budget funding availability, annually implement Performance Based Evaluation System. TOTAL COST: Step 1 is $86, INDIRECT COST: BUDGETED: Yes No_ DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: SOURCE OF FUNDS Ad Valorem REVENUE PRODUCING: Yes _ No AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Management DOCUMENTATION: Included X Not Required DISPOSITION: AGENDA ITEM #

3 Classification and Compensation Study for Monroe County, FL Final Report April 14, 2014

4 EVERGREEN SOLUTIONS, LLC Chapter 1 - Introduction 1.1 INTRODUCTION Evergreen Solutions was retained by Monroe County, FL (County) to conduct a Classification and Compensation Study of all positions in the organization. This analysis provides the County s elected officials and key stakeholders invaluable information related to their employee demographics, opinions, market data, as well as internal and external equity. Internal equity relates to the fairness of an organization s compensation practices among its current employees. Specifically, by reviewing the skills, capabilities, and duties of each position, it can be determined whether similar positions are being compensated in a similar manner within the organization. The classification component of this study resolves any inconsistencies related to job requirements and providing clarity to the plan in place. External equity deals with the differences between how an organization s classifications are valued and what compensation is available in the market place for the same skills, capabilities, and duties. As part of the study, Evergreen Solutions, LLC was tasked with: Collecting and reviewing current environmental data present at the County; Conducting a market salary survey and providing feedback to the County regarding current market competitiveness; Conducting a classification analysis utilizing the Job Assessment Tool (JAT) point factoring methodology to assess internal equity and the efficiency of the current classification plan; Developing strategic positioning recommendations using market data and best practices; Developing a compensation structure and implementation cost plan for the County; Developing and submitting draft and final reports summarizing findings and recommendations; Updating classification descriptions in light of reclassifications and employee responses to the JAT. Evergreen Solutions, LLC Page 1-1

5 Chapter 1 - Introduction 1.2 STUDY METHODOLOGY Evergreen Solutions combines qualitative as well as quantitative data analysis to produce an equitable solution to maximize the fairness and competitiveness of an organization s compensation structure and practices. Project activities included: conducting a project kick-off meeting; conducting orientation sessions with employees; facilitating focus group sessions with employees chosen by the County; conducting an external market salary survey; developing recommendations for compensation management; revising classification descriptions based on employee JAT feedback; developing detailed implementation plans; and creating draft and final reports. Kickoff Meeting The kickoff meeting provides an opportunity to discuss the history of the organization, finalize the work plan, and begin the data collection process. Data collection of relevant background material (including existing pay plans, organization charts, policies, procedures, training materials, job descriptions, and other pertinent material) is part of this process. Employee Outreach The orientation sessions brief employees and supervisors on the purpose and major processes of the study. This process addresses any questions and resolve any misconceptions about the study and relevant tasks. In addition, employees are asked about their experience with the organization and to identify any concerns they have about compensation. This information provides some basic perceptional background as well as a starting point for the research process. In addition, employees participate in focus group sessions designed to gather input from their varied perspectives as to the strengths and weaknesses of the current system. Feedback received from employees in this context was helpful in highlighting aspects of the organization which needed particular attention and consideration. Job Assessment Tool (JAT) Classification Analysis Employees were asked to complete individual JAT surveys where they shared information pertaining to their work in their own words. These JATs were analyzed and compared to the current classification descriptions and classes were individually scored based on employee responses to five compensable factor questions. Each of the compensable factors; Leadership, Working Conditions, Complexity, Decision Making, and Relationships, were given weighted values based on employee responses which ultimately resulted in a point factor score for each classification. Each compensable factor has 8 possible points which combine to form a total range of weighted JAT scores between 125 and 1,000 points. The rank order of classes by JAT scores is used to develop a rank order of classes within the proposed Evergreen Solutions, LLC Page 1-2

6 Chapter 1 - Introduction compensation structure. Combined with market data, this information forms the foundation of the combined solution. Leadership Leadership deals with the employee s individual leadership role, be it as a direct report of others who is subject to leadership or an executive leadership over entire departments or the County as a whole. Working Conditions Working Conditions deals with the employee s physical working conditions and the employee s impact on those conditions as well as the working conditions impact or potential impact on the employee. Complexity Complexity describes the nature of work performed and includes options ranging from entry level manual or clerical tasks up to advanced scientific, legal, or executive management duties. Decision Making Decision Making deals with the individual decision making authority of the employees. Are decisions made on behalf of the employee or are they making decisions for themselves or even other employees? Also, who do those decisions impact; only the individual or are there decisions being made that affect the entire organization and its citizens? Relationships Relationships deals with organizational structure and the nature of the employee s working relationships. Responses range from employees who work primarily alone, those who work as members of a team, those who oversee teams and even those who report to elected officials or the general public. Salary Survey The external market is defined as identified peers that have similar characteristics, demographics, and service offerings as the target organization. Benchmark positions are identified from each area and level of the organization and typically include a large crosssection of positions at the County. Once the target and benchmark information is finalized, classification information from the County is used to find comparable positions from peer organizations. Classification Description Revision Based on employee feedback and supervisor comments on the JAT, classification descriptions are updated to better reflect actual work performed and revisions to the class structure. Solution Creation - Pay Schedule and Transition Costing Solution creation follows the collection of salary survey data and discussion of the structure of the compensation system. During this phase, desired range spreads (distance from minimum to maximum) and midpoint progressions (distance from the midpoint of one pay grade to the next) are established. Once the structure is created, jobs can be slotted into the Evergreen Solutions, LLC Page 1-3

7 Chapter 1 - Introduction proposed pay grade structure using market data and Client Project Manager (CPM) feedback. As part of the study, the organization identifies its desired market position. Subsequently, the pay plan and job slotting within the system can be adjusted to account for this desired position in the market. The final step in the creation of the solution identifies the costs associated with each step of the analysis. The data from the job slotting process are applied to the individual employees in the organization. This allows the County to view the total costs associated with proposed structural changes. Information is then provided to the County on various ways to implement the proposed structure and possible adjustments that can be made to address any remaining issues. 1.3 REPORT ORGANIZATION This report includes the following additional chapters: Chapter 2 Summary of Outreach Chapter 3 Assessment of Conditions Chapter 4 Market and Benefits Survey Summary Chapter 5 Solution Evergreen Solutions, LLC Page 1-4

8 EVERGREEN SOLUTIONS, LLC Chapter 2 - Summary of Employee Outreach Evergreen Solutions conducted a series of employee focus groups with Monroe County employees in October Meeting format and questions were designed to solicit input on a number of topics related to the comprehensive classification, compensation, and benefits study. The comments of the participants were valuable, and the findings from these meetings are summarized below. General Feedback Employees commonly regarded the County as a stable place to work. They were committed to serving the community, appreciated the opportunity to grow and develop, and enjoyed their co-workers; however, employees suggested several areas where the County could improve. For example, they believed that job duties and assignments have changed, and the existing compensation and classification structure may not have kept pace with the cost of living or the south Florida market. Employees did have several positive comments regarding their employment with the County, including the following: Employees generally believed that employment with the County remains stable and secure despite the difficult economic conditions. Employees regularly expressed their enjoyment of the benefits the County provides. Many listed the benefits as one of the primary reasons for coming to work for the organization. Employees also provided suggestions for areas of improvement: Employees expressed a strong desire to receive increases to their pay relative to their cost of living. Many mentioned this as one of the primary factors causing higher turnover rates for lower level pay grades and dissatisfaction with their current salaries. Employees would like to see job classifications and descriptions updated to more accurately depict the work they are doing. Many employees expressed concern with the lack of pay raises and would like to see increases based on job performance and merit. Employees would like to see a salary incentive for completed degree programs. Many stated that there was little consideration for experience or education in the compensation structure. Evergreen Solutions, LLC Page 2-1

9 Chapter 2 Summary of Employee Outreach Benefits Observations A strong majority of employees were pleased with the benefits package offered by the County, but they were concerned with the changes that are being made. These comments, as well as areas for improvement, are listed below: Most employees appreciated the health plan in general, but were concerned with the increases in out-of-pocket health care costs over time. Some employees expressed a desire to have more funding for tuition reimbursement, certifications, licenses, training opportunities and continuing education. Employees are concerned that overall benefits coverage has decreased, while the costs have increased. These views were prevalent among longer-term employees. Employees would like to be fully compensated for unused sick leave in some way. Some employees mentioned concern that the voluntary wellness program punishes employees who do not participate instead of rewarding employees for their participation. Many of the employee comments in this regard dealt with communication of the plan details and how the message was relayed seeming very punitive rather than encouraging. Compensation Issues Focus group participants also offered the following related to compensation: Most employees cited discontent with the lack of cost of living increases. Employees noted the desire to have an equitable pay structure developed, implemented, reviewed, and updated periodically. They raised concern for the internal equity of the system. Many employees stated that the maximum on the pay scales has stayed the same for many years. Being capped out at a pay grade leaves them the opportunity for neither cost of living adjustments nor raises. Many employees wanted additional pay for advanced education, additional certifications, and bilingual skills. Classification Issues Participants also provided the Evergreen Solutions team with issues specific to individual classifications, were analyzed during the Job Assessment Tool (JAT) review process. Below is a list of the general issues: Evergreen Solutions, LLC Page 2-2

10 Chapter 2 Summary of Employee Outreach Many employees believed classification titles and job descriptions are outdated and need to be updated to reflect current actual duties and responsibilities performed. Employees stated that a lot of positions have taken on extra duties over time, yet descriptions have not been updated. Some employees stated that positions have different duties and responsibilities depending on the department in which they work. They expressed a need for consistency within job titles. A small number of employees indicated that from time to time new classifications are created for individual employees to meet a specific compensation need irrespective of their impact on the classification structure. Market Peers Focus group participants were asked to name organizations they considered to be market peers. Some of these are listed below and will be considered when developing the list of peers for the salary survey: Broward County, FL Dade County, FL Palm Beach County, FL City of Aspen, CO City of Cape Cod, MA City of Hilton Head Island, SC City of Homestead, FL City of Key West, FL City of Marathon, FL City of Marco Island, FL City of Miami, FL City of Vail, CO Village of Islamorada, FL Florida Keys Electric Cooperative Florida Keys Aqueduct Authority Miami-Dade County Public Schools, FL Monroe County School District, FL Florida Keys Community College Benchmark Positions Employees were also asked which positions within the County present the greatest challenges with regard to recruitment and retention. Some of the positions or functional areas mentioned by focus group participants were: Evergreen Solutions, LLC Page 2-3

11 Chapter 2 Summary of Employee Outreach Airport Maintenance Technician Planners Building Inspectors Electrical Inspectors Mechanics Fleet Management Maintenance Worker () Maintenance Worker (Parks and Beaches) Laborers Engineers A/C (HVAC) Technician SUMMARY The employee concerns discussed above exist in many organizations; however, employees believed the County is overall a stable place to work. In fact, many employees cited the organizational commitment to serving the community through public service, the benefits package, and their co-workers as reasons they remain with the County. The main concern for county employees was the cost of living. This factor was discussed in each session conducted by the Evergreen Solutions team. Evergreen Solutions, LLC Page 2-4

12 E V E R G R E E N S O L U T I O N S, LLC Chapter 3 Assessment of Conditions The purpose of this statistical evaluation is to provide an overall assessment of the structure of the current County compensation plan. This chapter includes a pay plan analysis, grade placement analysis, quartile analysis, and employee tenure and distribution analysis. Data included here reflects the information and demographics in place at present and should be considered a snapshot in time. The insights gained from this chapter provide fertile ground for more detailed analysis and recommendations through the course of this study, but are not sufficient cause for recommendations on their own. By reviewing the County s compensation structure, philosophies, and employee demographics, Evergreen Solutions gains a better understanding of the structures and methods in place at the County. This information, when integrated with stakeholder and employee feedback and peer market data, is used to develop recommended solutions appropriate for the County. Pay Plan Analysis An organized pay structure provides employees with an understood method of salary progression eliminating confusion about future increases or equity among different pay grades. Exhibit 3A illustrates the County s present pay plan. The County currently has 16 pay grades into which employees are slotted by classification. The 16 County pay grades are open ranges with established pay range minimums and maximums. In an open range configuration, employees are typically hired at or near the minimum rate of the pay grade and, through the course of their careers, progress towards the maximum rate of the pay grade. All 16 of the County s current pay grades are occupied by at least one employee. A total of 412 County employees are in established pay ranges. Five other employees are not currently slotted into pay grades and therefore are not included in Exhibit 3A. The County Attorney s salary is determined by a contract and four hourly employees, all of whom are Invasive Exotic Plant and Control Technicians, are not assigned a pay grade. In addition to the pay range minimum, midpoint, and maximum for each pay grade, Exhibit 3A also displays the range spread of each pay grade. The range spread is a measure of the width of the pay grade, calculated as the percent increase from the minimum to the maximum. The range spreads in the County s current pay plan vary between 18 percent and 60 percent, with an average range spread of 44 percent. Evergreen Solutions, LLC Page 3-1

13 Chapter 3 Assessment of Conditions Exhibit 3A also displays the number of employees assigned to each pay grade. Pay grade 9 currently has the highest number of employees assigned to it, with 70 employees, which represents 16.8 percent of the County s total workforce. Pay grades 15 and 16 have the fewest assigned employees, each with a single employee, each representing 0.2 percent of the County s total workforce. EXHIBIT 3A CURRENT PAY PLAN Grade Minimum Midpoint Maximum Range Spread Employees 16 $ 107,705 $ 140,019 $ 172,328 60% 1 15 $ 86,164 $ 112,013 $ 137,863 60% 1 14 $ 76,396 $ 97,404 $ 118,412 55% $ 66,429 $ 84,699 $ 102,967 55% $ 58,920 $ 73,651 $ 88,380 50% $ 51,235 $ 64,043 $ 76,852 50% $ 57,182 $ 62,433 $ 67,684 18% 3 10 $ 46,678 $ 57,182 $ 67,684 45% 32 9 $ 41,678 $ 51,055 $ 60,434 45% 70 8 $ 37,988 $ 45,585 $ 53,184 40% 55 7 $ 34,534 $ 41,442 $ 48,348 40% 43 6 $ 31,395 $ 37,674 $ 43,952 40% 65 5 $ 28,541 $ 34,249 $ 39,957 40% 19 4 $ 25,946 $ 31,136 $ 36,325 40% 29 3 $ 24,711 $ 29,653 $ 34,595 40% 24 2 $ 21,507 $ 24,882 $ 28,257 31% 14 Source: Evergreen Solutions, November, Grade Placement Analysis In assessing the overall effectiveness of an organization s pay plan and policies, an analysis is performed to determine the position of employees salaries relative to their classification range. Grade midpoint is often considered the most accepted market average. Therefore, it is important to examine the percentages of employees who fall above and below the calculated midpoint of their respective pay grade. Grade placement analysis provides insight into career progression as well as potential market competitiveness. Only the 412 employees currently assigned to pay grades are included in this portion of the analysis and appear in Exhibits 3B through 3E. Exhibit 3B provides the breakdown of employees above and below midpoint by pay grade. Overall, 248 of the County s employees have salaries below the midpoint of their respective pay grade. This represents 60.2 percent of the County s graded employees. A total of 164 Evergreen Solutions, LLC Page 3-2

14 Chapter 3 Assessment of Conditions employees have salaries above the midpoint of their respective pay grade. This represents 39.8 percent of the County s graded employees. The analysis shows that a slight majority of employees are in the lower half of their pay range. This could be a sign of compression within the pay grades; further investigation into employee tenure is needed to confirm the existence of compression. EXHIBIT 3B EMPLOYEES ABOVE AND BELOW MIDPOINT BY PAY GRADE Grade Employees # < Mid % < Mid # > Mid % > Mid % % % % % % % % % % % % % 0 0.0% % % % % % % % % % % % % % % % % % % Total % % Source: Evergreen Solutions, November Quartile and Tenure Analysis Quartile analysis provides greater insight into the distribution of employees across the classification pay range. Employee pay is slotted within one of four equal ranges, or quartiles. The first quartile represents the lowest end of the pay range at 0-25 percent. The second quartile represents the percent section of the classification pay range. The third quartile represents percent of the classification pay range. The fourth quartile is percent of the classification pay range. This analytical method provides an opportunity to assess whether employee salaries are appropriately disbursed throughout the pay range. Quartile analysis is also used to determine if clusters of employee salaries exist. For example, an above and below the midpoint analysis may indicate a healthy distribution of salaries on either side of midpoint. However, upon further review, a quartile analysis may reveal a clustering of employee salaries in the first quartile. It is also beneficial to look at the Evergreen Solutions, LLC Page 3-3

15 Chapter 3 Assessment of Conditions tenure of the employees within each quartile of each pay range. Typically, employees with higher tenure have salaries in higher quartiles than employees with lower tenure. This information, while not definitive alone, when combined with other information can shed light on any root issues within the current compensation and classification plan. After March, 2014 merit increases were awarded, approximately 50 employees are currently at the maximum of their pay grade. Exhibit 3C illustrates how many employees are within each quartile of each pay grade, as well as the average tenure of employees within each quartile of each pay grade. Exhibit 3D displays graphically how the employees within each pay grade are distributed among the quartiles. The observation made in the Grade Placement Analysis that a majority of County employees are in the lower half of their pay range is also observed in the Quartile Analysis. Overall, 180 employees, or 43.7 percent of employees with pay grades, are in the first quartile of their pay range. This would typically be a sign of compression; however, the average tenure of employees in the first quartile is 3.4 years. This indicates that the clustering of employees at the beginning of the pay ranges are more likely due to a recent hiring of a group of new employees. The employees in the other quartiles are nearly evenly split, with 68 employees (16.5 percent) in the second quartile, 75 employees (18.2 percent) in the third quartile, and 89 employees (21.6 percent) in the fourth quartile. An upward trend in employee tenure across the quartiles is shown in Exhibit 3E. Overall average tenure is 3.4 years in the first quartile, 8.2 years in the second quartile, 11.0 years in the third quartile, and 15.7 years in the fourth quartile. There are only a few pay grades that contradict this upward trend. For example, pay grade 11 has significantly lower tenure in the fourth quartile than the other quartiles. This could be due to newly hired employees who brought a wealth of experience or education with them to their new positions, and so were placed in the upper portion of the pay range. This data shows the average tenure across the County is 8.2 years. This is similar to the national median, which, according to recent statistics from the Department of Labor, is 7.8 years for employees in the public sector. 1 Higher than average tenure employees undoubtedly possess a wealth of institutional knowledge which if lost without preparation, could leave the County with knowledge gaps that could significantly affect the quality of services provided in the future. Grades 15, 12, and 14 have the highest tenure at the County, with average tenure of 17.3 years, 12.1 years, and 11.9 years, respectively. Lower than average tenure can identify positions with significant turnover or retention issues. Grades 6, 16, and 2 have the lowest tenure at the County, with average tenure of 4.9 years, 5.5 years, and 5.9 years, respectively. Further analysis may reveal that a lack of market competitiveness in these classifications may be causing high turnover rates and thus lower than average tenure. 1 United States Department of Labor, Bureau of Labor Statistics. (September 2012). Employee Tenure Summary [Economic News Release]. Retrieved from Evergreen Solutions, LLC Page 3-4

16 Chapter 3 Assessment of Conditions EXHIBIT 3C QUARTILE AND TENURE ANALYSIS GRADE Total 1st Quartile 2nd Quartile 3rd Quartile 4th Quartile Average Tenure Employees # Employees Avg Tenure # Employees Avg Tenure # Employees Avg Tenure # Employees Avg Tenure N/A 0 N/A 0 N/A N/A 0 N/A 0 N/A N/A N/A 0 N/A N/A Overall Total (43.7%) 68 (16.5%) 75 (18.2%) 89 (21.6%) Overall Average Source: Evergreen Solutions, November Evergreen Solutions, LLC Page 3-5

17 Percent of Employees Chapter 3 Assessment of Conditions EXHIBIT 3D QUARTILE ANALYSIS (PERCENTAGE OF EMPLOYEES PER PAY GRADE) % 75.00% 50.00% 25.00% 0.00% Pay Grade 1ST QUARTILE 2ND QUARTILE 3RD QUARTILE 4TH QUARTILE Source: Evergreen Solutions, November Evergreen Solutions, LLC Page 3-6

18 Chapter 3 Assessment of Conditions Employees by Department As of October 2013, the County employed 417 individuals; all of which were included in this section of the study. The following analyses are intended to provide basic information regarding how employees are distributed among departments. The County s employees are spread among 49 departments. Exhibit 3E depicts the number of employees and the number of classifications in each department as well as the percent breakdown of employees by department. EXHIBIT 3E EMPLOYEES BY DEPARTMENT Divisions Department Office Programs Employees Classes BOCC 5 1 County Administrator 4 4 Sustainability 1 1 Legislative Affairs 1 1 Strategic Planning 1 1 Guardian ad Litem 1 1 Extension Services 1 1 State Attorney 1 1 Public Defender 3 3 OMB 4 3 Grants 1 1 Purchasing 2 2 Deputy County Administrator Airport Information Technology Library Veteran Affairs 10 7 Social Services 3 3 In-Home Services 8 6 Bayshore Manor 10 5 Welfare 10 6 Transportation 11 4 Nutrition 4 3 Employee Services 2 2 Employee Benefits 4 4 Workers' Compensation 1 1 Human Resources 4 4 Risk Management 2 2 Safety 1 1 Growth Management 2 2 Code Compliance 16 8 Building Planning Environmental Resources 6 4 Marine Resources 1 1 GIS 2 2 Source: Evergreen Solutions, November Evergreen Solutions, LLC Page 3-7

19 Chapter 3 Assessment of Conditions EXHIBIT 3E (CONTINUED) EMPLOYEES BY DEPARTMENT Divisions Department Office Programs Employees Classes Public Works 3 3 Engineering 4 4 Project Management 5 5 Wastewater 1 1 Transportation 1 1 Roads & Bridges Card Sound 14 5 Maintenance Corrections 10 9 Unincorporated Areas 12 2 Higgs Beach 2 2 Fleet Management 14 9 Solid Waste Administration 5 5 Solid Waste Transfer 6 3 Hazardous Waste 1 1 Pollution Control 4 1 Fire-Rescue Services 9 7 Emergency Management 4 4 County Attorney 14 9 Land Authority 2 2 Land Steward 1 1 Invasive Exotic Removal 4 1 Total *Land Authority Executive Director supervises Land Stewardship Office. Land Steward is funded by Growth Management. Invasive Technicians are funded by Growth Management using grants from the State. Technicians report to the Land Steward. Source: Evergreen Solutions, November As the exhibit illustrates, the largest department in the County is Maintenance, with 45 employees, representing 10.8 percent of the County s total workforce. Nine departments Extension Services, Grants, Guardian ad Litem, Hazardous Waste, Land Steward, Marine Resources, Safety, State Attorney, and Workers Compensation are the smallest departments, each with one employee, each representing 0.2 percent of the County s total workforce. Overall, the County s compensation plan has a relatively firm foundation on which to grow. Over the past few years, the County s organizational structure has undergone many significant changes. Exhibit 3E illustrates the complexity of the structure and the way it has changed. Further targeted analysis of the County s management structure may be beneficial in maximizing the efficiency of the operations. The key points of the current pay plan are: The County s current pay plan has 16 open range pay grades. Nearly half of the County s graded employees are in the first quartile of their pay range. Employees in the higher portions of their pay range tend to have higher tenure than employees in the lower portions of their pay range. Evergreen Solutions, LLC Page 3-8

20 Chapter 3 Assessment of Conditions These points along with information gained from stakeholders and employees as well as information gained from the market analysis are used to develop recommendations for a compensation plan and classification system best suited to the County. Evergreen Solutions, LLC Page 3-9

21 E V E R G R E E N S O L U T I O N S, LLC Chapter 4 Market Summary One of the best and most direct methods of determining the relative competitive position of an organization in the market place is to conduct a market comparison study. A study of this nature focuses on the average salary ranges offered by the market for a sample of benchmark positions. This data is then used to evaluate overall structure, summarize overall market competitiveness, and capture the current highs and lows of the County pay plan at a fixed point in time. This methodology is used to provide an overall analysis and not to evaluate salaries for individual positions. Market comparisons do not translate well at the individual level because individual pay is determined through a combination of factors, including demand for the type of job, performance, prior experience, and, in some cases, an individual s negotiation skills during the hiring process. A combination of factors, one of which is the market survey, is used when developing classification plans and individual salary recommendations. Market comparison analysis is best thought of as a snapshot of current market conditions, as the data is collected at the time of the study and provides the most up to date market information. It should be noted that market conditions can change, and in some cases change quickly. Therefore, although market surveys are useful for making updates to a salary structure, they must be done at regular intervals if the organization wishes to stay current with the marketplace. Evergreen Solutions consultants conducted a comprehensive market salary survey for the County which included 46 market peers and 73 job classifications. Of the market peers contacted, 20 provided responses and aggregately, market relevant matches were made for 73 positions. When seeking to compare the County to its peers, a number of factors were taken into account, such as location and relative population. Data was collected from the list of 20 market peers in Exhibit 4A: EXHIBIT 4A TARGET MARKET PEERS WHO RESPONDED 1. Aqueduct 2. Bay County, FL 3. Broward County, FL 4. City of Aspen, CO 5. City of Fort Lauderdale, FL 6. City of Gainesville, FL 7. City of Jacksonville, FL 8. City of Marathon, FL 9. City of Orlando, FL 10. City of Panama City, FL 11. City of St. Petersburg, FL 12. City of Tampa, FL 13. City of West Palm Beach, FL Source: Evergreen Solutions, April Collier County, FL 15. Florida Keys Community College, FL 16. Hawaii County, HI 17. Hillsborough County, FL 18. Miami-Dade Community College, FL 19. Miami-Dade County, FL 20. Monroe County School Board 21. Orange County, FL 22. Osceola County, FL 23. Palm Beach County, FL 24. Pasco County, FL 25. Sanibel, FL 26. Village of Islamorada, FL Evergreen Solutions, LLC Page 4-1

22 Chapter 4 Market Summary Data collected outside of the County s direct region was adjusted for cost of living using national cost of living index factors. This calculation allows salary dollars from entities across the state and country to be compared in spending power relevant to the County. Exhibit 4B shows the market peers and the cost of living adjustments used. EXHIBIT 4B TARGET PEERS WITH COST OF LIVING ADJUSTMENTS Target Respondents C OL Aqueduct Bay County, FL Broward County, FL City of Aspen, CO City of Fort Lauderdale, FL City of Gainesville, FL City of Jacksonville, FL City of Marathon, FL City of Orlando, FL City of Panama City, FL City of St. Petersburg, FL City of Tampa, FL City of West Palm Beach, FL Collier County, FL Florida Keys Community College, FL Hawaii County, HI Hillsborough County, FL Miami-Dade Community College, FL Miami-Dade County, FL Monroe County School Board Orange County, FL Osceola County, FL Palm Beach County, FL Pasco County, FL Sanibel, FL Village of Islamorada, FL Source: Evergreen Solutions, April Market data was collected from the organizations listed because they serve two very important purposes. Monroe County has both a comparable labor market, and a competitive labor market. The comparable market would be organizations that share similar characteristics to the County from the standpoint of geography and topography (island communities), organizations with similar costs of living, similar average home values, etc. These communities extend across the nation and some do exist within the State of Florida. The competitive labor market is best represented by the communities that the County is most likely to compete with for actual employees. Organizations in Dade, Broward, and Palm Evergreen Solutions, LLC Page 4-2

23 Chapter 4 Market Summary Beach counties, among others in south Florida are the best representation of the County s local competitive labor market. 4.1 MARKET DATA Exhibit 4C displays the results of the target peer data and the percent differential of County s current pay plan. Survey minimum indicates the average peer response to the minimum pay for that classification. Survey midpoint indicates the average midpoint in the peer response range for that classification and the survey maximum indicates the average peer response to the maximum salary for that classification. Percent differentials are shown for all three. This indicates how County s compares to targets at those points. Positive differential indicates above and negative indicates below. Also included in Exhibit 4C is the average salary range for each classification surveyed which is determined by the average minimum and average maximum salaries. The last column in Exhibit 4C indicates the number of respondents for each classification surveyed. EXHIBIT 4C SALARY SURVEY MARKET SUMMARY WITH DIFFERENTIALS ID Classification Survey Minimum Survey Midpoint Survey Maximum Survey Avg # Resp. Average % Diff Average % Diff Average % Diff Range 1 TIVE ASSISTANT $ 35, % $ 45, % $ 53, % 53.5% 25 2 TOR HUMAN RESOURCES $ 53, % $ 67, % $ 81, % 52.1% 20 3 ASSISTANT COUNTY ATTORNEY $ 81, % $ 104, % $ 124, % 57.7% 11 4 ATTENDANT (CNA) N/A N/A N/A N/A N/A N/A N/A 0 5 ATTENDANT SUPERVISOR N/A N/A N/A N/A N/A N/A N/A 0 6 BIOLOGIST $ 42, % $ 55, % $ 68, % 58.4% 6 7 CASE MANAGER $ 40, % $ 51, % $ 62, % 54.6% 9 8 CODE COMPLIANCE RESEARCH ANALYST $ 40, % $ 49, % $ 59, % 48.1% 9 9 COUNTY TOR $ 126, % $ 169, % $ 207, % 61.2% COUNTY ATTORNEY $ 132, N/A $ 170, N/A $ 206, N/A 60.7% CUSTODIAN $ 23, % $ 29, % $ 34, % 44.7% DATABASE TOR $ 64, % $ 80, % $ 96, % 50.2% DEPUTY COUNTY TOR $ 116, % $ 145, % $ 182, % 56.3% DIRECTOR EMERGENCY MANAGEMENT $ 76, % $ 96, % $ 121, % 58.8% 9 15 DIRECTOR FLEET MANAGEMENT $ 68, % $ 86, % $ 101, % 49.4% DIRECTOR INFORMATION TECHNOLOGY $ 78, % $ 98, % $ 121, % 55.4% DIRECTOR LIBRARIES $ 74, % $ 94, % $ 114, % 53.6% DIRECTOR MARINE AGENT $ 54, N/A $ 72, N/A $ 86, N/A 63.6% 9 19 DIRECTOR OF ENGINEERING SERVICES $ 79, % $ 100, % $ 125, % 56.0% DIRECTOR OF PUBLIC WORKS $ 95, % $ 116, % $ 144, % 49.9% DIRECTOR VETERANS AFFAIRS $ 54, % $ 70, % $ 86, % 58.7% 7 22 DIVISION DIRECTOR EMPLOYEE SERVICES $ 88, % $ 116, % $ 143, % 58.1% DIVISION DIRECTOR GROWTH MANAGEMENT $ 82, % $ 106, % $ 130, % 58.2% 9 24 DIVISION DIRECTOR PUBLIC WORKS/ENGINEERIN $ 79, % $ 102, % $ 124, % 57.0% ELECTRICAL INSPECTOR II $ 50, % $ 62, % $ 75, % 49.5% ELECTRICIAN $ 37, % $ 46, % $ 55, % 45.0% EQUIPMENT OPERATOR $ 31, % $ 40, % $ 48, % 50.2% EXECUTIVE ASSISTANT $ 44, % $ 57, % $ 69, % 55.4% FIRE CHIEF/DIVISION DIRECTOR EMERGENCY SER $ 99, % $ 123, % $ 151, % 51.2% FOREMAN ROADS & BRIDGES $ 38, % $ 48, % $ 58, % 51.5% INSPECTOR CODE COMPLIANCE $ 42, % $ 52, % $ 62, % 47.0% LANDFILL OPERATOR $ 32, % $ 40, % $ 49, % 51.2% 7 33 LIBRARIAN $ 42, % $ 55, % $ 67, % 56.6% LIBRARY ASSISTANT $ 28, % $ 37, % $ 45, % 58.8% CE WORKER (PARKS & BEACHES) $ 27, % $ 35, % $ 42, % 49.2% CE WORKER ROADS $ 28, % $ 35, % $ 42, % 49.2% MECHANIC I $ 34, % $ 42, % $ 51, % 46.7% % -14.3% -16.6% 54.2% 12.7 Overall Average Source: Evergreen Solutions, April Evergreen Solutions, LLC Page 4-3

24 Chapter 4 Market Summary EXHIBIT 4C (CONTINUED) SALARY SURVEY MARKET SUMMARY WITH DIFFERENTIALS ID Classification Survey Minimum Survey Midpoint Survey Maximum Survey Avg # Resp. Average % Diff Average % Diff Average % Diff Range 38 NETWORK TOR $ 50, % $ 63, % $ 77, % 54.7% PAINTER $ 32, % $ 40, % $ 48, % 48.0% PARALEGAL $ 42, % $ 54, % $ 65, % 54.1% PLANNER $ 43, % $ 55, % $ 66, % 51.0% PLANS EXAMINER $ 50, % $ 61, % $ 75, % 51.2% PLUMBING MECHANICAL INSPECTOR II $ 49, % $ 61, % $ 74, % 50.5% RESERVATIONIST/SCHEDULER DISPATCHER $ 31, % $ 40, % $ 50, % 60.0% 5 45 SOCIAL SERVICES DIRECTOR $ 58, % $ 75, % $ 92, % 58.8% 5 46 TIVE ASSISTANT $ 39, % $ 51, % $ 62, % 56.6% TOR AIRPORT BUSINESS $ 60, % $ 76, % $ 92, % 52.3% 8 48 TOR, ASSISTED LIVING FACILITY $ 49, % $ 64, % $ 79, % 59.4% 6 49 TOR BENEFITS $ 58, % $ 75, % $ 91, % 56.5% TOR ENVIRONMENTAL RESOURCE $ 56, % $ 72, % $ 88, % 56.8% BUYER $ 45, % $ 57, % $ 69, % 53.7% COORDINATOR CODE COMPLIANCE $ 50, % $ 63, % $ 77, % 55.4% COORDINATOR FINANCE & ACCOUNTING $ 47, % $ 59, % $ 71, % 51.5% COORDINATOR FLEET $ 48, % $ 61, % $ 75, % 55.5% COORDINATOR FLOODPLAIN $ 55, % $ 71, % $ 74, % 41.3% 3 56 COORDINATOR PLANNING COMMISSION $ 38, % $ 50, % $ 62, % 59.6% 9 57 DIRECTOR AIRPORTS $ 76, % $ 99, % $ 122, % 59.0% 6 58 OFFICE OF BUDGET DIRECTOR $ 78, % $ 100, % $ 123, % 57.1% DIRECTOR BUILDING OFFICIAL $ 69, % $ 90, % $ 109, % 56.8% DIRECTOR CODE COMPLIANCE $ 72, % $ 95, % $ 115, % 58.6% DIRECTOR PLANNING AND ENVIRONMENTAL R $ 78, % $ 101, % $ 123, % 61.1% DIRECTOR STRATEGIC PLANNING $ 78, % $ 100, % $ 122, % 54.9% GIS PLANNER $ 50, % $ 64, % $ 77, % 52.7% SENIOR DIRECTOR SOCIAL SERVICES $ 63, % $ 82, % $ 101, % 58.3% 6 65 LEAD MECHANIC $ 38, % $ 48, % $ 58, % 48.2% PLUMBER $ 36, % $ 47, % $ 58, % 58.8% 9 67 PROJECT MANAGER $ 63, % $ 78, % $ 96, % 53.5% TECHNICIAN AIR CONDITIONING (HVAC Certific $ 40, % $ 50, % $ 59, % 46.1% SUPERVISOR FACILITIES CE $ 47, % $ 61, % $ 74, % 57.2% SYSTEMS ANALYST $ 47, % $ 60, % $ 73, % 54.1% TRANSPORTATION COORDINATOR $ 40, % $ 51, % $ 63, % 58.0% 8 72 TRANSPORTATION DRIVER $ 26, % $ 34, % $ 41, % 52.2% 9 73 VETERANS SERVICE COUNSELOR $ 38, % $ 50, % $ 61, % 58.1% 10 Overall Average -10.8% -14.3% -16.6% 54.2% 12.7 Source: Evergreen Solutions, April SALARY SURVEY RESULTS Market Minimums As Exhibit 4C illustrates, at the minimum of the respective salary ranges, the County is approximately 10.8 percent below the market average across all surveyed job titles. While some classifications are closer to market at the minimum, others exhibit a greater difference from market values. Market minimums are considered entry level salary points either entry into the organization or entry into a next level of classification. Employees at or near the minimum are at the beginning stages of that position and have not acquired all the skills and experience needed to be fully functional in their classification. Based on the data gathered at the surveyed market minimum for these benchmark positions, the following can be determined: Evergreen Solutions, LLC Page 4-4

25 Chapter 4 Market Summary The surveyed position differentials ranged from a low of 35.0 percent below market minimum in the case of the Deputy County Administrator classification to a high of 16.9 percent above market for the Sr. Lead Mechanic classification. Of the 73 County positions surveyed, 61 reported to be below market at the minimum. These 61 below-market classifications are an average of 13.1 percent below market minimum as a group. A total of three surveyed positions indicated market differentials at the pay range minimum that were greater than 30.0 percent below market. These are listed below with their market differentials: Deputy County Administrator, 35.0 percent below market Sr. Coordinator Floodplain, 33.7 percent below market Fire Chief/Division Director Emergency Services, 30.2 percent below market Market Midpoints Market midpoint is important to consider because it is commonly referred to as the closest estimation of full competence and market average compensation. Employees at the midpoint should be fully functional in their classification. As Exhibit 4C indicates, County is on average 14.3 percent below market at the midpoint. Based on the data gathered at the market midpoint of the salary range, the following can be determined: At the market midpoint, the benchmark positions ranged from a low of 39.8 percent below market in the case of the Sr. Coordinator Floodplain classification to a high of 14.9 percent above market midpoint for the Sr. Lead Mechanic classification. Sixty-three of the surveyed classifications were found to be below market at the midpoint, which represents 86.3 percent of benchmarks. These 63 classifications were an average of 16.1 percent below market at the midpoint. Three classifications were greater than 30.0 percent below market. These are listed below with their market differentials: Sr. Coordinator Floodplain, 39.8 percent below market Systems Analyst, 33.2 percent below market Deputy County Administrator, 30.3 percent below market Six surveyed classifications are above market at the midpoint averaging 4.4 percent above market. Evergreen Solutions, LLC Page 4-5