Compensation Policy. BOCS Compensation Policy

Transcription

1 Compensation Policy BOCS Compensation Policy Prince William County will have a combination of salaries, benefits, employee development, and workplace environment that will attract and retain the most qualified employees in order to implement our Vision. To accomplish this, the County recognizes the importance of maintaining salaries that are, on average competitive with the three Northern Virginia jurisdictions that represent our competitors: Fairfax, Arlington, Alexandria. Our success in implementing this strategy will be measured by our ability to attract quality applicants, our ability to retain quality employees, and our ability to maintain employee satisfaction. 1

2 Proposed FY 13 Compensation CXO Proposed FY 13 Budget includes employee compensation: Fully fund VRS contribution Fully fund Pay for Performance at 3% Health (10% increase set aside pending finalization of premiums) Dental Group Life Retiree Health Credit Net Cost $6.29m $4.45m $1.96m $0.07m $2.07m $0.07m $14.91m How is the County able to propose these adjustments? 2

3 Tough Decisions Made During the Great Recession, tough decisions were made on the spending side of the equation: 327 positions were RIFd from County Public Safety staffing plans were eliminated and are just now coming back at less than half previous levels Capital projects were deferred or eliminated Some agencies have received no new staff in five years Employees per capita has significantly decreased Overhead rate is at 4% Yet through it all, citizen survey results show that 92% of our citizens are overall satisfied with County services 3

4 Tough Compensation Decisions Made During the Great Recession, tough decisions were made on employee compensation: Employees were surveyed and responded that maintaining health insurance was major concern PWC has maintained its commitment to employees on health insurance throughout the recession: Individual County pays 90%, Employee pays 10% Family County pays 70%, Employee pays 30% Health insurance rate increases have been kept well below national averages Both the County and the employees have picked up their share of the insurance rate increases 4

5 Tough Compensation Decisions Made During the Great Recession, tough decisions on employee compensation were made: PWC salaries were completely frozen in FY 10 and FY 11 Total compensation increase for employees over past four years = 5% No merit/step increases for last three years County eliminated employer/employee matching 401a deferred compensation program County passed on 5% VRS employee contribution to Plan 2 employees (employees hired after 7/1/10) retroactive to July 1,

6 School Transfer Never Wavered Prince William County has highest percentage of General Revenues going directly to Schools through the County s adopted revenue agreement compared to rest of Northern Virginia Jurisdiction FY 10 FY 11 FY 12 Avg % Transfer Alexandria 36.3% 37.0% 35.9% 36.4% Arlington 42.4% 46.1% 49.1% 45.9% Fairfax 52.6% 53.5% 52.7% 52.9% Loudoun 58.5% 53.0% 54.5% 55.3% PWC 56.75% 56.75% 56.75% 56.75% 6

7 Employee Compensation Total employee compensation is: Salaries = 64% Benefits = 36% Compensation must be: Externally competitive good salaries when compared with our market Internally equitable positions must be compensated fairly compared to each other and avoid compression 7

8 External Competitiveness Measuring Success PWC salaries are competitive FY 12 Salary Survey 96% of salaries are externally competitive meaning within +/ 5% We know we are externally competitive because: People want to work for PWC in FY 09 FY 11 we received over 30,000 applications per year for open positions Turnover is low 5.5% excluding retirements We have talented/quality employees: Meet County and agency performance measures 93% satisfaction with County services 82% satisfied with County employee helpfulness 8

9 Internal Equity Measuring Success Internal equity addressed through Merit Pay (Step Increases in some organizations) based on their individual performance not automatic All employees are evaluated on what they do goals, measures, and how they do it values, skills Employees must fully achieve their performance goals set at the beginning of the evaluation year to get a full merit Fully Achieves = 3% Accomplishes but Does not Fully Achieve = 1% Significantly Below = 0% 9

10 Employee Compensation Benefit Package Competitive benefits as important as salaries: Retirement Benefits VRS, Social Security, Medicare VRS costs have gone up $25M from FY 00 to FY 13 impacts our ability to provide other compensation increases Passing on the 5% employee contribution to Plan 2 employees will save the County $18M by FY 18 50% of all employees will be Plan 2 by 2021 Public Safety supplemental retirement Health & Dental Insurance Group Life Retiree Health Care stipends 10

11 Employee Compensation Benefit Package Graph Source: Bolton Partners, Inc. County s benefit package is generally competitive, with Alexandria and Loudoun; however, both Fairfax and Arlington offer significantly better employer paid benefit packages we are right in the middle 11

12 Employee Compensation Recommendations FY 13 Compensation Recommendations: Fund VRS commitment first Fund County share of health insurance second Biggest salary concern compression due to lack of merit increases Long term morale/motivation issues Financial concerns as the community tries to fix this down the line Example: with no merit since FY 10, an ASA I hired 2/14/12 will make $28,391, same as an ASA I hired on 7/1/09 12

13 Five Year Plan Employee Compensation Recommendations There is a new normal in government spending Don t have resources to go back to annual pay plan adjustments and merit pay/step increases in the foreseeable future Five Year Plan must address both external competitiveness and internal equity Therefore recommending to alternate pay plan adjustments and merit pay every other year of the Five Year Plan 13

14 FY 13 FY 17 Five Year Plan Proposal FY 13 FY 14 FY 15 FY 16 FY 17 Pay for Performance (PFP) Pay Plan Adjustment (PPA) 3% 0% 3% 0% 3% 0% 2% 0% 2% 0% 14

15 PWC Employee Compensation PWC has raised its salaries the least of our competitive jurisdictions (Fairfax, Arlington & Alexandria) from FY 09 FY 12 PWC County employees lag behind PWC School employees in salary increases even when the FY 13 compensation proposals are taken into account 15

16 Jurisdiction Compensation Comparison Jurisdiction COLA (PPA) FY 09 FY 10 FY 11 FY 12 Merits (PFP) COLA (PPA) Merits (PFP) COLA (PPA) Merits (PFP) COLA (PPA) Merits (PFP) FY 09 FY 12 Totals Prince William 0.00% 3.00% 0.00% 0.00% 0.00% 0.00% 2.00% 0.00% 5.00% Fairfax 2.96% 4.52% 0.00% 0.00% 0.00% 0.00% 2.00% 0.00% 9.48% Arlington 0.00% n/a 1.00% 0.00% 0.00% 3.35% 0.00% 2.50% 6.85% Alexandria 0.00% 0.00% 0.00% 0.00% 0.00% 3.50% 0.00% 3.60% 7.10% 16

17 PWC Five Year Compensation Increase Comparison FY 09 FY 10 FY 11 FY 12 Proposed FY 13 FY 09 FY 12 Totals PWC Government 3.00% PFP 0.00% 0.00% 2.00% PPA 3.00% PFP 8.00% PWC Schools 3.00% Step 1.80% COLA 2.90% COLA 0.00% 1.75% COLA ** 0.00% 9.45% ** One time 0.60% bonus also provided in FY 12 17

18 Summary PWC BOCS and the community have made tough spending decisions during the Great Recession PWC employees are hard working, dedicated people who have dealt well with the impacts of the Great Recession Our citizens expect efficient and effective government at a level they are willing to pay and we believe we provide that We must keep our eye on employee compensation to ensure both external competitiveness and internal equity 18