Total Compensation. Board Work Session Compensation April 2, 2013 A-4

Transcription

1 Total Compensation Board Work Session Compensation April 2, 2013

2 Defined Contribution Option for Senior Management Merit Awards County Manager s Excellence Awards Telework expanding Mobile Worker Initiative Employee Recognition Work/ Life Balance Leadership Development Cohorts lead to promotions Benefits FY 13 Development Benefits offered to eligible temporary employees Competitive Salaries Working Smarter CPR Certification Classes via Fire Dept. Comp Maintenance Program (Yr2) Living Wage Increased New Hire process going green Leverage GoToMeeting Safety Seminars 2

3 Total Compensation Philosophy As an Employer of Choice, Arlington County recognizes our employees are the foundation of our success. This philosophy provides a broad framework to assist the County in making decisions that impact Arlington County Government total compensation. We strive to offer a meaningful, well-rounded total compensation package that: Enables Arlington County to recruit, retain, reward, and motivate a high caliber, diverse workforce. Provides employees with fair, competitive pay, benefits and retirement options. Shares the cost of benefits between the County and the employee. Adopted by County Board July 21,

4 Principles Provide salaries that are competitive in our target market. Our target market consists of those jurisdictions and organizations of similar size and structure that would be our competitors for employees and includes at a minimum Alexandria, Fairfax and Prince William Provide employees with leave and/or disability benefits that assist in replacing a portion of income lost in order to care for themselves during qualifying periods of illness or absence. Provide a retirement program that offers defined benefit and defined contribution (including deferred compensation) options that will assist employees in achieving their individual retirement goals and targets replacement of 65% of income after a 30-year career Provide affordable healthcare that offers employees the ability to choose the option that best fits their needs. Encourage, support, and reward employees at all levels of the organization by offering learning opportunities to promote professional growth and development Enhance work-life balance through offerings such as: alternative work schedules, employee wellness programs and ancillary benefit programs like walk/bike to work, reduced County recreation fees and transit subsidies Foster a positive work environment that is meaningful, stimulating and encourages employee innovation and creativity Adopted by County Board July 21,

5 Employee Engagement Survey Results 72% - 79% satisfaction range regarding benefits, work environment, work/life balance, learning opportunities, and diversity Survey Top Themes: Employees engaged by interesting & challenging work Employees value the difference they make within the community, interacting with clients or have a strong commitment to public service Employees feel supported by co-workers or by providing support to other staff

6 FY13 Progress Report Total Comp Element Total benchmark classes lagging at midpoint FY2011 FY2012 FY2013 Year-to- Date 78% 65% 50% Employees hired over midpoint 56% all 100% MAPs Turnover 8.5% 6.7% nonretirement Employees at maximum (End of Fiscal Year) 32% all 100% MAPs 10.2% 6.7% nonretirement 31% all 85% MAPs 6.6% 4.1% nonretirement 22% 18% 7% (Projected)

7 Compensation Maintenance Progress: After 2 Years Focus: Improve Structure Competitiveness and Provide Pay Future Completed*: 18 Studies covering 1950 positions To Be Completed: 40 Studies covering 1350 positions Results Structure Changes 76% classes changed grade (started with those most behind) Employee Impact Employees at maximum reduced by 76% 80% of employees received increase 400 employees moved into broad band pay for performance programs 500 moved into open ranges (Public Safety) Cost Total Annual Cost to Date: $5M *From start of program through March 31, 2013

8 Keeping Pay Competitive Arlington s actual salaries have kept pace due to continued step increases Fairfax & PW considering alternating steps and COLA Alexandria implementing pay improvements Alternatives for staying competitive: Additional step Open Ranges Across the board increase (mpa/cola)

9 FY14 Proposed Health Care Increases Alexandria* Arlington Fairfax* Prince William* Major health plan 3% 3% 8% 3% Dental insurance 0% 0% 5% 10% *Budget estimate. Alexandria Major plan design changes were needed to reduce projected increase from 10% to 3% 9

10 3% Premium Increase Means: Additional Employee Cost Per Pay Period Single Employee + One/Spouse Employee + Child(ren) Family Cigna HMO $1.33 $3.50 $2.92 $4.92 Kaiser $3.24 $8.52 $7.14 $11.95 THE BOTTOM LINE: A General Employee s Pay Slip Average Annual Salary $68, Average Step Increase: 2.75% $1, Cigna HMO Increase (Family) $ Gross Salary Increase after Health $1,742.00

11 Health Care Reform Key Provisions Effective in 2014 Individual Coverage Mandate Employer Shared Responsibility pay or play Health Insurance Exchanges become available Medicaid Expansion Implementation in Virginia Federal Govt will operate exchange for State Medicaid expansion awaiting Governor s signature

12 Retirement Changes in Other Jurisdictions Alexandria Increased Police/Fire pension contributions from 8% to 10% Continued phase in of employee VRS contribution (year 2) Fairfax New hires after 1/1/2013 Increased retirement age to 55 for General employees Changed from rule of 80 to rule of 85 (age + service) for General Employees Capped use of sick leave for service at 2080 hours (1 yr) for all three retirement plans Prince William Continued phase in of employee VRS contribution (year 2) Arlington Defined Benefit program has become more competitive due to these changes

13 Comparison of Proposed Budget Actions Holidays Current Steps/Merit Increases Arlington Fairfax Alexandria Prince William % 0% for general Public Safety to get longevity COLA/MPA 0 0 1% for general employees to offset increase in VRS 3.35% 0% 2% plus 1% increase to offset VRS increase Proposed -Eliminate Columbus Day -Continue Comp Maint. Program -Steps -Alternating merit increases and COLA -2.3% lump sum for employees at top of grade -Alternating merit increases and COLA

14 Moving Forward FY 13 Continue Compensation Maintenance Program Bid Health Plan FY 14 & Beyond Consider Open Ranges Complete Compensation Maintenance Program Implement new Health Care Contracts Evaluate /Implement recommendations from Total Compensation Workgroup 14