ARLINGTON COUNTY S TOTAL COMPENSATION Creating an environment where p p are eager g to work people and excited to stay.
THE TOTAL COMPENSATION PHILOSOPHY A guide enabling Arlington County to: RECRUIT, RETAIN, MOTIVATE and REWARD a high caliber, diverse workforce. Offerfair, fair, competitive PAY, BENEFITS & RETIREMENT options. Share the cost of benefits between the County and the employee. 2
Millenials Total Comp Ethics Diversity & Inclusion 25% more employees teleworking Mobile Worker Initiative 975 On-Site Clinic visits Employee Engagement Workgroups Work/ Life Balance Increased Cohorts Increased Online Learning CPR Certification Classes via Fire Dept. Benefits High Caliber, Diverse Workforce Development Benefits offered to eligible Temporaries Competitive Salaries Working Smarter Comp Maintenance Program (Yr 3) Increased PFP Programs Vehicular accidents and OSHA reportable incidents decreased Collaborate with APS: Healthcare, EAP, Safety Increased Safety Seminars Electronic On-Boarding, W-2 s & Retirement Statements 3
Safety First SAFETY EFFORT FY2012 FY2013 FY2014 Completed or Planned Safety Awareness Days N/A 3 3 On Site Safety Training Classes 79 82 85 # Vehicular Accidents (CY) 188 175 38 (YTD) Defensive Driving Classes (FY) 24 26 35 152 (Projected for CY14) OSHA Reportable Incidents (per 100 FTEs) (CY) 1.9 1.6 1.5 (Projected) CPR Certifications 18 73 40 (YTD) Online Safety Course 484 394 331 (YTD) Enrollment 4
Building a Culture of Success DIVERSITY & INCLUSION STEERING COMMITTEE ETHICS WORKING GROUP CIVIC ENGAGEMENT TRAINING 5
Employee Demographics Age Service 1200 2500 1000 983 959 2000 1912 863 800 1500 600 1000 947 400 280 357 500 543 200 0 32 0 72 6
Why Are They Leaving? Top 5 Issues Cited Exit Interview Data (39% of EmployeesLeaving Responded) 45% work load 46% better work/life balance and/or work hours 50% better pay 65% lack of promotional opportunities 67% degree of communication * 80% of those who lf left would work for the County again 7
Where Are They Going? 31% 31% NO LONGER WORKING 19% 18% ANOTHER LOCAL GOVERNMENT 18% THE PRIVATE SECTOR 7% 4% 5% 4% 3% 9% ANOT FOR PROFIT SELF EMPLOYEDEMPLOYED THE FEDERAL GOVERNMENT A STATE GOVERNMENT A PUBLIC SCHOOL SYSTEM UNKNOWN 8
COMPETITIVE PAY METRICS Total Comp Element FY2011 FY2012 FY2013 FY2014 to Date Total benchmark classes lagging at midpoint 78% 65% 38% 19% (Actual) Employees 56% all 32% all 31% all 33% all hired over 100% 100% 80% MAPs 100% MAPs midpoint MAPs MAPs (YTD) Turnover 8.5% 6.7% non- retirement 10.2% 6.7% non- retirement 8.9% 5.7% non- retirement 7.7% 4.0% non- retirement (YTD) Employees at 22% 18% 8% 11% (Est.) maximum (End of Fiscal Year) 9
AVERAGE PAY INCREASES 2009-2013 (Includes performance, promotions, reclassifications, and accelerated steps) FY2009 FY2010 FY2011 FY2012 FY2013 5 Year Average All Employees 3.1% 1.5% 3.4% 3.5% 3.5% 3.0 All Employees (w/o MAPS or PFP) 3.1% 1.5% 3.4% 3.5% 3.5% 3.0 PFP 2.7% 1.0% 3.5% 3.8% 3.4 2.9 Combined (MAPS and PFP) 10
Compensation Maintenance Progress: After 25Y 2.5 Years Focus: Improve Structure Competitiveness and Provide Pay Future Completed*: 28 Studies covering 2470 positions To Be Completed: 15 Studies covering 840 positions Structure Changes RESULTS 76% classes changed grade (started with those most behind) Employee Impact 87% 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: $6.3M *From start of program through March 31, 2014 11
Proposed FY 2015 Comp Adjustments Steps/Merit Increases Arlington 2.7% (2.3% 4.1%) COLA/MPA 0% Fairfax 0% for general 4.76% Public Safety Longevity 2% Alexandria 3.35% (2.3% 5%) 1% for general employees to offset increase in VRS Prince William 3% Increasing top of range by 1% Fairfax and PW have implemented two year cycle alternating step increases and COLA/MAP 12
FY15 Proposed Health Care Increases Alexandria* Arlington Fairfax Prince William Major health plan 2.4% 7.5% 8% 2.7% *Alexandria s proposed budget states that the City will absorb the health insurance increase. Note: Alexandria and Prince William do not cover retirees under their health plans 13
7.5% Premium Increase Means: Additional Employee Cost Per Pay Period Single Employee + Spouse Employee + Child(ren) Family Cigna HMO $1.63 $9.69 $12.79 $18.20 THE BOTTOM O LINE: An Employee s Pay Slip Average Annual Salary $70,000.00 Average Step Increase: 2.7% $1,890.00 Cigna HMO Increase (Family) $473.20 Gross Salary Increase after Health $1,416.80 Note: All premiums are deducted pre tax 14
$500.00 Estimated Impact of Plan Design Changes on Premiums $450.00 $460.13 Employee e Bi weekly Premiu um Contributions $400.00 $350.00 $300.00 $250.00 $200.00 $150.00 $169.50 $406.94 $290.42 Family No Plan Design Change with Cadillac Tax Family No Plan Design Change Before Cadillac Tax Family With Plan Design Changes $100.00 Year Premiums hit Cadillac Tax $50.00 $0.00 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 15
Sample Health Plan Designs Plan Design Options Current HMO Increase Copays 90/10 Coinsurance Plan Only Plan Annual Deductible $0 $0 $0 Out of Pocket Maximum None $3,000 Individual $6,000 Family $3,000 Individual $6,000 Family PCP $15 $30 10% Coinsurance (Approx. $8) Specialist $30 $60 10% Coinsurance (Approx. $20) Inpatient Hospital $100/admission $1,000/admission 10% Coinsurance Emergency $150/visit it $300/visit it 10% Coinsurance Room 16
Health Reform Impacts FY13 Costs increased ~ $700,000 (1.5% of budget) Preventive care covered at 100% (no copays) py) Cover dependents up to age 26 Affordable Care Act Fees FY15 $700,000 (1.5% of budget) FY16 $550,000 (1% of budget) FY17 $500,000 FY18 $300,000 FY19 $300,000 PLUS Cadillac Tax Potential impact without changes $1M Plan design changes needed to keep premiums in check by FY2019 17
The Balance is Shifting ACTIVE FTE FY12 3,283 FY13 3,335 FY14 3,344 RETIREES* FY12 3,703 FY13 3,764 FY14 3,833 *Includes approximately 1,300 APS retirees covered under the County s Retirement Plan
Take Wellness to the Next Level Foster a culture of health and drive lasting behavior change HealthSmart Credits Program Motivate employees to take an active role in managing their health Better health leads to reduced health plan costs and more productive workforce Employees Earn Points in Three Categories Be Healthy Be Well Be Fit Receive a financial incentive for successful completion 19
Looking to The Future Keep an eye on our competitors Alexandria Fairfax Prince William Stay true to our culture Sustainability Affordable pay pyand benefits for County and employees Develop pay structure that allows us to stay competitive Plan for ACA changes Flexibility Appeal to and serve multiple generations Reward high performers Offer choice in benefits Recruit, retain, reward, and motivate Recognize /encourage career growth through salary future Provide a mobile and flexible work environment Provide development and advancement opportunities ii 20
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 21