FIN 2018-03-20 Item 2B - Discussion - Compensation Policy for City Employees

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City f Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Stephanie Brown, Human Resources Director CC: Mayor Allan Ekberg DATE: March 14, 2018 SUBJECT: Review of Compensation Policy Resolution No. 1796 ISSUE The City Council and Administration have committed to review and discuss Resolution No. 1796, which sets policy for compensation and benefits for City employees. BACKGROUND Beginning in the 1980's, the City Council adopted various resolutions regarding compensation policy. These resolutions focused on several common themes including: 1) An overarching goal to maintain a competitive position in the market place; 2) The desire to select and to retain a competent and productive work force; 3) The compensation system should reflect average compensation among the various employment markets in which the City competes for qualified labor; 4) l'rovides that classifications shall be based upon the Decision Band Method (DBM), for the represented and non -represented employees; 5) A comparative analysis for all positions shall be determined based upon internal and external factors; 6) A mix of wages and benefits shall be provided based on the average or above average of the defined market. These resolutions have since been updated and replaced over time, with many of these provisions carrying forward over the years. In 2013, Resolution No, 1796, was adopted which setcore value statements, specifically that the City desires to utilize standardized policies, procedures and processes whenever possible for compensating all employee groups, both non -represented and represented. From the I luman Resources perspective,sinccLhcudopii000[thimpo|iuyin20\3,ithuubceneffexiivck/ used as a guide and serves to establish criteria fouse when conducting analysis for salary and benefits. In the Collective Bargaining process, it has been objective; manageable, fair, representative of the market to which you chose to compare; used in good faith under our bargaining statue RCW 41.56; reduces the comparisons to those groups that are represented; sets parameters for pay and benefit considerations; it guides the pre -collective bargaining process as to what the City expects to receive for consideration in preparatioI for labor negotiations. 17