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

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18 INFORMATIONAL MEMO Page 2 As it relates to the classification of new positions and the reclassification of existing positions, it provides the external market criteria based upon assessed valuation +/- 50% that we have been able to benchmark our positions to fairly consistently; provides consideration for internal comparability; identifies the data collection resources to use when conducting external market analysis; sets parameters for when a market study will be conducted and when a cost of living adjustment will be considered. The challenges we have experienced have generally been when we have positions that we are not able to find benchmark comparators for based upon the duties of the position (standard for a valid match is 5 positions). In addition, recently when the market for a certain position was highly competitive, we were not able to attract qualified applicants. During these times we look for creative, innovative and strategic ways to attract qualified applicants such as offering hiring bonuses. This has also been an effective recruitment strategy with our Civil Service positions. Given that some areas of Resolution No. 1796 are silent, addressing those silent areas would provide more clarity and an objective methodology to use for anomalies that may occur. Administration proposes consideration of the following for discussion with the Council. This list is not all inclusive as there could be other items the Council wants to consider. 1. Above and Below Market adjustments - specifically define what compensation standard would be used to set parameters for adjustment of wages when positions are above or below market. 2. Compression — establish a definition within the resolution that defines what it means, and what methodology will be used to address compression when it occurs. 3. Comparability — review the current methodology specifically as it applies to the external market for non -represented and represented employees. 4. Recruitment — review what barriers exist when it is a highly competitive external market, and ways to attract and retain future employees. In addition, Administration proposes the following tentative timeline for review and adoption of changes to Resolution No. 1796 by the full City Council: March 20 - Discuss the history of setting compensation prior to the adoption of Resolution No. 1796 April 3- Review the entirety of Resolution No. 1796 April 17 — Discuss proposed Administration and Council considerations May 8 - May 22 - June 11 - Present to City Council Proposed Resolution changes Continued discussion of proposed changes with the Council Adoption of revisions to Resolution No. 1796 by the Council We look forward to the review and discussion of Resolution No. 1796 with you at the Finance Committee meeting on March 20, 2018. Attachment: City Council Resolution No. 1796 Z:\Council Agenda Items\Human Resources\FinanceCommitteecompreviewmemo 3-14-18.doc