FIN 2019-10-28 Item 2B - Discussion - Non-Represented Employees' Compensation

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INFORMATIONAL MEMO Page 9 Below are the wage increases for the Non -Represented staff since 2010: Non -Represented (NR) Wages Summary 2010 to Present: 2010 (from 2009 market survey) Bands A11-D61 receive 4.14% market increase based on market regression data. D62-F102 wages frozen. 2011 Wages frozen (economic conditions poor). 2012 Market regression showed D62-F102 below market and A11-D61 at market. Council engaged an outside consultant to validate the market data. Final outcome: Bands A11-C42 and D62-E91 receive 3% market adjustment. C41 receives 2% market adjustment. D61-F102 wages frozen, no adjustment. 2013 COLA adjustment based on 90% CPI-W First Half = 2.61% 2014 wages were frozen for all NR (Regression line did not recommend a wage increase based on the data). 2015 wages received a 2% flat increase. (90% CPI-W June = 1.98%, but 2% given to all NR for internal equity with represented groups.) 2016 Market adjustment of 1.5% provided across the board; Band F102 received additional increase of 2.5% to align it with market — (total of 4% to F102). 2017 COLA adjustment based on 90% of CPI-W June = 1.8% 2018 COLA adjustment based on 90% of CPI-W June = 2.70% 2019 COLA adjustment based on 90% of CPI-W June = 3.24% Throughout the years, there have been discussions in committee and full Council in reference to non -represented wages. However, we are still in discussion on market and this is due to the fact that the DBM system no longer supports the City's needs in accordance with the Policy about market studies be completed every other year. The Combination of the market not being reflected by the regression analysis, and the inability to have multiple benchmark positions as described in previous committee meetings, is proof that the City needs to move away from the DBM system to a market based system. Market Based System Approach A market based compensation system will allow for benchmark matching for each Non - represented job's specific duties and required knowledge and skills, for an apples to apples comparison, where that currently does not exist within the AWC salary survey data for many of our positions. A broader source of information will allow us to find benchmarks for unique Non - represented roles like the various analyst roles and the other technical and supervisory roles that make up the bulk of the middle of the DBM salary table. Market benchmarks can be sourced from existing salary survey data sources such as the comprehensive data gathered by Milliman which includes a public sector focus and provides a weighted average of the market for a more accurate market rate for each position being benchmarked. Staff is not making a recommendation on using Milliman at this time, it is only provided here as an example. To move to a market based compensation system, initial steps would involve a review of all Non -represented job descriptions to establish job classifications to match to market, then a suitable market data source(s) would need to be identified and positions then priced in the market. A compensation pay structure is then developed from the market data and positions are placed in the pay structure. It is noted that internal equity does not always align with market and Z:\Council Agenda Items\Human Resources12019 NonRep FC Oct 2812019 Non Rep Memo Final_Oct 28.docx 19