FIN 2022-11-14 Item 1D - Discussion - Non-Represented Employees Market and Compression Study

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Rachel Bianchi, Deputy City Administrator CC: Mayor Ekberg DATE: November 7, 2022 SUBJECT: Non -Represented Market and Compression Study ISSUE Included in the proposed 2022-2023 budget is a market and compression study to address non - represented staff compensation. BACKGROUND In 2019 the City Council approved a market study for non -represented staff in line with the Council's adopted Compensation Policy, Resolution 1951. The study was to be conducted in 2020. Due to pandemic -related budget reductions, this study was not conducted and the funding for the study removed from the budget. Since that time, contractual agreements have also led to compression with the Police Department and other positions. DISCUSSION Non -represented staff compensation has not been systematically studied in at least ten years in the City of Tukwila. In 2019 the City Council indicated a desire to move non -represented salary from the Decision Band Method (DBM) to a market-based system, as well as to comprehensively look at all non -represented salary and specifically not take an incremental approach. Over the years, tweaks to the DBM system have "broken" the system, resulting in very different jobs and responsibilities located within the same band. This has made traditional methods of benchmarking based on the AWC not possible for many non -represented positions, particularly those currently in the lower bands of the DBM system. In fact, partially due to the problematic nature of the band system, the 2019 benchmark analysis showed — as a group. — the lower bands of the DBM system were over market and the highest bands under market. Because of the problematic nature of the DBM system, the Administration has been unable to provide the Council with a benchmark or market study as outlined in Resolution 1951. This analysis in 2019, the problematic nature of the current system and the Council policy to have non -represented positions at market, led to the Council's decision to move forward with a market study in 2020, which, as stated above, was cut due to the pandemic -related budget cuts. Without a significant refresh of our non -represented compensation system, the City is not able to provide a true market-based analysis of non -represented compensation. The study was contemplated to be completed in the first quarter of 2020 and applied to 2020 salaries for non - represented positions found to be under market. Since that time, staff represented by the Teamsters Local 763 have undergone a market study and, where shown to be below market, those positions' compensation was increased and applied retroactively. Human Resources is currently finishing the study for the Professional/Supervisory and Maintenance and Trades units and the contractually obligated retroactive payments to 2021 will be included in the 2023 budget amendment. The other two units — Admin/Tech and Senior Program Managers — were addressed in 2021 with retroactive payments to 2019. 21