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

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INFORMATIONAL MEMO Page 5 Commanders and Deputy Chief. Compression at this level has a cascading effect impacting other leadership positions. The full compression analysis will be presented to the Committee on October 14, 2019. B6. Recent successful negotiated contracts with the Police Commanders, which brought them to market, has created significant compression with the Deputy Police Chief and Police Chief. Currently, a Commander with 25 years of service makes more than the Deputy Police Chief. Even though our Deputy is close to market, the policy allows for the compression to be mitigated, which is standard best practice in the industry. Recommendation: Courses of action for Police Compression 1 . The Police Chief and the Deputy Police Chief should receive the same longevity as the Commanders in order to mitigate current compression in the department. Internal compression not only affects the Police Department; it also impacts the Deputy City Administrator and the City Administrator; which we recommend to be reviewed during the Option 1 of B3 new market based non -represented compensation system implementation. 9. B7 — Staff strongly agrees that the compensation policy should be reviewed on a regular basis. In fact, implementing this policy has brought to light deficiencies in the City's Decision Band Method (DBM) compensation system. Like any major system, without a significant refresh on a regular basis, a static DBM system can become obsolete. In addition, after a review of comparable and neighboring cities, it is has become clear that most have moved away from a DBM system to market-based ones. While any employer needs to have a system — and the DBM one did work for the City for a number of years — it is clear that either the DBM needs to be updated or the City should move to a different system. Staff believes the City should explore moving to a market-based system and will be bringing a proposal to the Finance Committee in the fourth quarter of this year for a process exploring this option. Moving to a new compensation system — and even simply updating the existing DBM one so that can function as requested by Resolution 1951 — will require a budget amendment. B7: Staff strongly suggests that the City moves forward with researching and implementing a new classification and compensation system. Staff's recommendation is to move to a market-based system in 2020, that better allows for this policy to be implemented with transparency with the non -represented employees as well as our labor partners. RECOMMENDATION Staff is seeking answers to the questions raised above and will return to the next Finance Committee meeting with the full analysis discussed above. Recommendation: Implement the new market-based non -represented compensation system that will identify more accurate job classifications and compensation levels. ATTACHMENTS Resolution 1951 Resolution 1796 (repealed by Resolution 1951) Z:1Council Agenda Items\Human Resources12019 NonRep FC Oct 2812019 Non Rep Memo Final_Oct 28.docx 27