HomeMy WebLinkAboutFIN 2017-04-04 Item 2B - Discussion - Employee Compensation PolicyCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO:
Finance Committee
FROM:
Stephanie Brown, Human Resources Director
CC:
Mayor Allan Ekberg
DATE:
March 29,2Q17
SUBJECT: City Council Resolution No. 1796 Establishing a compensation policy for
City Employees
ISSUE
The Finance Committee met OD February 22tO review and discuss City Council Resolution No.
1790, establishing 8 compensation policy for City Of Tukwila employees. The Committee has
asked for an assessment from the Human Resources Department, who administers the City's
compensation program, OD how the compensation policy has worked from their perspective.
BACKGROUND
HeGO|uUOn NO. 1798 sets the cO[8 compensation v8|V8 statements of the City Council. The
statements reflect the Council's desires to utilize standardized policies, procedures and
processes whenever possible for compensating all employee groups, both non-represented and
represented. |t provides aO attempt tO balance internal equity and external competitive interests
iO one comprehensive policy. Below iS8 summary Of the successes and challenges vvehave
experienced.
ASSESSMENT
In application of Resolution No. 1796, Human Resources has found it to be very useful in
establishing compensation for non-represented employees and iD collective bargaining Of
salaries and benefits. The policy has been useful for external market analysis k} classify new
positions and to reclassify existing positions, both for represented and unrepresented positions.
In the Collective Bargaining process it has provided an objective framework for addressing
compensation issues; ii has been flexible, manageable, fair, representative Vf the market tO
which the Council seeks tO compare; used in good faith under our collective bargaining statute
RCVV41.50tO explain Council goals tO unions and employee groups; sets practical parameters
for pay and benefit considerations; guides the Human Resources staff iD the pre-collective
bargaining process as to what the Council expects to receive for consideration in preparation for
labor negotiations.
ASit relates tO the classification Of new positions and the reclassification Ofexisting positions, it
provides the external market criteria iO benchmark our positions fairly and consistently;
provides consideration for internal comparability; identifies the data collection resources tOuse
when conducting eXt8[DG| market analysis; sets parameters for when 8 market study will be
conducted and when 8 cost {f living adjustment will b8considered; and it provides direction
when deviation from the process may be necessary and to mitigate issues associated with
salary compression.
The challenges VVe have experienced have generally been when m0have positions for which VV8
are not able to find benchmark comparators based upon the duties of the position (standard for
a valid match is 5 positions). In this instance, we look at comparison positions in our
surrounding jurisdictions known as our traditional cities. Often because these traditional cities 5
INFORMATIONAL MEMO
Page 2
have more positions due to their larger organizational structure we have more success in finding
a comparable match. In addition, recently when the market for a certain position was highly
competitive such as Building Inspector, we were not able to attract qualified applicants. This
does not detract from the usefulness of the Council policy. During these times, we look for
creative, innovate 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
specifically in Law Enforcement. These are areas in which Resolution 1796 is silent.
This is being provided as information only, and I look forward to discussing this information with
you further at your meeting on April 4, 2017.
Attachment
Recent History of City of Tukwila Compensation Policy
0
Recent History of City of Tukwila Compensation Policy
1986 Resolution 999
The City's compensation system should reflect average to upper average (2nd quartile)
compensation among the various employment markets in which the City competes for qualified
labor.
Salary ranges shall be periodically compared and established based on the geographic area
from which each position is recruited.
The City shall develop and maintain a point factoring method of job evaluation and
compensation.
Each city position shall be carefully described and measured against predetermined factors to
insure internal equity, with prevailing or market wages acting to ensure external equity.
A standard ratio, based on Tukwila's historical data, should be maintained between fringe
benefits and base salary.
1993 Resolution 1271
The City should maintain a competitive position and ability to select and retain a competent,
qualified and productive work force.
The City's compensation system should reflect average compensation among the various
employment markets in which the city competes for qualified labor.
1997 Resolution 1387
Classifications shall be based on the Decision Band method for the non-represented
employees. Comparative analysis for all other positions shall be as determined by the
Administrative Services Director based on internal and external factors inherent to the specific
classifications.
A mix of wages and benefits shall be provided based on a value equal to that of the average of
the defined market.
2013 Resolution 1796
A. Information to be provided to the City Council.
For Represented Employees. A written presentation of current internal and local external
public agency salary and benefit trends, including a salary and benefits market survey of
comparable jurisdictions, as defined herein, will be provided to the City Council. This
presentation must be made to the Council prior to the commencement of negotiations
with the bargaining units regarding salary and benefits. The City Council and
Administration will discuss represented employee group negotiation expectations,
negotiating points, salary and benefit change floors and/or ceilings prior to the beginning
and at appropriate points during negotiation sessions.
2. For Non-Represented Employees. Avv[itteD D[SG8Dt@|iDD of current iOteDl8| and |008|
external public agency salary and benefit trends, including a salary and benefits survey of
comparable jurisdictions, as defined herein, will be provided to the City Council every year that a
non-represented salary increase is due. Relevant Association of Washington Cities (AWC) data
from the previous year's Washington City and County Employee Salary and Benefit Survey, for
the comparable jurisdictions, will b8 used in the salary market survey.
B. Compensation Policy.
1. All Puget Sound jurisdictions with R+/ 5O96ofTuhxv|a'o annual assess valuation, based
upon the Department Vf Revenue data, will b9 used tO create the list Of comparable jurisdictions
for evaluation of salary iOf00O@ii0O. It is desirable to use the SGOOe CODlp@r8b|e jurisdictions for
both represented and non-represented employee groups.
2. For non-represented employees, the City desires to pay the average salary for the particular
pay scale, 8G derived from the comparable jurisdiction data described in Section D.1.|fthe
City's pay scale for any classification does not represent the average of comparable salary
ranges (f/5%)' written justification must be provided tO the City Council. For represented
employees, the City desires iD pay salaries that are competitive to the City's comparable
3. The cost-of-living adjustment (COLA) in odd-numbered years for non-represented employees
shall b8 based upon S0q60f the S88[Ue'T8COnl8, Bremerton Consumer Price Index (CP|-VV)
Average (June 0DJuOe).UiS desirable k} calculate represented COst-of-|iVing adjustments the
same way, unless 8 different method is authorized by the Council.
4. The goal O[ the City i8to establish parity between represented and non-represented
employees' benefits. The City desires to provide employee benefits that are competitive to the
C0nlD8n8b|e cities described herein. The City will endeavor iO keep increases to annual health
care costs under market averages. |fcosts exceed market averages, adjustments will bemade
tO reduce benefit costs.
5. The goal of the City is to mitigate or avoid salary compression issues where possible. An
example of salary compression would be when a non-represented supervisor earns less, or is
projected to earn less than those that he/she supervises due to contracted wage increases.
G. |f the Administration determines that Gdeviation from the above p[OCeSG /in its entirety O(for
individual positions) is necessary, it will provide justification to the City Council for review and
approval prior 1O the adoption {f any process change.
WHEREAS, the City has made G determination to, when economic conditions allow, provide
benefits tO represented and non-represented employees that are slightly above the average Of
cO0pG[8h|e jurisdictions; and
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