HomeMy WebLinkAboutFIN 2018-05-22 Item 2A - Update - Compensation Policy and Proposed Timeline for DiscussionCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Stephanie Brown, Human Resources Director
CC: Mayor Allan Ekberg
DATE: May 16, 2018
SUBJECT: Review of Compensation Policy Resolution No. 1796
Note: Because this topic is building on previous Committee meetins, the original memo has
been updated in underline font below. This intent is to continue to preserve the information from
one meeting to the next given that each wdiscussion will build upon the previous.
ISSUE
The City Council and Administration have committed to review and discuss Resolution No. 1796, which
sets policy for compensation and benefits for City employees.
BACKGROUND
Beginning in the 1980's, the City Council adopted various resolutions regarding compensation policy.
These resolutions focused on several common themes including:
1) An overarching goal to maintain a competitive position in the market place;
2) The desire to select and to retain a competent and productive work force;
3) The compensation system should reflect average compensation among the various employment
markets in which the City competes for qualified labor;
4) Provides that classifications shall be based upon the Decision Band Method (DBM), for the
represented and non -represented employees;
5) A comparative analysis for all positions shall be determined based upon internal and external
factors;
6) A mix of wages and benefits shall be provided based on the average or above average of the
defined market.
These resolutions have since been updated and replaced over time, with many of these provisions carrying
forward over the years.
In 2013, Resolution No, 1796, was adopted which sets core value statements, specifically that the City
desires to utilize standardized policies, procedures and processes whenever possible for compensating all
employee groups, both non -represented and represented.
From the Human Resources perspective, since the adoption of this policy in 2013, it has been effectively
used as a guide and serves to establish criteria for use when conducting analysis for salary and benefits. In
the Collective Bargaining process, it has been objective; manageable, fair, representative of the market to
which you chose to compare; used in good faith under our bargaining statue RCW 41.56; reduces the
comparisons to those groups that are represented; sets parameters for pay and benefit considerations; it
guides the pre -collective bargaining process as to what the City expects to receive for consideration in
preparation for labor negotiations.
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INFORMATIONAL MEMO
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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 ad',u
.. - specifically define what compensation standard would be used
stm,erts
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 positions.
4. Recruitment — review what barriers exist when it is a highly competitive external market, and ways to
attract and retain future employees.
Follow Up from the March 20, Finance Committee Meeting
At the March 20, Finance Committee meeting. Committee members r
equeSted the following components
be included in the analysis and review
• A.n......... dated ma-ket study.;
up... ....
• Input and reconneu ationsfrom om the non -represented employee groups;
mmm
•
Background and evaluation of decision band methodology:
• Ana;lys„„s,,,,,,,,on,,,,gen„der neutrality, desk audits. and appeal process, performance reviews and
Merit pay;
• Understandingofeompresson....and when it has been an issue.
In addition the Council committee re.uested that Administration •rovide a revised timeline for review
and adoption of changes to Resolution No. 1796 by the full City Council: The schedule below meets the
Court....it requests for a
c r compensation workshop for the Council and for a deadline of September.
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INFORMATIONAL MEMO
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22 - Review the he revised timeline with the Committee and address any additional
.......
considerations to Resolution 1796;
June (TBD) Conduct a compensation workshop for the City Council
Committee discussion:
July 3
- review Compensation workshop and next steps
review non -represented em.lovee input
Review and discuss 2017 data
- of the external market study,
July 17 - Finalize scope of policy review of Resolution 179(
August 7- Review and discuss updated 2018 data for the external market study
.............(Note AWC 2018 Data results are published end of July)
Review and discuss committee considerations
Review and discuss committee considerations (if necessary)
September 4- Finalize recommendations for City Council consideration
September 10- Bring recommendations to the City Council for review and discussion;
September 17- Adoption of chances to Resolution No. 1796 for implementation
Auuust 21 -
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