2017.09.05 WS Agenda C - Laserfiche WebLink

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2 Survey respondents were asked to provide information on only those City of New Brighton positions which they considered to be comparable to positions in their organizations. Therefore, survey respondents did not provide data for every position surveyed. Survey Results. This survey was conducted using data from comparable employers in the region. The survey included 44 full-time and regular part-time City positions, 39 positions were included in the overall analysis. On average the minimum, midpoint and maximum wages of the surveyed positions are below the market, with minimum salaries 6.54% below the market, midpoint salaries 6.67% below the market and maximum salaries 6.75% below the market. For comparison purposes, wages which are within 5% above or below the market average are considered to be competitive. A more comprehensive review of individual position ranges indicates that in a comparison of minimum wages, 9 positions are competitive with the market (within 5% above or below), 4 positions are above the market and 22 positions are below the market average. A comparison of midpoint salaries indicates that 13 positions have midpoint ranges which are competitive with the market, 1 position has a midpoint which is above the average and 21 positions are on average below the average midpoint. A comparison of the maximum wages of the salary ranges indicates that 11 position are competitive with the market, 1 position is above the average and 2 positions are on average below the average maximums reported by the survey participants. Non-Union Positions. A review of the salary survey information for the City’s 36 non-union positions indicates that salaries are less competitive with the market than the City’s union positions. The minimum salaries are 7.46% below the market, midpoint salaries are 7.35% below the market and maximum salaries 7.27% below the market. Union Positions. The City has 8 union positions. On average the positions are competitive with the market (within 5% above or below the average). The minimum wages are, on average .66% below the market, midpoint wages are 1.08% below the market average and maximum wages are 2.08% below the market average. A summary of the market survey results can be found in Appendix I. Compensation Philosophy. A pay philosophy guides the design of a compensation system and answers key questions regarding pay strategy. It generally takes a comprehensive, long term focus and explains the compensation program’s goals and how the program supports the employer’s long-range strategic goals. Without a pay philosophy, compensation decisions tend to be viewed from a short-term tactical standpoint apart from the organization’s overall goals. Market competitiveness and internal equity are among the most important areas addressed in a pay philosophy. An organization’s desired market position involves defining the market and identifying where the organization wants to be positioned within that market. Market position should balance what it takes to attract new employees and retain skilled employees (in other words, eliminate higher pay as the reason employees leave the organization) with the organization’s financial resources. Internal equity expresses an organization’s desire to provide comparable pay to positions with comparable duties and responsibilities. A pay philosophy should be developed that establishes a compensation program based on individual employee performance as a key feature of the pay philosophy. Therefore, we emphasize references to performance in the pay philosophy discussion. As part of the study, it is recommended that the City consider these concepts in the adoption of a formal pay philosophy: