2016 DeKalb Pay & Class Study - Home | DeKalb County, GA

DeKalb County Pay & Class Study

BOC Committee of the Whole Meeting April 19, 2016

Pay & Class Study Presentation Board of Commissioners

Committee of the Whole Meeting April 19, 2016

1. Background 2. Archer Report

? Exhibits 3. Archer Implementation Options & Costs 4. Pay Progression (Police, Fire, & E911) 5. Employee Appeal Process 6. BOC Approved Pay and Class Actions & Costs 7. Remaining Departments Pay and Class Actions 8. Policy Changes

? Compensation Philosophy ? Merit Exempt Status ? Pay for Performance 9. Response to BOC Questions 10. Appendix

HR April 2016

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Background

DeKalb County has not undergone a comprehensive pay and class study in 16 years. A s a r e s u l t , p ay ranges have fallen significantly behind the market impacting the County's ability to recruit and retain quality talent. There have been a number of other issues which have directly affected employee pay:

Due to budgetary constraints, merit increases were suspended effective January 26, 2009 and have not been awarded for the last six years, nor are they included in the 2016 budget.

Employees were mandated to take a combination of furlough days and unpaid holidays in the years from 2009 through 2011.

Standard working test (probationary) increase of 5%, normally given six months after hire or promotion, was eliminated in 2011.

Employee contributions for County insurance plans have increased during these same years.

Mandatory employee pension contributions have increased from 4.5% in 2009 to the current contribution rate of 10.58% for employees in the defined benefit plan, hired prior to September 2005.

Employees hired in 2016 have a hybrid retirement plan, which has become standard in the market but problematic when coupled with low pay ranges.

DeKalb County Government is experiencing difficulty attracting qualified candidates and retaining skilled employees in critical positions due a pay plan that has not kept pace with changing economic and employment conditions. With the exception of a 3% COLA in 2014, employee salaries have remained virtually stagnant over the past seven years, creating morale issues. There is salary compression in the current structure and too many job classifications for efficient county operations. There are also inequities in the current pay plan, with certain positions being overvalued or undervalued in comparison with others based on education, experience, level of responsibility, and certifications.

In 2014, The Archer Company was hired to develop a more efficient classification system and corresponding pay plan that reflect the County's desire to be competitive in the job market.

Cost of Study Approximately $474,680

Project Timeline February 2014 ? July 2016

HR April 2016

The Archer Company is a human resources consulting firm with 30 years of experience o Specializes in the development and implementation of compensation and classification systems for local government and public sector organizations o Developed classification and compensation systems for over one thousand cities, counties, utilities, school districts, colleges, other public agencies and private organizations o Previous clients include: Fulton County Government, Chatham County, Athens-Clarke County, City of Charlotte, and City of Naples

Chip King, Project Manager & Regional Director o 16 years of management and consulting experience for local government o Specializes in human resources management, management studies, and general consulting service to local government clients

LSBE Sub-Contractor, Benalytics Consulting Group o Over 8 years of experience assisting public sector employers with management of all areas of employee benefits

HR April 2016

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COMPREHENSIVE CLASSIFICATION & COMPENSATION STUDY

Consultant's Findings & Recommendations

For

April, 2016

454 South Anderson Rd, BTC 556 Rock Hill, SC 29730

Regional Office: Atlanta, Georgia 5342 Wendwood Rd SW; Conyers GA 30094

(770) 860-8614 Fax (678) 509-8901 ? 2016, The Archer Company.

DEKALB COUNTY ? CLASSIFICATION & COMPENSATION STUDY

TABLE OF CONTENTS

PROJECT SUMMARY

ABOUT THE ARCHER COMPANY

PROJECT TASKS & METHODOLOGY

Project Planning & Management Internal Equity External Equity (Market Survey & Analysis) Pay Plan Development Proposed Pay Plan Structure

IMPLEMENTATION OF THE RECOMMENDED PAY PLAN

MAINTAINING THE PAY PLAN

FINDINGS & RECOMMENDATIONS

Exhibit 1 Market Data (Alphabetical) Exhibit 2 Market Data (Grade Order) Exhibit 3 Benefits Data Exhibit 4 Pay Schedule Exhibit 5 Job Classification List (Grade Order) Exhibit 6 Job Classification List (Alphabetical Order)

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? 2016 The Archer Company

Prepared for DeKalb County

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DEKALB COUNTY ? CLASSIFICATION & COMPENSATION STUDY

PROJECT SUMMARY

DeKalb County, Georgia (the County) hired the Archer Company to conduct a classification and compensation study for the purposes of developing a more efficient classification system and a competitive pay plan for the County. The study covered approximately seven thousand (7,000) management, professional, technical, administrative, clerical, public safety, court services, trades, and general labor positions in approximately forty-five (45) departments that provide a full scope of County services. The pay plan includes an estimated one thousand and sixty-five (1,065) active classifications in the County's current pay plan, including both merit and non-merit status positions. The County last conducted a comprehensive classification and compensation study in 2000 and completed implementation in 2002. While the original study established internal equity using a pointfactor job evaluation system, the County has maintained the classification structure internally through a combination of whole-job analysis and market pricing. The pay ranges have been adjusted only once since that time and are believed to be out-of-date. The County implemented a performance management system in 2003, however merit increases have been on hold due to the budget; the County has started to review this system internally. Prior to convening the study, the County identified multiple problems with its current pay plan:

The County is experiencing difficulty attracting qualified candidates and retaining skilled employees in critical positions due to a pay plan that has not kept pace with changing economic and employment conditions. Pay for some employees is falling behind that of new hires due to competitive pressures on hiring salaries. While Human Resources has been working to address this problem by performing extensive analysis on internal pay equity issues, salaries for some employee group have remained stagnant, creating morale issues.

The County believes that its salaries have fallen behind the competitive market, as DeKalb has lost employees to surrounding organizations for more money. No pay increases have been given in the four years leading up to the study (the County did give a cost-of-living adjustment in 2014)--while this has been generally true for most local governments, the County recognizes the need to position itself competitively as it comes out of the downturn in the economy and competition for skilled workers heats up.

The County is experiencing problems with salary compression and excessive job classifications for efficient operations. There are also inequities in the current pay plan, with certain positions being either overvalued or undervalued in comparison with others based on education, experience, and level of responsibility. The County's classification plan is bloated, and there may be a need to consolidate job titles in order to reduce the overall number of classifications.

? 2016 The Archer Company

Prepared for DeKalb County

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DEKALB COUNTY ? CLASSIFICATION & COMPENSATION STUDY

The County approved a contract in the spring of 2014, and representatives from the Archer Company have been working with Human Resources' project team to conduct the study since that time. While there were multiple components to the study, the core purpose was to update the County's pay plan to ensure that (1) all positions are properly classified based on their current duties and responsibilities; (2) classifications are placed into pay grades based on the complexity of work performed, overall responsibilities, impact of work on County operations, and other factors that contribute to the relative worth of each position in the County's hierarchy; and (3) the pay ranges for each pay grade are competitive in the market. The County identified a list of objectives and goals that would ensure success for both the study and the resulting pay plan recommendations. A successful study would:

Ensure that the County receives a high level of customer service from and the full attention of the Consultant, to include significant on-site participation by a dedicated Project Manager;

Maximize employee involvement and opportunities to provide input in the study in order to promote buy-in and acceptance of the recommendations (to include orientation meetings, questionnaires, desk audits, and an appeals process);

Solicit input from management and stakeholders regarding development of the system; and

Establish a valid and reliable methodology to evaluate jobs, establish a hierarchy of positions, correct inequities in the pay grade ranking of County positions, and ensure internal equity.

The resulting recommendations for the pay plan would be considered successful if they:

Support and strengthen the County's ability to recruit and retain qualified workers;

Reduce the number of classifications;

Balance internal and external equity and accommodate future growth and organizational needs; and

Provide for a means to maintain and sustain the pay plan, to include training for staff, consultation support, and review of the County's performance appraisal process.

With these criteria met, the proposed pay plan rests on a solid foundation of internal and external equity. In order to develop the proposed plan, the Archer Company conducted job analyses for every position, classified positions according to duties and responsibilities, evaluated every classification using a valid and reliable job evaluation system, conducted a thorough market analysis, built a new pay grade structure for the County, and calculated pay ranges that reflect the County's desired market position. We have worked with County Management to develop a strategy for adopting, implementing, and maintaining the new pay plan, which includes the estimation of payroll costs associated with the plan. To bring the project to completion, the Archer Company is preparing class specifications and working with management to facilitate an appeals process for employees.

? 2016 The Archer Company

Prepared for DeKalb County

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