2016 DeKalb Pay & Class Study

1 DeKalb County Pay & Class Study BOC Committee of the Whole Meeting April 19, 2016 1. Background2. Archer Report Exhibits3. Archer Implementation Options & Costs4. Pay Progression (Police, Fire, & E911)5. Employee Appeal Process6. BOC Approved Pay and Class Actions & Costs7. Remaining Departments Pay and Class Actions8. Policy Changes Compensation Philosophy Merit Exempt Status Pay for Performance9. Response to BOC Questions10. Appendix Pay & Class Study Presentation Board of Commissioners Committee of the Whole Meeting April 19, 2016 HR April 2016 HR April 2016 Background DeKalb County has not undergone a comprehensive pay and Class Study i n 16 yea r s. A s a r e s u l t , pay ranges have fallen significantly behind the market impacting the County's ability to recruit and retain quality talent.

2 There have been a number of other issues which have directly affected employee pay: Due to budgetary constraints, merit increases were suspended effective January26, 2009 and have not been awarded for the last six years, nor are they includedin the 2016 budget . Employees were mandated to take a combination of furlough days and unpaidholidays in the years from 2009 through 2011. Standard working test (probationary) increase of 5%, normally given six monthsafter hire or promotion, was eliminated in 2011. Employee contributions for County insurance plans have increased during thesesame years. Mandatory employee pension contributions have increased from in 2009 tothe current contribution rate of for employees in the defined benefitplan, hired prior to September 2005. Employees hired in 2016 have a hybrid retirement plan, which has becomestandard in the market but problematic when coupled with low pay 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.

3 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 Return to Table of Contents HR April 2016 The Archer Company is a human resources consulting firm with 30 years of experience oSpecializes in the development and implementation of compensation andclassification systems for local government and public sectororganizationsoDeveloped classification and compensation systems for over onethousand cities, counties, utilities, school districts, colleges, other publicagencies and private organizationsoPrevious clients include.

4 Fulton County Government, Chatham County,Athens-Clarke County, City of Charlotte, and City of NaplesChip King, Project Manager & Regional Director o16 y ears of management and consulting experience for local governmentoSpecializes in human resources management, management studies, andgeneral consulting service to local government clientsLSBE Sub-Contractor, Benalytics Consulting Group oOver 8 years of experience assisting public sector employers withmanagement of all areas of employee benefitsCOMPREHENSIVE CLASSIFICATION & COMPENSATION Study Consultant s Findings & RecommendationsFor 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. Return to Table of ContentsDEKALB COUNTY CLASSIFICATION & COMPENSATION Study 2016 The Archer Company Prepared for DeKalb County Page 1 TABLE OF CONTENTS PROJECT SUMMARY PAGE 2 ABOUT THE ARCHER COMPANY PAGE 5 PROJECT TASKS & METHODOLOGY PAGE 7 Project Planning & Management Page 07 Internal Equity Page 09 External Equity (Market Survey & Analysis) Page 14 Pay Plan Development Page 19 Proposed Pay Plan Structure Page 20 IMPLEMENTATION OF THE RECOMMENDED PAY PLAN PAGE 23 MAINTAINING THE PAY PLAN PAGE 24 FINDINGS & RECOMMENDATIONS PAGE 26 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)

5 DeKalb COUNTY CLASSIFICATION & COMPENSATION Study 2016 The Archer Company Prepared for DeKalb County Page 2 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.

6 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 point-factor 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 employeesin critical positions due to a pay plan that has not kept pace with changing economic andemployment conditions.

7 Pay for some employees is falling behind that of new hires due tocompetitive pressures on hiring salaries. While Human Resources has been working to address thisproblem by performing extensive analysis on internal pay equity issues, salaries for some employeegroup have remained stagnant, creating morale issues. The County believes that its salaries have fallen behind the competitive market, as DeKalb has lostemployees to surrounding organizations for more money. No pay increases have been given in thefour years leading up to the Study (the County did give a cost-of-living adjustment in 2014) whilethis has been generally true for most local governments, the County recognizes the need to positionitself competitively as it comes out of the downturn in the economy and competition for skilledworkers heats up.

8 The County is experiencing problems with salary compression and excessive job classifications forefficient operations. There are also inequities in the current pay plan, with certain positions beingeither overvalued or undervalued in comparison with others based on education, experience, andlevel of responsibility. The County s classification plan is bloated, and there may be a need toconsolidate job titles in order to reduce the overall number of COUNTY CLASSIFICATION & COMPENSATION Study 2016 The Archer Company Prepared for DeKalb County Page 3 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.

9 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 theConsultant, 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 promotebuy-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, correctinequities in the pay grade ranking of County positions, and ensure internal 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, consultationsupport, and review of the County s performance appraisal these criteria met, the proposed pay plan rests on a solid foundation of internal and external equity.

10 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. DeKalb COUNTY CLASSIFICATION & COMPENSATION Study 2016 The Archer Company Prepared for DeKalb County Page 4 This report details the findings and recommendations of the classification and compensation Study , and presents the newly developed proposed pay plan for consideration by both management and the Board of Commissioners.