HomeMy WebLinkAbout37. 12-96
FEBRUARY 28, 2012 12-96 RESOLUTION
(CARRIED___5-2_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVAL OF UNITARY PAY PLAN, RECOMMENDATIONS
AND CORRESPONDING CLASSIFICATION ASSIGNMENT LIST
FROM THE CITY OF OSHKOSH CLASSIFICATION AND
COMPENSATION STUDY FOR ALL REGULAR FULL TIME NON
REPRESENTED EMPLOYEES
INITIATED BY: CITY ADMINISTRATION
WHEREAS, the City of Oshkosh contracted with Carlson Consulting LLC and
initiated a classification and compensation study in May of 2011; and
WHEREAS, beginning in May of 2011 to date, several communications
were prepared and shared with employees and Council Members by staff and Carlson
Consulting LLC in regard to the study including multiple emails explaining the process,
extending the timeframes for participation and sharing reports, the creation of DVDs for
home checkout documenting meetings and Q&A, the creation of FAQ lists received
from Council Members and employees, meetings with employees on 5/3/11, 10/11/11,
11/18/11 & 12/14/11 and with the Council on 5/10/11, 10/11/11, 12/13/11, & 1/10/12 in
regard to the process as well as personal responses by staff and Carlson Consulting
LLC to questions made by email, phone or in person.
WHEREAS, based upon information received from the Council, city employees
and others, staff and Carlson Consulting LLC prepared and presented an addendum to
the study to Council on February 14, 2012 with final recommendations for adoption of a
classification and compensation plan.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Common Council of
the City of Oshkosh that the attached Unitary Pay Plan, Recommendations and
Corresponding Classification Assignment List from the City of Oshkosh Classification
and Compensation Study, is hereby approved and the proper City officials are hereby
authorized and directed to take those steps necessary to retroactively implement the
plan, recommendations and corresponding classification assignment list for all regular
full time non represented employees effective 1/1/2012.
BE IT FURTHER RESOLVED by the Common Council that the proper City
officials are hereby authorized and directed to take those steps necessary to implement
the employee information and appeals process regarding plan outcomes as soon as
possible after formal adoption.
FEBRUARY 28, 2012 12 -96 RESOLUTION
CONT'D
BE IT RESOLVED by the Common Council of the City of Oshkosh that the
Attached Unitary Pay Plan, Recommendations and Corresponding Classification
Assignment List from the City of Oshkosh Classification and Compensation Study for all
Regular Full Time Non Represented Employees supersede all previous pay plans and
classification lists for all regular full time non represented employees.
CITY HALL
215 ChurchAversue
P.O. Box 1130
Oshkosh, Wisconsin
54903.1130 City of Oshkosh
n
Memorandum
Date: February 22, 2012
To: Mark Rohloff, City Manager
From: John Fitzpatrick, Assistant City Manager 1 Director of Administrative Services
Re: Approval of Unitary Pay Plan, Recommendations and Corresponding Classification
Assignment List from the City of Oshkosh Classification and Compensation Study
I am pleased to report that we have finished the classification and compensation study that we have
been working on with our employees, Council Members and Charlie Carlson of Carlson Consulting.
As you know this project has been an effort to comprehensively review the classifications of all
regular City employees and the corresponding compensation that they receive.
As we have discussed, this is an important project in order to insure that we are classifying and
compensating employees correctly because of the recent changes that preclude us from
establishing 2012 pay structures in a collective bargaining context for many represented employees
and in consideration of the current as well as future economic conditions.
As a result of the assistance provided by employees and Council Members throughout this process,
I am recommending that we seek adoption of the unitary pay plan option that was discussed earlier
this month. As proposed, I believe that this single plan removes all distinctions between employee
groups, promotes organizational unity, provides the opportunity for all covered staff to be eligible for
pay - for - performance and supports uniform salary administration.
I have provided the excerpt from the REPORT ADDENDUM dated February 9, 2012 recommending
the unitary pay plan and related components. I am asking that the effective date of plan,
recommendations and corresponding classification assignment list implementation be made
retroactive to VIM 2 and intend to implement the employee information and appeals process as
soon as possible after formal adoption. I hope this information will be helpful for everyone in the
consideration of this initiative. Please review these materials and let me know if you or any of the
Council Members may have any additional questions in regard to this subject. Thank you.
cc: Charlie Carlson, Carlson Consulting, LLC
Attachments: Unitary Pay Plan & Recommendations Excerpt
Unitary Pay Plan Classification Assignment List
r�
VC5
Classification and Compensation Study
City of Oshkosh
Final Recommendations
2/22/12
012tion 4 - Create a sin le a Ian covering all em io ees that su orts a -for -
performance for all s
Pay plan development in this project has evolved. Our starting point was a traditional
step system for managers, with step advancement based on performance that at least
meets expectations. The City adopted this plan over ten years ago. The majority of the City
of Oshkosh workforce (over 500 of the 600+ employees) have been covered by collective
bargaining agreements with automatic progression involving a multitude of ranges with
automatic step increases.
Those labor agreements expired on December 31, 2011, and changes in Wisconsin
bargaining legislation precluded bargaining on wage structures for employees who are not
protective service or transit workers. Changes in employee relations law obligated the City
to determine new pay structures for the compensation management of over 200 staff. The
base pay for these employees had been regulated by multiple wage scales that everyone
acknowledged had internal equity flaws, were difficult to manage, and needed to be
replaced.
Our early policy discussions with the Council resulted in direction to develop two plans:
one for managers and professional staff that was linked to public sector markets and would
support performance based pay and a second for hourly -based employees that reflected a
more traditional step plan linked to area labor markets. The two plans presented in our
report reflected that policy direction.
This approach, however, would result in a pay program that is particularly harsh for the
hourly -based staff. Almost 180 employees would be
economic c many of them for several
years, assuming a gradual recovery to more
The City's commitment to performance management has grown during the course of
this study, and the City has become concerned that two plans would perpetuate a two -class
culture. Therefore, the City Administration and Council members asked, what would a
single plan that gave everyone an opportunity for performance - based pay look like?
Based on our analysis, the regression line and pay equation would be:
SINGLE PAY LINE
$60.00 ,T—
$54.00 — ..._. —__ ...— ._....
a
y =$ 0.047x - $.12
$40.00 }— - -- --- -.�R?= 96 -
_ - - - — �— - --
-- -
$30.00 —.
$20.00
$10.00 — —
E
� I
0,00
$
0 2Q0 400 600 800 IOD4 1200 1400
j Job Evaluation Scores for Benchmark Positions
The resulting policy line is based on a solid set of benchmarks and reflects a very high
correlation (0.96) between job evaluation scores and market survey rates for the
benchmarks. An appropriate interpretation would be that 96% of the variance in survey
results is accounted for by job evaluation scores. This is a very sound basis for a single line
pay plan, (The benchmark data is enclosed as Attachment 1.)
A unitary pay plan with control points based on the market equation from this
statistical relationship, range minimums at 87.5% of the control point, five annual steps to
reach the control point (average market rate) based upon performance meeting objectives,
and pay - for - performance eligibility available to all staff would be as follows;
Disadvantages:
1. A single plan with performance pay eligibility for all covered staff increases the
immediate pressure on management to create a performance management system.
2. Having higher pay range maximums for previously described General Employees
will not save the City as much money as the plan is implemented over the coming
years.
Recommendation
First of all, although the work required to move to a performance -based pay system
would be extensive, we want to emphasize that the City of Oshkosh isn't starting from
scratch in creating a performance measurement environment. The City already is using
performance management in several departments for both management and union
positions. In addition, all departments have been using basic performance management for
the non -union group to verify that performance at least meets expectations to qualify for a
step increase.
PTS IN GRADE
87.5% 90.0% 92.5% 95.0% 97.5% 100.0%
PAY FOR 120.0%
GRADE
FR TO
MIN STEP 2 STEP 3 STEP 4 STEPS CONTROL
PERFORM MAX
M
X1125
48.38 49.76 51.15 52.53 53.91 $55.29
3 $66135
L
1024 1125
43.97 45.23 46.49 47,74 49.00 $50.25
3 $60,31
K
931 1023
39.97 41.11 4215 43.39 44.53 $45.67
4 $54;81
J
847 930
36.32 37.36 38.40 39.44 40.47
1
770 846
33.01 33.95 34.90 35.84 36.78 $37.73
'3 $45:27
H
700 769
30.00 30.86 31.71 32.57 33.43 $34.29
3 $41;14
G
636 699
27.26 28.04 28.82 29.60 30.38 $31.16
3 $37.39
F
579 635
24.78 25.48 26.19 26.90 27.61 $28.32
3 $33.98
€
526 578
22.51 23.16 23.80 24.44 250 $25.73
4 $3
D
432 525
20.46 21.04 21.63 22.21 22.80 $23.38
$28.06. .
c
361 431
16.18 16,64 17.11 17.57 18.03 $18.49
3 $2219
8
300 360
13.47 13.85 14.24 14,62 15.01 $15.39
A
0300
10.59 10.89 11.19 11.50 11.80 $1210
3 $14.52
The classification listing for this pay plan is included as Attachment 2.
Advantages:
1. A single plan removes all distinctions between employee groups and promotes
organizational unity.
2. All covered staff would be eligible for pay - for - performance.
3. A single plan supports uniform salary administration.
Disadvantages:
1. A single plan with performance pay eligibility for all covered staff increases the
immediate pressure on management to create a performance management system.
2. Having higher pay range maximums for previously described General Employees
will not save the City as much money as the plan is implemented over the coming
years.
Recommendation
First of all, although the work required to move to a performance -based pay system
would be extensive, we want to emphasize that the City of Oshkosh isn't starting from
scratch in creating a performance measurement environment. The City already is using
performance management in several departments for both management and union
positions. In addition, all departments have been using basic performance management for
the non -union group to verify that performance at least meets expectations to qualify for a
step increase.
Where the City needs to improve is in building out its performance management system
so that it operates across the organization in a consistent manner. This will be an evolution
from a basic system to more complex variations as implementation takes hold. Probably
the most difficult task will be training first and second line supervisors in effective
performance evaluation and communication.
We also want to stress that performance -based pay isn't just about individual
performance and individual pay increases. It's likely the City will devise certain payouts
that are based on group performance and group outcomes.
In our experience, there are three necessary conditions that must be met if an
organization is going to have a successful performance -based pay program.
1) The pay structure has to be internally equitable.
We believe the extension of the City's point factor job evaluation system to all
employees (protective service and transit staff excluded) with a simplified pay structure,
an appeal process, and a program for on -going classification administration will enable the
City to keep its system equitable internally. As jobs change in the future, and they will
change, we can apply the point factor system to determine an accurate grade allocation.
2) There must be sound performance measures with a system that provides feedback to
staff and an accurate performance score.
To meet this challenge, the City Manager has indicated that he will assign program
development responsibilities to the Assistant City Manager /Director of Administrative
Services and promote the Human Resource Generalist to Human Resource Manager to
handle day -to -day division responsibilities. In addition, the City Manager will assign the
Management Assistant to work with departments to create objectives and measures. The
City has a basic performance management tool sufficient to support its step pay program.
Moving to a more "open" range pay delivery model will require better measurement.
Following our discussions regarding system design, the City Manager has committed to
the following quarterly implementation sequence schedule for system design in 2012:
• Q2 - Department Heads
• Q3 - Managers and Supervisors
• Q4 - All Employees
This is major commitment that can succeed. To develop performance standards and
measures, a key source staff will use is the Job Description Questionnaire (JDQ) completed
for this study. In completing the JDQ, each employee was asked to specify how each
essential job duty could be measured, so there is significant, sound, current information to
build upon.
One of the biggest challenges in managing performance evaluations for over 400 staff is
system management. Fortunately, the supporting tools are now available. The City has
vendor experience with a firm called NEOGOV (www.N LOGO .com) for all of its
recruitment management, and we are in discussions with NEOGOV for a contract for the
firm's performance management software module. Human Resources and our firm have
reviewed the software.
I feel confident recommending this application to the City. The Human Resource staff
and our firm believe that the application will enable the City to develop its performance
measures jab -by -job, load them into the software application, and manage the process in a
very timely, hands -on manner.
The City has to commit itself to success and consistency, and this commitment has to be
from the top of organization. We note that the City Manager now has implementation of a
performance management system in 2012 as one of the performance targets agreed upon
with the City Council. That's the right place to start.
It is expected the City Manager and all department heads would implement a
performance management program for their positions that is consistent with the City's
strategic objectives. Next, the department heads will have to create performance
expectations and measures for all managers and supervisors. Finally, the system will be
extended to all staff.
The city strongly emphasizes effective communication regarding service performance.
Externally the City has programs involving community surveys about municipal services,
and an initiative with the International City Management Association regarding service
benchmarks.
One of the challenges to be met head on is adapting the internal communication
patterns caused by changes in collective bargaining as we have known it traditionally.
To address this concern, we recommend the City also develop two formal internal
communication processes:
The first involves creating focus groups that are representative of the entire workforce
to work with human Resources through the performance management design and
implementation phases. The focus group leader should be from outside the organization to
insure objectivity. Focus groups will surface employee concerns and ideas for effective
implementation.
The second feedback initiative requires creating an employee opinion /satisfaction
survey that can be administered anonymously on a regular basis to measure employee
viewpoints on a variety of important issues, including the performance management
system. This approach will give all employees a voice that will be heard with results that
can be used to track progress.
In order to be successful, the new system also needs a chance to become better. The
City is not going to get everything right the first time, or the second, or the third
performance measurement cycle. However, with resource dedication, commitment to
success, and good feedback mechanisms, the City can develop the accuracy and consistency
necessary for acceptance and real organizational improvement.
3) The third requirement for a successful performance -based pay system is money — the
system has to be funded adequately. For the first couple of years, there may not be much
money to fund raises of any significance and, to the extent the City ties performance to
individual pay changes, it's likely to be in the form of one -time exceptional performance
awards.
To put this in perspective, the City's long -range financial planning group is reviewing a
challenging immediate future. Under the most positive assumptions, the City will have to
deal with a shortfall that grows to over $2.2 million by 2017. Under worse assumptions,
the gap is over $8 million. Managing that financial challenge will require a very specific
strategic plan.
How do you fund performance -based pay in this climate? Answer: You link
performance measurement to the City's very detailed strategic objectives and find the
efficiencies necessary to close the gap, trying to create resources to reward employees,
albeit modestly, for helping the City to close the gap. The new pay plans will help. We
project salary savings alone of over $1 million when fully implemented. Clearly much more
will be needed, beginning fairly immediately. However, fiscal dedication from the Council
supporting performance based pay will be required.
In the mid 1990's, we had a client facing a significant financial challenge. That client
created and implemented a detailed strategic plan that trimmed city services to a focused
core, out - sourced wherever it made sense, set aside sufficient funds off the top to finance
infrastructure requirements, and reduced staffing through attrition. We assisted by
simplifying the compensation plan and emphasizing performance management. In fact,
employees did not receive pay increases until the City was re- positioned and moving
forward again.
Each client's circumstances are unique, and the City of Oshkosh is engaged in
determining its future financial course. We do feel however, that the steps our former
client needed to take to balance its budget and protect infrastructure are informative and
likely to be repeated in many municipalities across the country.
We want to emphasize here that the City Council did not give us policy direction in late
2011, nor did we develop our pay plan recommendations, knowing the extent of a
projected shortfall. We knew that the City was balancing its 2012 budget using a
combination of higher employee benefits contributions and a pay freeze. The policy
objective continues to be to preserve public services. Because public services depend on
quality public employees, this has to a key emphasis.
Our expectation is that any raises near term will be conditioned on significant cost -
savings, not revenue increases. Our recommendation is that this is the perfect opportunity
to implement performance management -- the City may never need it more than it needs it
now.
CITY OF OSHKOSH
STAFF PAY PLAN
87.5% 90.0% 92.5% 95.0% 97.5% 100.0% 120.0%
GRADE MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX
M 48.38 49.76 51.15 52.53 53.91 $55.29 $66.35
Assistant City Manager /Director of Administrative Services
Director of Public Works
L $43.97 $45.23 $46.49
City Attorney
Director of Finance
$47.74 $49.00 $50.25 60.31
K $39.97 $41.11 $42.25 $43.39 $44.53 $45.67 $54.81
Director of Community Development
Fire Chief
Police Chief
7 $36.32 $37.36 $38.40 $39.44
Assistant Director of Public Works /City Engineer
Director of Parks
Director of Transportation
Public Works utility Bureau Manager
I $33.01 $33.95 $34.90 $35.84
Assistant City Attorney
Assistant Fire Chief
Director of Museum
Director of Senior Services
Human Resources Bureau Manager
Information Technology Bureau Manager
Planning Services Division Manager
Police Captain
Public Works Field Operations Bureau Manager
$40.47 $41.51 $49.81
$36.78 $37.73 $45.27
ATTACHMENT 2.1
CITY OF OSHKOSH
STAFF PAY PLAN
87.5% 90.0% 92.5% 95.0% 97.5% 100.0% 120.0%
GRADE MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX
H $30.00 $30.86 $31.71 $32.57 $33.43 $34.29 $41.14
Assistant Finance Director
Chief Building Official
City Assessor
City Clerk
Civil Engineering Supervisor
Economic Development Expeditor
General Services Bureau Manager
Wastewater Treatment Plant Division Manager
Water Distribution Division Manager
Water Filtration Plant Division Manager
G $27.26 $28.04 $28.82 $29.60 $30.38 $31.16 $37.39
Civil Engineer Senior
Deputy City Assessor
Electrical Traffic Division Manager
Financial Accounting Division Manager
Financial Utility Division Manager
Golf Course Division Manager
Landscape Operations Division Manager
Parks Operations Division Manager
Parks Revenue & Facilities Division Manager
Principal Planner - Housing & Neighborhoods Coordinator
Principal Planner - Land Use /CDBG Coordinator
Public Works Mechanic Division Manager
Public Works Street Supervisor
Transportation Mechanic & Maintenance Division Manager
ATTACHMENT 2.2
CITY OF OSHKOSH
STAFF PAY PLAN
$7.5% 90.0% 92.5% 95,0% 97.5% 100.0% 120.0%
GRADE MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX
F $24.78 $25.48 $26.19 $26.90 $27.61 $28.32 $33.98
Archivist
Assistant Director Of Museum
Assistant Water Distribution Division Manager
Associate Planner /Zoning Administrator
Chemist
Community Media Services Coordinator
Curator
Environmental Health Specialist
GIS Administrator
Media Services Operations Specialist
Office Administration Division Manager
Program Coordinator
Public Health Nurse
Registrar
Safety & Risk Management Coordinator
Wastewater Maintenance Supervisor
Wastewater Treatment Plant Supervisor
E $22.51 $23.16 $23.80 $24.44 $25.09 $25.73 $30.88
Associate Planner /GIS Specialist
Benefits & Wellness Coordinator
Building Systems Inspector
Civil Engineer
Community Program Coordinator
Crime Analyst
Database Administrator
Golf Professional & Clubhouse Supervisor
Graphic Artist
industrial /Electrical Technician
Lead Civil Engineer Technician
Maintenance Coordinator
Marketing & Membership Coordinator
Payroll & Training Coordinator
Programmer /Analyst
Public Works Sanitation Division Manager
Sanitarian
Transit Coordinator
Transit Operations Supervisor
ATTACHMENT 2.3
CITY OF OSHKOSH
STAFF PAY PLAN
87.5% 90.0% 92.5% 95.0% 97.5% 100.0% 120.0%
GRADE MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX
D $20.46 $21.04 $21.63 $22.21 $22.80 $23.38 $28.06
Administrative Assistant
Civil Engineer Technician
Deputy City Clerk
Electrical Mechanical Technician
Electrician
Engineering Specialist
Equipment Mechanic
Executive Assistant
Exhibit Technician
Housing Inspector
Housing Specialist
Instrumentation Technician
Lead Arborist
Lead Cashier
Lead Cemetery Worker
Lead Construction Worker
Lead Equipment Operator
Lead Parks Maintenance Worker
Lead Vehicle Mechanic
Lead Water Equipment Operator
Lead Water Maintenance Worker
Maintenance Mechanic
Management Assistant
Plant Electrician
Plumbing Inspector /Pretreatment Coordinator
Property Appraiser
Senior Buyer
Telecommunications Specialist
Vehicle Mechanic
ATTACHMENT 2.4
CITY OF OSHKOSH
STAFF PAY PLAN
87.5% 90.0% 92.5% 95.0%
GRADE MIN STEP 2 STEP 3 STEP 4
C $16.18 $16.64 $17.11 $17.57
Account Clerk II
Arborist
Building Maintenance Custodian
City Sealer
Clerk Dispatcher
Court Liaison Clerk
Equipment Operator
Horticulturist
Lead Sanitation Operator
Office Assistant
Parks Maintenance Worker
Parks Trades Technician
PC Hardware Technician
Production Specialist
Property Evidence Clerk
Traffic Painter
Utility Operator
Wastewater Treatment Liquids Operator
Wastewater Treatment Solids Operator
Water Filtration Operator
Water Maintenance Worker
Water Meter Service Worker
Welder
97.5%
STEP 5
$18.03
100.0%
CONT PT
$18.49
120.0%
MAX
$22.19
ATTACHMENT 2.5
CITY OF OSHKOSH
STAFF PAY PLAN
87.5% 90.0% 92.5% 9510% 97.5% 100.0% 120.0%
GRA MIN STEP 2 STEP 3 STEP 4 STEP 5 CONT PT MAX
B $13.47 $13.85 $14.24 $14.62 $15.01 $15.39 $18.47
Account Clerk I
Cashier
Computer Operator
Groundskeeper
Parking Control Officer
Receptionist
Records Clerk
Sanitation Operator
Secretary
Shop Maintenance Worker
Technology Support Services Coordinator
Telecommunications Clerk
Wastewater Treatment Maintenance Worker
Word Processing Operator
Zoo Specialist
A $10.59 $10.89 $11.19 $11.50 $11,80 $12.10 $14.52
Vacant
ATTACHMENT 2.6