HomeMy WebLinkAbout2023 SALARY STUDY DELIVERABLE PRESENTATION (2)PROJECT DESCRIPTION & METHODOLOGY
KEY FINDINGS
•The City of Rexburg’s pay levels, taken in total, are 97% of (or slightly
below) “the market” (the mid-market comparison ratio averages of
your comparators) and 34% above the peer minimum and 25% below
the peer maximum. Our analysis suggests that the City’s
compensation is at market or slightly below.
•Detailed market data for each position can be found in the
Compensation and Market Comparability section below.
Additional items to consider:
•While there are variations among individual positions, it is important to keep in mind
that being above or below market does not necessarily mean that someone is “overpaid”
or “underpaid” but rather shows the overall comparability of the market.
•We received over 5,600 lines of data from the peers in this survey. To ensure we were
comparting equitably, we eliminated all peer data for positions that were making less
than $15,000 annually. Upon further exploring this, we found that most peers included
part-time and seasonal positions.
•The Years of Experience provided by peers was minimal and shouldn’t be assumed that it
reflects actual Years of Experience in the compared positions versus years of experience
at the organization. To this end, adjustments in compensation relative to the “Years”
results were not made and are presented only for your information.
•Relative to the selected peers, any cost-of-living differences and assumed commuting
expenses should be considered in any further analysis.
•Specialists in the Police Department at the City of Rexburg have specialties built into their
job description which determine the level of pay. However, we found that most peers
provide “Specialty Pay” on top of base-pay, so it was difficult to find equitable peers.
COMPENSATION & MARKET COMPARABILITY
•To determine appropriate pay rates, we utilized a customized market survey to gather information
on what the competitive labor market pays for similar positions. We collected information on pay
ranges and current, actual salaries in the event no range was available.
•Staff determined that the study provided sufficient and relevant actual pay data, but samples
for pay range came in insufficient
•Taken in total, Rexburg’s compensation is approximately 3% below the market as compared to
the market medians. In reviewing the individual position results, keep in mind that being above or
below market doesn’t necessarily mean someone is “overpaid” or “underpaid.” Rather, this is a
simple way to gauge overall comparability to market. In comparison to the identified peers, our
analysis reveals that the City of Rexburg is at market or slightly below.
•Tables 1-3, on the following pages, include the Market Averages, Compensation-Ratios, and
Position in Range calculations. The Compensation Ratios were calculated by the City’s pay rate
divided by the market average for minimum, midpoint, average, and maximum pay rates. These
tables are sorted by their Median Compensation Ratio results, high to low, for easy viewing. We
generally consider positions to be “at market” if they are +/-12.5% of the market median. The
Position in Range analysis is like the Compensation Ratio but shows how deep into the position’s
pay range their actual compensation is positioned. Taken in total, our analysis suggests that the
City’s overall compensation is at or slightly below market relative to its identified peers.
•Staff recommendations to follow in study utilized the Compensation Ratio Average along with a
9.75% at market analysis in addition to organizational business decisions when making
recommendations for grade and or actual pay changes
Salary Study Final Staff Recommendations
Proposed Policy
•Continue to use the City of Rexburg Grade/Step Compensation System based on merit.
•Utilize the Compensation Ratio Average along with a 9.75% at market analysis in addition to
organizational business decisions when making recommendations for grade and or actual pay
changes.
•No current employees will have pay reductions as a result of the study if grade is
recommended to go down.
•If the study suggests a change in the grade of a position, it does affect the salary range
and long-term earning capacity for the position.
•Wage changes are recommended in the following situations:
•If a grade increase is given that would take an employee's respective step below a 1, then a wage
adjustment would be made to bring their step up to the minimum of 1 in the new salary range.
•A wage adjustment of 2% or 2 steps is recommended per grade increase to help bring actual pay
closer to that of the market.
Salary Study Final Recommendations
Salary Study Final Recommendations
Salary Study Final Recommendations
Salary Study Final Recommendations
Costs to Approve Recommendations
•2% Increase in Actual Salary Pay per Grade Change
•Fiscal Year 2023 effective date 6/3/2023 $ 60,986
•Fiscal Year 2024 $213,623
•Minor increases would occur related to overtime/benefits
•Fiscal Year 2023 Budget Adjustment would be required
•See Budget Adjustment
•Ongoing costs would need to be budgeted through the
regular budget process
Process Moving Forward
•Would need a motion to adopt Salary Study
•To Include new Grade Changes
•To Include Actual Pay Changes and effective date
•Motion to adopt Fiscal Year 2023 Budget Adjustment
•Once approved by the City Council, Human Resources
to make position updates in HR and Payroll System
prior to effective date and communicate to employees