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2/20/2020 - Meeting MinutesPage 1 of 3 Minutes Meeting Citizens’ Compensation Advisory Committee February 20, 2020 Members Present: Frances Hume Marlene Sloan Jeff Worthington Jeff Herring Ray Schelble Mike Terry Brandon Dew Members Excused: Staff Present: David Salazar, City Compensation Administrator Carolyn Campbell, Benefits Program Manager Guests: Ben Luedtke, City Council Staff Jaysen Oldroyd, City Attorney’s Office Steven Winters, SLPA Lisa Duckworth, HR Business Partner A recording of these proceedings is on file and available by request from the SLC- HR Department. Meeting Open & Welcome: Chair Frances Hume called the meeting to order and established a quorum, including all members of the committee, were present. Review and adopt January 23, 2020 & February 6, 2020 meeting minutes: After noting a few minor edits, a motion to approve the minutes of meeting held on January 23rd was made by Jeff Herring and Jeff Worthington, respectively. Similarly, a motion to approve the minutes for the meeting held on February 6th was made by Mike Terry and Brandon Dew, respectively. Both sets of minutes were unanimously approved by the members present. Public Comment: None. Discussion of topics and recommendations to be included in 2020 annual report: Frances remarked this year’s review is the most comprehensive look at compensation, as well as benefits, in recent years. With as many topics and as much information to review for this year’s annual report, Frances suggested the Committee initially review the latest living wage data and WorldatWork salary budget forecast information. David Salazar presented an overview and summary of results obtained from WorldatWork’s 2019-20 salary budget forecast. He noted these results forecast a 2.5% for general increases and 3% for merit increases. Total salary budget forecast for 2020 remains flat at 3% for 2020 (which is the same increase actually given for the past three years). Regarding overall cost of living, along with the City’s employee turnover and recruitment statistics, David relayed the following statistics and information to committee members: - National consumer price index decreased slightly from the previous year from 2.4% to 2.1%; - A breakdown of turnover statistics by department; - David noted numbers for overall turnover statistics from 2018 to 2019 require additional review and would be reported in the committee’s next meeting. - Committee members discussed what differences may exist between voluntary and involuntary turnover. - Total number of job postings increased from 339 in 2018 to 434 in 2019, including single postings for multiple positions Page 2 of 3 - The total number of employees hired was 573 - Finally, job recruitment statistics obtained for each of the City’s three union groups indicate the primary source for talent comes from the local area. Specific statistics note the following: o Approximately 89% of all external applicants and 98% of new hires for all AFSCME-covered positions were from the local area; o For Police Officers, 81% of applicants and 94% of new hires were from Utah; and, finally, o Among Firefighters hired, 100% were from Utah (including 63% of external applicants). David noted the latest living wage calculations for Salt Lake County had not been updated as of the date of this committee meeting. The Committee reviewed and discussed factors included in the living wage, as developed by the Massachusetts Institute of Technology’s living wage calculator. Committee members reviewed a draft copy of the latest local area market pay analysis for the City’s selected group of benchmark jobs, including benchmark job titles, number of incumbents, aggregated local area median (50th percentile) pay information. David outlined the process for normalizing any national data obtained for benchmark jobs to the Salt Lake City market using the Geographic Assessor from the Economic Research Institute (ERI). The Committee discussed and resolved to include top-out rates in the market pay analysis for union-covered jobs. In addition, the Committee decided to incorporate the additional economic value of benefits calculated from the comprehensive benefits study conducted on the City’s behalf by NFP to assess how benchmark jobs rank in this year’s market pay analysis. The Committee reviewed and discussed options for how the combination of employee median base pay rates and NFP’s additional economic value of benefits calculation might be considered, ultimately, to help formulate the Committee’s recommendations to city leaders. Jeff Herring suggested the Committee base its recommendation for potential market pay adjustments on a combination of SLC employee median rates of pay with either the public or private additional economic values calculated by NFP. The Committee resolved it was more advantageous to base its recommendation on a sort and ranking of the additional economic value of benefits for the public sector because it was inclusive of two more benchmark groups that might be impacted by potential market pay adjustments. In addition, the Committee asked David to group benchmarks into significantly and slightly lagging categories similar to past practice to help city leaders prioritize funding employee pay adjustments, if necessary. Parameters for establishing these categories should be based as follows: six percent or more below market shall be designated as “significantly lagging” and between one and five percent below market shall be designated as “slightly lagging.” Frances Hume inquired about what analysis has been done to address the City’s internal gender pay equity among non-represented group of employees. Although not yet completed, David committed to providing the Committee with an updated analysis similar to previous years in the next meeting. He also noted the Human Resources department’s intent to contract with a third-party provider to conduct a comprehensive audit to ensure that pay practices are equitable and not adversely impacting employees based on gender, age, and/or ethnicity. In order to prepare for the Committee’s final meeting to approve the annual report, Frances encouraged committee members to consider how the national survey data provided by Mercer for AFSCME job versus the local area market pay comparison might be weighed in the final report. Other considerations include the impact of culture on turnover and the City’s ability to attract and retain talent, as well as other questions raised in the letter from the city council to the Committee dated 2/7/2019. Unfinished business: None Page 3 of 3 Confirmed meeting dates: - February 24, 2020, 3:30-5:30 PM - May 14, 2020, 4:00-5:00 PM - October 8, 2020, 4:00-5:00 PM Meeting adjourned at approximately 5:27 PM. Minutes approved at October 8, 2020 meeting.