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Home My WebLink About2/15/2022 - Meeting Minutes Meeting Minutes Citizens’ Compensation Advisory Committee February 15, 2022 Members Present: Ray Schelble Mike Terry Casey Lund Jeff Herring Brandon Dew Jeff Worthington Members Excused: Jana Bake Staff Present: David Salazar, Compensation Administrator Michael Jenson, Classification & Compensation Analyst Guests: Michael Ongkiko – NFP Managing Director Rachel Burt – NFP HR Consultant Lori Gaitin – SLC HR Benefits Program Manager Jennifer Sykes – SLC HR Business Partner Jerry Philpot – AFSCME Union President A recording of these proceedings is on file and available by request from the SLC- HR Department. Meeting Open & Welcome: Ray Schelble called the meeting to order and established a quorum. All committee members were present. The following statement was made by Chairman Schelble: To help reduce the transmission of COVID-19, this meeting is being held virtually. Ongoing COVID-19 pandemic conditions that exist in Salt Lake City including but are not limited to the elevated number of cases. Therefore, as chair of the Citizens’ Compensation Advisory Committee, I do hereby determine that meeting at an anchor location presents a substantial risk to the health and safety to those that may be present. The decision to meet online follows a local increase in COVID-19 cases in the city and elsewhere. The change in meeting attendance is a precautionary measure for the safety of the public and City employees and is based on the latest reports from the Centers for Disease Control and Prevention and the Salt Lake County Health Department. The Committee will return with hybrid or in-person meetings when appropriate. Review & adopt: The committee members reviewed and approved the minutes from the January 25, 2022, committee meeting. The motion was set by Mike Terry to approve after a minor change as proposed by Ray Schelble. Public Comment: None Presentation of special third-party analysis and report on non-represented benchmark jobs by NFP: Introductions by Rachel Burt and Michael Ongkiko of NFP and then gave an overview of the purpose of the study performed and provided details on the findings and recommendations. • Overview o Salt Lake City engaged NFP Human Resource Solutions to conduct a compensation benchmarking study of public agencies and provide industries to:  Provide an external assessment summary to the city regarding current market competitiveness (non-represented workforce).  Develop strategic position commendations using market data and best practices  Support SLC to understand hat changes are required in terms of compensation to retain and attract top talent. • Study o Current Landscape  Unemployment & Wages (50-year average) • Unemployment rate = 6.3% • Wage growth = 4%  Consumer Price Index (50-year average) • Headline CPI – 3.9% o Oct. 2021 – 6.2% o Nov. 2021 – 6.9%  Interest Rates (1958 – YTD 2021 average) • Nominal yields – 5.82% • Inflation – 3.62%  Wage Inflation • Grant Thornton – Spot Survey (12/2021): 551 senior U.S. HR leaders surveyed o Base Pay – 51% said their organization expected merit increases of more than 5%. While 88% said their company expects average merit increase of more than 3% o Variable Pay – 68% of HR leaders said their company had increased the number of employees eligible to receive a cash bonus. o Methodology  Multiple cuts of data were employed within each source which included: • Private Industry • Public entities, government, public administration, non-profit • Revenue size • Budget • Numbers of full-time employees (FTEs)  Each cut of data found above was sourced from the Salt Lake City area, the State of Utah, and Wasatch Front. Survey data, if applicable, was aged accordingly to reflect current data for early 2022  NFP compared the published survey data’s Average 50th Base to both the SLC’s average and median salaries and the City’s market or midpoint in the analysis. o Summary Results  SLC Jobs related to the published survey results and the midpoint (50th base) found: • 17 jobs or 26.6% of the jobs are more than 2% above the midpoint. • 13 jobs or 20.3% of jobs are +/-2% of market midpoint. • 34 jobs or 53.1% of the jobs are more than 2% below market midpoint.  Reviewing all sixty-four (64) job’s average and median salaries in each grade and comparing to the Benchmarked Midpoint data (50th Base) • Average for all jobs: -3.13% below the market midpoint • Dollar amount below market across all jobs: o Average: $3,366 below market o Median: $1,991 below market  SLC market midpoints in each grade and comparing to the Benchmarked data (50th Base) • Average for all jobs: -0.83% below the market midpoint • Dollar amount below market across all jobs: o Average: $1,491 below market midpoint o Median: $926 below market midpoint o Recommendations  Administrative Recommendation • Slotting adjustments to job pay grades within current grade structure to reflect market analysis more accurately.  Compensation Recommendations • Adjust the City’s Market Midpoint to Market. • Conduct compa-ratio and salary range penetration analysis • Conduct small-scale salary surveys as needed to assess the market competitiveness of hard-to-fill classifications and/or classifications with retentions issues and adjust pay grade assignment if necessary. • Conduct comprehensive classification and compensation study every three to five years.  Total Compensation • Cash is king in this market, but Total Compensation still matters. o Benefit analysis shows that SLC is competitive and leading the market in certain elements. Discussion of Topics, statistical data, and recommendations which may be included in the Committee’s 2022 annual report, including but not limited to: The initial draft of the report was provided to the committee prior to the meeting. The two main sections were highlighted for considerations • Section One: Impact of the current labor market and inflation on 2022 salary budgets o WorldatWork’s budget quick survey findings  4% Average & 5% Median o Discussion needed on Recommendation section that the committee would like to convey to City leaders.  Typical recommendations include a proposed type and amount for salary adjustments based on the previously provided study findings.  Committee recommendation is to reflect the quick survey findings to be inline with the City’s philosophy and NFP study findings (4 or 5% Base Increase or General Increase) • Section Two: Local area market pay comparison o Review of the analysis and recommendations reflects both NFP study for the Non-Represented group in addition to the standard analysis performed by SLC HR. o Proposed changes to the pay guidelines based on NFP study.  Significantly lagging, Slightly lagging, Competitive, Significantly leading • Standard +/- 5% is narrowed to anything 2% or more below market would be considered slightly lagging • Committee recommended in addition to the general increase that there be targeted compensation adjustments before those lagging the market with priority be given to those significantly lagging the market.  Committee Updates • Slightly lagging guidelines be updated from standard of 5% or more below market to be narrowed to anything 2% or more below market. • Change sorting to reflect farthest below market rather than alphabetical by title. For each breakout section. • Chair Recommendation (Ray Schelble) – Desire to express support for pay leader position designated by the city. A draft statement was read by the Chair for the committee to consider adding to the report. o Was supported by committee members Final review, including vote to approve, Committee’s 2022 annual report: Given the limitation of time remaining in the meeting, approval for the abbreviated report, with summary recommendations outlined, was provided pending the final version being sent for written approval by each committee member. Mike Terry motioned to approve, and Casey Lund seconded the motion. No further discussion was had with a unanimous approval by the Committee members present. Unfinished business: None. Confirmed next meeting dates: − Tuesday, May 10, 2022, from 4:00pm – 5:00pm (as necessary) − Tuesday, October 4, 2022, from 4:00pm – 5:00pm Meeting adjourned at approximately 5:17 PM