Loading...
Transmittal - 3/8/2022Lisa Shaffer (Mar 8, 2022 15:20 MST)03/08/2022 03/08/2022 0 SALT LAKE CITY’S Citizens’ Compensation Advisory Committee (CCAC) 2022 Annual Report 2022 1 Purpose & Introduction The Citizens’ Compensation Advisory Committee (CCAC) was formed with the purpose of “…evaluating the total compensation levels of the city's elected officials, executives and employees and making recommendations to the human resources department, mayor and the city council…” (City Code Title 2, Chapter 2.35.050). Each year the committee is responsible for preparing and submitting a written report to the mayor and city council containing, among other things, recommendations on the “appropriate competitive position for the city relative to the compensation practices of comparable employers,” “wages and benefits of the city’s elected officials, executives and employees” and “general recommendations regarding the mix of compensation for the city’s employees, e.g., base salary, benefits, incentives” (City Code Title 2, Chapter 2.35.050.A.6) To provide city officials with the most valuable and relevant information, this year’s report is more streamlined to include a primary focus on the direct impact of current economic conditions on salary budgets and overview of the city’s latest local area market pay analysis. Finally, a grouping of informational appendices intended to provide city leaders with insight to key measures and indicators impacting the city’s workforce are also incorporated at the end of this year’s report. Respectfully, Citizens’ Compensation Advisory Committee Ray Schelble, Chair Mike Terry, Vice-chair Jana Bake Brandon Dew Jeff Herring Casey Lund Jeff Worthington 2 Section One: Impact of the current labor market and inflation on 2022 salary budgets Historically, this committee has relied upon data obtained from employer salary budget surveys conducted by WorldatWork when formulating recommendations to help city leaders determine the annual salary budget, including amounts for employee pay increases. Results of WorldatWork’s “2021-2022 Salary Budget Survey,” which were released in August 2021, reported 3.3% average and 3.0% median for 2022 planned salary budget increases. However, given the onset of hyperinflation not seen for decades and the extreme recruitment and retention challenges employers face nationwide, WorldatWork’s “Salary Budget Quick Poll” (conducted December 14, 2021 through January 3, 2022) confirmed organizations have re-evaluated the environment and are increasing their previously planned salary budgets to a 4% average and 5% median. Reports of similar indicators were cited by WorldatWork’s Brett Christie, as follows— • Pearl Meyer’s “2022 Projected Base Salary Increase Quick Poll” of 339 companies found that 2022 increases to base salaries will surpass 4% for all employee groups combined. Of the organizations with higher projected increases than was originally expected earlier in 2021, 40% reported increases greater than 5%. Approximately half of respondents anticipate 2022 base pay increases to be higher than what was originally expected earlier in the year, with 12% expecting increases to be significantly higher. 3 • Gallagher’s Labor Market Inflation Indicators for 2021-2022 report notes: “Wage and salary increase models which gradually taper salary growth throughout 2022 from its current 4.6% rate down to a 12-month 3.0% rate (equivalent to that experienced in Q1 of 2021) yield an overall average 12-month percent change rate of 3.7% for 2022. Given these models, we advise 2022 salary budgeting in the 3.5% to 4.0% range and structure increases a percentage point below the salary budget increase rate.” • Mercer’s research found that the percentage of employers providing increases of 3.5% or more doubled between its August and November pulse surveys from 13% to 27% RECOMMENDATION: Considering the impact of the current labor market conditions and inflation on employer salary budgets in 2022, the Committee recommends leaders increase the City’s overall salary budget, including employee base wage and salary adjustments, at a rate equal to at least 4% average or 5% median. Section Two: Local area market pay comparison The ability to effectively attract and retain key talent is based first and foremost on management, adaptability, and administration of the city’s pay structures and employee base wage and salary rates. To this end, the committee reviewed market pay data obtained primarily from multiple locally based private or public employers with operations along the Wasatch Front. This approach is due to the fact recruitment and applicant pool data reviewed by the committee overwhelmingly suggest the city draws its talent from the local area. Results of the market pay analysis conducted this year were presented by the city’s human resources staff using the compensation management tool offered by Payfactors to aggregate the latest sources of market pay information available. To facilitate this review, the city organized its job titles into 99 distinct benchmark groups. The committee reviewed job pricing information obtained for each of the 99 benchmark job titles highlighted in this report. In total, these benchmarks cover 1,247 employees which represents approximately 41% of the city’s regular, full-time workforce. Because market data is not available to price all jobs, it is important to note that if a job title is not shown as a 4 benchmark title it is instead tied to a benchmark for pricing purposes. For example, Accountant III is designated as the benchmark job for related titles in the same job family, including: - Accountant I - Accountant II - Accountant III (benchmark) - Accountant IV If market pay data indicates a particular benchmark job is significantly below market, then all levels of the job should be reviewed for potential pay adjustments—not just the benchmark job. This way the pay differences between levels of the same or similar jobs are appropriately maintained. The results of this year’s local market pay analysis are displayed in three separate work groups. This is done not only to account for the differences in each group’s unique wage structure and pay practices, but to also gauge the City’s success more effectively at positioning itself as a pay leader. These three work groups include: • AFSCME • Public Safety (including Firefighters, Police Officers and Public Safety Dispatchers) • Non-Represented Employees In addition to the regular local market pay analysis presented for consideration as part of this annual report, the Committee also received results of the special market study conducted by NFP in January 2022 of the City’s non-represented group of benchmark jobs. It is the Committee’s understanding that NFP’s full report, including their detailed benchmark analyses, conclusions and recommendations, will be transmitted to be considered separate and apart from this report. Among the recommendations cited in their report, however, NFP concluded the City would be better suited to maintain its competitive advantage by adjusting and setting pay scales within +/- 2% of the market base 50th percentile to be considered competitive amid the highly dynamic market conditions that exist today. The Committee also agreed that the previous standard of maintaining +/- 5% as a competitive pay position compared to market is no longer an effective or desirable approach. Instead, the Committee has now adopted the following new guidelines when determining an individual benchmark job’s compensation position relative to the market: - Significantly lagging when data indicates the benchmark job’s position relative to market is less than or equal to 90%. - Slightly lagging when data indicates the benchmark job’s position relative to market is between 90.1% and 98%. - Competitive when data indicates the benchmark job’s position relative to market is between 98.1% and 109.9%. - Significantly leading when data indicates the benchmark job’s position relative to market is greater than or equal to 110%. 5 GROUP FINDINGS & OVERALL SUMMARIES: Among the AFSCME workgroup, a total of 41 benchmark jobs, covering 338 employees, were evaluated (representing 41% of the total jobs surveyed). Market median (50th percentile) pay rates were compared to the Salt Lake City’s wage schedule top rate. The following list includes all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading. AFSCME Summary BM Job Count Overall Average Market Position Significantly Lagging (Less than or equal to 90% of market)2 82% Slightly Lagging (Between 90.1% and 98% of market)10 92% Competitive (Between 98.1% and 109.9% of market)16 101% Significantly Leading (Greater than or equal to 110% of market)13 109% Overall Market Comparison 41 99.18% 6 2021 - Job Title (Job Code)SLC Top Rate (union only) # SLC Incumbents Market Salary (50th Percentile) Market Comparison (SLC Top Rate vs Market Median AIRFIELD MAINT ELECTRICIAN (002618)*$80,080 15 $97,700 82% LABORATORY CHEMIST UNION (001806)$66,498 2 $75,300 88% BUILDING EQUIP. OP. II (006071)$52,458 0 $57,900 91% ENVIRON SPECIALIST II UNION (000720)$73,320 1 $80,800 91% AIR OPER SPECIALIST AIR UNION (002440)*$66,498 3 $71,900 92% WRF OP II (002134)$57,325 9 $61,800 93% WATER METER TECHNICIAN II (000997)$50,835 2 $54,500 93% PLANS EXAMINER I (002127)$69,846 3 $74,000 94% FLEET MECHANIC (001952)$57,325 40 $60,400 95% CRIME SCENE TECH II UNION (001779)$52,354 9 $55,100 95% WATER METER READER II (006326)$42,578 0 $43,700 97% MAINT. ELECTRICIAN IV (000168)$62,754 8 $64,200 98% PLUMBER II (000854)$59,051 1 $59,900 99% POLICE INTELLIGENCE SPEC.UNION (001539)$57,450 3 $57,700 100% EVIDENCE TECHNICIAN II (002277)$50,232 5 $49,900 101% HVAC TEC. II (006050)$60,798 9 $60,300 101% ASPHALT EQUIP OPERATOR II (000909)$52,458 32 $52,000 101% BUSINESS LICENSING PROCESS II (001964)$55,869 4 $54,400 103% WASTE & RECYCLING EQUIP OP II (002347)$52,458 26 $50,800 103% CARPENTER II (001349)$55,578 7 $52,700 105% ENGINEERING TECH IV UNION (000829)$63,315 10 $59,600 106% SR UTILITIES REP CUST SVC (000199)$50,690 6 $47,600 106% METAL FABRICATION TECHNICIAN (001925)$62,754 5 $58,800 107% GENERAL MAINTENANCE WORKER II (002489)$52,458 1 $48,900 107% JUDICIAL ASSISTANT II (002084)$55,869 8 $51,800 108% FORENSIC SCIENTIST I (001973)$63,315 2 $58,700 108% PAINTER II (001347)$55,578 6 $51,100 109% WATER PLANT OPERATOR II (000966)$60,798 24 $55,600 109% CUSTODIAN II (006090)$36,670 2 $33,400 110% POLICE INFORMATION SPECIALIST (002463)$50,690 12 $45,800 111% ACCESS CONTROL SPECIALIST (002340)*$52,520 7 $47,200 111% ARBORIST II (001375)$53,976 4 $48,100 112% BUILDING INSPECTOR III (001967)$76,981 10 $67,600 114% PARKS GROUNDSKEEPER (001813)$39,042 9 $33,800 116% SENIOR SECRETARY (003030)$50,690 1 $43,800 116% WAREHSE SUP WORKER-AIRPORT (002022)$48,963 1 $42,200 116% WATER SYSTEM MAINTENANCE OP II (000975)$53,976 16 $45,100 120% CONCRETE FINISHER (001852)$57,325 9 $46,700 123% CIVIL ENFORCEMENT OFFICER I (001893)$57,782 4 $46,900 123% OFFICE TECHNICIAN II (001191)$50,690 18 $39,200 129% CITY PAYMENTS PROCESSOR (000263)$52,520 4 $31,500 167% * = Market salary normalized to Salt Lake City AFSCME Breakout 7 Among the Public Safety workgroup, a total of 10 benchmark jobs, covering 722 employees, were evaluated (representing 10% of the total jobs surveyed). Market top pay rates of pay were compared to the Salt Lake City’s wage schedule top rate. The following list includes all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading. Public Safety Summary BM Job Count Overall Average Market Position Significantly Lagging (Less than or equal to 90% of market)3 88% Slightly Lagging (Between 90.1% and 98% of market)2 93% Competitive (Between 98.1% and 109.9% of market)4 101% Significantly Leading (Greater than or equal to 110% of market)1 111% Overall Market Comparison 10 96% 2021 - Job Title (Job Code)SLC Top Rate # SLC Incumbents Market Salary (Top Rate) Market Comparison (SLC Top Rate vs Market Top Rate) FIREFIGHTER/ENGINEER - all levels $77,438 53 $90,275 86% POLICE LIEUTENANT (000849)$112,653 25 $129,316 87% POLICE OFFICER - All levels $81,723 275 $90,766 90% POLICE SERGEANT (007008)$95,680 68 $103,898 92% FIRE CAPTAIN (008040)$94,765 79 $100,838 94% POLICE CAPTAIN (000851)$127,587 8 $127,982 100% BATTALION CHIEF (008030)$116,896 13 $116,646 100% FIREFIGHTER/EMT - all levels $72,405 58 $71,459 101% FIREFIGHTER/PARAMEDIC - all levels $83,616 80 $80,687 104% PUBLIC SAFETY DISPATCHER (002387)$67,642 63 $61,102 111% Public Safety Breakout 8 Among the non-represented employee workgroup, a total of 48 benchmark jobs, covering 187 employees, were evaluated (representing 48% of the total jobs surveyed). Market median (50th percentile) pay rates were compared to the non-represented employee actual median wages/salaries. As with the other groups, the following list ranks all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading. Non-Represented Summary BM Job Count Overall Average Market Position Significantly Lagging (Less than or equal to 90% of market)15 86% Slightly Lagging (Between 90.1% and 98% of market)13 95% Competitive (Between 98.1% and 109.9% of market)15 103% Significantly Leading (Greater than or equal to 110% of market)5 116% Overall Market Comparison 48 96% 9 2021 - Job Title (Job Code) SLC Median Employee Salary # SLC Incumbents Market Salary (50th Percentile) Market Comparison (SLC Median vs Market Median) SYSTEMS ENGINEER III (002571)$97,760 1 $131,600 74% CYBERSECURITY ENGINEER II (002573)$98,488 2 $127,100 77% NETWORK ENGINEER II (002576)$91,666 1 $107,900 85% FINANCIAL ANALYST III (001670)$74,797 6 $86,000 87% LICENSED ARCHITECT (000752)$83,200 1 $95,600 87% GIS SPECIALIST (002154)$57,595 1 $65,500 88% AUDITOR III (001684)$71,261 1 $80,700 88% FORENSIC SCIENTIST II (001974)$66,227 4 $74,800 89% MANAGEMENT ANALYST (001092)$65,062 3 $72,900 89% REDEVELOPMENT AGENCY PROP MGR (002509)$79,165 1 $88,600 89% SR BENEFITS ANALYST (002122)^$75,337 0 $84,300 89% EXECUTIVE ASSISTANT (001989)$65,062 12 $72,800 89% HR LEAVE SPECIALIST (002451)$78,957 1 $88,200 90% SAFETY PROGRAM MGR (002286)$91,666 2 $102,100 90% OFFICE FACILITATOR II NON UNIO (001232)$51,334 30 $57,000 90% SOCIAL SERVICE WORKER (001921)^$51,362 0 $56,300 91% PROFESSIONAL LAND SURVEYOR (001890)$71,739 1 $78,100 92% BUSINESS SYSTEMS ANALYST II (002338)$87,277 6 $93,900 93% GOLF PROFESSIONAL II (002503)$76,523 2 $81,500 94% HR BUSINESS PARTNER II (002591)$85,197 6 $90,000 95% SENIOR CITY ATTORNEY (002319)$144,456 12 $152,500 95% SENIOR HUMAN RESOURCE TECHNICIAN (001866)$49,358 4 $51,700 95% PROCUREMENT SPECIALIST I (000533)$61,558 2 $63,900 96% CLAIMS ADJUSTER (001995)^$65,056 0 $67,200 97% SOFTWARE ENGINEER III (002145)$97,448 2 $100,500 97% HRIS ANALYST (002155)$89,471 2 $91,900 97% PARALEGAL (002201)$60,746 6 $62,300 98% ENGINEER IV (002198)$87,069 13 $89,000 98% REAL PROPERTY AGENT (000370)$68,016 2 $69,000 99% COLLECTIONS OFFICER (001376)$45,978 4 $46,500 99% NETWORK SYSTEMS ENGINEER II (001394)^$91,661 0 $92,700 99% ACCOUNTANT III (001666)$75,338 13 $75,700 100% PRINCIPAL PLANNER (001733)$69,867 9 $69,500 101% HR RECRUITER (002297)$65,000 1 $64,500 101% GOLF SUPERINTENDENT 18 HOLES (000936)$71,573 3 $70,800 101% EMPLOYEE MARKETING & COMM (002225)^$68,295 0 $65,500 104% SOFTWARE SUPPORT ADMIN II (001729)$82,909 8 $79,300 105% LEGAL SECRETARY III (003136)$57,200 3 $54,700 105% TECH SYSTEM ANALYST III (002203)^$75,337 0 $71,400 106% CITY PAYROLL ADMINISTRATOR (001945)$63,492 2 $59,900 106% CIVIC ENGAGEMENT PROGRAM SPEC. (001821)$60,798 2 $57,200 106% EMPLOYEE TRAINING & DEVELOPMEN (000491)^$65,056 0 $60,600 107% VICTIM ADVOCATE (001765)$47,310 4 $43,900 108% VIDEO PRODUCTION MGR (002217)^$91,661 0 $82,800 111% GRAPHIC DESING SPECIALIST II (002607)^$68,295 0 $60,700 113% JUSTICE COURT JUDGE (001601)$160,306 5 $140,200 114% PROG COOR ARTS COUNCIL (001799)$65,884 2 $55,900 118% NET SUP ADM II (001396)$61,942 7 $47,800 130% ^ = Comparing against pay grade midpoint in lieu of median wage as job is currently vacant. Non-Represented Breakout 10 RECOMMENDATION: The Committee wishes to express its support for the City’s compensation strategy to position Salt Lake City as an area pay leader for employees. The Committee has long recognized that Salt Lake City employees deal with a volume of diverse situations and problems not seen by most other municipal entities in the state. Therefore, it is in the City’s best interest to attract the most capable employees to all positions and to encourage them to stay. The Committee believes that compensation should be an important factor in this equation and that this policy will prove beneficial to the City’s citizens in the future. Furthermore, as funds permit, the committee recommends the mayor and city council appropriate financial resources necessary to grant market salary adjustments for employees in benchmark jobs identified in this report as lagging market. 1. First priority should be given to those lagging significantly; and, 2. Second priority should be given to those lagging slightly behind market. 11 Appendix A - Salt Lake City 2021 Overall Recruitment Statistics (as reported 1/24/22) o Total # of job postings = 510 (compared to 348 in 2020) o Total # of applicants = 17,051 (compared to 13,818 in 2020) o Total # regular, full-time employees hired (excluding seasonal and part-time workers) = 412 (compared to 379 in 2020) 2021 Turnover rates by department Voluntary turnover includes resignations, retirements, and job abandonments. Involuntary turnover includes probationary releases, dismissals, separations, and deaths. 2020 Department # of Employees # total Terminations Overall Turnover Rate Retention Voluntary Turnover Involuntary Turnover 911 BUREAU 84 20 24%76%23%1% AIRPORT 520 45 9%91%8%1% ATTORNEY 64 23 38%60%36%2% CITY COUNCIL 30 7 23%77%23%0% COMMUNITY & NEIGHBORHOODS 176 20 12%88%10%1% ECONOMIC DEVELOPMENT 16 3 19%80%19%0% FINANCE 69 7 10%90%9%1% FIRE 356 23 7%93%6%1% HUMAN RESOURCES 30 8 29%68%29%0% INFORMATION MANAGEMENT SERVICES 77 9 12%88%12%0% JUSTICE COURTS 40 2 5%95%3%3% MAYOR 25 5 21%77%17%4% POLICE 628 70 11%89%11%0% PUBLIC SERVICES 277 39 14%86%14%0% PUBLIC LANDS 139 6 5%95%5%0% PUBLIC UTILITIES 393 47 12%88%11%1% REDEVELOPMENT AGENCY 26 1 4%96%4%0% SUSTAINABILITY 62 8 13%86%12%2% Department # of Employees # total Terminations Overall Turnover Rate Retention Voluntary Turnover Involuntary Turnover 911 BUREAU 85 25 31%67%29%2% AIRPORT 491 32 7%93%6%1% ATTORNEY 56 12 23%76%19%4% CITY COUNCIL 23 0 0%100%0%0% COMMUNITY & NEIGHBORHOODS 192 13 7%93%7%1% ECONOMIC DEVELOPMENT 14 2 15%83%8%8% FINANCE 68 3 4%95%4%0% FIRE 344 21 6%94%5%1% HUMAN RESOURCES 25 6 28%67%28%0% INFORMATION MANAGEMENT SERVICES 62 7 11%89%11%0% JUSTICE COURTS 38 2 5%95%3%3% MAYOR 22 8 43%47%43%0% POLICE 632 78 13%87%12%1% PUBLIC SERVICES 384 24 6%93%5%1% PUBLIC UTILITIES 404 36 9%90%7%2% REDEVELOPMENT AGENCY 23 1 4%96%4%0% SUSTAINABILITY 61 5 9%91%9%0% APPOINTMENT 4 NEW HIRE 357 REHIRE 51 Grand Total 412 12 APPENDIX B - Salt Lake City 2021 Union Job Recruitment Statistics Unless otherwise noted, the following statistics account for the total number of external applicants and hires made between January 1, 2021 – December 31, 2021. AFSCME - Trade & Craft (100 Series) – Of 2,161 external applicants, 1,954 (or 90%) were from Utah. Out of 124 hires, 122 (or, 98%) were from Utah.19 were rehires. - Clerical & Administrative Support (200 Series) – Of 1,112 external applicants, 998 (or, 90%) were from Utah. Out of 44 hires, 43 (98%) were from Utah. Four were rehires. - Paraprofessional (330 Series) – Of 848 external applicants, 676 (or, 80%) were from Utah. Out of 63 hires, 100% were from Utah. Six were rehires. In total approximately 86% of all external applicants and 99% of new hires for all AFSCME bargaining units were from the state of Utah. Police Officers - Of 1,468 external applicants, 1,085 (or, 74%) were from Utah. Of 65 hires made in 2020, 59 (or, 91%) were from Utah. 14 police officers were rehired. Firefighters* - Of 766 external applicants, 446 were from Utah (58%). Out of 27 hires, 25 (or, 93% were from Utah. One firefighter was rehired. *Note – Fire department hiring rosters typically have a hiring delay of up to two years. Applicants from 2021 may still be in the pipeline for 2022 or later. Report date 1/24/2022 13 APPENDIX C - SLCPD SWORN PUBLIC SAFETY TURNOVER DATA POLICE 2021 Total SLCPD Sworn Employees Voluntary Involuntary 511 64 5 TOTAL SWORN TURNOVER % 12.52% 0.98% Voluntary Turnover includes: 46 Resignations • 44 Police Officers • 2 Police Sergeants 18 Retirements • 1 Deputy Chief • 1 Police Captain • 2 Police Lieutenants • 3 Police Sergeants • 11 Police Officers Involuntary Turnover includes: 1 Death • 1 Police Sergeant 4 Probationary Releases • 4 Police Officers 51 Total New Hires in 2021: • 5 Lateral (experienced LEO) Officer New Hires o Former agency listed below: • 1 came from Tooele County Sheriff’s • 1 came from Tooele City Police Dept. • 1 came from Layton City Police Dept. • 1 came from Santa Clara County Sheriff’s in California • 1 came from Utah Highway Patrol o Number of years in law enforcement when hired by SLCPD • 2 laterals had less than 2 years of experience • 1 lateral had between 2 to 5 years of experience • 2 laterals more than 5 years of experience • 46 Entry Level Police Officer New Hires o 1 new hire moved from Idaho o 1 new hire moved from California o 1 new hire moved from Tennessee o 1 new hire moved from Oregon o 1 new hire moved from New Jersey 14 14 Rehires in 2021: • 13 Police Officers came back after being gone for less than 1 year • 1 Police Officer came back after being gone for more than 1 year FIRE 2021 Total SLCFD Sworn Employees Voluntary Involuntary 338 19 2 TOTAL SWORN TURNOVER % 5.62% 0.59% Voluntary Turnover includes: 5 Resignations • 3 Firefighters • 1 Fire Captain • 1 Firefighter Heavy Rescue Technician II 14 Retirements • 3 Airport Rescue Firefighter III’s • 1 Battalion Chief • 6 Fire Captains • 2 Firefighter Engineer III’s • 1 Firefighter/Paramedic II • 1 Firefighter III Involuntary Turnover includes: 1 Death • 1 Airport Rescue Firefighter III 1 Probationary Release • 1 Firefighter 27 New Hire Firefighters in 2021 Prepared for and on behalf of the Committee by: 349 South 200 East, Suite 500 Salt Lake City, Utah 84114-5464 (801) 535-7900 Deb Alexander, Chief Human Resources Officer David Salazar, Compensation Program Manager Michael Jenson, Compensation Analyst