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Transmittal - 3/8/2024ERIN MENDENHALL MAYOR CITY COUNCIL TRANSMITTAL I rack tto (Mar 8, 202412:49 MST) TO: Salt Lake City Council Victoria Petro, Chair HUMAN RESOURCES DEPARTMENT DEB ALEXANDER CHIEF HUMAN RESOURCES OFFICER Date Received. 03/08/2024 ' S ,w� Date sent to Council: 03/08/2024 DATE: March 4, 2024 FROM: Deb Alexander, Chief Human Resources Officer. Human Resources Department SUBJECT: 2024 Citizens' Compensation Advisory Committee (CCAC) Annual Report STAFF CONTACTS: Deb Alexander, Chief Human Resources Officer (801) 535-6610 David Salazar, Compensation Manager (801) 535-7906 DOCUMENT TYPE: Information Item RECOMMENDATION: This report is for informational purposes. Consideration should be given during the city's annual budget review process, as it relates to employee compensation. The city council is tentatively scheduled to receive a formal presentation of the annual report during a work session on March 26, 2024 from Committee Chair Brandon Dew. CITY COORDINATION: n/a BUDGET IMPACT: n/a BACKGROUND/DISCUSSION: This report includes information and the following recommendations relating to employee compensation, as required by city ordinance (City Code, Title 2, Chapter 2.35 - Citizen's Compensation Advisory Committee (CCAC). In an effort to advise city leaders, this year's report highlights the following specific topics reviewed by the committee during the past year, including: - Labor shortages, cost of labor and inflaction continue to drive 2024 salary budgets - Local area market pay comparison - Elected Officials, Department Directors & other key city leaders - Appendicies including supplemental and supporting information P.O. Box 145464 349 South 200 East, Suite 500 www.slcgov.com Salt Lake City, UT 841 14-5464 TEL 801-535-7900 Specific recommendations in this report, include: Considering the impact of current market conditions, including labor shortages, increased cost of labor and inflation on employer salary budgets in 2024, the Committee recommends leaders increase the City's overall salary budget by no less than 5%. In conjunction with the City's plans to grant actual general and/or merit increases, the Committee recommends an overall increase to the city's salary range structures of no less than 3%. 2. The Committee continues to expresses 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. 3. 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. - Priority should be given to those lagging significantly; and, - Second priority should be given to those lagging slightly behind market. 4. Considering the current Administration, while not new, is starting a new term and given the potential for changes in leadership throughout the city, the Committee recommends no specific action be taken at this time for department directors and other key city leaders. The advice of the Committee is to allow additional time for city leaders and any potential changes in organizational structure to be thoroughly evaluated against the market findings, as detailed in the report, before making any significant pay decisions. PUBLIC PROCESS: n/a EXHIBITS: 2024 Citizens' Compensation Advisory Committee Annual Report SALT LAKE CITY CITIZENS' COMPENSATION ADVISORY COMMITTEE ANNUAL REPORT 2024 IFI w' it 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 report includes the Committee's recommendations based on review of current economic conditions, salary budget forecasts, and local area market pay analysis including a more specialized review of wages paid to the City's firefighters and police officers compared with other public entities in the state of Utah. Additional information intended to provide insight to comparable salaries paid to elected officials, department heads, and other key city leader in U.S. cities considered similar to Utah's capital city are also highlighted in this year's report. Respectfully, Citizens' Compensation Advisory Committee Brandon Dew, Chair Jana Bake, Vice -chair J. Clair Baldwin Jeff Herring Casey Lund Mike Terry Jeff Worthington Section One: Labor shortages, cost of labor and inflation continue to drive 2024 salary budgets Economic Factors While fears of resurgent inflation dominated much of the economic landscape in 2023, WorldatWork researchers make note in their 2023-24 Salary Budget Survey of the cautious optimism the nation's economy is gradually cooling. As inflation begins to stabilize, focus is now turned to emerging demographic trends that suggest a tight labor market and unmet labor demands will be the reality of the foreseeable future. Now, even more than inflation, low unemployment rates and an on -going scarcity of labor are what continue to drive up the local cost of labor and dominate employers' view when setting salary budgets. Salary Budget Forecasts Similar to trends previously set in 2022 and 2023, research among global compensation consulting firms Mercer, WorldatWork, and WTW (formerly known as Willis Towers Watson) confirms salary budget and wage increases are generally stabilizing just below the substantial 4.4% average salary increase given by U.S. employers in 2023. • According to Mercer's U.S. Compensation Planning Survey November 2023 (see Appendix A) edition, U.S. employers forecast raising their merit increase budgets by 3.5% and total salary increase budgets by 3.8% on average for 2024. • WorldatWork's "2023-24 Salary Budget Survey" (see Appendix B) of 2,146 participants found U.S. employers are projecting a continuance of 4.1 % pay increase budgets in 2024 and 3.6% average merit increases. • Willis Towers Watson (WTW) research (see Appendix C) also confirmed employers are planning an overall average salary increase of 4.0% for 2024. In addition to the foregoing salary budget projections, more detailed statistics obtained from WorldatWork's 2023-24 Salary Budget Survey report provide insight to the projected and actual increases reported by participants based on the type of increase (Figure 1) and other factors including state, industry, and organization (Figure 2). Figure 1 - Median Salary Increase Budgets, by Type of Increase Projected 2023 Actual 2023 Projected 2024 General Increase/COLA 3.0 % 1.1 % 1.0 % Merit Increase 3.5 % 4.0 % 3.5 % Other Increase 1.0 % 0.8 % 0.8 % Total Increase 4.0 % 4.0 % 4.0 % Note: "General Increase/COLA," "Merit," and "Other" do not add to the "Total Increase" because not every organization provides all three types of increases. When considering the added perspective of factors including state, industry, and organization size, it appears employers in the local Salt Lake City labor market are more likely to see overall salary budget increases ranging between 4-5% (Figure 2). Figure 2 - Median Total Salary Increase Budgets, by State, Industry, and Organization Size Projected 2023 Actual 2023 Projected 2024 By State, Utah 4.0 % 4.0 % 4.0 % By Industry, Public Administration 4.0 % 5.6 % 5.0 % By Organization Size, 2,500 - 9,999 4.0 % 4.5 % 4.0 % Finally, when considering the impact on and need for salary structure adjustments, WorldatWork salary budget survey participants are projecting a 3.0% median increase in 2024 to range minimums and maximums (Figure 3). Figure 3 - Salary Structure Increases, by Employee Category Projected 2023 Non-exempt Hourly 3.0 % Exempt Salaried 2.5 % Officers/Executives 2.5 % RECOMMENDATION: Actual 2023 Projected 2024 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % 3.0 % Considering the impact of current market conditions, including labor shortages, increased cost of labor and inflation on employer salary budgets in 2024, the Committee recommends leaders increase the City's overall salary budget by no less than 5%. In conjunction with the City's plans to grant actual general and/or merit increases, the Committee recommends an overall increase to the cty's salary range structures of no less than 3%. Section Two: Local area market pay comparison The ability to effectively attract and retain key talent is based on management, adaptability, administration of the city's pay structures, and employee base wage and salary rates. The committee reviewed market pay data obtained primarily from multiple locally based private or public employers with operations along the Wasatch Front. This approach was used because recruitment and applicant pool data historically has strongly suggested the city draws its talent from the local area and competes with other local employers for said talent. 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 85 benchmark groups from its 1,045 active jobs (roughly 8% of jobs). The committee reviewed job pricing information obtained for each of the 85 benchmark job titles highlighted in this report. In total, these benchmarks cover 1,265 employees which represents approximately 38% 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 benchmark title it is instead tied to a benchmark for pricing purposes. For example, Accountant Ill is designated as the benchmark job for related titles in the same job family, including: - Accountant I - Accountant 11 - Accountant M (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 The Committee continues to follow the guidelines listed below 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%. GROUP FINDINGS & OVERALL SUMMARIES: Among the AFSCME workgroup, a total of 37 benchmark jobs, covering 402 employees, were evaluated (representing 45% of the total jobs surveyed). Market median (50t" percentile) pay rates were compared to the Salt Lake City's wage schedule top rate. Overall AFSCME Summary Average Benchmark Market Job Count Position Significantly Lagging (Less than or equal to 90% of market) 2 90% Slightly Lagging (Between 90.1% and 98% of market) 6 95% Competitive (Between 98.1% and 109.9% of market) 19 105% Significantly Leading (Greater than or equal to 110% of market) 10 114% Overall Market Comparison 37 104% The following list includes all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading. AFSCME Breakout 2023 - Job Title (Job Code) SLC Top Rate (union only) # SLC Incumbents Market Salary (50th Percentile) Market Comparison (SLC Top Rate vs Market Mediar Crime Scene Technician II (001779) $57,450 7 $64,700 89% Plans Examiner] (002127) $76,627 4 $84,900 90% Plumber II (000854) $64,792 1 $69,300 93% Water Meter Technician II (002714) $57,554 3 $61,700 93% Building Inspector III (001967) $84,469 7 $90,400 93% Maintenance Electrician IV (000168) $68,869 2 $71,800 96% Arborist II (001375) $59,238 4 $60,200 98% Asphalt Equipment Operator II (000909) $57,554 27 $58,600 98% Laboratory Chemist (002743) $80,454 2 $81,300 99% Evidence Technician II (002277) $57,450 1 $57,500 100% Senior Secretary(003030) $55,619 68 $55,200 101% Public Safety Dispatcher (002629)A $74,214 0 $72,842 102% Fleet Mechanic (002675) $66,726 41 $65,600 102% Water Meter Reader II (006326) $49,525 3 $48,700 102% Custodian II (006090) $40,227 2 $38,600 104% Painter II (001347) $60,986 1 $58,600 104% Business Licensing Processor II (001964) $61,298 3 $59,100 104% Industrial Electrician IV (002658)* $80,454 18 $77,400 104% General Maintenance Worker III (002490)* $64,792 6 $62,000 105% Airport Airfield Operations Specialist (002619)** $76,627 23 $72,100 106% Senior Utilities Representative - Customer Service (000199) $55,619 22 $52,100 107% HVAC Technician II (006050) $68,869 0 $63,600 108% Metal Fabrication Technician (001925) $68,869 9 $63,600 108% Waste & Recycling Equipment Operator II (002347) $57,554 5 $53,500 108% Water Plant Operator II (000966) $66,726 21 $61,900 108% Water Reclamation Facility Operator II (002722) $64,792 22 $59,400 109% Water System Maintenance Operator II (000975) $59,238 9 $54,400 109% Judicial Assistant II (002084) $61,298 9 $55,600 110% Airfield Maintenance Electrician (002746)* $93,184 15 $85,000 110% Carpenter II (001349) $60,986 11 $55,100 111% Concrete Finisher (001852) $62,899 21 $56,500 111% Civil Enforcement Officer 1 (001893) 9V $63,398 0 $56,400 112% Airport Environmental Specialist II (002745) $84,469 11 $74,500 113% Warehouse Support Worker - Airport (002022) $53,726 5 $47,000 114% Engineering Technician IV (000829) $69,472 1 $58,500 119% Parks Maintenance Technician 1 (002847) $48,069 0 $39,600 121% Office Technician II (001191) $55,619 11 $45,100 123% * = New Job this year **= Market salary normalized to Salt Lake City A= Select entities used in comparison. Compared against market median topped out rate. As a result of Resolution No. 20' (see Appendix E), as passed in June of 2023 by the City Council, the Committee decided to reassess the evaluation methodologies being used for comparison for the Public Safety workgroup. As stated in the resolution, the "policy objective is to ensure that the City's firefighters and police officers are paid wages commensurate with or close to top of the market wages paid by public entities for such occupations in the State of Utah, especially among the State's largest public safety agencies." The Committee's assessment involved determining criteria for which other public safety agencies should be included in the comparison, specifically for firefighter and police officers, while striving to follow the intent of the resolution. The Committee decided that the primary focus should be comparison to the top rate of pay found among the largest agencies in Utah. The threshold established on what constitutes a large agency was set at 90 or more full-time employees. The agencies included in the comparison results are as follows: • FIRE o Ogden City o Park City Fire District o Sandy City o South Davis Metro Fire Agency o South Jordan City o Unified Fire Authority o Weber Fire District o West Jordan City o West Valley City • POLICE o Layton City o Ogden City o Provo City o Sandy City o State of Utah o Unified Police Department o Utah County o Weber County o West Jordan City o West Valley City As alternative options for consideration, the Committee also refined the comparison further to determine the average top rate and median top rate among the selected agencies with 90 or more full-time employees. The market comparison for each breakout is illustrated below for each job. A total of 5 benchmark jobs, covering 659 employees, were evaluated (representing 7% of the total jobs surveyed) for the Public Safety workgroup. The following list includes all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading for the Top Rate breakout option. Council Formal Meeting, June 13, 2023 - Item 17 Firefighter and Police Officer - Top Rate 2023 - Job Title (Job Code) SLC Top Rate # SLC Incumbents Market Salary (Top Rate) Market Comparison (SLC Top Rate vs Market Top Rate) Police Officer (002654) $94,162 79 $108,206 87% Firefighter/Engineer - all levels $83,762 57 $96,541 87% Fire Captain (008040) 1 $102,502 1 44 1 $114,962 1 89% Firefighter / EMT - all levels 1 $78,291 1 70 1 $85,874 1 91% Firefighter/ Paramedic - all levels 1 $90,438 1 79 1 $97,972 1 92% The following list includes all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading for the Average Top Rate breakout option. Firefighter and Police Officer - Average Market 2023 - Job Title (Job Code) SLC Top Rate # SLC Market Salary Comparison (SLC Top Rate vs Incumbents (Average Top Rate) Ma rket Average Top Rate) Fire Captain (008040) $102,502 44 $108,686 94% Firefighter/Engineer - all levels $83,762 57 $88,611 95% Firefighter/ Paramedic - all levels 1 $90,438 1 79 1 $92,134 1 98% Police Officer (002654) 1 $94,162 1 49 1 $95,032 99% Firefighter / EMT - all levels 1 $78,291 1 70 1 $77,530 1 101% The following list includes all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading for the Median Top Rate breakout option. Firefighter and Police Officer - Median Market 2023 - Job Title (Job Code) SLC Top Rate # SLC Market Salary Comparison (SLC Top Rate vs Incumbents (Median Top Rate) Market Median Top Rate) Firefighter/Engineer - all levels $83,762 57 $88,478 95% Fire Captain (008040) $102,502 79 $107,657 95% Firefighter/ Paramedic - all levels 1 $90,438 1 79 $92,186 98% Police Officer (002654) 1 $94,162 1 49 $94,806 99% Firefighter / EMT - all levels 1 $78,291 1 70 $76,877 102% Among the Non -Represented Employee workgroup, a total of 44 benchmark jobs, covering 204 employees, were evaluated (representing 52% of the total jobs surveyed). Market pay rates (calculated as the 50th percentile) were compared to the non -represented employee actual median wages/salaries. Overall Non -Represented Summary Average Benchmark Market Job Count Position Significantly Lagging (Less than or equal to 90% of market) 2 83% Slightly Lagging (Between 90.1% and 98% of market) 15 95% Competitive (Between 98.1% and 109.9% of market) 16 102% Significantly Leading (Greaterthan or equal to 110% of market) 10 116% Overall Market Comparison 43 99% As with the other groups, the corresponding list ranks all related benchmark jobs sorted by those which are most significantly lagging to most significantly leading. Non -Represented Breakout 2023-Job Title (Job Code) SLC Median Employee Salary #SLC Incumbents Market Salary (50th Percentile) Market Comparison (SLC Median vs Market Median) Licensed Architect (002779) $100,573 2 $123,500 81% Cybersecurity Engineer II (002794) $117,909 1 $138,600 85% Software Engineer III (002145)A $110,882 0 $122,000 91% Paralegal (002201) $74,880 6 $82,200 91% Principal Planner(001733)** $81,524 11 $89,382 91% Human Resources Business Partner II (002811) $98,562 7 $105,800 93% Collections Officer (001376) $52,853 3 $56,300 94% Golf Professional II (002766) $86,432 2 $92,000 94% Legal Secretary III (002814) $69,888 4 $73,400 95% Senior Recruiter(002438)* $88,924 2 $93,200 95% Office Facilitator II (002804) $63,222 34 $66,200 96% Systems Engineer III (002800) $125,439 2 $130,800 96% Forensic Scientist II (001974) $74,922 2 $78,100 96% Professional Land Surveyor(001890) $86,617 1 $90,100 96% Golf Course Superintendent- 18 Holes (000936) $86,821 4 $90,300 96% Financial Analyst III (002773) $90,542 12 $93,800 97% Network Engineer II (002789)A $116,429 0 $119,900 97% Safety Program Manager (002790) $108,110 2 $109,200 99% Senior City Attorney (002319) $174,078 12 $175,700 99% Senior Human Resources Technician (001866)* $56,347 2 $57,000 99% Engineer IV (002198) $100,573 9 $100,900 100% Procurement Specialist II (000534) $74,955 1 $74,600 1009/0 Auditor III (002822) $88,205 1 $87,700 101% Senior Claims Adjuster (002534) $84,698 1 $83,400 102% Executive Assistant (001989) $78,623 14 $77,000 102% HRIS Analyst (002155)* $102,036 2 $99,100 103% Licensed Clinical Social Worker/Clinical Mental Health Counselor(002585) $81,856 9 $78,900 104% Victim Advocate (001765) $55,058 6 $53,000 104% Employee Marketing & Communications Specialist (002225)A $74,955 0 $71,800 104% Real Property Agent (000370) $82,151 2 $78,300 105% Accountant lll(001666) $84,786 9 $80,100 106% Learning & Development Specialist (002516)A $82,686 0 $77,300 107% Management Analyst(002757) $80,811 6 $74,200 109% Justice CourtJudge (001601) $183,330 5 $165,200 111% Geographic Information Systems (GIS) Specialist (002154) $71,395 3 $64,000 112% City Payroll Administrator (001945) $77,111 2 $67,900 114% Program Coordinator- Arts Council (001799) $73,601 3 $64,700 114% Technical Systems Analyst III (002203)A $82,680 0 $72,600 114% Social Media Specialist II (002603)A $74,955 0 $64,300 117% Civic Engagement Program Specialist (001821) $69,610 2 $58,600 119% Business Systems Analyst II (002338) $98,163 1 5 $80,400 122% Software Support Administrator II (001729) $93,344 5 $76,400 122% Network Support Administrator ll(001396) $71,178 11 $56,100 127% A = Comparing against compensation grade midpoint in lieu of median wage as job is currently vacant. *=New Job this year **= Market salary normalized to Salt Lake City RECOMMENDATION: The Committee continues 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, as the capital city 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. Priority should be given to those lagging significantly; and, 2. Second priority should be given to those lagging slightly behind Market. Section Three: Elected Officials, Department Directors &other key city leaders During 2023, the City's Human Resources Department conducted a special survey designed to compare salaries of Elected Officials, Department Directors, and other key city leaders with their counterparts from similar U.S. cities (see Appendix F). Responses received during this year's survey compared salaries of incumbents from a total of 32 cities (35% response rate) whose population size is between approximately 100,000 to 600,000. Elected Officials -- Salary comparisons for elected officials were based on, and limited to, entities with a similar type of government structure. For Salt Lake City's Mayor comparison, results were limited to other cities with full- time mayors; similarly for the City Council, results were limited to other cities with part-time councils. Department Directors & Other Key City Leaders The Committee also reviewed data obtained for appointed executives, including department heads and others in key appointed city positions. Salaries were analyzed and considered based on the normalized median salary comparisons. The salary data was normalized to match salaries reported by each participant to Salt Lake City's labor market by applying a geographic assessor provided by the Economic Research Institute (ERI). The geographic assessor accounts for variations in cost of labor among the various cities' geographic locations. RECOMMENDATIONS: Considering the current Administration, while not new, is starting a new term and given the potential for changes in leadership throughout the city, the Committee recommends no specific action be taken at this time. The advice of the Committee is to allow additional time for city leaders and any potential changes in organizational structure to be thoroughly evaluated against the market findings before making any significant pay decisions. Appendices APPENDIX A MERCER QUICKPULSE US COMPENSATION PLANNING SURVEY 2024 PROJECTIONS 1/8/24, 2:41 PM Mercer QuickPulseTM - US Compensation Planning Survey 12024 Projections Projected salary increase budgets holding, for now Results of the 2023 Mercer QuickPulseTM - US Compensation Planning Survey O G December 04, 2023 Blog Home Here we are! It's the end of 2023 and we have one more look at what employers are forecasting for salary increase budgets for 2024. In addition, we have insights to share on promotions, off -cycle increases, salary structure adjustments, and some hot topics, such as pay transparency. Take a peek and see how this stacks up with what you are planning for next year. Merit and total increase budgets Both merit and total increase budgets are relatively unchanged from the last time we conducted the US Compensation Planning survey in August of this year. On average, the more than 900 participants in the US are forecasting 3.5% merit increase budgets and 3.8% total increase budgets. Only the total increase budget changed from earlier in the year, decreasing from 3.9%. When comparing industries, there are some differences. Healthcare continues to project increase budgets that are below the average, at 3.1 % for merit increases. Those industries projecting above the overall average are Insurance/Reinsurance and Services (Non -financial), at 3.7% for merit increases. With 49% of companies still reporting that their budget status is "preliminary," it's quite possible that we could see actual increases lower than projected when we survey again in Q1 of 2024. What's important is that you take this information, along with other reputable sources, and determine what's right for your company. Your annual increase budget should make sense for your industry, desired competitive positioning, financial outlook, etc. Additionally, ensure that your budget includes funds for any adjustments needed to realign particular jobs or employees to mitigate pay compression or any necessary market adjustments. Manager discretion for merit distribution A question that comes up from time to time, particularly when you are revising your total rewards strategy, is "How much discretion should managers have when it comes to delivering merit increases?" or other pay adjustments. To take a pulse check on where employers are with empowering managers to make pay decisions, we asked, "What limitations or rules do managers have when it comes to the determination of an individual's base salary increase?" It seems that the most prevalent rules that managers must work within: • Fall within the overall budget • Fall within the salary range • Fall into a recommended range provided based on select factors (e.g., position in range and performance) • Incorporate increases determined by compensation (e.g., market adjustments or pay equity adjustments) • Not exceed designated caps for pay increase On the other hand, 1 % of companies (about 9) said that they allow managers ultimate discretion when it comes to the increase, with no limitations. Another group of respondents said that "everyone receives the same increase" (about 3%) and others stated that merit increases were formulaic (about 6%). https://www.imercer.com/articleinsights/projected-salary-increase-budgets-holding 1/5 1/8/24, 2:41 PM Mercer QuickPulseTM - US Compensation Planning Survey 12024 Projections How does that compare to the annual increase guidelines you are providing for your managers? talk about pay_, your managers could be given more discrefinn Promotion practices Although not much has changed recently in promotion practices, it warrants consideration because promotions and career development play such a significant role in the employee experience and total rewards strategy. Employers on average are planning to promote a little less than 10% of their workforce in 2024. On average, employees can expect to see a 9.2% pay increase for a one -level promotion. Half of employers are managing promotions through their existing salary and wages budget, or some other expense process. Just under 1 in 4 companies have a standalone promotion budget and are planning an average of 1.1 % to cover the increase in salaries due to promotions. Off -cycle increases As we've seen in the last couple of compensation planning reports, employers' use of off -cycle increases has slowed, but not disappeared. Per capita base salary changes, found by comparing the average per person base salary change over a period of time, shows that pay has moved on average 4.6%, which is larger than what was reported as the actual increase delivered in March of 2023: 3.8% merit and 4.1 % total increases. Approximately half of employers reported that they have provided or will provide off -cycle increases in 2023, citing retention concerns, internal equity, and market adjustments as the most common reasons for doing so. While two-thirds of companies don't budget for off -cycle increases, most do have an extensive approval process that typically involves several levels of line management as well as Human Resources and Compensation. Salary structures For the 87% of employers who utilize a formal salary structure, 3 out of 4 adjust the structures annually. Another 8% adjust them every 2 years. Of those who plan to adjust their structure in 2024, the average projected salary structure increase is 2.9%. Sharing salary ranges We know that employers are having to be more transparent about their pay levels, whether because they are required by law or as a voluntary act to build trust among employees. Beyond where legally required, 28% of employers are including salary ranges in job postings nationally with another 10% planning to do so. But what exactly are they sharing? If you take a look at job posting boards like Indeed, it's obvious that what's being shared is not consistent. When looking at a particular job, what's shared as the pay range varies widely. Employers in the US Compensation Planning Survey reported that they most commonly are using the following in job postings: • National, market -based pay range, regardless of (job) location • Geographically adjusted pay range, based on location of job posting • Subset of the pay range (e.g., do not disclose the full maximum of the salary range) Addressing compression and internal equity Increased pressure to be more transparent about pay means that employers have to prioritize addressing pay compression and internal equity issues. Only 17% of the 951 survey respondents reported that they have not experienced compression or internal equity issues; another 18% stated they "don't know" or are "unsure." The remaining respondents stated that they have done the analysis and are making adjustments (36%), that they will make adjustments outside the annual increase cycle (11 %), or that they plan to address in 2024 (17%). Timely insights direct to you Does any of this come as a surprise to you? Or, perhaps it differs dramatically from what your organization is planning for 2024? As you know, what's important is that you understand what your competitors are doing and then make decisions that are right for your unique circumstances. Sign up today to be notified when the next Compensation Planning Survey opens — participants receive the results at no cost. Looking for other Mercer insights to help you plan for 2024? Give us a call at 855-286-5302 or email one of our associates at surveys@mercer.com. https://www.imercer.com/articleinsights/projected-salary-increase-budgets-holding 2/5 1/8/24, 2:41 PM Mercer QuickPulseTM - US Compensation Planning Survey 12024 Projections 60 Mercer welcome to brighter roe LJ Increase projections are holding Merit Total increase 3.8% 3.4 2022 4A% 3.8% 2023 Actual increases Actualincreases 3.9% 3.5% 2024 Projected August 3.8% 3.5% 2024 Projected November Companies are sharing ranges in job postings Annrnarh to nnetinn calary rannAc nn inh nnctinnc https://www.imercer.com/articleinsights/projected-salary-increase-budgets-holding 3/5 1/8/24, 2:41 PM Mercer QuickPulseTM - US Compensation Planning Survey 12024 Projections • ♦'./f./•VM��• �V r/V.•I��rr�� �M�b/�' �M��M�� V���Vv r./vrv•••�J % of Organizations Not legally required, no 8 0 intention Don't know/Unsure 9% Planning to include nationally 0 What they share differs fly where sally required 6% lcluding ationally 8% Approach to determining the salary range to be included on external job postings % of Organizations Geographically adjusted pay range, 27% based on location of job posting National market -based pay range, � 24°° regardless of location Subset of the pay range (e.g., do 22% not disclose the full maximum of the salary range) Budgeted hiring range 10% Minimum of lowest geographic range to maximum of highest 6% geographic range Actual incumbent pay ranges 04% Other = 6% n=981 All numbers are averages and include zeros unless otherwise noted. A business of Marsh McLennan Mercer.com About us Contact us Terms of use Privacy Notice Accessibility statement Feedback Login-FAQs Cookie Notice https://www.imercer.com/articleinsights/projected-salary-increase-budgets-holding COppigi t 2023 Merter LLC- NI rights reserved. 4/5 1/8/24, 2:41 PM Manage Cookies Mercer QuickPulseTM - US Compensation Planning Survey 12024 Projections ■ Asia: Client Solutions Team: 65 6398 2323 ■ Australia/NZ: 1800 645 186 (Sydney) +61 2 8864 6800 (International) / 0508 645 186 (Auckland) +64 9 984 3500 (International) ■ Canada: 1-800-333-3070 ■ Europe/ME/Africa: +48 22 376 17 32 (Warsaw) ■ Latin America: +52 55 9628 7307 (Mexico) ■ United States: Customer Service: 1-800-333-3070 1 Global Software Helpdesk: +800 8300 0042 (11-digit global number, local toll charges apply). In the US, 1-800-866-7474. ©2024 Mercer LLC, All Rights Reserved https://www.imercer.com/articleinsights/projected-salary-increase-budgets-holding 5/5 APPENDIX B WORKSPAN DAILY INFLATION, LABOR MARKET DRIVE MERIT PAY INCREASES Inflation,, Labor Market Drive Merit Pay Increases for 2024 Workspan Daily December 22, 2023 By Michael J. O'Brien Employee Compensation Key Takeaways Healthy salary increases. U.S. employers forecast raising their total salary budgets between 3.8% and 4.1% for 2024. Influencing factors. Inflation and the labor market's voluntary turnover rate may be dropping, but organizations are continuing to use compensation to distinguish themselves from competitors. • Other benefits to consider. Organizations need to take a total rewards focus to look beyond pay to further evaluate what employees value like healthcare and retirement. Inflationary pressures and concerns about a tight labor market continue to cloud the horizon as a trio of surveys point the way forward on 2024 compensation plans. U.S. employers forecast raising their merit increase budgets by 3.5% and total salary increase budgets by 3.8% on average for 2024, according to Mercer's U.S. Compensation Planning Survey November 2023 edition. WorldatWork's "2023-24 Salary Budget Survey" of 2,146 participating organizations found U.S. employers are projecting 4.1% pay increase budgets in 2024 and 3.6% merit increases on average. Meanwhile, employers are planning an overall average salary increase of 4.0% for 2024, according to the latest Salary Budget Planning Survey by WTW. The pressures of the labor market, inflation and uncertainties continue to weigh-in for employers as they head into 2024 with their plans for pay increases, said Alicia Scott -Wears, a compensation content director at WorldatWork. Since the early 2010s, it has been typical to see U.S. salary budget increases in the range of 2.8 to 3.2%, Scott -Wears explained, so a salary budget range of 3.8 to 4.1% is a notable elevation — at average, 32% higher than pre -pandemic standard. "Still, a 4% increase is down from 2023, which saw actuals at 4.4%, so it's a mild pullback, and globally, salary increase budgets are generally stabilizing or pulling back slightly in most cases," she said. While both inflation and the labor market's voluntary turnover rate may actually be dropping, organizations are continuing to use compensation as a main driver to distinguish themselves from competitors. "We are seeing healthy salary increases forecasted for 2024," said Hatti Johansson, research director, reward, data and intelligence, at WTW. "Though economic uncertainty looms, employers are looking to remain competitive for talent, and pay is a key factor." At the same time, she said, organizations should remember pay levels are difficult to reduce if markets deteriorate. "It's best to avoid basing decisions that will have long-term implications on their organization on temporary economic conditions." Trendspotting While pay growth remains strong for most organizations in the upcoming year, it is starting to slow down, according to Lauren Mason, senior principal, career, at Mercer. "We see that practices that had become the norm over the last two years — such as premiums for new hires and out -of -cycle pay increases — are slowing as well," she said. Companies are becoming more prudent about their compensation spend, she said, as well as focusing on providing market and equity pay adjustments for employees as a result of pay compression or internal equity. The other trend is growth in hourly pay, according to Mercer research. The median internal minimum wage (a company's lowest wage or starting rate for any position) is now up to $16.70, up from $15.50 in 2022. • Across industries, median internal minimum wages vary, with the lowest rates being seen in retail (median of $13.80, which is notably the only industry below $15/hour), and the highest rate of $19.50 in energy. • Retail also had the fastest growing internal minimum wage (up from $12.20 last year, an increase of 13%). "It's a reflection of the need for retail hourly wages to keep pace," Mason said, "as many employees have transferable skills they can utilize in front-line roles in other higher paying industries such as services, banking or manufacturing." There were no major shifts in 2023 related to pay for performance strategies, Mason said, as the vast majority of employers continue to indicate that they utilize performance as a key factor for differentiating merit awards. However, one "emerging" area of compensation is skill -based pay, which Mason said can provide many benefits, "such as aligning pay strategies to hot skills and rewarding the attainment of new skills." Inflation Frustration How much does inflation affect how organizations plan on using merit pay increases in 2024? Inflation certainly adds more pressure on pay increase budgets, said Mason, but employers view cost of labor as the primary factor when setting budgets. And while there is a strong correlation between the economy and salary budgets, there are many factors that play into pay increases, said WTW's Johansson. "Even as inflation cools, salary increases are — again — above inflation," she said, "due to a healthy job market and successful business performance in many industries." These days, when getting pay right is the absolute minimum requirement, said Johansson, organizations also need to continue to supplement pay with non -monetary elements, like workplace flexibility and focusing on the employee experience. "Companies need to take a total rewards focus to look beyond pay to look at what employees value like health care and retirement," she said. Looking Ahead in 2024 As the labor market and economy continue to stabilize and pay growth gradually moderates, employers should brace themselves for a shift in the compensation landscape next year, said Johansson. "In this environment, it becomes crucial to strategically allocate compensation investments where they are most needed," she said. "This includes prioritizing faster -moving market segments, such as hourly pay, as well as skills that are in high demand." It's also essential to provide market and equity adjustments for employees who may have fallen behind. "With pay transparency on the rise, employers will face mounting pressure to not only explain, but also defend employee pay levels relative to the market and peers," Johansson said. "Navigating these challenges successfully — with tighter budgets — will be key to getting compensation right in 2024." Additionally, top skills and top performers will be a priority for employers in 2024, said WorldatWork's Scott -Wears. "Many employers have been challenged to retain top performing talent, so that may factor into allocations too," she said. "Turnover is reportedly slowing globally, and inflation is easing slightly as well, so thoughtful allocations have the promise of being impactful with employees." Editor's Note: Additional Content For more information and resources related to this article see the pages below, which offer quick access to all WorldatWork content on these topics: About the Author n,ee. A Michael J. O'Brien Freelance Contributor at WorldatWork Michael J. O'Brien is a freelance writer for WorldatWork who has been covering the world of business since 2005. APPENDIX C WT'W SURVEY ARTICLE 1/8/24, 2:43 PM U.S. pay raises to remain high 2024 WTW survey finds - WTW PRESS RELEASE (HTTPS://WWW.WTWCO.COM/EN-US/INSIGHTS/ALL- INSIGHTS#SORT=%40FDATE13762%20DESCENDING&F:@ARTICLEZ45XCONTENTZ45XTYPE= [PRESS%20RE LEASE]) U.S. pay raises to remain high in2024, WTW survey, December 7, 2023 Concerns over economic uncertainty not deterring employers from increasing pay ARLINGTON, VA, December 7, 2023 — U.S. employers are planning an overall average salary increase of 4.0% for 2024. That's according to the latest Salary Budget Planning Survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. Though down from the actual average increase of 4.4% in 2023, the numbers remain well above the 3.1 % salary increase budget in 2021 and years prior. Inflationary pressures (55%) and concerns over a tight labor market (52%) are the primary influencing factors behind salary increase budgets, both cited by over half of employers surveyed. 44 Though economic uncertainty looms, employers are looking to remain competitive for talent, and pay is a key factor." Hatti Johannsson I Research Director, Reward, Data and Intelligence, WTW Yet, inflation is slowing down from the highs of recent years, and the labor market is shifting, with voluntary turnover and attrition at 11 % overall. While still a common concern, fewer organizations are reporting issues with attraction and retention, down from 60% in 2022 to 48% currently. "We are seeing healthy salary increases forecasted for 2024," said Hatti Johannsson, research director, Reward, Data and Intelligence, WTW. "Though economic uncertainty looms, employers are looking to remain competitive for talent, and pay is a key factor. At the same time, organizations should remember pay levels are difficult to reduce if markets deteriorate. It's best to avoid basing decisions that will have long- term implications on their organization on temporary economic conditions." Still, employers seek to strike a healthy balance within their total rewards packages. Non -monetary actions are a big focus for employers looking to attract and retain. At most organizations, these include more workplace flexibility (63%); broader emphasis on diversity, equity and inclusion (60%); and improving the employee experience (55%). Additionally, most employers have committed to hiring staff in a higher salary range (55%), undertaking compensation reviews of specific employee groups (54%) and raising starting salary ranges (49%), which could also be seen as a reflection of the increased emphasis on pay transparency. https://www.wtwco.com/en-us/news/2023/12/as-economic-uncertainty-looms-pay-rises-remain-high 1/3 1/8/24, 2:43 PM U.S. pay raises to remain high 2024 WTW survey finds - WTW Improving the pay conversation goes a long way in improving the overall employee experience and further stabilizing the workforce." Sara Vallas I Senior Director, Employee Experience, WTW Organizations also report moving toward greater work flexibility, as over half (55%) of employers offer a choice of remote, onsite or hybrid working, while 31 % offer a flexible work schedule. As this trend grows, some companies are changing rewards in line with remote working: 13% of employers have taken action or are planning to change allowances, 10% of employers have or are planning to change benefits, and 11 % have or are planning to adjust base pay. "With ongoing uncertainty, especially around pay transparency, we see organizations do better where there is a foundational level of understanding among all employees — on the compensation philosophy, the program design and how decisions about pay are made. Compensation is a sensitive topic and often managers feel uneasy when it comes to talking about pay. Our research shows the most commonly cited barrier to organizations communicating more openly about pay is the fear of employee reactions. We recommend training for managers on their role, how the compensation program works, and how to communicate it effectively. Improving the pay conversation goes a long way in improving the overall employee experience and further stabilizing the workforce," said Sara Vallas, senior director, Employee Experience, WTW. About the survey The Salary Budget Planning Report is compiled by WTW's Reward Data Intelligence practice. The survey was conducted in December 2023. Over 33,000 responses were received from companies covering over 150 countries worldwide. About WTW At WTW (NASDAQ: WTW), we provide data -driven, insight -led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success —and provide perspective that moves you. Media contacts Ileana Feoli Public Relations, Health Wealth & Career, North America ® Email (mailto:ileana.feoli@wtwco.com) Stacy Bronstein ® Email (mailto:stacy.bronstein@wtwco.com) Related products PRODUCT Salary Surveys % +1 212 309 5504 (tel:+1 212 309 5504) Compete for and keep the talent you need with world -class salary surveys and salary benchmarking data across industries, countries and job levels. Getting compensation right is hard. We make it easy. Product Information -+ (https-//www.wtwco.com/en-us/solutions/products/salary-surveys) https://www.wtwco.com/en-us/news/2023/12/as-economic-uncertainty-looms-pay-rises-remain-high 2/3 1/8/24, 2:43 PM PRODUCT U.S. pay raises to remain high 2024 WTW survey finds - WTW Global salary and employee benefits market practice reports Make informed workforce decisions with data from our extensive library of market practice reports, no participation required. Product Information 4 (https://www.wtwco.com/en-us/solutions/products/global-salary-and-employee-benefits-market-practice-reports) Related insights See all insights 4 (/en-us/insights/all-insights) Copyright © 2023 WTW. All rights reserved. https://www.wtwco.com/en-us/news/2023/12/as-economic-uncertainty-looms-pay-rises-remain-high 3/3 APPENDIX D UTAH DWS BLOG ARTICLE 1/9/24, 10:02 AM The Utah Job Demand Buffer Job Search (/jobseeker/index.html) Employers (/employer/index.html) Assistance (/assistance/index.html) The Utah Job Demand Buffer (/blog/post/2023/12/26/the-utah- job-demand-buffer) ®26. December 2023 By Gwen Kervin Since March of 2022, the Federal Reserve has been raising interest rates in an attempt to cool inflation and slow the economy. However, so far, the effect on Utah's labor market has been minimal. Constricted labor markets following the COVID pandemic caused employers to have a hard time filling open positions. Because employers struggled to find workers, a large gap developed in unmet labor demand. This elevated wages, which in turn lured marginal workers into the labor force, helping to fill some of the vacancies. While Utah continues to turn in job growth numbers, growth rates have come down from the highs experienced in 2021 and 2022, resulting in a reduction in the unmet labor gap. Because of this, any additional Fed rate moves could have a more immediate influence on the Utah labor market going forward. To understand the magnitude of the job buffer created by unmet Utah labor demand, it is helpful to look at the ratio of job openings to unemployed workers. The correlation between the two provides a proxy for how much labor is or isn't available to fill job vacancies. In weak economies, there can be more idled workers than the volume of job postings. Conversely, in strong economies, there are more job postings than available workers. A balance between the two would be an economy with one available worker per job advertisement. However, when the volume of job openings noticeably exceeds the measure of available labor (the unemployed), it can serve as a signal that the labor supply internally is not sizable enough to support job growth. For example, in the early part of 2022, Utah's ratio increased to 3.5. This implies that for every 350 job postings, there are only 100 available unemployed Utah laborers to fill the positions. If there are not enough workers internally to support growth, then attracting labor from outside the state is the needed remedy. Fortunately, Utah has been able to do just that as the state's job growth remained at or above average through 2022 into the early part of 2023. However, as 2023 has progressed, the high ratio of job postings to workers has been moderating. Historically, Utah's vibrant economy has kept this ratio above that of the United States. In fact, the only time that it approached levels near those in the nation was during and immediately following recessions. https://jobs. utah.gov/blog/postl2023/12/26/the-utah-job-demand-buffer#continue 1 /6 1/9/24, 10:02 AM The Utah Job Demand Buffer Utah and U.S.: Ratio of Job Openings per Unemployed Worker 3,S 3 2.5 1 0.5 0 04 N N N N N N N N N N N N N N N N N N N N N N N N N N N N ti N .-� ti rl rl N N r1 r1 r1 rl N ti N ti .-1 �/ rl r1 er rl N N �-1 'i N O Q N N O W C N N O 0\0 Q N N O 0\0 Q N O m t\O rl rl rl .r rl H rl rl e1 e1 4avre-�GIK&t —us —utah Prior to the pandemic, this ratio was well above that of the United States, but fell closer to levels seen in the rest of the nation in response to the economic pullback tied to COVID-era restrictions. However, soon after, the openings -to -unemployment ratio rose sharply, reaching 3.5 in January 2022. Although the openings -to -unemployment ratio is still at historically elevated levels, indicating elevated labor demand, it is clearly coming down. In July 2023, Utah's job -openings -to -unemployment ratio was at 2.1, which is still noticeably higher than the U.S. rate of 1.5. Job openings can come about either because an employer needs to fill an existing position that has become vacant, or because the employer has decided to create a new position. When employees quit their jobs to move to a new one, it creates churn in the labor market, but does not represent growth in jobs. The number of people quitting their jobs can be used to get an idea of what portion of overall job openings can be attributed to churn versus job growth. In the United States, the number of people quitting their jobs in the pandemic's aftermath increased and stayed elevated. This increase prompted a new catchphrase — The Great Resignation. It is only recently that U.S. quits have returned to levels more in line with pre - pandemic activity. Correspondingly, U.S. job openings also increased during the same period, indicating that a large portion of the overall job openings were due to churn rather than new, job -growth positions. https://jobs.utah.gov/blog/postl2023/12/26/the-utah-job-demand-buffer#continue 216 1/9/24, 10:02 AM The Utah Job Demand Buffer Percent Change in Utah and U.S. Job Openings and Quits from May 2018 120% 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% `s ti% 1oi �� 10 ti� ti0 10 LO ti0 y� '11 '17 L1 1ti titi titi titi ti� ti0 ti0 ti0 LO ti0 �O ti0 ti0 10 LO ti0 ti0 ti0 ti0 ti0 ti0 10 1. ti0 ti0 ti0 \ti\ \ti\ \�\ \,\ \ti\ \ti\ \ti\ \ti\ \ti\ \�\ \�\ \,\ \ti\ \ti\ \�\ \�\ b �ti 1, h 0 yy 'L h � titi ti h � ti~ ti h 5:,..e lain —UTQuits —UT)obOpenings ••••••USQuits ••••••USJob Openings A different picture emerges when looking at quits and job openings in Utah. The level of job openings in Utah increased several years before the pandemic hit. Increased quits were a part of this increase, moving higher at the end of 2017 and reaching a pre -pandemic high in the beginning of 2019. Nationally, churn and job growth were mostly flat before the pandemic, with largely little story to tell. Then the pandemic hit and created an instant recession. Recovery began shortly thereafter. Job openings went high in both the nation and Utah in the recovery period. Quits continued to remain low in Utah. On the other hand, quits across the United States began to rise. This largely says that in Utah the post -pandemic job openings increase was fueled more by job growth. Conversely, the national job openings seem fueled more by an overall shortage of labor which created a noticeable amount of labor turnover. Nationally, people were churning in search of better jobs and wages. Recent job growth numbers point to a loosening in Utah's labor market. Monthly job growth estimates have come down from the highs seen in 2021 and 2022. It was in negative territory for most of 2020, but by 2021, it turned positive, with an average growth rate of 5.0%. By 2022, Utah's average job growth rate was 4.2%, still well above historic highs. For comparison, from January 1991 through October 2023, Utah had a 2.7% average job growth rate, which is more in line with the growth rates seen in 2023. Year to date, the state's average job growth rate is 2.6%. Utah's tight labor market over the past several years has induced employers to raise wages to attract new workers, and it appears to have worked. Utah's labor force participation rate, which accounts for those over the age of 16 who are either working or looking for work, has risen in the past year to 69.7% in September 2023. This is largely a full percentage -point increase in just the past half year. Given the population's age distribution in Utah, a labor force participation rate close to 68.5% would point to a solidly employed labor force. A year ago, in September 2022, the labor force participation rate was at 68.8%. https://jobs.utah.gov/blog/postl2023/12/26/the-utah-job-demand-buffer#continue 3/6 1/9/24, 10:02 AM The Utah Job Demand Buffer Change in Labor Force Participation Among Marginally Attached Workers Utah and the United States: August 2022 - August 2023 so 4.0 4.0 10 20 1.0 0.0 ■ 1.0 -0.7 1.4 4.1 0.7 0.2 Age 16.19 Age 65+ Female Age 25 44 ■ Utah ■ w; Wages driven higher by the state's tight labor market have induced marginal workers who typically remain on the sidelines to enter the labor market. Over the past year, groups that have historically seen lower labor force participation rates, including teenagers, older workers, and women with school age children, have been entering the workforce. Younger workers in Utah, between the ages of 16 and 19, have increased their labor force participation rates by 4.0 percentage points, while those over the age of 65 have increased their participation by 1.4 points. By comparison, teens in the U.S. have seen a decline in their participation rates. Older U.S. workers have increased their rates only slightly over the last year, and have yet to recover their participation rates from pre -pandemic levels. Working - age women in Utah, between the ages of 25 and 44, who might have stayed out of the labor force due to childcare needs, have increased their participation rates by 4.1 percentage points compared to U.S. women, who increased their participation rates by only 0.7 points. An overall tighter local labor market in Utah and a faster increase in average hourly earnings over the past year have encouraged higher labor force participation rates among these marginal workers in Utah than in the rest of the United States. While marginal workers have helped to fill vacancies, recent job posting data indicates that employers are scaling back their demand for labor. While several of the industrial sector's job postings remain aggressive in Utah overall, total job postings are down 11.3% from September 2022 to August 2023. Data from Lightcast, a job posting aggregator, indicates that unique online job postings over the last year have declined the most in the professional, scientific and technical services, and administrative support sectors. The educational services and transportation and warehousing industries also saw significant declines in the number of online job postings. Some of these decreases can be attributed to a natural pause in job postings following a dramatic increase in hiring as employers sought to rehire lost workers following the COVID pandemic. For example, both the educational services and professional, scientific and technical services sectors, which have seen a decline in online job postings, saw some of the largest increases in employment from the fourth quarter of 2020 to the first quarter of 2023. https://jobs.utah.gov/blog/postl2023/12/26/the-utah-job-demand-buffer#continue 4/6 1/9/24, 10:02 AM The Utah Job Demand Buffer Percent Change in Unique Online Job Postings in Utah (September 2022 - August 2023) Professional, Scientific, and Technical Services -38.0% Admin and Support and Waste Mgmt and._. Educational Services Transportation and Warehousing Retail Trade Real Estate and Rental and Leasing Finance and Insurance Information Wholesale Trade Manufacturing Health Care and Social Assistance Construction Accommodation and Food Services Public Administration 22.9% 18.6% � -16.1% -14.8% -24.3% -12.9% 11.9% -5.7% 111111110 -4.3% 111111110 M 3.7% M 3.9% 111111110 4.4% 11.6% Other Services (except Pub Admin) 30.3% uh. i,a i.Rm,a.r-50.0%-40.0%-30.0%-20.0%-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Higher wages and spending power have kept demand for services elevated, leading to an increase in job postings in accommodation and food services and other services, which includes repair, maintenance, and personal services. The state's growing population and vibrant economy continue to support the construction sector, which saw a 3.9% increase in job postings over the past year. Finally, the health and social assistance sector, which had a difficult time attracting labor post COVID and will only grow as the population ages, has seen an increase in job postings as well. Tight labor markets in Utah have driven wages higher, luring marginal workers into the labor force, but there is evidence that Federal Reserve rate hikes have begun to loosen labor markets. The job buffer is declining, job postings are down, and job growth numbers have lowered to a more normalized level. However, there is still a healthy demand for workers in the accommodation and food services, construction, and health and social assistance sectors. Going forward, with the jobs gap reduced, the actions of the Fed are likely to have a more immediate impact on labor markets. The effects will have a stronger impact on broader U.S. labor markets, which have a smaller buffer and higher unemployment rates. However, higher interest rates could ultimately slow the Utah economy and soften labor demand going forward. 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DWS) I It@ (https://www.instagram.com/jobsut/) Follow us on our Socials (https:/Ijobs.utah.gov/followus.htmi) Feedback (/jsp/feedback/) i Equal Opportunity (/department/contact/eo.html) I Contact Us (/department/contact/index.html) I Utah.gov Home (http://www.utah.gov) I Terms of Use (http://www.utah.gov/disclaimer.html) I Privacy Policy (http://www.utah.gov/privacypolicy.html) I Accessibility Policy (http://www.utah.gov/accessibility.html) © 2024 State of Utah A proud partner of the ,z, t-.az -jObee, . network https://jobs.utah.gov/bIog/post/2023/12/26/the-utah-job-demand-buffer#continue 6/6 APPENDIX E CITY RESOLUTION NO. 20 - 2023 RESOLUTION NO. 20 OF 2023 Declaring Support for Top -of -Market Wages for Firefighters and Police Officers Employed by Salt Lake City Corporation WHEREAS, Salt Lake City is the capital city of the State of Utah, with growing public safety needs and service requirements. WHEREAS, Salt Lake City Corporation (the "City") is committed to recruiting and retaining the highest skilled and trained firefighters and police officers to serve Salt Lake City's diverse and growing population. WHEREAS, pursuant to the Collective Bargaining and Employee Representation Joint Resolution dated March 22, 2011 ("Collective Bargaining Resolution"), the City recognizes and engages in collective bargaining with the International Association of Firefighters Local 81, representing eligible employees ("IAFF") and the Salt Lake Police Association, representing eligible employees ("SLPA"). WHEREAS, pursuant to the Collective Bargaining Resolution, the City periodically negotiates the wages for employees represented by the IAFF and SLPA. WHEREAS, the Collective Bargaining Resolution establishes a process for negotiating wages for IAFF- and SLPA-represented employees, and any negotiated wages are presented to the City Council as part of the Mayor's annual budget. WHEREAS, in the fiscal year 2021, 2022 and fiscal year 2023 budgets, the City Council prioritized ensuring that the City's firefighters and police officers were paid wages commensurate with or close to top of the market wages paid by public entities for such occupations in the State of Utah. WHEREAS, the City Council desires to express the policy objective that for fiscal year 2024 and for future fiscal years, the City's firefighters and police officers be paid wages commensurate with or close to top of the market wages paid by public entities for such occupations in the State of Utah. NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, the following: 1. In recognition of the unique challenges associated with being employed as a firefighter or police officer, especially in the capital city of the State of Utah, the Salt Lake City Council's policy objective is to ensure that the City's firefighters and police officers are paid wages commensurate with or close to top of the market wages paid by public entities for such occupations in the State of Utah, especially among the State's largest public safety agencies. 2. This Resolution shall be effective immediately upon passage. Passed by the City Council of Salt Lake City, Utah this 13"' day of June, 2023. SALT LAKE CITY COUNCIL Darin Mano, Chair ATTEST AND COUNTERSIGN: Approved as to form: Salt Lake City Attorney's Office 0--- Cindy Lou Trishman, City Recorder Kate Lewis (Jun 17, 202312:55 MDT) Katherine Lewis, City Attorney J u n 17, 2023 APPENDIX F ELECTED OFFICIALS, DEPARTMENT DIRECTORS & OTHER KEY CITY LEADERS The table below illustrates the normalized median wage of all responding entities for each job as surveyed by the Salt Lake City HR Department. Following best practices, a minimum of five entities were required to report on the composite of salary data to be used for comparison. Job Code 002626 Job Title 911 DISPATCH DIRECTOR Number of Entities 14 Average Years in Position 4.5 Normalized Median $134,993 006440 BUILDING OFFICIAL 21 5.3 $139,383 002470 CHIEF ADMINISTRATIVE OFFICER 11 4.9 $175,120 002091 CHIEF FINANCIAL OFFICER 25 6.0 $198,053 002475 CHIEF HUMAN RESOURCES OFFICER 26 4.1 $182,089 001578 CHIEF INFORMATION OFFICER 23 7.3 $186,879 002514 CHIEF INNOVATION OFFICER 7 2.0 $164,699 007010 CHIEF OF POLICE 26 3.7 $219,565 000249 CHIEF OF STAFF 19 2.9 $163,795 000504 CHIEF PROCUREMENT OFFICER 13 4.7 $129,276 001553 CITYATTORNEY 29 5.0 $220,515 002193 CITY BUDGET DIRECTOR 23 4.7 $140,540 000020 CITY COUNCIL MEMBER 11 4.4 $23,964 004031 CITY ENGINEER 18 2.5 $163,068 000314 CITY RECORDER 16 3.2 $133,335 002342 ICITY TREASURER 17 7.6 $151,200 000897 COMMUNICATIONS DIRECTOR 22 5.2 $152,710 002327 COMPLIANCE DIVISION DIRECTOR 7 1.9 $121,094 002511 DIRECTOR -REDEVELOPMENT AGENCY 4 Insufficient Data Insufficient Data 002060 DIRECTOR OF COMMUNITY & NEIGHBORHOODS 17 3.9 $177,645 001992 DIRECTOR OF ECONOMIC DEVELOPMENT 18 2.7 $177,045 006401 IDIRECTOR OF HOUSING & NEIGHBORHOOD DEVELOPMENT 19 3.5 $136,789 002581 DIRECTOR OF PUBLIC LANDS 10 3.5 $170,790 000579 DIRECTOR OF PUBLIC SERVICES 16 5.6 $201,366 001552 DIRECTOR OF PUBLIC UTILITIES' 22 4.9 $189,064 002899 DIRECTOR OF TRANSPORTATION(ENGINEER) 10 2.6 $199,043 000021 EXECUTIVE DIRECTOR- CITY COUNCIL OFFICE 10 7.2 $155,533 001551 1EXECUTIVE DIRECTOR OF AIRPORTS' 16 N/A $349,600 002176 FACILITIES DIVISION DIRECTOR 22 5.9 $136,172 008010 FIRE CHIEF 25 4.9 $210,259 002177 FLEET MANAGEMENT DIVISION DIRECTOR 23 5.0 $124,614 002178 GOLF DIVISION DIRECTOR 10 8.1 $107,270 000539 JUSTICE COURTS ADMINISTRATOR 16 4.4 $136,659 000001 MAYOR' 15 5.6 $161,981 002405 PARKS DIVISION DIRECTOR 22 4.4 $143,713 004165 PLANNING DIRECTOR 21 4.1 $167,448 000002 SENIOR ADVISOR 11 3.3 $133,286 002036 SUSTAINABILITY/ENVIRONMENTDIRECTOR' 1 12 1 3.7 1 149,165 002186 WASTE & RECYLCING DIVISION DIRECTORS1 12 1 3.7 1 $139,306 002326 YOUTH & FAMILY DIVISION DIRECTOR 1 9 1 6.6 1 $107,432 1: Compared against Full -Time ONLY Mayors 2: Compared against Part -Time ONLYCityCouncil Members 3: Compared against select group of cities 4: Compared against additional cities beyond the general participant list 5: Compared againstACI-NAsalarysurvey- Published 2022 # of 2023 Participants Participant List City and County of Denver City of Boise City of Fresno City of Las Cruces City of Oakland City of Prow City of Seattle Des Moines Water Works City of Arvada City of Boulder City of Green Bay City of Las Vegas City of Oklahoma City of Reno City of Surprise Metro Nashville Government City of Baton Rouge City of Des Moines City of Kent City of Memphis City of Omaha City of Sacramento City of Tampa Pittsburgh Water & Sewer Authority City of Bellevue City of Everett City of Knoxville City of New Orleans City of Phoenix City of Salem City of Tempe West Valley City Prepared for and on behalf of the Committee by: Salt Lake City - Human Resources Department 349 South 200 East, Suite 500 Salt Lake City, Utah 841 14-5464 (801) 535-7900 Deb Alexander, Chief Human Resources Officer David Salazar, Compensation Manager Michael Jenson, Senior Compensation Analyst