SR 06:253 - Laserfiche WebLink

The City's Management and Confidential Employee Compensation Plan ("Plan") provides for control points to be adjusted annually, taking into consideration market and other influences such as increases granted managers among other benchmark agencies, internal relationships between supervisory positions and across departments, and the Consumer Price Index (CPI). In regards to benchmark agencies, the selection of agencies is based on a variety of factors, including, but not limited to, regional and operational similarities, number of employees, population served, etc. The assumption is that benchmark agencies are typically faced with the same organizational issues and generally compete for the same labor/talent pool. In reviewing salary adjustments for benchmark agencies, staff found salary increases for corresponding agencies ranged between 1% and 5% over the last 12 months. (See Attachment B.) In addition to the survey information obtained, staff also reviewed the CPI and found that the most recent numbers available for the San Francisco-Oakland Bay Area illustrate that the CPI has fluctuated from a low of 2.0% to a high of 3.9% over this same 12- month period. (See Attachment C.) Management and confidential salaries are comprised of two major components; a control point (or midpoint of the salary range) and a compa ratio. The control point reflects CPI and survey information and is used as a benchmark for the classification's salary. The compa ratio reflects the employee's actual salary based on performance. Should the Council at a future meeting approve the attached resolution, there would be a 4.0% adjustment in classification control points. However, the actual salary increase to any given employee might be less or more than the 4.0%, based solely on performance. There are no automatic increases in compensation under the Plan; rather the driving factor in the consideration of a salary increase is whether the agency's goals and objectives for which that employee is responsible are being completed in a timely and productive manner. This and the employee's overall performance are reviewed annually by the City Manager. In conclusion, the Plan provides for the establishment annually of a compensation pool for management employees. It is recommended that the City Council review and discuss the proposed resolution approving a 4.0% compensation pool for management and confidential employees. From this pool, the salaries of individual management and confidential employees will be adjusted based solely on performance. Attached for review are related background materials, including a survey of comparable agencies depicting recent and proposed adjustments in compensation, the CPI, a description of core benefits by bargaining group within the City and a detailed fiscal impact analysis illustrating the cost of a 3.5% to 4.0% adjustment to management and confidential classifications. PUBLlCIPRIVATE SECTOR COMPENSATOIN STUDY Last year, the City Council authorized staff to commence a public/private sector compensation study for management employees. Assigned to work with the City Manager on this matter are Councilmembers McGovern and Thorne. To date, a consultant specializing in these studies has been secured, parameters for the selection of comparative private sector employers have been identified and the collection of compensation data is now underway. It is expected that the private sector data will be available in the January/February timeframe for review and 06:253 2