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					        Compensation Overview
Council Budget Work Session #2

                    Dianne Randall Foster
             Director of Human Resources
                           March 7, 2007



                                            1
AGENDA
 Understanding the City’s Pay System
  Compensation Philosophy
  How It Works
  Market Comparability
  Salary Study Results
  Human Resources Recommendations
  Questions/Worksheet




                                        2
Compensation Philosophy

Compensation Philosophy:
  enhance organization performance
  through a combination of base pay, rewards and
   incentives
  which attract, retain and motivate
  high performing employees




                                                    3
City’s Pay System
 How It Works
  Merit
      City’s basic compensation tool
      Employee pay is based on job performance
  Market Adjustments
      General Wage Increase
      Based on what the organization can afford to remain
       competitive in the job market
  Pay Range Adjustments
      Based on market justification
      Enable the successful recruitment and retention of employees
                                                                      4
City’s Pay System

How It Works
  Each position is assigned a salary range based on
   market data and the City Manager’s determination of
   the strategic value of positions and/or employees to
   the organization
  Salary Range consists of :
     Minimum - entry level (minimum qualifications)
     Mid-point – middle of the range (skilled/experienced)
     Maximum – top of range (maximum value for position)

                                                              5
City’s Pay System

How It Works
  Vacant positions are posted with the salary range
   identified
  In the past, we recruited mostly at or about the
   entry level wage
  Organizational needs of many departments often
   necessitate in-hiring rates for more seasoned
   employees with critical skill sets.


                                                       6
City’s Pay System

How It Works
  Once an employee is hired, the annual pay increase
   is based on the merit review. This basic pay tool
   allows us to simultaneously reward high
   performance and ensure that our employee salaries
   keep pace by awarding:
  2% for met
  3% for achieved
  4% for surpassed
  5% for exceeded
                                                        7
City’s Pay System

Market Comparability
  Goal is to ensure that our employees are generally
   paid in accordance with our regional competitors
  Salary comparisons for FY08 were compiled by
   IPAC (Intergovernmental Personnel Advisory
   Committee) using SevaNet. The localities in the
   region have decided to transition to a new salary
   survey system called TechNet. Future market
   comparisons will be compiled using this system.

                                                        8
City’s Pay System

Market Comparability
  Pay Administration Complication Factors
    Very difficult to predict the market
       • While we have a structure which allows us to gather
         information about what our competitors are
         currently paying, we do not have any way to
         adequately determine what they are going to do in
         the future
       • Average actual salary comparisons are more
         difficult to compare due to the variance in tenure
         and the number of incumbents in the positions

                                                               9
City’s Pay System

Market Comparability-Consultant Guidelines
  Watson Wyatt Worldwide, a leading compensation
   consulting company recommends:
    Annual review of 20% - 25% of permanent
     positions
    In – depth analysis of positions that deviate
     10% or more from market



                                                 10
City’s Pay Plan
 Market Comparability-Human Resources Analysis
  Review 25% of the positions every year
  Conduct in-depth analysis of benchmarked positions 10%
    above or below the average market minimum comparables for
    the region
  Review 10% of the positions against private sector
    benchmarks
  Review other positions as issues with retention or attraction
    arise
  Generally speaking, we would expect to be somewhere in the
    middle or around the regional average

                                                               11
Salary Study Results

Public Safety Comparisons
  Police Division
  Fire Division




                             12
  Public Safety - Police Recruit
                                                               Minimum
Locality                              Title                     Salary

City of Virginia Beach                Police Officer Recruit   36,088

City of Hampton                       Police Recruit           33,946

City of Newport News                  Police Officer Recruit   33,620

City of Norfolk                       Police Recruit           33,000

City of Chesapeake                    Police Officer Trainee   32,640

City of Portsmouth                    Police Officer Trainee   31,411

Hampton min from average market min   +1.78%


                                                                    13
Public Safety – Police Officer I
                                                         Minimum
Locality                              Title               Salary

City of Virginia Beach                Police Officer     37,915

City of Hampton                       Police Officer     35,620

City of Newport News                  Police Officer     35,620

City of Norfolk                       Police Officer I   34,650

City of Chesapeake                    Police Officer     34,136

City of Portsmouth                    Police Officer     32,983

Hampton min from average market min   +1.59%


                                                                   14
Public Safety – Police Officer II
                                                          Minimum
Locality                              Title                 Salary

City of Hampton                       Police Officer       40,065

City of Norfolk                       Police Officer II    38,320

City of Virginia Beach                Police Officer       37,915

City of Chesapeake                    No Match

City of Newport News                  No Match

City of Portsmouth                    No Match



Hampton min from average market min   +5.11%

                                                                     15
Public Safety – Senior Police Officer
                                                               Minimum
Locality                              Title                     Salary

City of Norfolk                       No Match                  40,846

City of Hampton                       Police Officer            40,065

City of Chesapeake                    Senior Police Officer     39,817

City of Newport News                  Police Officer, Senior    38,000

City of Portsmouth                    No Match

City of Virginia Beach                No match



Hampton min from average market min   +1.29%


                                                                         16
Public Safety – Master Police Officer
                                                               Minimum
Locality                              Title                     Salary
City of Hampton                       Police Officer            46,092

City of Chesapeake                    Master Police Officer     46,042

City of Virginia Beach                Master Police Officer     43,970

City of Norfolk                       No Match                  43,372

City of Newport News                  Police Officer, Master    43,305

City of Portsmouth                    No Match




Hampton min from average market min   +4.35%

                                                                         17
Public Safety – Firefighter Recruit
                                                                    Minimum
Locality                              Title                          Salary

City of Virginia Beach                Firefighter Recruit           36,088

City of Hampton                       Firefighter Recruit           33,946

City of Newport News                  Firefighter / Medic Recruit   33,620

City of Norfolk                       Firefighter Recruit           33,000

City of Chesapeake                    Firefighter Trainee           32,640

City of Portsmouth                    Firefighter Trainee           31,411

Hampton min from average market min   +1.84%


                                                                             18
Public Safety - Firefighter

                                                        Minimum
Locality                              Title              Salary

City of Norfolk                       Firefighter EMT   38,222

City of Virginia Beach                Firefighter       37,915

City of Hampton                       Firefighter       35,620

City of Chesapeake                    Firefighter/EMT   34,136

City of Portsmouth                    Firefighter       32,983

City of Newport News                  No Match

Hampton min from average market min   -0.54%
                                                                  19
Public Safety – Medic Firefighter
                                                            Minimum
Locality                              Title                   Salary

City of Virginia Beach                Firefighter Medic       41,850

City of Hampton                       Medic Firefighter       38,644

City of Norfolk                       Firefighter EMT-C       36,473

City of Newport News                  Firefighter / Medic     35,620

City of Portsmouth                    No Match

City of Chesapeake                    No Match

Hampton min from average market min   +1.75


                                                                 20
Public Safety - Paramedic
                                                                 Minimum
Locality                              Title                       Salary
City of Virginia Beach                Master Firefighter Medic   46,195

City of Hampton*                      Medic Firefighter          42,644

City of Norfolk                       Firefighter EMT-P          42,129

City of Chesapeake                    Firefighter/Paramedic      39,817

City of Newport News                  Firefighter/Medic Sr       38,000

City of Portsmouth                    Firefighter/Paramedic      34,631


Hampton min from average market min   +6.20%

*Includes Paramedic Incentive

                                                                          21
Salary Study Results

General Workforce Comparisons
  Administrative/Technical




                                 22
General Employees - Custodian

                                                            Minimum
Locality                              Title                 Salary
Private Sector                        Janitor               20,200

City of Virginia Beach                Custodial Worker II   19,951

City of Newport News                  Custodian II          18,782

City of Portsmouth                    Janitor               17,491

City of Norfolk                       Custodian             17,085

City of Chesapeake                    Housekeeper           16,849

City of Hampton                       Custodian             16,595


Hampton min from average market min   -7.97%                          23
General Employees – Account Clerk I

                                                                    Minimum
Locality                              Title                         Salary
Private Sector                        Accounting Clerk I            24,500

City of Norfolk                       Support Technician            23,029

City of Chesapeake                    Account Clerk                 22,172

City of Portsmouth                    Fiscal Support Specialist I   21,261

City of Virginia Beach                Account Clerk I               20,962

City of Newport News                  Accounting Assistant          20,780

City of Hampton                       Account Clerk                 19,336


Hampton min from average market min   -10.65%                                 24
General Employees – Customer Service
                        Specialist
                                                                    Minimum
Locality                              Title                         Salary
City of Virginia Beach                Account Clerk II              25,541

City of Chesapeake                    Customer Service Clerk II     24,940

Private Sector                        Customer Service Rep I        24,500

City of Portsmouth                    Customer Service Specialist   22,324

City of Norfolk                       Customer Service Rep          19,799

City of Hampton                       Customer Service Specialist   19,336

City of Newport News                  No Match


Hampton min from average market min   -16.48%
                                                                              25
General Employees – Staff Support
                    Technician I
                                                                   Minimum
Locality                              Title                        Salary
Private Sector                        Secretary I                  25,300

City of Virginia Beach                Office Assistant I           23,138

City of Chesapeake                    Office Specialist I          22,172

City of Hampton                       Staff Support Technician I   20,871

City of Newport News                  Administrative Assistant I   20,780

City of Portsmouth                    Office Specialist II         20,248

City of Norfolk                       No match


Hampton min from average market min   -3.31%
                                                                             26
General Employees – Senior Library
                     Assistant

                                                                           Minimum
Locality                              Title                                Salary
City of Virginia Beach                Library Information Specialist III   34,349

City of Norfolk                       Library Associate II                 31,504

Private Sector                        Librarian Assistant                  29,600

City of Portsmouth                    Library Associate                    25,843

City of Hampton                       Senior Library Assistant             24,321

City of Newport News                  Library Technician Sr                23,440

City of Chesapeake                    Library Assistant II                 22,172


Hampton min from average market min   -11.44%                                        27
General Employees – Senior Heating and Air
                    Conditioning Mechanic

                                                                      Minimum
Locality                              Title                           Salary
Private Sector                        HVAC Mechanic II                38,700
City of Virginia Beach                HVAC Technician II              34,349
City of Newport News                  Maintenance Mechanic II         32,406
City of Norfolk                       Operating Engineer II           31,504
City of Hampton                       Senior HVAC Mechanic            30,592
City of Portsmouth                    Building Maint Spec II (HVAC)   28,492
City of Chesapeake                    No Match

Hampton min from average market min   -3.46%

                                                                               28
General Employees – Telecommunications
                  Specialist – Entry Level
                                                               Minimum
Locality                    Title                              Salary

City of Virginia Beach      Communications Officer I            29,619

City of Hampton             PS Telecommunications Specialist    28,341

City of Chesapeake          Dispatcher Trainee                  26,975

City of Newport News        Dispatcher I, 911                   26,445

City of Portsmouth          Communications Dispatcher I         25,843

City of Norfolk             Public Safety Telecomm Trainee      24,871

Hampton min from average market min   +5.95%


                                                                         29
General Employees – Park Ranger
                                                       Minimum
Locality                              Title             Salary

City of Newport News                  Park Ranger II   33,715

City of Chesapeake                    Park Ranger I    29,177

City of Hampton                       Park Ranger      26,255

City of Norfolk                       No Match

City of Portsmouth                    No Match

City of Virginia Beach                No match

Hampton min from average market min   -16.51%


                                                                 30
Salary Study Results

General Workforce Comparisons
  Managerial/Professional




                                 31
General Employees - Buyer

                                                                 Minimum
Locality                              Title                      Salary
Private Sector                        Buyer II                   42,500
City of Virginia Beach                Buyer I                    32,693
City of Newport News                  Buyer I                    31,735
City of Chesapeake                    Procurement Specialist I   31,558
City of Norfolk                       Buyer I                    31,504
City of Portsmouth                    Buyer                      31,411
City of Hampton                       Buyer                      29,034

Hampton min from average market min   -8.64%

                                                                           32
General Employees – Senior Recreation
                      Professional

                                                                       Minimum
Locality                              Title                            Salary
City of Virginia Beach                Recreation Specialist II         37,915
City of Norfolk                       Senior Recreation Supervisor I   37,325
City of Newport News                  Recreation Program Coord, Sr     35,845
City of Chesapeake                    Recreation Specialist II         34,133
Private Sector                        Recreation Coordinator           32,800
City of Hampton                       Senior Recreation Professional   31,358
City of Portsmouth                    Recreation Program Specialist    29,916

Hampton min from average market min   -10.47%

                                                                                 33
General Employees - Accountant

                                                                 Minimum
Locality                              Title                      Salary
City of Portsmouth                    Accounting Specialist II   46,409
City of Newport News                  Accountant II              42,975
City of Chesapeake                    Accountant II              39,930
City of Virginia Beach                Accountant II              39,834
City of Hampton                       Accountant                 36,581
Private Sector                        Accountant I               34,300
City of Norfolk                       Accountant II              34,151

Hampton min from average market min   -10.03%

                                                                           34
General Employees – Senior Systems Analyst

                                                                        Minimum
Locality                              Title                             Salary
City of Virginia Beach                Systems Analyst II                56,285
City of Norfolk                       Programmer/Analyst V              51,507
City of Portsmouth                    Info Tech Systems Analyst II      51,166
Private Sector                        Applications Systems Analyst II   49,600
City of Newport News                  Systems Analyst II                48,590
City of Chesapeake                    Systems Analyst I                 48,582
City of Hampton                       Senior Systems Analyst            46,090

Hampton min from average market min   -10.03%

                                                                                  35
General Employees - Architect

                                                           Minimum
Locality                              Title                Salary
City of Virginia Beach                Architect            59,133
City of Norfolk                       Architect III        54,461
City of Newport News                  Licensed Architect   51,600
City of Hampton                       Architect            49,781
Private Sector                        Architect IV         46,400
City of Chesapeake                    No Match
City of Portsmouth                    No Match

Hampton min from average market min   -9.60%

                                                                     36
General Employees – Recreation Professional
                                                                  Minimum
Locality                         Title                            Salary

City of Norfolk                  Recreation Supervisor             35,138

City of Virginia Beach           Recreation Specialist I           32,693

Newport News                     Recreation Program Coordinator    31,735

City of Chesapeake               Recreation Specialist I           29,177

City of Hampton                  Recreation Professional           26,882

City of Portsmouth               No Match

Hampton min from average market min -16.48%




                                                                            37
General Employees – Crime Analyst
                                                           Minimum
Locality                        Title                      Salary

City of Virginia Beach          Public Safety Analyst II   43,970

City of Norfolk                 Management Analyst I       37,325

City of Newport News            Crime Analyst II           35,845

City of Chesapeake              Crime Analyst Specialist   32,821

City of Hampton                 Crime Analyst              31,358

City of Portsmouth              No Match



Hampton min from average market min -16.36%

                                                                     38
Recommendations Resulting from
Market Review
4% Merit Pay - Based on the prior year, an
 average 4% merit increase is anticipated
  A pay range adjustment of 2% to all ranges is
   recommended to enable us to recruit qualified and
   talented employees and retain motivated, high-
   performing employees
3% General Wage Increase (GWI) for all
 employees to ensure that our competitive position
 within the region is maintained
                                                       39
Recommendations Resulting from
Market Review
 Re-classification/re-structuring of positions that were
  significantly below regional comparisons
 Adjusting pay rates and employment status for those
  WAE employees working 30 hours per week to
  Permanent pay rates and status
 Due to pending legislation, the cost for the minimum
  wage adjustment was calculated based on a proposal
  to increase the minimum hourly wage from $5.15 to
  $6.15 per hour

                                                        40
Recommendations Resulting From
Market Review
The cost to implement the pay range and
 associated salary adjustments is as follows:
  Merit 4% avg.              $3,062,497
     (+2% range adjustment)
  GWI 3%                   2,353,653
  WAE to PPT                 244,046
  Minimum wage                34,174
  Reclassification           104,092
  Promotion Policy Change    180,051
  Total                   $5,978,513
                                                41
Recommendations Resulting from
Market Review
Health Insurance
  costs are estimated to rise by 13%
  City will share the increase proportionately with
   employees
                                     Monthly increase
     Employee Only                  $ 10.02
     Employee + 1 minor               18.54
     Family                           41.94


                                                        42
 Council Options
 In your budget worksheet, we will be seeking your
  guidance for the FY 08 employee compensation package
 Your options include:
   Pay
      Do merit only
      Do both merit and 3% GWI
      Do merit and 1% or 2% GWI
    Health insurance
      Fund health insurance as proposed
      Pick up 100% of increase
 The total compensation package will be based on the
  combination of options chosen in each of the package
  components                                             43

				
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