HomeMy WebLinkAboutAgenda - 08-21-2012 - 5f
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ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date:August 21, 2012
Action Agenda
Item No.5-f
SUBJECT: Adjustment to Salary Range Maximums
DEPARTMENT:Human Resources PUBLIC HEARING: (Y/N)No
ATTACHMENT(S):INFORMATION CONTACT:
Nicole Clark, Human Resources
Director, (919) 245-2552
PURPOSE:
To consider approvingatwo percent(2%) increase in allsalary range maximums
to correspond to the two percent (2%) Cost of Living Adjustment(COLA)increase authorized
in the approved FY 2012-13 budget effective July 1, 2012.
BACKGROUND:
The County maintains a Salary Schedule, defined as a schedule of salary
ranges systematized into sequential rates including minimum and maximum salaries for each
class assigned to any given salary range. Every County position has been studied at least
once during the past three years, and the findings indicate that theCounty’s salary ranges
remain competitive with the labor market.
Amajor issue affecting employee morale and recruitmentis compression.Employee salaries
did not increase during FY2009-10, FY 2010-11, and FY 2011-12.Departments have found it
difficult to offer competitive salaries to new employees when current employee salaries are
compressed in the lower half of the salary ranges. In response, the County Manager
recommended and the Board approved a 2% Cost of Living Adjustmentincrease.To aid in
addressing the compression issue, theCost of LivingAdjustmentapplied to Permanent
employees’ annual salaries and did not affect the salary ranges.
The majority of County employee salariesare at or below the midpoint for their respective
salary range. When the recommended budget was developed, 86% of Permanent employees
were at or below the midpoint for their respective salary range.Currently, 83% are at or below
the midpoint, following the effective date ofthe Cost of Living Adjustment.
Prior to July 1, 2012, the annual salaries of seven Permanent employees wereat or above the
maximum salary for their respective salary ranges. Article V, Sec. 28-68 – “Salary increase
maximum”, of the Orange County Personnel Ordinance states:
“When an employee attains the maximum rate of a salary range for present position, no
further salary increases will be received unless (a) the position is reclassified; (b) the
employee is promoted to another position with a higher salary range; or (c) the salary
range for the present position is increased.”
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Due to this provision, the seven employees wereconsidered ineligible to receivethe 2% Cost
of Living Adjustment. Increasing allsalary range maximums by 2% will enable these seven
employees to receive the salary increase providedto other Permanent employees forFY
2012-13.
FINANCIAL IMPACT:
Funds have been budgeted in FY 2012-13 to provide a 2% Cost of
Living Increase to all Permanent employees.
RECOMMENDATION(S):
The Manager recommends that the Board increase the maximum
of the salary ranges by two percent (2%).