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HomeMy WebLinkAboutAgenda - 06-09-2015 - 4 14 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 9, 2015 Action Agenda Item No. 4 SUBJECT: Pay and Benefits Presentation DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: A. REVISED Position Classification and Brenda Bartholomew, Human Resources Pay Plans section (Appendix A, Director, (919) 245-2552 Pages 432-434) Changes highlighted Diane Shepherd, Benefits Manager (919) 245-2558 PURPOSE: To receive information and provide feedback to staff on employee pay and benefits for FY 2015-16. BACKGROUND: Staff has provided information relating to FY 2015-16 employee pay and benefits in Appendix A of the Manager's Recommended Budget. The information provided includes background information on employee pay and benefits over recent years and information on specific pay and benefits plan elements. Key components of the recommended employee pay and benefits plan include: Recommendation Appendix A Pages A wage increase of 2 percent for all permanent employees hired on or 429 before June 30, 2015, effective July 1 , 2015 No wage Increase to the 2014 Salary Schedule 429 Continue the Employee Performance Award in the amount of $500 429 (Proficient Performance) or $1 ,000 (Exceptional Performance) effective with WPPR review dates from July 1 , 2015 through June 30, 2016 Continue the $27.50 per pay period County contribution to non-law 429 enforcement employees' supplemental retirement accounts and the County matching employees' contributions up to $63.00 semi-monthly (for a maximum annual County contribution of $1,512) for all general (non-sworn law enforcement officer) employees and continue to mandated Law Enforcement Officer contribution of 5 percent of salary; and continue the County's contribution to the Local Governmental Employees' Retirement System (LGERS) for all permanent employees. Continue funding the Traditional and High Deductible Health Plans for 429 employees and pre-65 retirees at the FY2014-15 appropriation and fund an additional $100,000 to mitigate the cost of deductibles paid by 15 employees in the Traditional Plan due to the change in the plan year from calendar to fiscal in FY2014-15. Continue funding the Dental Program with an increase of $40,000 429 over FY2014-15 appropriations. Continue the living wage rate at $12.76 per hour 429 Eliminate the six-month hiring delay and replace it with a Request to 429 Fill process allowing Department Directors to fill vacancies within approved FY2015-16 appropriations. Continue the voluntary furlough program 429 Attachment A represents REVISED Pages 432-434 of the Manager's Recommended Budget to include a Reduction In Force section of the Position Classification and Pay Plans. FINANCIAL IMPACT: Appendix A of the Manager's Recommended Budget includes information about the estimated costs of various pay and benefits options. RECOMMENDATION(S): The Manager recommends that the Board discuss employee pay and benefits for FY 2015-16 and provide direction to staff. Attachment A 16 The Pay Plan of Orange County comprises the salary schedule and list of classifications assigned to each salary grade. The Manager is responsible for the administration and maintenance of the Pay Plan and recommends to the Board of County Commissioners such increases, reductions, or amendments to the Pay Plan as is necessary to maintain fairness and adequacy of the Pay Plan. Wage and In-Range Pay A wage increase of 2 percent is recommended for all permanent employees hired on or before June 30, 2015. An in-range adjustment to the current 2014 Salary Schedule is not recommended. It is important to retain the current salary schedule for FY2015-16 to provide a differential between a new hire and an employee at the current minimum salary and to remain competitive with the recommended living wage. An in-wage adjustment does not affect the salary ranges of existing classifications. Performance Award Pay Currently, employees receive performance pay in recognition of exceptional and proficient work performance. At the time of an employee's annual performance review, an employee recognized for exceptional work performance is awarded $1 ,000 and an employee recognized for proficient work performance is awarded $500. Annual Classification and Pay Studies In FY2009-10, the County began a three year study of all County classifications, which ended in FY2011-12, when the County completed a review of the final group of classifications. The following chart reflects the results of the study. Because this study showed Orange County's salaries and salary ranges are competitive with the survey market, it was determined there was no need for further review in FY2013-14, and a comprehensive classification study was not completed in FY2013-14. In FY2013-14 classification reviews were conducted only when a department requested a specific position be evaluated and this process remained the same for FY2014-15. Position Classification and Pay Plan Recommendation Employees are Orange County's most valuable resource and their compensation should be viewed equitably both internally and externally. It is imperative to ensure that salaries are comparable with public sector employers in relevant labor markets. Pay levels for public service employees should be determined under well-understood and objective standards; competitive enough to attract and retain competent personnel and comparable with salaries received by their counterparts in private industry. An organized systematic approach to defining positions, duties and responsibilities, and setting appropriate pay rates for employees, is of critical importance. The goal for 17 FY2015-16 is to evaluate compensation policies/programs including pay structures, performance based pay, internal and external equity and benefit programs and to develop a compensation system that is sustainable, affordable and equitable and focuses on identified and prioritized needs for review and adoption for implementation in FY2016-17. The following are major steps in this process: • Conduct job analyses to create and/or update job descriptions and identify job competencies as essential criteria for hiring, retaining and promoting County employees. • Ensure that positions are appropriately classified and graded and that employees are compensated accordingly. • Develop, implement and evaluate recruitment, hiring, orientation, succession planning, retention and organizational exit programs necessary to ensure a workforce's ability to achieve Orange County's organizational goals and objectives. • Conduct review of the performance evaluation system and establish the criteria for a system that is best suited for Orange County managers and employees. Reduction in Force There was a need to reorganize an organizational unit resulting in the loss of one (1) or more permanent positions. The Manager recommends that the Orange County Board of Commissioners declare that a reduction in force is necessary that will result in the deletion of one position. Manager Recommendations The Manager recommends the Board approve a 2 percent wage increase for permanent employees hired on or before June 30, 2015, effective July 1, 2015, and no wage adjustment to the current 2014 Salary Schedule. The Manager recommends continuing the Employee Performance Awards of $500 for proficient performance or $1,000 for exceptional performance, effective with WPPR review dates from July 1, 2015 to June 30, 2016. The FY2015-16 projected budgetary wage increase is approximately$1.6 million. The Manager recommends that a thorough classification and compensation pay study is conducted by the Human Resources Department for review and consideration of the BOCC for implementation in the FY2016-17 budget. 18 The Manager recommends that the Board of County Commissioners declare that a reduction in force is necessary and will result in the deletion of a position, as per Section 28-91 of the Orange County Code of Ordinances.