HomeMy WebLinkAboutItem 20 Presentation - Compensation Study - Board 7-27-16ORANGE COUNTY SANITATION
DISTRICT
TOTAL COMPENSATION STUDY
July 2016
AGENDA
•Total Compensation Study Overview and
Methodology
•Results
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STUDY GOALS
•Concern of the Board and management that employees
be recognized for level and scope of work performed.
•Pay employees on a fair and competitive basis to recruit and retain a high-quality staff.
•Utilize the market data as a reference point to develop a compensation plan that meets the needs of this
industry-leading, progressive District.
•Ensure internal relationships of salaries are based upon objective, non-quantitative evaluation factors resulting in equity across the District.
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TOTAL COMPENSATION
STUDY
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SURVEY ELEMENTS
Comparator
Agencies
Benchmark
Classifications
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Benefits
COMPARATOR AGENCIES
1.Central Contra Costa Sanitary District
2.City of Anaheim
3.City of Garden Grove
4.City of Huntington Beach
5.City of Irvine
6.City of Los Angeles
7.City of San Diego
8.County of Los Angeles
9.East Bay Municipal Utility District
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10.Eastern Municipal Water District
11.Inland Empire Utilities Agency*
12.Irvine Ranch Water District
13.Las Virgenes Municipal Water District*
14.Metropolitan Water District of Southern California*
15.Orange County Water District
16.Sanitation Districts of Los Angeles County
17.Western Municipal Water District*
* Agencies new to the 2016 Total Compensation Study
BENCHMARK CLASSIFICATIONS
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Employee Group Number of Benchmark
Classifications
Executive 5
Management 9
Confidential, Professional, & Supervisor 40
Local 501 13
OCEA 12
Total Benchmark Classifications 79
% of All Classifications 54%
BENEFITS COLLECTED
•Retirement
–Employer Paid Member Contribution
–Enhancements
–Social Security
•Deferred Compensation
•Insurances (Family coverage)
–Medical, Dental, Vision, Employee Assistance Program, Life and AD&D Insurances, Disability Insurances
–Other (examples: Employer paid physical exams; flexible spending or dependent care spending account contributions)
•Leaves (Employee who has completed 5 years of service)
–Vacation, Holidays, Administrative or Management Leave
•Auto Allowance
•Other
–Examples: OCSD’s Investment Incentive Salary benefit; technology allowances
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* Benefits offered to new hires are different and may not be as competitive to the market
DATA COLLECTION
•Job/Class Descriptions
•MOU’s
•Organizational Charts
•Salary Information
•Description-to-Description
•70% Match
•Follow-Up
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MARKET FINDINGS
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Employee Group Top
Monthly
Salary
% Above or
Below 75th
Percentile
Total Monthly Compensation
% Above or Below 75th Percentile
Classic Plan,
Closed
Classic Plan,
Open
PEPRA Plan
Executive -14.8%-6.6%-13.2%-12.3%
Management -3.6%1.2%-4.9%-0.9%
Confidential -11.0%-10.5%-16.4%-13.4%
Professional and Supervisor 3.3%6.3%1.7%3.6%
Local 501 -3.2%3.3%-0.5%0.0%
OCEA 6.3%2.2%0.1%1.9%
Overall -1.1%2.2%-1.7%0.3%
Represented 0.7%4.9%0.6%2.5%
BENEFITS
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•Insurance Contributions
–OCSD contributes, on average, about 15-18% more than the comparator agencies
•Retirement and Deferred Compensation
–OCSD’s Retirement and Deferred Compensation benefits are not as competitive, especially when comparing the Classic, Open Plans with other agencies’ Classic Plans
MARKET PERCENTILE
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2014 Base Pay
Market Position
–Percentile
2016 Base Salary
Market Position
–Percentile
All OCSD 77th 70th
Represented Groups Only 82nd 76th
MARKET PERCENTILE
13
2016 Total Compensation
Market Position
Classic Plan, Closed
(2.5%@55)
–Percentile
Market Position
Classic Plan, Open
(1.667%@57.5)
–Percentile
Market Position
PEPRA Plan
(2.5%@67)
–Percentile
All OCSD 77th 68th 73rd
Represented
Groups Only
80th 72nd 76th
MARKET PERCENTILE
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Agency 2016 Base Pay
Market Position –
Percentile
Total Comp
Classic Plan, Closed
2.5% @ 55
Total Comp
Classic Plan, Open
1.667% @ 57.5
Total Comp
PEPRA Plan
2.5% @ 67
Central Contra Costa Sanitary District 90th 95th 96th 98th
East Bay Municipal Utility District 87th 93rd 95th 96th
Metropolitan Water District of Southern California 76th 76th 79th 72nd
OCSD 70th 77th 68th 73rd
City of Los Angeles, Bureau of Sanitation 60th 40th 45th 48th
City of Irvine 53rd 64th 57th 61st
Sanitation Districts of Los Angeles County 49th 40th 46th 37th
Western Municipal Water District 46th 50th 44th 48th
City of Anaheim 45th 52nd 56th 47th
Orange County Water District 43rd 48th 53rd 57th
Las Virgenes Municipal Water District 42nd 35th 42nd 44th
City of Huntington Beach 41st 29th 33rd 29th
Inland Empire Utilities Agency 40th 36th 28th 32nd
Irvine Ranch Water District 37th 36th 29th 34th
City of Garden Grove 35th 20th 25th 18th
County of Los Angeles, Public Works 34th 48th 53rd 57th
Eastern Municipal Water District 28th 32nd 26th 25th
City of San Diego 4th 4th 2nd 5th
COMPENSATION STRUCTURE AND STRATEGY
DEVELOPMENT
•Market data provides reference point
•Step 1: Decide compensation philosophy
•Step 2: Design compensation structure
•Step 3: Place job classes within structure
•Step 4: Determine actual employee pay
•Continued maintenance & administration
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COMPENSATION PHILOSOPHY
•Use market data as reference point –
Percentile
–Cost of living in immediate and surrounding
geographic areas
–Competition for qualified employees
–Retain employees that District has already
invested in
–Regulatory changes requiring increasingly
skilled workforce
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INTERNAL RELATIONSHIPS
•Non-benchmarked classifications and
classifications with insufficient market data
•Analyze the whole position
•Common internal alignment percentages
–Common market practices
–Current OCSD practices
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Questions
Comments
THANK YOU!