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HomeMy WebLinkAboutLate Communication Item 4 Presentation - Compensation Study - Steering Committee 7-27-16ORANGE COUNTY SANITATION DISTRICT TOTAL COMPENSATION STUDY July 2016 AGENDA •Total Compensation Study Overview and Methodology •Results 2 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. 3 TOTAL COMPENSATION STUDY 4 SURVEY ELEMENTS Comparator Agencies Benchmark Classifications 5 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 6 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 7 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 8 * 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 9 MARKET FINDINGS 10 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 11 •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 12 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 14 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 15 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 16 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 17 Questions Comments THANK YOU!