Recruitment and Compensation Strategy Presentation
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Recruitment and Compensation Strategy for General (Non-Labor Association) Employees Council Conference Room Monday, June 21, 2021 | 4:30 p.m. o Workforce Analysis o Challenges and Initiatives o Current Compensation Strategy o Classification and Compensation Study o Recommendations and Timeline Agenda Workforce Analysis As of June 2021 Ability to Attract and Retain Qualified Workforce o Private sector companies competing for same talent o Other cities attracting talent Current Recruitment Challenges Recruitment Challenges Based on COVID & Market o Candidate expectations have changed o Alternative work schedules at surrounding cities o Residency requirements for Department Directors Hold on Positions Due to Pandemic o Largest vacancy rate across the City o Currently 103 vacancies o High 123/Normal average 70 Large Retirement-eligible Workforce governing.com | Government Is Hiring, But Faces Tough Competition for Workers June 1, 2021 # of Applicants vs # Positions Available New Hires 77 135 102 89 Separations including Retirements 157 167 135 81 Current Vacancies 103 268 275 157 161 Turnover 2017-2018 4.4%/7.5% 2018-2019 5.1%/9.8% 2019-2020 6.6%/11.4% 2020-YTD 5.8%/10.5% New Hire, Separation, Recruitment & Turnover Recruitments 2018 2019 2020 YTD o Retirement o Opportunities to Advance o Pay Exit Interview Analysis Compensation strategy Full classification and compensation study has not been completed since FY 06-07 o Administrative series and IT classification study was completed in FY 13/14 Pay ranges and compensation structure need to be updated and better aligned with market and workforce Candidates expecting higher wages-internal equity issues o Retirement costs for ASRS employees: Pension value Current Compensation Challenges Reclassification, Market & Equity Adjustment History Established Hiring Incentives for Police Sworn, Dispatch, and Detention Officer positions beginning July 1, 2021. Current Recruitment Initiatives Enhanced marketing strategies through outreach and technology. Mobility initiatives and updated telework regulation to allow for more flexible work arrangements when appropriate. Leveraging technology to streamline recruitment and hiring processes. Exceptional performance one-time award given to all full and part time employees who met criteria on April 15, 2021. Current Compensation Initiatives Market adjustment of 1.5% for general employees in July, 2021. Merit increases of up to 3.25% in FY 21-22 for merit-eligible employees. Up to 5% for those covered under an MOU. Decision package for a full classification and compensation study approved in FY 21-22. Flexibility to hire up to the mid-point of the range with Director approval. 5 Professional Development Programs 58 Employees Participated 7 Mentoring Programs 554 Employees Participated Additional personal and professional development courses are available; sample titles include: •Emotional Intelligence •Career Path •Public Speaking •Communication •IT Technical Topics Current Professional Development Programs 4th market strategy Total Cash Compensation measures include: o Base pay o City contribution to deferred compensation o Retirement Health Savings contribution o Longevity (Public Safety only) o Additional Retirement Health Savings contribution (Fire only) Current market is 8 cities: o Chandler o Gilbert o Glendale o Mesa Benchmark surveys completed annually Current Compensation Strategy o Peoria o Phoenix o Scottsdale o Tempe • Define scope and nature of job assignments • Organizes jobs into formal job categories • Creates a classification structure • Revise, update, or create job descriptions • Recommendation system hierarchy and ensure work being performed is in alignment with each classification • Determine City’s pay philosophy • Determine appropriate market of positions • Survey market according to City’s pay philosophy • Recommend market placement or changes if appropriate based on classification system Classification vs. Compensation Classification Study Compensation Study Review and Update Current Classification System • Benchmark positions • Update class specifications • Evaluation of positions or group of positions Classification vs. Compensation Study Deliverables Analysis of Compensation System including Salaries, Policies and Pay Practices • Analyze current pay practices to determine if we are competitive Market Comparisons Best Practices • Where does City want to be in the market to remain competitive and attract top talent? • Does the current compensation methodology need to change? • Does our market need to change? Perform a Classification and Compensation Study as requested through the FY21-22 budget process. Begin nationwide recruitment campaign. Continue to look for more innovative ways to offer more flexible work environments as appropriate by position. Continue to aggressively reduce the vacancy rate. Continue to market jobs in a more appealing and creative way to attract talent. Consider additional non-compensation strategies to attract and retain employees. Continue professional development initiatives and outreach to educational partners. Update personnel rules and polices to enhance recruiting timeliness. Recommendations Timeline Thank You