Classification and Compensation Study Presentation Revised

Classification and 
Compensation Study 
Update for General (Non-
Labor Association) 
Employees
Council Conference Room
Monday, April 25, 2022| 4:00 p.m.

o Study Update
o Current Compensation Strategy
o Proposed Compensation Strategy
o Recommendations and Timeline
Agenda

Classification and Compensation Study
Overall Study Goals
The overall goal is to have a new classification system that accurately reflects the job 
requirements and responsibilities of our employees. Additionally, we must have a 
classification system that is easy to understand and administer and that gives us the 
flexibility we need to update classifications and job duties. 
Other goals include:
•Aligning our classification system
•Establishing job families
•Reviewing positions that experience high turnover or recruitment challenges
•Streamlining job description format
•Assessing the labor market to ensure the City is competitive in its pay and benefits
•Updating policies to reflect best practices
Council Work Session Completed
June 21, 2021
RFP Process Completed-Logic Compensation Group Selected
October 2021
City Council Approved Contract
December 9, 2021
Study Process began
December 2021

Review and Update 
Current Classification 
System
• Benchmark positions
• Update class specifications
• Evaluation of positions or 
group of positions
Review of 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?

Employee Communication
Dedicated Classification and Compensation Study 
page on ChanWeb.  Updated by Human Resources 
throughout the process. 
City Manager messages through QuickLook 
and city-wide email.
Human Resources staff attendance at 
department meetings. Frequent phone 
communication with individual employees. 
Employee Focus groups to be held in May or June 
2022 for specific job families identified by the 
consultant.
Quarterly meetings with the Employee Advisory 
Committee to provide updates and answer questions.

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.
Increased attendance at 
off-site hiring events. 
Internship partnership 
with CGCC.
Mobility initiatives and updated 
telework regulation to allow for 
more flexible work arrangements 
when appropriate.
Personnel Policy changes 
forthcoming to remove barriers.
Leveraging technology to 
streamline recruitment and 
hiring processes. 
Additional recruitment 
processes added to increase 
hiring numbers.

What’s Working Well/Areas Of Opportunity
Department Director Input
Strengths
• Reclassification process & treatment
• Good general benefits
• Police & Fire Bargaining groups treated 
fairly in the MOUs (outside scope of the 
study)
• Responsiveness of Human Resources
Weaknesses
• Employees working out of class
• Reward for employees topped out
• Executive benefits lag market
• Opportunities for career growth
• Comparator market limited in definition
• Retention tools
• Job matching with other organizations
• Compression with new hires
Opportunities
• Create career ladders
• Update market
• “Better job definition” and job matching (dual 
roles create match issues)
• Conduct study in a transparent way and make 
substantive changes
• Create better pay ranges/increase widths
Threats
• Staffing levels
• Employee morale due to staffing and 
recruitment challenges
• Affordability of study recommendations or 
failure to act on study recommendations

"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

75 Percentile Market Placement
Compensation measures include:
o Base pay
o Longevity (Public Safety only)
Comparator market of 9 cities:
o Chandler
o Gilbert
o Glendale
o Mesa
o Peoria
Remove Phoenix based on differences in retirement system, size of City, and 
positions not applicable for comparison. 
Add three new cities to comparator group based on market and better 
comparator for City of Chandler.
Recommended Compensation Strategy
o Scottsdale
o Tempe
o Avondale
o Goodyear
o Queen Creek 
Compensation levels 
should reflect the 
public sector labor 
market in which the 
City competes for 
talent.  The value of 
compensation offered 
to City employees shall 
be consistent with that 
offered by the public 
sector agencies 
identified as 
comparators..
Compensation Philosophy 
Statement

Examples of Market Change Effect
Consultant Comments:
• Best Practice is to identify a percentage to target pay; rank is not a common practice in the market.
• Using 75th percentile provides for a cleaner, more quantitative approach in determining pay.
RECOMMENDED
Current Practice             
"4th market"
"4th Market" with proposed new market 
and base pay only.
Proposed New Methodology
Classification 
Sampling
Current Salary 
Range
Average 
of Rank
Average of Market 
Percentile: Current
Average 
of Rank
Average of Market Percentile: 
Using 4th Market methodology 
with addition of new cities and 
base pay only.
Percent Increase 
to 75th 
Percentile
75th Percentile New 
Salary Range
Position A
$63,419 - $87,869
5
50%
6
50%
3.10%
$65,387 - $90,595
Position B
$39,811 - $53,768
3
75%
6
56%
1.87%
$40,557 - $54,775
Position C
$73,306 - $102,628
2
88%
2
89%
-2.13%
$71,748 - $100,446
Position D
$55,390 - $75,358
4
63%
4
67%
0.74%
$55,801 - $75,917
Position E
$55,390 - $75,358
6
38%
10
20%
15.90%
$64,199 - $87,343
Position F
$43,805 - $59,218
5
33%
7
25%
7.55%
$47,114 - $63,692
Position G
$51,771 - $68,869
2
88%
4
67%
2.45%
$53,039 - $70,555
Position H
$51,771 - $68,869
2
88%
2
89%
-4.25%
$49,569 - $65,939

Adopt the recommended new labor market with removal of 
Phoenix and addition of Avondale, Goodyear, and Queen 
Creek as comparators.
Utilize percentile vs. rank to provide a more quantitative 
approach when determining market pay.
Remove deferred compensation and retirement health 
savings dollars from analysis.  Include base pay and longevity 
(if applicable) only.
Explore alternative compensation options for topped out 
employees. 
If an employee’s pay is above the maximum of the new 
market range, no pay will be decreased as a result.  The 
position will remain at their current pay but will not receive 
additional market adjustments until such time the pay range 
is adjusted based on market data.
Recommendations

Next Steps
Completion and implementation of study results 
targeted for year-end 2022.

Thank You