DATE: November 17, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kevin Townsel, Human Resources Director
SUBJECT:
Consideration Of Resolution 2017-83, A Resolution To Amend The Position Classification And Compensation Plan For The Employees Of The City Of Franklin, TN
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the adoption of an updated Comprehensive Classification and Compensation plan (“Pay Plan”).
Background
The City awarded a contract to Burris, Thompson & Associates to conduct a comprehensive classification and compensation study. The goal of this effort is to update the City of Franklin’s pay plan to provide a highly-competitive, market-based pay structure that attracts and retains top talent to deliver high-quality city services to the community. The existing pay plan needs to be updated to reflect changes within the marker and has not been reviewed in a comprehensive manner since its implementation in 2014.
To date the following have been accomplished:
• The consultants and Human Resources team have interviewed department directors to get overviews of their departments and identify and discuss the most difficult pay-related issues.
• Department directors had the ability to describe employee duties and the needed skills, knowledge and abilities for positions within their departments.
• Burris, Thompson & Associates have reviewed the job descriptions for all jobs.
• Burris, Thompson & Associates discussed certain jobs with Human Resources to gain a better understanding of the job functions for various positions.
18 cities responded to the comprehensive salary survey - Burris, Thompson & Associates has compiled the data from the survey and a database of private sector wages to identify a market rate for all City of Franklin jobs. As jobs were reviewed, some were assigned to a new set of pay grades - and pay ranges have been proposed. The new pay plan reflects positioning Franklin above the average of the comparison group with a target of being in the top 25% or better compared to market data.
• Senior management has reviewed the data, which has been shared with department directors. The consultants have worked extensively with department directors to make sure all jobs are accurately represented in the pay plan.
• At the November 14th Work Session, the Board of Mayor and Aldermen discussed the draft plan and report.
• Meetings will be scheduled with employees throughout the organization to discuss and answer questions about the draft pay plan.
Implementation of the new pay plan with Board of Mayor and Aldermen approval is proposed to be in two phases. Phase 1 will consist of implementing a 5% pay scale adjustment to non-public safety and 10% pay scale adjustment to public safety during the third quarter of Fiscal Year 2017-18 (January of 2018) and will ensure all employees’ salaries are at least at the new pay range minimums for their jobs. Phase 2, to be completed during the following fiscal year (FY2018-19), will implement an additional 5% pay scale adjustment to non-public safety (totaling 10% pay adjustment to the pay ranges). The second pay grade adjustment for non-public safety positions will be effective at the first pay period of July 2018.
A resolution adopting the amended Classification and Compensation Plan is attached (Attachment A). The resolution would establish an amended Classification and Compensation Plan with both pay grade adjustment in January 2018 and July 2018. Also attached is the updated Classification and Compensation Study report from Burris, Thompson & Associates (Attachment B).
Financial Impact
The approved 2017-18 budget includes funding for the implementation of Phase 1 of the updated classification and compensation plan in the amount of $394,569. The general fund included $279,354 to fund the proposed compensation plan adjustments. Sufficient budget capacity is available to fund the proposed amendments to the pay plan.
Recommendation
Staff recommends approval of Resolution 2017-83 adopting an amended Classification and Compensation Plan for the City of Franklin.