What can be expected from Jefferson City's salary study?

Austin Peters typically recommends increases, offers phased-in approaches

Jefferson City is in the process of evaluating its pay structure, job descriptions and benefits, with results expected by mid-fall.

Last month, the City Council approved a contract with Kansas-based Austin Peters Group Inc. to perform a comprehensive classification and compensation study on city positions for just under $39,000.

The firm is to provide an "in-depth review of the city's classification and compensation plan and will provide new information to determine whether the organization's pay structure is appropriate or may need adjustments, including adjusted or new pay ranges, new job classes, mergers of existing classes or the re-titling of classes, review of compression, a review of all job descriptions and a review of the city's benefit plan including special pays."

However, what can be expected when the final recommendations come in?

The firm is almost five weeks into the estimated 22-week process and has already been gathering input from city employees. Last week, firm representatives led informational sessions to incorporate any public input, of which there was very little, and council direction to ensure the firm's final recommendations align with the council's goals.

The News Tribune looked at similar studies completed by Austin Peters in the past few years to see how the firm goes through the process and issues its recommendations.

A completed study for the city of Lansing, Kansas, earlier this year shows the survey questions issued to comparable cities and local organizations. The survey looked at benefits offered, paid vacation hours, sick leave policies, history of merit increases and whether a residency requirement exists. It also lists various city positions and departments, asking respondents to rate how well the position matches others, the salary information and responsibilities.

The firm typically meets with employees of the city doing one-on-one interviews and assessing each position's responsibilities, then evaluates each one based on seven different factors: decision-making, supervisory, knowledge, budget impact, contacts, physical skills and working conditions.

Once the evaluation is complete, each position is ranked and put into a recommended range based on the rankings and market analysis.

Completed studies from Austin Peters show the firm offers phased-in approaches of the final recommendations, keeping in mind what is feasible for city officials.

In May, the firm delivered a revised completed compensation study to officials in Lansing, which has a population of 11,767. As part of the recommendations, the firm suggested "pay compression adjustments," meaning incrementally increasing the pay of employees who are behind the rate of pay given their years of service, especially in situations where newer employees could be hired at the same or higher wage.

For Lansing, the firm provided final recommendations with timelines for implementation and alternatives to consider if the city wanted to be ranked higher in terms of overall pay in the area.

In Leander, Texas, a city of roughly 26,500 people, the firm provided a classification and compensation study in 2013, which included recommendations to increase the salaries for about a quarter of the city's workforce. However, as in Lansing, the final report also included several alternatives to consider, if the city wanted to rank higher in terms of overall pay in the area.

Austin Peters expects Jefferson City's results to be delivered by mid-October, which city officials are hoping will provide enough time to use the information in the 2017 budget. Budget discussions will begin at the end of July, and the 2017 fiscal year will begin Nov. 1.

Previous coverage: Jefferson City salary study moves forward, June 14, 2016

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