Compensation and Classification Study for the

County of Northampton, VA

Final Presentation

October 22, 2019 Evergreen ~tions. LLC

Agenda

• Study Process

• County of Northampton's Compensation Philosophy Review

• County of Northampton's Current Compensation Review Results

• Implementation Recommendation

• Additional Recommendations

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Study Process

Deliverables Completed:

~ Employee outreach and summarized findings.

~ Reviewed current conditions of the compensation system.

~ Reviewed the County's compensation philosophy.

~ Analyzed internal equity by reviewing Job Assessment Tools (JAT); developed proposed class structure.

~ Conducted a customized salary survey to analyze the external competitiveness of the current compensation system.

~ Utilized internal and external equity results to develop a new pay plan, and assigned pay grades to each classification.

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Study Process (cont.)

Completed (cont.):

./ Developed a recommended implementation option and estimated annualized salary costs to implement the new pay plan .

./ Reviewed all classifications for Fair Labor Standards Act (FLSA) status;

./ Finalized study results; provided draft & final reports;

./ Revised job descriptions utilizing existing descriptions and input from employee JATs and MITs.

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Compensation

Conducted a salary survey:

• Salary range data collected from 22 of 29 peers.

• Peers are organizations with similar jobs where employees potentially are recruited to/from.

• Additional weight given to those responses from more rural peers listed in red

• Analyzed external (market) equity for 58 benchmarked classifications selected by the County.

* Did not respond

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Compensation (cont.)

Salary range data collected for total of 58 benchmark classifications (subset of al/ classifications) and compared the data at the range average:

Northampton County was overall:

8.9% behind the peers at the minimum,

13.3% behind at the midpoint, and

16.0% behind at the maximum*.

* Overall average differences calculated for 39 of 58 benchmark classifications in current pay grade

Results do not indicate that al/ benchmarks (classifications) were ahead or behind.

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Compensation (cont.)

Developed new, competitive step plan: 202 $ 17,829 $ 19,834 $ 21,840 23% 5% 7

203 $ 21,000 $ 26,980 $ 32,960 57% 5% 28

. ~ New pay plan uses HR best practices I 204 $ 22,050 $ 28,329 $ 34,608 57% 5% 28

205 $ 23,153 $ 29,746 $ 36,339 57% 5% 28

206 $ 24,310 $ 31,233 $ 38,156 57% 5% 28 ~ Increased number of grades - 18 to 22 I 207 $ 25,769 $ 33,718 $ 41,668 62% 6% 30

208 $ 27,315 $ 35,741 $ 44,168 62% 6% 30 ~ Annual step increments of 1.5%. 209 $ 28,954 $ 37,886 $ 46,818 62% 6% 30

210 $ 30,691 $ 40,159 $ 49,627 62% 6% 30

~ Increasing range spreads and grade 211 $ 32,532 $ 42,568 $ 52,604 62% 6% 30 . 212 $ 34,484 $ 45,122 $ 55,761 62% 6% 30 progression: 213 $ 36,898 $ 48,281 $ 59,664 62% 7% 30

Range spreads: Grade 202: 23% 214 $ 39,481 $ 51,661 $ 63,840 62% 7% 30

Grades 203 - 206: 57% 215 $ 42,245 $ 55,277 $ 68,309 62% 7% 30

Grades 207 - 223: 62% 216 $ 45,202 $ 59,146 $ 73,091 62% 7% 30

217 $ 48,366 $ 63,287 $ 78,207 62% 7% 30

218 $ 52,235 $ 68,350 $ 84,464 62% 8% 30 Progression: 5% for grades 202-206 219 $ 56,414 $ 73,817 $ 91,221 62% SOlo 30

6% for grades 207-212 220 $ 60,927 $ 79,723 $ 98,518 62% SOlo 30

7% for grades 213-217 221 $ 65,802 $ 86,101 $106,400 62% 8% 30

8% for grades 218-223 222 $ 71,066 $ 92,989 $114,912 62% 8% 30

223 $ 76,751 $100,428 $124,105 62% SOlo 30

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202

203

204

205 206 207

208 209

210

211

212

213

214 215 216

217

218

219

220

221 222

Compensation (cont.) . . . . . . Step 0 to 1 after successful completion of 6-Month Probation (5% raise to minimum)

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$ 17,829 $18,720 $19,240 $19,760 $20,280 $20,800 $21,320 $21,840

$ 21,000 $22,050 $22,381 $22,716 $23,057 $23,403 $ 23,754 $ 24,110 $ 24,472 $ 24,839 $ 25,212 $ 25,590 $ 25,974 $ 26,363 $26,759 $27,160 $ 27,568

$ 22,050 $23,153 $23,500 $23,852 $24,210 $24,573 $24,942 $25,316 $25,696 $26,081 $26,472 $26,869 $27,272 $27,682 $28,097 $28,518 $ 28,946

$ 23,153 $ 24,310 $ 24,675 $25,045 $25,421 $25,802 $26,189 $26,582 $26,980 $27,385 $27,796 $28,213 $28,636 $29,066 $29,502 $29,944 $ 30,393

$ 24,310 $25,526 $25,909 $26,297 $26,692 $27,092 $27,498 $27,911 $28,329 $28,754 $29,186 $29,624 $30,068 $30,519 $30,977 $31,441 $ 31,913

$ 25,769 $ 27,057 $ 27,463 $27,875 $28,293 $28,717 $29,148 $29,585 $30,029 $30,480 $30,937 $31,401 $31,872 $ 32,350 $ 32,835 $33,328 $ 33,828

$ 27,315 $28,681 $29,111 $29,547 $29,991 $30,441 $30,897 $31,361 $31,831 $32,308 $32,793 $33,285 $33,784 $34,291 $34,805 $35,327 $ 35,857

$ 28,954 $ 30,401 $ 30,857 $ 31,320 $ 31,790 $ 32,267 $ 32,751 $ 33,242 $ 33,741 $ 34,247 $ 34,761 $35,282 $35,811 $36,349 $36,894 $37,447 $ 38,009

$ 30,691 $32,226 $32,709 $33,200 $33,698 $34,203 $34,716 $35,237 $35,765 $36,302 $36,846 $37,399 $37,960 $38,529 $39,107 $39,694 $ 40,289

$ 32,532 $34,159 $34,671 $35,192 $35,719 $36,255 $36,799 $37,351 $37,911 $ 38,480 $ 39,057 $39,643 $40,238 $40,841 $41,454 $42,076 $ 42,707

$ 34,484 $36,209 $36,752 $37,303 $37,863 $ 38,430 $ 39,007 $ 39,592 $40,186 $40,789 $41,401 $42,022 $42,652 $43,292 $43,941 $44,600 $ 45,269

$ 36,898 $38,743 $39,324 $39,914 $40,513 $41,121 $41,737 $42,363 $42,999 $43,644 $44,299 $44,963 $45,638 $46,322 $47,017 $47,722 $ 48,438

$ 39,481 $41,455 $42,077 $42,708 $43,349 $43,999 $44,659 $45,329 $46,009 $46,699 $47,399 $48,110 $48,832 $49,565 $50,308 $51,063 $ 51,829

$ 42,245 $44,357 $45,022 $45,698 $46,383 $47,079 $47,785 $48,502 $49,229 $49,968 $50,717 $51,478 $52,250 $53,034 $53,830 $54,637 $ 55,457

$ 45,202 $47,462 $48,174 $48,897 $49,630 $50,375 $51,130 $51,897 $52,676 $53,466 $54,268 $55,082 $55,908 $56,747 $57,598 $58,462 $ 59,339

$ 48,366 $50,784 $51,546 $52,319 $53,104 $53,901 $54,709 $55,530 $56,363 $57,208 $58,066 $58,937 $59,821 $60,719 $61,630 $62,554 $ 63,492

$~m $~W $~m$~% $~m $~m $~~$~m $~m $~~ $gm $63,652 $64,607 $65,576 $66,560 $67,558 $ 68,572

$ 56,414 $59,235 $60,123 $61,025 $61,941 $62,870 $63,813 $ 64,770 $ 65,742 $ 66,728 $ 67, 729 $ 68,745 $ 69, 776 $ 70,822 $ 71,885 $ 72,963 $ 74,057

$ 60,927 $63,974 $64,933 $65,907 $66,896 $67,899 $68,918 $69,952 $71,001 $72,066 $73,147 $74,244 $75,358 $76,488 $77,636 $78,800 $ 79,982

$ 65,802 $69,092 $70,128 $71,180 $72,248 $73,331 $74,431 $ 75,548 $ 76,681 $77,831 $78,999 $80,184 $8i,386 $82,607 $83,846 $85,104 $ 86,381

$n~ $~m $~~ $~m$~m $~~$~-$nm $82,816 $84,058 $85,319 $86,598 $87,897 $89,216 $90,554 $91,912 $ 93,291

$93,526 $94,929 $96,353 $ 97,798 $99.265 $ 100.754

~ ..•.••.••.•.........••.•.••.•.

Steps 1 to 30 = 1.5%

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Compensation (cont.)

202

203 $ 27,981 $ 28,401 $ 28,827 $ 29,259 $ 29,698 $ 30,144 $ 30,596 $ 31,055 $ 31,521 $ 31,993 $ 32,473 $ 32,960

204 $ 29,380 $ 29,821 $ 30,268 $ 30,722 $ 31,183 $ 31,651 $ 32,126 $ 32,607 $ 33,097 $ 33,593 $ 34,097 $ 34,608

205 $ 30,849 $ 31,312 $ 31,782 $ 32,258 $ 32,742 $ 33,233 $ 33,732 $ 34,238 $ 34,751 $ 35,273 $ 35,802 $ 36,339

206 $ 32,392 $ 32,878 $ 33,371 $ 33,871 $ 34,379 $ 34,895 $ 35,418 $ 35,950 $ 36,489 $ 37,036 $ 37,592 $ 38,156

207 $ 34,335 $ 34,850 $ 35,373 $ 35,904 $ 36,442 $ 36,989 $ 37,544 $ 38,107 $ 38,678 $ 39,258 $ 39,847 $ 40,445 $ 41,052 $ 41,668

208 $ 36,395 $ 36,941 $ 37,495 $ 38,058 $ 38,629 $ 39,208 $ 39,796 $ 40,393 $ 40,999 $ 41,614 $ 42,238 $ 42,872 $ 43,515 $ 44,168

209 $ 38,579 $ 39,158 $ 39,745 $ 40,341 $ 40,946 $ 41,561 $ 42,184 $ 42,817 $ 43,459 $ 44,111 $ 44,772 $ 45,444 $ 46,126 $ 46,818

210 $ 40,894 $ 41,507 $ 42,130 $ 42,762 $ 43,403 $ 44,054 $ 44,715 $ 45,386 $ 46,066 $ 46,757 $ 47,459 $ 48,171 $ 48,893 $ 49,627

211 $ 43,347 $ 43,998 $ 44,658 $ 45,327 $ 46,007 $ 46,697 $ 47,398 $ 48,109 $ 48,830 $ 49,563 $ 50,306 $ 51,061 $ 51,827 $ 52,604

212 $ 45,948 $ 46,637 $ 47,337 $ 48,047 $ 48,768 $ 49,499 $ 50,242 $ 50,995 $ 51,760 $ 52,537 $ 53,325 $ 54,125 $ 54,936 $ 55,761

213 $ 49,165 $ 49,902 $ SO,651 $ 51,410 $ 52,181 $ 52,964 $ 53,759 $ 54,565 $ 55,384 $ 56,214 $ 57,057 $ 57,913 $ 58,782 $ 59,664

214 $ 52,606 $ 53,395 $ 54,196 $ 55,009 $ 55,834 $ 56,672 $ 57,522 $ 58,385 $ 59,260 $ 60,149 $ 61,051 $ 61,967 $ 62,897 $ 63,840

215 $ 56,289 $ 57,133 $ 57,990 $ 58,860 $ 59,743 $ 60,639 $ 61,548 $ 62,472 $ 63,409 $ 64,360 $ 65,325 $ 66,305 $ 67,300 $ 68,309

216 $ 60,229 $ 61,132 $ 62,049 $ 62,980 $ 63,925 $ 64,883 $ 65,857 $ 66,845 $ 67,847 $ 68,865 $ 69,898 $ 70,946 $ 72,011 $ 73,091

217 $ 64,445 $ 65,411 $ 66,393 $ 67,388 $ 68,399 $ 69,425 $ 70,467 $ 71,524 $ 72,596 $ 73,685 $ 74,791 $ 75,913 $ 77,051 $ 78,207

218 $ 69,600 $ 70,644 $ 71,704 $ 72,780 $ 73,871 $ 74,979 $ 76,104 $ 77,246 $ 78,404 $ 79,580 $ 80,774 $ 81,986 $ 83,215 $ 84,464

219 $ 75,168 $ 76,296 $ 77,440 $ 78,602 $ 79,781 $ 80,978 $ 82,192 $ 83,425 $ 84,677 $ 85,947 $ 87,236 $ 88,544 $ 89,873 $ 91,221

220 $ 81,182 $ 82,399 $ 83,635 $ 84,890 $ 86,163 $ 87,456 $ 88,768 $ 90,099 $ 91,451 $ 92,822 $ 94,215 $ 95,628 $ 97,062 $ 98,518

221 $ 87,676 $ 88,991 $ 90,326 $ 91,681 $ 93,056 $ 94,452 $ 95,869 $ 97,307 $ 98,767 $100,248 $101,752 $103,278 $104,827 $106,400

222 $ 94,690 $ 96,111 $ 97,552 $ 99,016 $100,501 $102,008 $103,539 $105,092 $106,668 $108,268 $109,892 $111,540 $113,214 $114,912

$ 116,930 $118,683 $ 120,464 $ 122.271 $124.105

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Implementation

Developed options to transition employees to new pay plan

• All options include costs of moving employees from current salary to no less than the new grade minimum.

• Step placement is based on total tenure with the County.

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Implementation (cont.) Step Placement Option • Employees are placed in steps based on total tenure with the County at the rate

of 1 step for each 2 years of service with additional capping mechanisms in place.

• Employees with less than 2 years of service placed in step 1 • Employees with at least 2 years but less than 4 are placed in step 2. • Initial step is capped at 10 unless employee already compensated at higher step

level (no employee's salary is reduced). • Adjustments are capped at 8.5% in phase I (unless needed to get to minimum) • Steps are reduced until adjustment is less than 8.5% in phase one. • Employees who had adjustments due to 8.5% cap are caught up to initial

calculated step (plus one step for each year) by the end of 3 year phase in period described on next slide.

• Total annualized estimated cost = $221,999 (No Phasing) • Number of employees receiving adjustments = 122 • Average per employee $1,819 or 6.9% if implemented in one

phase. • Total annualized estimated cost without above capping

mechanism = $313,407

* Cost estimates are salary only and do not include the cost of benefits.

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Implementation (cont.)

Staff Recommended Option (Step Placement Phased in over 3 years)

Effective January 1, 2020 all employees are brought to the step described in previous slide. On January 1,2021 employees move an additional step or steps depending on number of steps pushed back by the capping mechanisms described in previous slide. The third and final step adjustment is applied on January 1, 2022.

• Phase 1 estimated cost = $ 161,984 - Avg. $1,327 or 5.00/0 • # employees who would receive adjustments = 122

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• Phase 2 estimated cost = $ 106,923 - Avg. $884 or 2-.90/0 • # employees who would receive adjustments = 121

• Phase 3 estimated cost = $ 78,243 - Avg. $652 or 2.00/0 • # employees who would receive adjustments = 120

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Implementation Plan

• Adopt compensation and classification plan structure recommended by the Evergreen study.

• Communicate study results to the employees.

• Review pay practices; revise as necessary to align with compensation philosophy and be competitive with peers.

• Administer and maintain the new plan; communicate accordingly, and make pay grade/step adjustments as necessary.

• Evergreen recommends a comprehensive study every five years.

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Thank You

Evergreen Solutions, LLC 2878 Remington Green Circle Talla.hassee, Florida 32308 850.383.0111 www.ConsultEvergreen.com

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