| ITEM #: 1. DATE: 03/21/2022 AI #:773 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | COMPENSATION STUDY OVERVIEW |
| STAFF PRESENTER(S): | Lyman Locket, Human Resources Director |
OTHER PRESENTER(S):
Ruth Ann Eledge, The Segal Company
Summary
Council to receive information on the compensation study conducted by The Segal Company. (Lyman Locket, Human Resources Director)
FISCAL IMPACT
The information presented will serve as the basis for employee pay in FY2023 which will have a direct impact on the FY2023 budget.
BACKGROUND AND PREVIOUS ACTIONS
Council established a strategic plan goal to conduct a compensation study for inclusion in the FY2023 budget development process. In pursuit of this goal, we contracted with Segal a national consulting firm that provides compensation, benefits and human resources services to conduct the study.
The objectives of the study are to create a compensation philosophy and to assess the structure and competitiveness of the city’s compensation and total rewards program to ensure the city can recruit and retain high performing talent. The last comprehensive Compensation Study conducted in Goodyear was in FY2008-2009. A smaller internal targeted compensation study was conducted in 2016 to evaluate salary compression and other areas of concern at the time.
Over the past four years executive leadership along with Council’s support have worked through the budget process to maintain compensation competitiveness by incrementally adjusting salaries and pay ranges.
The objectives of the study are to create a compensation philosophy and to assess the structure and competitiveness of the city’s compensation and total rewards program to ensure the city can recruit and retain high performing talent. The last comprehensive Compensation Study conducted in Goodyear was in FY2008-2009. A smaller internal targeted compensation study was conducted in 2016 to evaluate salary compression and other areas of concern at the time.
Over the past four years executive leadership along with Council’s support have worked through the budget process to maintain compensation competitiveness by incrementally adjusting salaries and pay ranges.
STAFF ANALYSIS
Market conditions are becoming increasingly competitive. Currently, four of our benchmark cities are conducting compensation studies. The ability to recruit and retain talent is becoming greatly impacted by the competitive labor market in both the public and private sectors. The overall pay structure is slightly behind market at 98% vs. 100%.