Presentation Town of Ocean City, MD. Compensation and Classification Study
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1 Management Advisory Group, Inc. Presentation Town of Ocean City, MD Compensation and Classification Study June 23, 2015 Workshop Discussion for the Compensation and Classification Study Scope of Work Overview of Methodology Salary Survey Results Major Findings and Recommendations Implementation and Transition to the New Plan 2 1
2 Scope of Work Conducted employee orientation sessions; Administered and reviewed Job Analysis Questionnaires; Conducted department head/employee interviews; Conducted job analysis of included Town classifications; Gathered salary and compensation data from competitor organizations; Developed a revised classification structure and plan; Provided a revised compensation and pay plan; and, Recommended changes to support an internally equitable plan. Reviewed departmental requests and made selected adjustments. 3 Overview of Methodology 4 2
3 Peer and Competitors included in the Market Survey for General Titles Anne Arundel County, MD City of Annapolis, MD City of Baltimore, MD City of Bowie, MD City of Dover, MD City of Gaithersburg, MD City of Rockville, MD City of Salisbury, MD City of Virginia Beach, VA City of Wilmington, DE Frederick, County, MD Kent County, DE Maryland State Police Peninsula Regional Medical Center Rehoboth Beach, MD Salisbury University State of Maryland Sussex County, DE Town of Berlin, MD Town of Bethany Beach, DE Town of Easton, MD University of Maryland Eastern Shore Wicomico County, MD Worcester County, MD 5 MAG Conducted a Custom Market Survey for General Titles At the market minimum, the Town led the market by +1.19% At the market midpoint the Town led the market by +5.54% At the market maximum the Town led the market by +5.70% 43 positions were included in the survey. 6 3
4 Peer and Competitors included in the Market Survey for Executive Titles Anne Arundel County, MD City of Annapolis, MD City of Baltimore, MD City of Bowie, MD City of Dover, DE City of Gaithersburg, MD City of Myrtle Beach, SC City of Raleigh, NC City of Richmond, VA City of Rockville, MD City of Salisbury, MD City of Wilmington, DE City of Wilmington, NC Kent County, DE Salisbury University State of Maryland Town of Berlin, MD Wicomico County, MD Worcester County, MD 7 MAG Conducted a Custom Market Survey for Executive Titles At the market minimum, the Town lagged the market by 5.89% At the market midpoint the Town lagged the market by 3.08% At the market maximum the Town lagged the market by 1.29 % Nine (9) positions were included in the survey. 8 4
5 Recommendations Market average range width was 55% (General) to 60% (Executive). Ocean City average range width is 70% to 83%. MAG recommends setting the salary ranges for the Unified Pay Plan to 60%. There is 5% between proposed grades, current percentages vary. Realign jobs internally to be competitive with market values and to reflect internal organizational values. Results: Establishes a competitive position overall and for all positions. Makes the entry levels competitive. Brings the ranges in line with the market. 9 Implementation Summary Open ranges in a unified structure is increasingly best practice. Formula for placement of current employees: All employees are brought to the minimum of their proposed pay range. 10 5
6 Equity Adjustment Report Unified Pay Plan The implementation target date will be January 1, Of the 398 employees in the Unified Plan, 54 employees are below the proposed market minimums. This annual cost is approximately $115,165. A 2% adjustment as budgeted January 1, 2016 decreases the incremental cost to minimum to approximately $84,470 annually. Some employees (23) are not recommended for any adjustment because their current salary exceeds the maximum of the proposed range. 11 Recommendations MAG has provided a best practices set of personnel policies for the Town which include: Reclassification Promotion Lateral Transfer Demotion Temporary Assignment Hiring. The suggested policies reflect best practices. 12 6
7 Next steps include the following: Transition Plan Adopt the new compensation plan structure and ranges. Review, adjust and adopt personnel polices to guide key aspects of compensation. Implement new structure and adjustments effective January 1, Install and license new software for use by HR as part of study. 13 7
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