Submitted by: Jay Joyner
Submitting Department: Human Resources
Agenda Section: Consent
Item Title:
title
ARPA: Staff Salary Adjustments
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Suggested Action:
recommendation
I move that the Mayor and Council authorize the use of American Rescue Plan Act funds in an amount not to exceed $759,000 for the purposes of reimbursing the City’s General Fund for expenditures related to salary adjustments for City employees based on the results of the 2023 Compensation Study.
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Summary Background:
Since the pandemic, local governments nationwide have found it challenging to fill their ranks, specifically with sworn police officers. At the Council’s request, in September 2022, the City of Hyattsville commissioned a compensation study. The study compared Hyattsville to eight local municipalities. The surveyors recommended three options to make Hyattsville competitive in recruiting qualified candidates. The three options that were recommended were as follows:
• Parity- Realigns 138 employees along their salary range based on how long they have been serving in their current classification. Employees with 30 or more years of experience would be placed at the maximum, whereas employees with 15 years would be placed at the midpoint of the range. Total first-year cost estimate - $528K.
• Hybrid Parity- Realign 138 employees’ salary ranges based on “hybrid years.” Full credit is given to an employee for each year serving in their current classification and one-half credit for time in any other classification-total first-year implementation cost estimate- $670K.
• Bring to Step- Realigns 138 employees in their recommended salary ranges by maintaining their current step within the new grade. For example, an employee currently at step 10 would move to step 10 in the recommended pay range. Total first-year cost estimate- $1.4M. Consultant recommendation for 138 employees, including police officers.
After a thorough analysis, City staff recognized that the Bring to Step option would not be appropriate for all staff and police. This approach would have significant legacy costs and would not be fiscally responsible or sustainable. Therefore, staff prioritized public safety, high-risk/flight risk, and lowest-paid employees using a combination of approaches. Staff used "Bring to Step" for the police officers, who were the highest flight risk. For non-sworn lowest-paid staff, including our Dispatchers, DPW, Code, and Parking, a combination of "Bring to Step" and the "Hybrid" model was utilized.
Senior leadership then evaluated all staff not meeting the high-risk/low-paid category and selected the "Hybrid" model. This model allows leadership to factor in an employee's experience, skills, & performance when determining appropriate compensation. The combination of models resulted in an approximate adjustment of $758,183 for the first year, providing the City with more affordable legacy costs. The Human Resources Director has been making those adjustments with the department director’s input and City Administrator approval for employees who are not in the high-risk/low-paid group for the past five months.
Concurrently with the compensation study adjustments, the Human Resources department has been working with the leadership team on implementing a “Culture of Engagement” program. This initiative is meant to change the culture of the staff to create an environment that promotes employee retention (Employer of Choice). In the spirit of continuous improvement, a new performance improvement evaluation system will be implemented to assess employees better and reward them more accurately based on their performance. In May, the Human Resources department will conduct an employee engagement Survey. The survey results will be used to develop action plans on prioritized areas of opportunity. Per Council direction, the City plans to conduct another formal Compensation survey with a new consultant in two to three years.
Next Steps:
Council authorization of the expenditure of ARPA funds.
Fiscal Impact:
ARPA: $759,000
City Administrator Comments:
Recommend support.
Community Engagement:
N/A
Strategic Goals:
Goal 4 - Foster Excellence in all City Operations
Legal Review Required?
N/A