5._Evergreen Compensation Study - VNPB Final Report 5-22-13 Compensation Study for
Village of North Palm Beach, FL
FINAL REPORT
r
- ti' _ _ A
Evergreen Solutions, LLC
May 21, 2013
EVERGREEN SOLUTIONS, LLC
Chapter 1 - Introduction
1.1 INTRODUCTION
Evergreen Solutions was retained by the Village of North Palm Beach, FL (Village) to conduct a
Compensation Study of all positions in the organization. A Compensation Study is primarily designed
to focus on external equity of both the structure by which employees are compensated as well as the
way positions relate and compare to one another across the organization.
External equity deals with the differences between how an organization's classifications are valued
and what compensation is available in the market place for the same skills, capabilities, and duties.
As part of the study, Evergreen Solutions, LLC was tasked with:
• Collecting and reviewing current environmental data present at the Village.
• Conducting a market salary survey and providing feedback to the Village regarding
current market competitiveness.
• Developing strategic positioning recommendations using market data and best practices.
• Developing a compensation structure and implementation cost plan for the Village.
• Developing and submitting draft and final reports summarizing findings and
recommendations.
1.2 STUDY METHODOLOGY
Evergreen Solutions combined qualitative as well as quantitative data analysis to produce an
equitable solution in order to maximize the fairness and competitiveness of an organization's
compensation structure and practices. Project activities included:
• conducting a project kick-off meeting;
• conducting orientation sessions with employees;
• facilitating focus group sessions with employees chosen by the Village;
• conducting a salary survey;
• developing recommendations for compensation management;
• creating draft and final reports.
Kickoff Meeting
The kickoff meeting provided an opportunity to discuss the history of the organization, finalize the
work plan, and begin the data collection process. Data collection of relevant background material
(including existing pay plans, organization charts, policies, procedures, training materials, job
descriptions, and other pertinent material) was part of this process.
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Chapter 1-Introduction Village of North Palm Beach,FL
Employee Outreach
The orientation sessions were designed to brief employees and supervisors on the purpose and
major processes of the study. This process was intended to address any questions and resolve any
misconceptions about the study and relevant tasks. In addition, employees were asked about their
experience with the organization and to identify any concerns they had about compensation. This
information provided some basic perceptional background as well as a starting point for the research
process.
In addition, employees were able to participate in focus group sessions designed to gather input
from their varied perspectives as to the strengths and weaknesses of the current system. Feedback
received from employees in this context was helpful in highlighting aspects of the organization which
needed particular attention and consideration.
Salary Survey
The external market is defined as identified peers that have similar characteristics, demographics,
and service offerings as the target organization. Benchmark positions were identified from each area
and level of the organization and included a large cross-section of positions at the Village. Once the
target and benchmark information was finalized, classification information from the Village was used
to find comparable positions from peer organizations.
Solution Creation -Pay Schedule and Transition Costing
Solution creation followed agreement on the structure of the compensation system. During this
phase, desired range spreads (distance from minimum to maximum) and midpoint progressions
(distance from the midpoint of one pay grade to the next) were established. Once the structure was
created, jobs were slotted into the proposed pay grade structure using market data and Client
Project Manager(CPM)feedback.
As part of the study, the organization identified its desired market position. Subsequently, the pay
plan and job slotting within the system was adjusted to account for this desired position in the
market.
The final step in the creation of the solution was to identify the costs associated with each step of
the analysis. The data from the job slotting process was applied to the individual incumbents in the
organization. This allowed the Village to view the total costs associated with the proposed structural
changes. Information was then provided to the Village on various ways to implement the proposed
structure and possible adjustments that could be made to address any remaining issues.
1.2 REPORT ORGANIZATION
This report includes the following chapters:
• Chapter 2 - Assessment of Current Conditions
• Chapter 3 - Market and Benefits Survey Summary
• Chapter 4 - Solution
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EVERGREEN SOLUTIONS, LLC
Chapter 2 - Assessment of Current
Conditions
The purpose of this statistical evaluation was to provide an overall assessment of the
structure of the compensation plan in place within the Village and a brief analysis of the
employee demographics within the organization. Data included here reflects the
demographics in place at specific point in time. The data contained within this report
provided fertile ground for more detailed analysis and recommendations through the course
of this study, but was not be sufficient cause for recommendations on its own. By reviewing
information about the Village's compensation structure, philosophies, and employee
demographics, Evergreen Solutions gained better understanding of the structures and
methods in place that helped identify issues for both further review and potential revision.
Pay Plan Analysis
The Village's existing structure has three pay structures which placed employees into pay
grades by classification. Two of the pay plans were organized in an open-range configuration
where there was an established minimum and maximum salary whereby employees then
progress through the ranges through the course of a career. The third pay plan also had
fixed minimum and maximum salaries for each grade. However, it was organized in a step
configuration with each step representing a new salary within the range. The number of
steps and the size of the increase between steps in each grade varied within the step pay
plan.
The first open-range pay plan had 28 numbered pay grades, with all except one pay grade
currently occupied by at least one employee. Range spreads varied from 23 percent to 60
percent, with an average of 52 percent across the numbered open-range pay plan. The
second open-range pay plan is a contract plan which only has one pay grade and is occupied
by only one employee, the Village Manager. The contract pay plan has a range spread of 27
percent. The step pay plan has seven pay grades for seven specific classifications in the
Police and Fire Departments and was established through collective bargaining agreements.
Range spreads vary from 36 percent to 55 percent, with an average of 48 percent across
the step pay plan.
Exhibit 2A on the following page illustrates the Village's existing pay plans. Grade 10
possesses the highest number of full-time and part-time employees with 26, while the next
largest occupied pay grades are Step: Police Officer, Step: Firefighter/Medic, grade 11, and
grade 22, with 22 full-time employees in the Police Officer step plan and 16 employees each
in the Firefighter/Medic step plan and numbered grades 11 and 22. All 16 employees in the
Firefighter/Medic step plan are full time; the 16 employees in pay grades 11 and 22 are a
combination of full and part-time employees. Pay grade 17 does not possess any
employees.
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Chapter 2-Assessment of Current Condltlons Village of North Palm Beach,FL
Exhibit 2A
Current Pay Plan
Midpoint Grade Minimum . .
Spread
3 $ 9,672 $ 11,110 $ 13,455 39% 13
6 $ 15,954 $ 18,861 $ 22,862 43% 6
8 $ 17,316 $ 21,619 $ 26,236 52% 8
10 $ 19,838 $ 24,768 $ 30,057 52% 26
11 $ 20,800 $ 25,970 $ 31,501 51% 16
13 $ 22,963 $ 28,735 $ 34,747 51% 1
14 $ 24,166 $ 30,177 $ 36,549 51% 8
15 $ 25,248 $ 31,620 $ 38,232 51% 3
16 $ 26,570 $ 33,184 $ 40,157 51% 14
17 $ 28,012 $ 34,996 $ 42,321 51% 0
18 $ 29,335 $ 36,670 $ 44,365 51% 2
19 $ 30,778 $ 38,473 $ 46,889 52% 11
20 $ 32,342 $ 40,398 $ 49,293 52% 10
21 $ 33,905 $ 42,440 $ 51,699 52% 6
22 $ 35,708 $ 44,605 $ 54,344 52% 16
23 $ 37,391 $ 46,769 $ 56,988 52% 2
24 $ 39,314 $ 49,052 $ 59,874 52% 5
26 $ 43,281 $ 54,103 $ 66,006 53% 2
27 $ 45,446 $ 56,748 $ 70,454 55% 2
28 $ 47,730 $ 59,754 $ 74,061 55% 1
29 $ 50,136 $ 62,638 $ 77,668 55% 3
32 $ 58,071 $ 72,618 $ 90,052 55% 1
34 $ 74,975 $ 82,661 $ 92,506 23% 3
36 $ 60,955 $ 76,224 $ 94,501 55% 5
38 $ 63,962 $ 79,953 $100,750 58% 1
40 $ 67,208 $ 83,919 $105,802 57% 3
42 $ 81,755 $102,074 $130,688 60% 1
44 $ 94,501 $118,065 $151,248 60% 1
Contract $110,000 $125,000 $140,000 27% 1
Step: Records Clerk $ 27,422 $ 33,331 $ 41,427 51% 2
Step: Emergency Dispatcher $ 33,190 $ 41,114 $ 50,607 52% 6
Step: Firefighter/EMT $ 42,368 $ 52,484 $ 64,610 52% 2
Step: Police Officer $ 42,367 $ 53,484 $ 64,612 53% 22
Step: Firefighter/Medic $ 46,723 $ 57,879 $ 72,483 55% 16
Step: Fire Rescue Lieutenant $ 58,205 $ 67,380 $ 79,897 37% 3
Step: Sergeant $ 58,577 $ 68,456 $ 79,912 36% 6
Source:Evergreen Solutions,January 2013
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Chapter 2-Assessment of Current Conditions Village of North Palm Beach,FL
It is important to have an organized pay structure because it gives employees something to
work towards and also helps clear confusion about future salary increases or equity among
different pay grades. Additionally, an established pay structure allows the organization to
analyze and address problems regarding compression within job classifications and
compression among different grades with a sense of consistency and thoroughness.
Consideration of the external market as well as the need for internal equity among
classifications also benefits the organization in a number of ways. A competitive pay
structure allows the Village to be an effective recruiter in the marketplace, contribute to a
reduction in employee turnover, set the precedent to offer comparable base salaries for
positions, and give employees ample room for upward growth and motivation for
professional development, all of which the existing compensation plan has potential to do.
Grade Placement Analysis
In assessing the overall effectiveness of an organization's pay plan and policies, it is often
helpful to analyze a snapshot in time of where employee salaries stand in comparison to the
range in which they are placed. An organization with no career ladder, for example, which
limits the methods by which employees are able to progress through the ranges, would be
expected to reveal a large clustering of employees at or near the minimum of their pay
grades. An organization with severely uncompetitive range values may have employees
clustered near the top of their ranges because the organization is required to pay them the
highest salary possible in order to limit turnover. These situations as well as others may
reveal themselves through the analysis of grade placement data and for that reason it is
analyzed in this segment of the report.
Grade midpoint is often considered the most accepted market average. Therefore, it is
important to examine the percentages of employees at the Village who fall above and below
the calculated midpoint of their respective pay grade. Since pay grade 17 does not have any
incumbents, that grade is excluded from this analysis. Eighty-four part-time employees were
excluded from this portion of the analysis because it would not be beneficial to examine
their part-time salaries' placements within the full-time pay structure. The following exhibits
detail this information for each pay grade occupied by at least one full-time employee. Since
pay grades 3, 6, 8, and 13 only possess part-time employees, these grades were excluded
from this analysis.
Exhibit 213 on the following page shows that across all employees in the Village's pay plan,
15 employees (or 10.3 percent) are at the minimum of their respective pay grade and 54
employees (or 37.2 percent) are at the maximum of their respective pay grade. Being at the
grade minimum is typically a sign of a newer employee who has not had the opportunity or
experience necessary to progress from that entry level of compensation, or that an
employee has just been promoted into a new pay grade. Contrarily, being at the grade
maximum is typically a sign of an established employee who has had the opportunity or
experience necessary to progress to the top of compensation, or that an employee may be
nearing an opportunity for promotion which would result in a reclassification into a new pay
grade. This analysis shows that nearly half of employees are at either the minimum or
maximum of their pay grade.
4 Evergreen Solutions,LLC Page 2-3
Chapter 2-Assessment of Current Conditions Village of North Palm Beach,FL
Exhibit 2B
Employees at Minimum and Maximum by Pay Grade
10 2 0 0.0% 1 50.0%
11 1 0 0.0% 2 200.0%
14 1 0 0.0% 0 0.0%
15 3 0 0.0% 1 33.3%
16 14 7 50.0% 6 42.9%
18 2 0 0.0% 0 0.0%
19 11 1 9.1% 4 36.4%
20 10 0 0.0% 2 20.0%
21 6 1 16.7% 2 33.3%
22 8 1 12.5% 3 37.5%
23 2 0 0.0% 1 50.0%
24 4 0 0.0% 2 50.0%
26 2 0 0.0% 2 100.0%
27 2 0 0.0% 0 0.0%
28 1 0 0.0% 1 100.0%
29 3 1 33.3% 1 33.3%
32 1 0 0.0% 0 0.0%
34 3 0 0.0% 2 66.7%
36 5 0 0.0% 3 60.0%
38 1 0 0.0% 0 0.0%
40 3 0 0.0% 1 33.3%
42 1 0 0.0% 0 0.0%
44 1 0 0.0% 0 0.0%
Contract 1 0 0.0% 0 0.0%
Step: Records Clerk 2 0 0.0% 2 100.0%
Step: Emergency Dispatcher 6 1 16.7% 4 66.7%
Step: Firefighter/EMT 2 0 0.0% 1 50.0%
Step: Police Officer 22 3 13.6% 5 22.7%
Step: Firefighter/Medic 16 0 0.0% 3 18.8%
Step: Fire Rescue Lieutenant 3 0 0.0% 3 100.0%
Step: Sergeant 6 0 0.0% 2 33.3%
Total 145 15 10.3% 54 37.2%
Source:Evergreen Solutions,January 2013
Exhibit 2C provides the breakdown of employees above and below midpoint by pay grade.
The exhibit shows that 52 employees (or 36.1 percent) are below the midpoint of their
respective pay grades, while 92 (or 63.9 percent) lie above the midpoint of their respective
pay grade. This analysis shows that nearly two-thirds of employees fall above the midpoint of
their respective pay grade. Too many employees above or below midpoint can result in
compression within a pay grade. Further analysis of the quartiles within each pay grade will
indicate if compression exists in specific segments of the Village's pay plan.
4 Evergreen Solutions,LLC Page 2-4
Chapter 2-Assessment of Current Condltlons Village of North Palm Beach,FL
Exhibit 2C
Employees Above and Below Midpoint by Pay Grade
Employees
10 1 0 0.0% 1 100.0%
11 1 1 100.0% 0 0.0%
14 1 0 0.0% 1 100.0%
15 3 2 66.7% 1 33.3%
16 14 11 78.6% 3 21.4%
18 2 2 100.0% 0 0.0%
19 11 4 36.4% 7 63.6%
20 10 5 50.0% 5 50.0%
21 6 3 50.0% 3 50.0%
22 8 2 25.0% 6 75.0%
23 2 1 50.0% 1 50.0%
24 4 2 50.0% 2 50.0%
26 2 0 0.0% 2 100.0%
27 2 0 0.0% 2 100.0%
28 1 0 0.0% 1 100.0%
29 3 2 66.7% 1 33.3%
32 1 0 0.0% 1 100.0%
34 3 1 33.3% 2 66.7%
36 5 2 40.0% 3 60.0%
38 1 0 0.0% 1 100.0%
40 3 1 33.3% 2 66.7%
42 1 0 0.0% 1 100.0%
44 1 1 100.0% 0 0.0%
Contract 1 0 0.0% 1 100.0%
Step: Records Clerk 2 0 0.0% 2 100.0%
Step: Emergency Dispatcher 6 1 16.7% 5 83.3%
Step: Firefighter/EMT 2 2 100.0% 0 0.0%
Step: Police Officer 22 7 31.8% 15 68.2%
Step: Firefighter/Medic 16 1 6.3% 15 93.8%
Step: Fire Rescue Lieutenant 3 0 0.0% 3 100.0%
Step: Sergeant 6 1 16.7% 5 83.3%
Total 144 52 36.1% 92 63.9%
Source:Evergreen Solutions,January 2013
Quartile Analysis
To determine where employee salaries fall within the pay structure, each pay grade
possessing at least one full-time employee was divided into four equal quartiles, and
employees were assigned a quartile based on where their salary fell. Exhibit 2D illustrates
the number of full-time employees in each pay grade and in each quartile. Exhibit 2E also
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Chapter 2-Assessment of Current Condltlons Village of North Palm Beach,FL
analyzes the number of full-time employees in each pay grade and in each quartile, but
presents the figures as a graph representing percentage of the total number of employees in
each grade.
Exhibit 2D - Quartile Analysis (Count of Employees)
MQUARTILE 2NDQUARTILE D QUARTILE 4TH QUARTI LE
10 1 0 0 0 1
11 1 0 1 0 0
14 1 0 0 1 0
15 3 2 0 0 1
16 14 8 3 3 0
18 2 1 1 0 0
19 11 2 2 2 5
20 10 1 4 3 2
21 6 1 2 1 2
22 8 2 0 2 4
23 2 0 1 0 1
24 4 1 1 2 0
26 2 0 0 0 2
27 2 0 0 2 0
28 1 0 0 0 1
29 3 2 0 0 1
32 1 0 0 0 1
34 3 0 1 0 2
36 5 1 1 0 3
38 1 0 0 1 0
40 3 0 1 0 2
42 1 0 0 1 0
44 1 0 1 0 0
Contract 1 0 0 1 0
Step:Records Clerk 2 0 0 0 2
Step:Emergency Dispatcher 6 1 0 1 4
Step:Firefighter/EMT 2 1 1 0 0
Step:Police Officer 22 4 3 8 7
Step:Firefighter/Medic 16 0 1 8 7
Step:Fire Rescue Lieutenant 3 0 0 0 3
Step:Sergeant 6 1 0 1 4
Total 144 28 24 37 55
Source:Evergreen Solutions,January 2013
4 Evergreen Solutions,LLC Page 2-6
Chapter 2-Assessment of Current Conditions Village of North Palm Beach,FL
Exhibit 2E -Quartile Analysis (Percentage of Employees per Pay Grade)
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Source:Evergreen Solutions,January 2013
This analytical tool is helpful in determining whether employee salaries are adequately
disbursed throughout the pay range and also helps to identify cases in which pay grade
incumbents dominate the upper ranges of the grade. The latter could indicate that pay
ranges are too low to hire employees in, at, or near the minimum, that employees are
moving too quickly through the pay range, or that the pay grade includes a large number of
employees with significant tenure.
The observation made in the Grade Placement Analysis that a majority of employees fall
above the midpoint in their respective pay grades is further exemplified in the Quartile
Analysis. In particular, it can be seen that over a quarter of all employees in the study fall in
the third quartile, and 38.2 percent of employees fall within the fourth quartile of their
respective pay grades. Several pay grades have two or less incumbents, such as pay grades
10, 26, and 32; this explains why these types of pay grades show all employees occupying a
single quartile. All three incumbents in the Step: Fire Rescue Lieutenant pay grade have
salaries in the fourth quartile of the pay grade, and within the Step: Firefighter/Medic pay
grade zero percent are in the first quartile and only six percent are in the second quartile of
the pay grade. Regarding the employees clustered in the fourth quartile, this most likely
represents employees with longer tenure and who therefore have further progressed
through their respective pay grades. Further analysis of employee demographics will likely
confirm this.
Employee Demographics
As of January 2013, the Village employed 228 individuals; all of which were included in this
section of the study. The following analyses provides basic information regarding how
employees are distributed among departments and the tenure of employees.
4 Evergreen Solutions,LLC Page 2-7
Chapter 2-Assessment of Current Condltlons Village of North Palm Beach,FL
The Village's employees are spread among 22 departments. Exhibit 2F depicts the number
of classifications present in each department, along with the number and overall percentage
of total employees by department. As the exhibit illustrates, the largest department in the
Village is Police, with 50 employees, representing 21.9 percent of the Village's total
workforce, while Administration C.C., Code Enforcement, Community Development, and
Tennis - Recreation are the smallest departments, each with one employee, each
representing 0.4 percent of the Village's total workforce.
Exhibit 2F - Employees by Department
Department
Administration C.C. 1 1 0.49,o'
Building 6 6 2.6%
Code Enforcement 1 1 0.49/o
Community Development 1 1 0.49/o
Facilities Maintenance 4 2 1.8%
Finance 6 4 2.6%
F i re 24 6 10.5
Food & Beverage 22 8 9.6%
Golf Shop 24 7 10.5%
Human Resources 2 2 0.9%
Information Technology 3 3 1.3%
Library 14 6 6.1%
Police 50 11 21.9%
Pool 15 1 6.6%
Public Service Administration 3 3 1.3%
Recreation 16 6 7.0%
Sanitation 19 3 8.3%
Street Maintenance 8 6 3.5%
Tennis- Recreation 1 1 0.49/o
Vehicle Maintenance 3 1 1.3%
Village Clerk 3 3 1.3%
Village Manager 2 1 2 0.9%
Total 228 1 84 100•%
Source:Evergreen Solutions,January 2013
Evaluating average employee tenure is another valuable tool by which the workforce can be
demographically analyzed. Many things can be learned by assessing the tenure of
employees in an organization including understanding the relative age and experience of the
workforce at the Village. This information in turn can help in making important decisions
about handling compression within the pay structure and planning for succession within
positions.
Exhibit 2G shows average employee tenure by pay grade. This data shows that average
tenure across the Village is approximately 7.3 years. This is similar to the national average,
4 Evergreen Solutions,LLC Page 2-8
Chapter 2-Assessment of Current Condltlons Village of North Palm Beach,FL
which according to recent statistics from the Department of Labor, is slightly more than
seven years for employees in the public sector.
Exhibit 2G - Employee Tenure by Pay Grade
Grade Count AvgTenure
3 13 0.9
6 6 2.5
8 8 2.9
10 26 3.0
11 16 3.4
13 1 1.6
14 8 5.1
15 3 5.8
16 14 12.5
18 2 4.2
19 11 10.9
20 10 6.9
21 6 9.8
22 16 7.7
23 2 5.9
24 5 7.3
26 2 24.3
27 2 11.1
28 1 13.7
29 3 5.2
32 1 6.2
34 3 15.4
36 5 13.2
38 1 3.7
40 3 24.9
42 1 8.4
44 1 0.8
Contract 1 0.6
Step: Records Clerk 2 19.5
Step: Emergency Dispatcher 6 12.1
Step: Firefighter/EMT 2 1.6
Step: Police Officer 22 6.7
Step: Firefighter/Medic 16 7.7
Step: Fire Rescue Lieutenant 3 13.7
Step:Sergeant 6 14.7
Overall Average 7.3
Source:Evergreen Solutions,January 2013
Evergreen Solutions,LLC Page 2-9
Chapter 2-Assessment of Current Conditions Village of North Palm Beach,FL
Some pay grades with the most significant average tenure are 40, 26, and Step: Records
Clerk, where average tenure is 24.9, 24.3, and 19.5 years in each grade, respectively. The
employees in these classifications undoubtedly possess a wealth of institutional knowledge
which if lost without preparation, could leave the Village with knowledge gaps that could
significantly affect the quality of services provided in the future. Lower than average tenure
is also important to evaluate because it can identify positions with significant turnover or
retention issues. The pay grades with the lowest tenure are Contract, 44, and 3, with an
average tenure of 0.6, 0.8, and 0.9 years, respectively. Further analysis should be done to
assess if lower tenure in these classifications is compensation-related.
In the Quartile Analysis, the Step: Fire Rescue Lieutenant and Step: Firefighter/Medic pay
grades were identified as having an unusually high percentage of employees in the upper
half of their respective pay grades. The average tenure for employees in the Step: Fire
Rescue Lieutenant pay grade is 13.7 years, which is almost double the overall average
tenure. However, the average tenure for employees in the Step: Fire/Medic pay grade is 7.7
years, which is only slightly higher than the overall average tenure. This indicates that high
tenure may not fully explain the compression that was observed in the upper half of these
pay grades.
Overall, the Village's compensation plan has a solid structure on which to grow. Further
information gained from market analysis and feedback from stakeholders assisted in this
analysis. The Village of North Palm Beach has the potential and is well equipped to take the
next step in becoming a more competitive employment force in their labor market.
4 Evergreen Solutions,LLC Page 2-10
EVERGREEN SOLUTIONS, LLC
Chapter 3 - Market Summery
One of the best and most direct methods of determining the relative competitive position of an
organization in the market place is to conduct a market comparison study. A study of this nature
focuses on the average salaries and salary ranges offered by the market. This methodology is used
to provide an overall analysis and not to evaluate salaries for individual positions. Market
comparisons do not translate well at the individual level because individual pay is determined
through a combination of factors including, demand for the type of job, performance, prior
experience, and, in some cases, an individual's negotiation skills during the hiring process.
Therefore, a market comparison is not the only tool used to determine pay levels by classification nor
can it provide quantifiable salary recommendations for individual positions. As a result, market data
can be used to evaluate overall structure, such as ranges; summarize overall market
competitiveness, and capture the current highs and lows of the pay plan at a fixed point in time.
Market comparison analysis is best thought of as a snapshot of current market conditions, as the
data is collected at the time of the study and provides the most up to date market information. It
should be noted that market conditions can change, and in some cases change quickly. Therefore,
although market surveys are useful for making updates to a salary structure, they must be done at
regular intervals if the organization wishes to stay current with the marketplace.
Evergreen Solutions consultants conducted a comprehensive market salary and benefits comparison
survey for the Village of North Palm Beach (Village).A comprehensive group of 45 job classifications
was surveyed. Market relevant matches were made for 41 of the positions, which represent 91.1
percent of the surveyed classifications.
When seeking to compare the Village to its peers, a number of factors were taken into account, such
as geographic location and relative population size. Data was collected from the following list of 19
market peers:
City of Dania Beach City of Vero Beach
City of Lighthouse Point Town of Hypoluxo
City of Parkland Town of Lake Park
City of Sebring Town of Lantana
City of Stuart Village of Palm Springs
Village of Royal Palm Beach City of Cooper City
Village of Tequesta Town of Jupiter
Town of Juno Beach Palm Beach County
City of West Palm Beach Town of Palm Beach
City of Palm Beach Gardens
Evergreen Solutions,LLC Page 3-1
Chapter 3-Market Summary Compensatlon Study for Village of North Palm Beach,FL
Additional salary information for peer police organizations was collected through the Police
Benevolent Association. Data collected outside of the Village's direct region was adjusted for cost of
living using national cost of living index factors. This calculation allows salary dollars from entities
across the state and region to be compared in spending power relevant to the Village of North Palm
Beach.
Survey results for the salary minimums, midpoints, and maximums for the survey targets are
presented in Exhibit 3A
3.1 SALARY SURVEY RESULTS
Market Minimums
As Exhibit 3A illustrates, at the minimum of the respective salary ranges, the Village was on average
approximately 6.0 percent below market across all surveyed job titles after cost of living is taken into
account. While some classifications were closer to market, others exhibited a greater difference from
average market values.
Based on the data gathered at the surveyed market minimum for these benchmark positions, the
following was determined:
• The surveyed position differences ranged from a low of 40.3 percent below market in the
case of the Fire Inspector classification to a high of 17.6 percent above market for the Fire
Captain position.
• Of the 41 Village positions for which market minimum data was collected, 26 reported to be
below market. These 26 below-market classifications were an average of 11.8 percent below
market.
• A total of 10 positions indicated market differentials at the pay range minimum that were
greater than 10.0 percent below market. These are listed below with their market
differentials:
— Fire Inspector, 40.3 percent below
— Pool Lifeguard, 34.3 percent below
— Fire Chief, 33.2 percent below
— Director of Human Resources, 26.1 percent below
— Director of Parks & Recreation, 25.9 percent below
— Director of Information Technology, 24.1 percent below
— Golf Driving Range/Ranger, 18.7 percent below
— Director of Public Works, 15.2 percent below
— Library Clerk, 11.9 percent below
— Supervisor Recreation, 11.5 percent below
Market Midpoints
Market Midpoint is important to consider because it is commonly referred to as the closest
estimation of full competence and market average compensation. Employees at the midpoint should
typically be fully functional in their classification. Exhibit 3A also depicts salary comparison data at
4 Evergreen Solutions,LLC Page 3-2
Chapter 3-Market Summary Compensation Study for Village of North Palm Beach,FL
the range midpoints for both the Village and the core list of survey peers. For peers who reported
current actual salaries for classifications, that value was compared to the midpoint of the Village. As
Exhibit 3A indicates, the Village was on average 7.1 percent below market at the midpoint.
Based on the data gathered at the market midpoint of the salary range, the following can be
determined:
• At the market midpoint, the benchmark positions ranged from a low of 39.7 percent below
market for the Fire Inspector position to a high of 8.8 percent above market for the Trades
mechanic II position.
• 27 of the 41 classifications for which data was received were found to be below market at
the midpoint which represents 65.9 percent of all benchmarks. These 27 classifications
were an average of 12.8 percent below market at the midpoint.
• Ten classifications were greater than 10.0 percent below market. These are listed below with
their market differentials:
— Fire Inspector, 39.7 percent below market
— Pool Lifeguard, 32.1 percent below market
— Fire Chief, 29.4 percent below market
— Director of Parks & Recreation, 27.8 percent below market
— Director of Human Resources, 26.1 percent below market
— Director of Information Technology, 23.5 percent below market
— Golf Driving Range/Ranger, 19.6 percent below market
— Director of Public Works, 16.8 percent below market
— Library Clerk, 12.8 percent below market
— Supervisor Recreation, 11.6 percent below market
• Of the 14 classifications that are above market at the midpoint, they are an average of 3.8
percent above market.
Market Maximums
Salary range maximum values as they compare to the survey respondents are also illustrated in
Exhibit 3A. The overall pay plan fell below market average in this measure, with an average
maximum value that is 5.5 percent below that of the surveyed market.
The comparison of market maximums yielded the following considerations:
• Of the positions surveyed, 25 were below the market average at the maximum.
• Of the surveyed positions, 12 had range maximums greater than 10.0 percent below market.
These are listed below with their market differentials:
• Fire Inspector, 37.3 percent below market
• Pool Lifeguard, 29.0 percent below market
4 Evergreen Solutions,LLC Page 3-3
Chapter 3-Market Summary Compensation Study for Village of North Palm Beach,FL
• Fire Chief, 27.6 percent below market
• Director of Parks & Recreation, 22.3 percent below market
• Director of Human Resources, 22.2 percent below market
• Director of Information Technology, 19.0 percent below market
• Golf Driving Range/Ranger, 18.8 percent below market
• Captain (Police), 14.9 percent below market
• Village Manager, 13.0 percent below market
• Library Clerk, 12.3 percent below market
• Director of Public Works, 11.8 percent below market
• Supervisor Recreation, 10.1 percent below market
• Of the surveyed positions,three had range maximums greater than 10.0 percent above
market.
These are listed below with their market differentials:
• Police Chief, 13.0 percent above market
• Sanitation Driver/Operator, 11.1 percent above market
• Trades Mechanic II, 11.1 percent above market
Salary Survey Conclusion
It should be noted that the standing of a classifications pay range compared to the market is not a
definitive assessment of the individual employee's salaries being equally above or below market. It
does, however, speak to the Village's ability to recruit and retain talent over time. If starting pay is
significantly lower than the market would offer, the Village may find itself losing out to their market
peers when they seek to fill a position.
From the analysis of the data gathered in the external labor market assessment, the following major
conclusions can be reached:
• The Village was approximately 6.0 percent below the market average minimum.
• The Village was approximately 7.1 percent below the market average midpoint.
• The Village was approximately 5.5 percent below the market average maximum.
• Upper-level administrative positions, such as Director of Parks& Recreation and Director of
Human Resources, were significantly below market at the minimum, midpoint, and maximum
of their salary ranges.
• Some positions had extreme market differentials. This could be due to a lack of comparable
positions in peer organizations. For example, the Golf Driving Range/Ranger classification
was below market by more than 18 percent across the minimum, midpoint, and maximum of
its salary range, but there were only four comparable matches found for this position.
The pay plan in place at the time of this assessment is structurally consistent and easy to
administer. Although some classifications varied quite differently from market averages, the Village
was only slightly below market on average for all surveyed positions. Overall, the Village was in a
4 Evergreen Solutions,LLC Page 3-4
Chapter 3-Market Summary Compensation Study for Village of North Palm Beach,FL
strong position in which grow and stay competitive in today's market. Discussion of potential
recommended changes to the pay plan can be found in Chapter 4 of this report.
Exhibit 3A - Village of North Palm Beach Market Summary Table
Ll D Classification 00 SurveyMinimum I Survey Midpoint I Survey Maximum= rvey Avg #Resp.
I Average %Diff Average %Diff Average %Diff Range
1 Accounting Clerk $ 31,283.02 3.3% $ 38,975.51 3.5% $ 47,043.59 4.6%1 50.1% 21
2 Building Official $ 60,350.80 5.6% $ 76,765.47 4.0% $ 93,937.53 6.8% 55.0% 16
3 Captain(Police) $ 72,803.06 2.9% $ 89,547.29 -8.3% $106,291.53 -14.9% 46.0% 13
4 Code Compliance Officer $ 37,807.37 -5.9% $ 47,712.78 -7.0% $ 57,618.19 -6.0% 52.1% 23
5 Director of Finance $ 85,185.29 -4.2% $106,891.90 -4.7% $128,302.23 1.8% 50.4% 24
6 Director of Human Resources $ 76,872.83 -26.i%l$ 96,155.48 -26.1% $115,438.13 -22.2% 50.1% 19
7 Director of Information Technology $ 75,645.31 -24.1% $ 94,107.48 -23.5% $112,413.17 -19.0% 48.8% 15
8 Director of Parks&Recreation $ 76,761.70 -25.9% $ 97,383.06 -27.8% $115,600.11 -22.3%1 50.1% 14
9 Director of Public Works $ 77,398.11 -15.2% $ 98,017.87 -16.8% $118,256.61 -11.8% 52.4% 19
10 Golf Driving Range/Ranger $ 20,547.46 -18.7% $ 25,858.29 -19.6% $ 31,169.12 -18.8% 51.7% 4
11 Emergency Dispatcher II $ 36,861.33 -11.1% $ 46,913.22 -14.1% $ 56,831.51 -12.3% 51.7% 14
12 Executive Secretary $ 39,019.71 0.7% $ 49,043.69 0.0% $ 59,067.68 1.3% 51.7% 20
13 1 Finance Manager $ 57,939.36 0.2% $ 72,496.20 0.2% $ 87,053.03 3.3% 50.2% 11
14 Fire Captain $ 61,768.31 17.6% $ 78,510.05 5.0% $ 95,251.79 -3.0% 54.2% 11
15 Fire Chief $ 89,545.35 -33.2% $108,609.20 -29.4% $134,972.88 -27.6% 50.7% 11
16 Fire Inspector $ 52,448.81 -40.3% $ 65,352.35 -39.7% $ 78,255.89 -37.3% 49.2% 9
17 Fire Rescue Lieutenant $ 58,483.59 -0.5% $ 72,479.06 -7.6% $ 86,474.53 -8.2% 47.5% 11
18 Firefighter/EMT $ 43,493.68 -2.7% $ 56,068.44 -6.8%1$ 68,643.19 -6.2% 57.6% 9
19 Firefighter/Paramedic $ 48,641.53 1 -4.1% $ 62,161.54 -7.4% $ 75,681.55 -4.4% 55.4% 12
20 Librarian II $ 38,757.55 1.4% $ 48,149.97 1.8% $ 61,742.32 -3.1% 56.0% 6
21 Library Clerk $ 27,032.00 -11.9%1$ 34,042.96 -12.8% $ 41,053.92 -12.3% 50.7% 6
22 Line Cook $ 23,712.00 -3.3% $ 30,687.28 -6.8% $ 37,662.56 -8.4% 58.8% 1
23 Mechanic $ 33,466.56 -3.5% $ 41,226.42 -2.1% $ 48,986.27 0.6% 46.3% 13
24 Network Support Specialist $ 45,498.30 4.7% $ 57,141.38 4.4% $ 68,784.46 7.1% 51.2% 12
25 Outside Service Attendant $ 22,818.72 -9.7% $ 27,145.21 -4.5% $ 31,471.71 0.1% 37.8% 6
26 Permit&Licensing Technician $ 31,083.19 -6.0% $ 38,502.18 -5.0% $ 46,451.88 4.7% 50.1% 14
27 IPlanner $ 44,833.78 1.3% $ 56,279.04 0.8% $ 67,724.31 3.9% 51.0% 16
28 Police Chief $ 91,444.81 3.2% $112,423.26 4.8% $131,630.41 13.0% 44.0% 17
29 Police Officer $ 45,225.33 -6.7%1$ 57,910.16 -8.3% $ 70,594.99 -9.3% 55.9% 19
30 Pool Lifeguard $ 26,637.10 -34.3% $ 32,710.03 -32.1% $ 38,782.97 -29.0% 46.2% 4
31 Records Clerk $ 27,409.93 0.0% $ 34,781.50 -4.4% $ 42,153.07 -1.8% 53.5% 12
32 Sanitation Collector $ 26,743.83 -0.7% $ 32,101.58 3.3% $ 37,459.34 6.7% 40.3% 6
33 Sanitation Driver/Operator $ 29,844.62 3.0% $ 35,764.04 7.0% $ 41,683.47 11.1% 39.9% 7
34 ISergeant $ 61,113.34 -4.3% $ 73,360.34 -7.2% $ 85,607.35 -7.1% 39.7% 1 19
35 Street Maintenance Worker $ 25,759.82 -2.0% $ 32,094.12 -1.5% $ 38,428.43 -0.5% 48.9% 18
36 Superintendent of Public Works $ 48,281.52 3.7% $ 60,568.39 3.3% $ 72,855.25 6.2% 50.8% 12
37 Supervisor Recreation $ 37,807.82 -11.5% $ 47,357.37 -11.6% $ 56,906.92 -10.1% 50.2% 14
38 Supervisor Sanitation $ 40,851.93 5.6% $ 50,459.80 6.7% $ 60,067.68 9.0% 47.1% 5
39 Trades Mechanic II $ 31,477.23 7.2% $ 38,722.90 8.8% $ 45,968.56 11.1% 46.1% 15
40 Village Clerk $ 61,493.76 -0.9% $ 77,965.57 -2.3%1$ 93,020.23 1.6%1 50.8% 18
41 lVillage Manager $110,416.59 -0.4% $134,244.83 7.4% $158,240.48 -13.0%1 43.5% 1 10
7.1% -5.5%1 49.6% 1 12.8
Evergreen Solutions,LLC Page 3-5
EVERGREEN SOLUTIONS, LLC
Chapter 4 - Recommendations
INTRODUCTION
The analysis of the Villages' compensation systems revealed a number of commendable
practices and opportunities for improvement that are common in the public sector. The main
strengths of the organization are its involved and thoughtful management, dedicated
employees, and forward-thinking leadership.
The primary strengths of the existing compensation systems were their foundational design
elements and consistency of application; overall the system is sophisticated and well
developed but has struggled to keep up with external market pressure as reflected in the
salary survey results. The Village had not adjusted the plan or employee pay as a whole in
many years. The system had a significant number of classifications which are notably below
market and adjustments to their grades would improve the overall effectiveness of the
system and improve the Village's ability to recruit and retain employees.
The Village was also at or above market in some cases and this report should not be
interpreted as a wholesale indictment of the plan or the Village's management of
compensation. This report is a presentation of objective data and recommendations for
improvement as observed through this process. The market data revealed that despite the
down economy over the recent few years and the prevalence of holding salaries constant in
these tough times, many organizations appeared to have kept their pay plans increasing at a
steady, albeit slow pace. These small changes over a period of a few years compounded to
put the Village in a less than desirable market position for some but not all classifications.
Recent news articles in local papers describe the recent compensation landscape as
"looking up" with many local public sector entities entertaining pay increases for the first
time in many years. Some local competitors still struggle with low fund balances or lagging
property values but those with favorable financial positions are taking steps to improve pay.
The recommendations in this chapter seek to build on the documented strengths of the plan
and also improve the observed challenges. Internal factors influenced the recommendations
such as the future direction for the Village, their organizational culture, and availability of
resources. Each recommendation has also been developed to address a specific need
based on the collected information while taking into account the external environment.
Arriving at the overall recommended solution for the Village was a detailed process involving
all components of the research conducted. Research included:
• Outreach - Evergreen consultants conducted an informative management meeting
where goals and concerns were discussed in detail.
Evergreen Solutions,LLC Page 4-1
Chapter 4-Recommendations Village of North Palm Beach,FL
• Current Environment Review - Internal structure (i.e., compensation structure,
practices, etc.) was analyzed on a very broad basis versus best practices. Market
trends and a statistical assessment of current conditions were completed. This step
included an assessment of the organizations' internal and external alignment.
• Market Analysis - External equity was analyzed based on market compensation data
collected from peer organizations including overall benefits offerings. This analysis
included a review of the Village's benefits vis-a-vis those available among market
peers.
Evergreen solutions is proposing changes to the pay plan and salary structure that use the
studied plan as a foundation while improving market competitiveness. Each classification
was slotted into the proposed structures based on market equity data, internal equity
relationships, and CPM feedback in order to provide the information necessary for the
Village to develop employee-level fiscal impacts. Using this methodology, the Evergreen
Solutions team developed a solution foundation that improves the Village's competitive
position relative to its market peers for while seeking to preserve internal equity.
The remainder of this chapter presents the recommendations by the following categories:
4.1 Compensation
4.2 Administration
4.3 Summary
4.1 COMPENSATION
Compensation analysis involves assessing and improving external equity. Specifically,
external equity deals with how well the Village compensates similar work in comparison to
its market peers. Based on Evergreen Solutions' analysis, the compensation structure was
below market by a significant amount at the minimum, midpoint and maximums of the
respective pay ranges. In light of this, Evergreen Solutions is recommending an increase to
the total value of the pay plan by 8.5 percent. The changes maintain the overall design
themes of the plan while updating it slightly to match market conditions and improve
consistency.
Currently shown in Exhibit 4A, the Village has a pay plan that combined, consists of 31
active pay grades, including 7 set aside for Police and Fire (IAFF and PBA) positions. Range
spreads range from roughly 23 percent in some grades to as much as 60 percent in other
grades. The Village should strive for more consistency in its pay scales as is proposed in this
report.
RECOMMENDATION: Revise existing salary structure to reflect current market conditions by
implementing pay plans shown in Exhibit 4B and place classifications in appropriate pay
F-frades.
Based on the findings and best practices, previously discussed a 4.5 percent increase to the
structure of the existing plan are recommended. Using available market and best-practice
4 Evergreen Solutions,LLC Page 4-2
Chapter 4-Recommendatlons Village of North Palm Beach,FL
data in compensation, a new pay plan was developed. Exhibit 4B shows the proposed pay
plan, updated as described herein.
Exhibit 4A
Village of North Palm Beach Existing Pay Plan
Pay Grade Hrly Min Hrly Mid Hrly Max Annual Min Annual Mid Annual Max
3 $4.6500 $5.3411 $6.4688 $9,672 $11,110 $13,455
6 $7.6700 $9.0680 $10.9915 $15,954 $18,861 $22,862
8 $8.3251 $10.3938 $12.6133 $17,316 $21,619 $26,236
10 $9.5375 $11.9075 $14.4504 $19,838 $24,768 $30,057
11 $10.0002 $12.4855 $15.1447 $20,800 $25,970 1$31,501
13 $11.0398 $13.8148 $16.7051 $22,963 $28,735 $34,747
14 $11.6183 $14.5080 $17.5718 $24,166 $30,177 $36,549
18 $14.1035 $17.6299 $21.3292 $29,335 $36,670 $44,365
19 $14.7973 $18.4966 $22.5428 $30,778 $38,473 $46,889
20 $15.5492 $19.4219 $23.6987 $32,342 $40,398 $49,293
22 $17.1672 $21.4445 $26.1268 $35,708 $44,605 $54,344
23 $17.9763 $22.4851 $27.3980 $37,391 $46,769 $56,988
24 $18.9011 $23.5829 $28.7855 $39,314 $49,052 $59,874
26 $20.8084 $26.0110 $31.7334 $43,281 $54,103 $66,006
27 $21.8490 $27.2827 $33.8723 $45,446 $56,748 $70,454
28 $22.9473 $28.7279 $35.6062 $47,730 $59,754 $74,061
29 $24.1037 $30.1143 $37.3406 $50,136 $62,638 $77,668
32 $27.9188 $34.9124 $43.2941 $58,071 $72,618 $90,052
34 $36.0459 $39.7410 $44.4738 $74,975 $82,661 $92,506
36 $29.3053 $36.6463 $45.4330 $60,955 $76,224 $94,501
38 $30.7510 $38.4388 $48.4375 $63,962 $79,953 $100,750
40 $32.3114 $40.3456 $50.8661 $67,208 $83,919 $105,802
42 $39.3055 $49.0741 $62.8307 $81,755 $102,074 $130,688
44 $45.4330 $56.7620 $72.7152 $94,501 $118,065 $151,248
Step: Emergency Dispatcher $33,190 $41,114 $50,607
Step: Firefighter/EMT $42,368 $52,484 $64,610
Step: Firefighter/Medic $46,723 $57,879 $72,483
Step: Fire Rescue Lieutenant $58,205 $67,380 $79,897
Step: Records Clerk $27,422 $33,331 $41,427
Step: Police Officer $42,367 $53,484 $64,612
Step:Sergeant 1$58,577 $68,456 $79,912
Source:Village of North Palm Beach,2012
4 Evergreen Solutions,LLC Page 4-3
Chapter 4-Recommendations Village of North Palm Beach,FL
Exhibit 4B
Village of North Palm Beach Proposed Pay Plan
Pay Plan Pay Annual Min Annual Mid Annual Max .•
Grade
GENERAL 100 $ 10.34 $ 13.44 $ 16.54 $ 21,500.00 $ 27,950.00 $ 34,400.00 60%
GENERAL 101 $ 10.96 $ 14.24 $ 17.53 $ 22,790.00 $ 29,627.00 $ 36,464.00 60% 6%
GENERAL 102 $ 11.61 $ 15.10 $ 18.58 $ 24,157.40 $ 31,404.62 $ 38,651.84 60% 6%
GENERAL 103 $ 12.31 $ 16.00 $ 19.70 $ 25,606.84 $ 33,288.90 $ 40,970.95 60% 6%
GENERAL 104 $ 13.05 $ 16.96 $ 20.88 $ 27,143.25 $ 35,286.23 $ 43,429.21 60% 6%
GENERAL 105 $ 13.83 $ 17.98 $ 22.13 $ 28,771.85 $ 37,403.40 $ 46,034.96 60% 6%
GENERAL 106 $ 14.66 $ 19.06 $ 23.46 $ 30,498.16 $ 39,647.61 $ 48,797.06 60% 6%
GENERAL 107 $ 15.54 $ 20.21 $ 24.87 $ 32,328.05 $ 42,026.47 $ 51,724.88 60% 6%
GENERAL 108 $ 16.47 $ 21.42 $ 26.36 $ 34,267.73 $ 44,548.05 $ 54,828.37 60% 6%
GENERAL 109 $ 17.46 $ 22.70 $ 27.94 $ 36,323.80 $ 47,220.94 $ 58,118.08 60% 6%
GENERAL 110 $ 18.51 $ 24.06 $ 29.62 $ 38,503.23 $ 50,054.19 $ 61,605.16 60% 6%
GENERAL 111 $ 19.62 $ 25.51 $ 31.39 $ 40,813.42 $ 53,057.44 $ 65,301.47 60% 6%
GENERAL 112 $ 20.80 $ 27.04 $ 33.28 $ 43,262.22 $ 56,240.89 $ 69,219.56 60% 6%
GENERAL 113 $ 22.05 $ 28.66 $ 35.28 $ 45,857.96 $ 59,615.34 $ 73,372.73 60% 6%
GENERAL 114 $ 23.37 $ 30.38 $ 37.39 $ 48,609.44 $ 63,192.27 $ 77,775.10 60% 6%
GENERAL 115 $ 24.77 $ 32.20 $ 39.64 $ 51,526.00 $ 66,983.80 $ 82,441.60 60% 6%
GENERAL 116 $ 26.26 $ 34.14 $ 42.01 $ 54,617.56 $ 71,002.83 $ 87,388.10 60% 6%
GENERAL 117 $ 27.83 $ 36.18 $ 44.53 $ 57,894.61 $ 75,263.00 $ 92,631.38 60% 6%
GENERAL 118 $ 29.50 $ 38.36 $ 47.21 $ 61,368.29 $ 79,778.78 $ 98,189.27 60% 6%
GENERAL 119 $ 31.27 $ 40.66 $ 50.04 $ 65,050.39 $ 84,565.51 $104,080.62 60% 6%
GENERAL 120 $ 33.15 $ 43.10 $ 53.04 $ 68,953.41 $ 89,639.44 $110,325.46 60% 6%
GENERAL 121 $ 35.47 $ 46.11 $ 56.75 $ 73,780.15 $ 95,914.20 $118,048.24 60% 7%
GENERAL 122 $ 37.95 $ 49.34 $ 60.73 $ 78,944.76 $102,628.19 $126,311.62 60% 7%
GENERAL 123 $ 40.61 $ 52.79 $ 64.98 $ 84,470.90 $109,812.16 $135,153.43 60% 7%
GENERAL 124 $ 43.45 $ 56.49 $ 69.53 $ 90,383.86 $117,499.02 $144,614.17 60% 7%
GENERAL 125 $ 46.50 $ 60.44 $ 74.39 $ 96,710.73 $125,723.95 $154,737.17 60% 7%
GENERAL 126 $ 52.88 $ 68.75 $ 84.62 $110,000.00 $143,000.00 $176,000.00 60% 14%
IAFF 200 $ 20.91 $ 27.19 $ 33.46 $ 43,500.00 $ 56,550.00 $ 69,600.00 60%
IAFF 201 $ 22.17 $ 28.82 $ 35.47 $ 46,110.00 $ 59,943.00 $ 73,776.00 60% 6%
IAFF 202 $ 23.50 $ 30.55 $ 37.60 $ 48,876.60 $ 63,539.58 $ 78,202.56 60% 6%
IAFF 203 $ 24.91 $ 32.38 $ 39.85 $ 51,809.20 $ 67,351.95 $ 82,894.71 60% 6%
IAFF 204 $ 26.40 $ 34.32 $ 42.24 $ 54,917.75 $ 71,393.07 $ 87,868.40 60% 6%
IAFF 205 $ 27.99 $ 36.38 $ 44.78 $ 58,212.81 $ 75,676.66 $ 93,140.50 60% 6%
IAFF 206 $ 29.67 $ 38.57 $ 47.47 $ 61,705.58 $ 80,217.26 $ 98,728.93 60% 6%
IAFF 207 $ 31.45 $ 40.88 $ 50.31 $ 65,407.92 $ 85,030.29 $104,652.67 60% 6%
IAFF 208 $ 33.33 $ 43.33 $ 53.33 $ 69,332.39 $ 90,132.11 $110,931.83 60% 6%
IAFF 209 $ 35.33 $ 45.93 $ 56.53 $ 73,492.33 $ 95,540.04 $117,587.74 60% 6%
PBA 300 $ 20.91 $ 27.19 $ 33.46 $ 43,500.00 $ 56,550.00 $ 69,600.00 60%
PBA 301 $ 22.17 $ 28.82 $ 35.47 $ 46,110.00 $ 59,943.00 $ 73,776.00 60% 6%
PBA 302 $ 23.50 $ 30.55 $ 37.60 $ 48,876.60 $ 63,539.58 $ 78,202.56 60% 6%
PBA 303 $ 24.91 $ 32.38 $ 39.85 $ 51,809.20 $ 67,351.95 $ 82,894.71 60% 6%
PBA 304 $ 26.40 $ 34.32 $ 42.24 $ 54,917.75 $ 71,393.07 $ 87,868.40 60% 6%
PBA 305 $ 27.99 $ 36.38 $ 44.78 $ 58,212.81 $ 75,676.66 $ 93,140.50 60% 6%
PBA 306 $ 29.67 $ 38.57 $ 47.47 $ 61,705.58 $ 80,217.26 $ 98,728.93 60% 6%
PBA 307 $ 31.45 $ 40.88 $ 50.31 $ 65,407.92 $ 85,030.29 $104,652.67 60% 6%
PBA 308 $ 33.33 $ 43.33 $ 53.33 $ 69,332.39 $ 90,132.11 $110,931.83 60% 6%
PBA 309 $ 35.33 $ 45.93 $ 56.53 $ 73,492.33 $ 95,540.04 $117,587.74 60% 6%
Source:Evergreen Solutions,April,2013
4 Evergreen Solutions,LLC Page 4-4
Chapter 4-Recommendations Village of North Palm Beach,FL
Another important factor of a compensation system is the manner in which employees move
through the pay plan. There are predominately three approaches adopted by most public
organizations:
• Step
• Cost of living
• Merit
In the past, most public organizations utilized a step approach which incorporated
predetermined, percentage-based pay steps in each pay grade. In this approach, all
employees at the same step in the same pay grade received the same compensation and an
employee moved through the steps based on years of service until a maximum step was
reached. Step plans also assume continual fiscal growth with the cost of payroll increasing
each year a step is awarded which, as recent years prove, cannot always be counted on. In
1992, the Village moved from a step-plan toward a merit-based increase method.
Most public organizations have now moved away from the step plan approach and adopted
a "cost of living" centered approach. The "cost of living" centered approach draws on a
preselected metric that captures the percentage change in the cost of living based on a
combination of goods during a fixed period of time. Pay grades are established based on
market rates and employees are adjusted or moved through the pay grades based on the
percentage change in the cost of living during the period.
Merit-based approaches arose in response to concerns with differentiating the performance
of public employees and the desire to emulate the reward approaches of the private sector.
However, once adopted, it is common for the merit-based approaches to function more like
the cost of living approach since many employees receive such similar merit-raises in
today's environment during the evaluation process (based on budget constraints) and thus
there is little differentiation in the increases given.
At times when compression is an issue or concern, compression adjustments may be
recommended as well. Compression adjustments are typically given to restore the pay
spread between employees that have been moved as a result of an adjustment to minimum
and those that were not affected. Compression is normally an issue in larger organizations
in which each classification has multiple incumbents and multiple levels of positions.
RECOMMENDATION: Place classifications in the proposed pay plan utilizing the grade order
list in Exhibit 4C and apply market-based salary adjustments as appropriate.
Step 1 of the plan is to slot each classification into a proposed pay grade based on market
and internal equity relationships. The result of this is a revised grade order list as displayed
in Exhibit 4C. Discussion of the cost of implementation is presented in a coming
presentation.
It is Evergreen Solutions' opinion that these salary adjustments are essential to prevent
against long-term retention and recruitment issues as the economy continues to improve.
The cost of inaction, in this case, can easily surpass the cost of this implementation plan. In
many cases such as this, organizations seek multi-year strategies whereby increases are
4 Evergreen Solutions,LLC Page 4-5
Chapter 4-Recommendations Village of North Palm Beach,FL
prioritized by department or critical classes where turnover is higher than average. The
Police Department, for example, according to information gleaned during the study, has
hired 6 employees in the current year and 4 have turned over. Turnover has a real cost to
organizations and should be avoided if at all possible. Between lost productivity, time spent
training, expenses associated with posting vacancies, time spent interviewing candidates
and reviewing applications, turnover is estimated to cost approximately $8,606 in
administrative costs per vacancy alone (Cascio, 2012). An organization of 100 people with
10 percent turnover will spend approximately $86,000 year in administrative expenses for
turnover. Compensation is a driving force for turnover in the Village according to those who
have conducted informal exit interviews. Reversing the trend for turnover and recognizing
and rewarding the value of the Villages employees so that future turnover is limited is the
primary goal of these recommendations.
4.2 ADMINISTRATION
A strong compensation system meets an organization's needs by having strong
administrative support. With proper maintenance, the compensation structure will maintain
its effectiveness and market competitiveness over a period of three to five years.
RECOMMENDATION: Continue to select a sample of classifications, targeting those with
Dotential recruitment or retention concerns, and conduct a small survey of market values
and benefit changes on a bi-annual basis, to determine market competitiveness and make
appropriate adjustments.
The Village should continue its efforts to keep pace with public sector growth in terms of
employee salaries in order to maintain competitive with the local labor market by contacting
peers directly as well as accessing available secondary salary survey data resources.
Through the HR department, the Village should also continue administrative practices to
maintain competitive and equitable compensation as well as classification over time. Bi-
annual surveys will ensure that external equity is maintained. Any changes made to
classifications should be separate from employee salary adjustments, unless changes in
work performed move the employee into a different salary range.
Local salary survey peers will provide a valid sample for comparison and adjustment
purposes, coupled with data from the region's annual Public Employers Personnel
Information Exchange (PEPIE) survey. To maintain market competitiveness between
compensation studies, HR should continue to monitor its pay plan on an ongoing basis,
finding out what peer organizations in their relevant labor market. Depending on internal
and external factors they should consider adjustments to preserve desired market position.
RECOMMENDATION: Continue to review the Day Dlan each year and adjust if necessary
based on the results of the average movement of relevant local peer pay levels.
HR should reevaluate this list of peer organizations on an ongoing basis, to ensure that it
contains the most relevant competitors while making any necessary adjustments. HR should
continue to contact the identified peers and request information regarding the amount each
4 Evergreen Solutions,LLC Page 4-6
Chapter 4-Recommendations Village of North Palm Beach,FL
peer's pay plan is being increased including any changes to benefits. By determining the
average percent change of peer pay plans and benefit offerings, the Village can adjust its
pay plan and other factors at the same relative speed as its peers.
Compensation is subject to changes in the external market and other trends for human
resources management. Given this understanding, the Village should ensure that its
structure is up-to-date and reflective of best practices.
RECOMMENDATION: Conduct a comprehensive classification and compensation study every
five years.
While bi-annual surveys of identified classifications can provide a general idea of the
Village's market competitiveness, HR should complete a comprehensive compensation
study every five years to maintain internal and external equity.
As the organization traverses these difficult economic times where employee raises may not
be occurring, it is important to remain aware and proactive on issues that impact
recruitment, retention, starting pay and compression prevention.
4.3 SUMMARY
Despite its current market position, the Village should be proud of its commitment to high
quality public service. The project team working for the Village on this engagement did a
commendable job of providing information and specifically avoiding influence on the process
or outcomes. This level of objectivity is key in a successful study. Evergreen Solutions'
recommendations are intended to build upon the strengths of the current compensation
system identified by employees, management, and the consulting team, and to provide
specific suggestions for how to address the challenges identified through this analysis.
4 Evergreen Solutions,LLC Page 4-7
Chapter 4-Recommendations Village of North Palm Beach,FL
Exhibit 4C
North Palm Beach Proposed Grade Order List
CURRENT PROPOSED
PROPOSED
AN.MIN AN.MID AN.MAX AN.MIN AN.MID AN.MAX HRLY MIN HRLY MID HRLY MAX
GRADE GRADE
DISHWASHER 6 $15,954 $18,861 $22,862 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
DRIVING RANGE 8 $17,316 $21,619 $26,236 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
FINANCE INTERN 11 $20,800 $25,970 $31,501 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
GOLF SHOP ATTND 11 $20,800 $25,970 $31,501 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
LIBRARY PAGE 6 $15,954 $18,861 $22,862 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
REC ASSISTANT 10 $19,838 $24,768 $30,057 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
SERVICE PERSONNEL 3 $9,672 $11,110 $13,455 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
YOUTH ART INSTRUC PT 11 $20,800 $25,970 $31,501 100 $21,500 $27,950 $34,400 $10.34 $13.44 $16.54
LINECOOK 13 $22,963 $28,735 $34,747 101 $22,790 $29,627 $36,464 $10.96 $14.24 $17.53
OUTSIDE SERVICE ATTN 11 $20,800 $25,970 $31,501 101 $22,790 $29,627 $36,464 $10.96 $14.24 $17.53
OUTSIDE SERVICE COOR 11 $20,800 $25,9701 $31,501 101 1 $22,790 $29,627 $36,464 $10.96 $14.24 $17.53
CLERICAL SPECIALIST 14 $24,166 $30,177 $36,549 102 $24,157 $31,405 $38,652 $11.61 $15.10 $18.58
GOLF MBR RELCOOR 14 $24,166 $30,177 $36,549 102 $24,157 $31,405 $38,652 $11.61 $15.10 $18.58
GROUNDS MAI NT WORKER 15 $25,248 $31,620 $38,232 103 $25,607 $33,289 $40,971 $12.31 $16.00 $19.70
LIBRARY CLERK 14 $24,166 $30,177 $36,549 103 $25,607 $33,289 $40,971 $12.31 $16.00 $19.70
STREET MAINT WORKER 15 $25,248 $31,620 $38,232 103 $25,607 $33,289 $40,971 $12.31 $16.00 $19.70
IRRIGATION TECH 16 $26,570 $33,1841 $40,157 1 104 1 $27,143 $35,286 $43,429 $13.05 $16.96 $20.88
LIBRARY ASSISTANT 16 $26,570 $33,184 $40,157 104 $27,143 $35,2861 $43,429 $13.05 $16.96 $20.88
POOL LIFEGUARD 10 $19,838 $24,768 $30,057 104 $27,143 $35,2861 $43,429 1 $13.05 $16.96 $20.88
SANITATION COLLECTOR 16 $26,570 $33,184 $40,157 104 1 $27,143 $35,2861 $43,429 1 $13.05 $16.96 $20.88
Source:Evergreen Solutions April,2013
Evergreen Solutions,LLC Page 4-8
Chapter 4-Recommendations Village of North Palm Beach,FL
Exhibit 4C(continued)
North Palm Beach Proposed Grade Order List
PROPOSED CURRENT
PROPOSED
AN.MIN AN.MID AN.MAX AN.MIN AN.MID AN.MAX HRLY MIN HRLY MID HRLY MAX
GRADE GRADE
1ST ASST GOLF PRO 18 $29,335 $36,670 $44,365 106 $30,498 $39,648 $48,797 $14.66 $19.06 $23.46
EQUIPMENTOPER 19 $30,778 $38,473 $46,889 107 $32,328 $42,026 $51,725 $15.54 $20.21 $24.87
PUBLIC SAFETY AIDE 19 $30,778 $38,473 $46,889 107 $32,328 $42,026 $51,725 $15.54 $20.21 $24.87
SANITATION DRIVER/OP 19 $30,778 $38,473 $46,889 107 $32,328 $42,026 $51,725 $15.54 $20.21 $24.87
SR.IRRIGATION TECH 19 $30,778 $38,473 $46,889 107 $32,328 $42,026 $51,725 $15.54 $20.21 $24.87
ACCOUNTING CLERK 20 $32,342 $40,398 $49,293 108 $34,268 $44,548 $54,828 $16.47 $21.42 $26.36
ADMINISTRATIVE ASST 20 $32,342 $40,398 $49,293 108 $34,268 $44,548 $54,828 $16.47 $21.42 $26.36
KITCHEN MANAGER 20 $32,342 $40,398 $49,293 108 $34,268 $44,548 $54,828 $16.47 $21.42 $26.36
MECHANIC 20 $32,342 $40,398 $49,293 108 $34,268 $44,548 $54,828 $16.47 $21.42 $26.36
TRADES MECHANIC 21 $33,905 $42,440 $51,699 108 $34,268 $44,548 $54,828 $16.47 $21.42 $26.36
ADMIN COORDINATOR 22 $35,708 $44,6051 $54,344 109 1 $36,324 $47,2211 $58,118 $17.46 $22.70 $27.94
BANQUET EVENT COORD 22 $35,708 $44,605 $54,344 109 $36,324 $47,221 $58,118 $17.46 $22.70 $27.94
CODE COMPLIANCE OFF 22 $35,708 $44,605 $54,344 109 $36,324 $47,221 $58,118 $17.46 $22.70 $27.94
F&B ASST MANAGER 22 $35,708 $44,605 $54,344 109 $36,324 $47,221 $58,118 $17.46 $22.70 $27.94
PERMIT&LICENS TECH 18 $29,335 $36,670 $44,365 109 $36,324 $47,221 $58,118 $17.46 $22.70 $27.94
SCHOOL CROSSNG GUARD 22 $35,708 $44,605 $54,344 109 $36,324 $47,221 $58,118 $17.46 $22.70 $27.94
SR.LIBRARY ASSISTANT 22 $35,708 $44,6051 $54,344 1 109 1 $36,324 $47,221 $58,118 $17.46 $22.70 $27.94
SUPRVSR RECREATION 21 $33,905 $42,440 $51,699 109 $36,324 $47,2211 $58,118 1 $17.46 $22.70 $27.94
TECH SUPPORT SPEC FT 22 $35,708 $44,605 $54,344 109 $36,324 $47,221 1 $58,118 1 $17.46 $22.70 $27.94
SR.TRADES MECHANIC 23 $37,391 $46,769 $56,988 110 1 $38,503 $50,0541 $61,605 1 $18.51 $24.06 $29.62
Source:Evergreen Solutions April,2013
Evergreen Solutions,LLC Page 4-9
Chapter 4-Recommendations Village of North Palm Beach,FL
Exhibit 4C(continued)
North Palm Beach Proposed Grade Order List
FIM . 10
BLDG CONST INSP 24 $39,314 $49,052 $59,874 111 $40,813 $53,057 $65,301 $19.62 $25.51 $31.39
DEPUTY V I LLAGE CLERK 24 $39,314 $49,052 $59,874 111 $40,813 $53,057 $65,301 $19.62 $25.51 $31.39
EXECUTIVE SECRETARY 24 $39,314 $49,052 $59,874 111 $40,813 $53,057 $65,301 $19.62 $25.51 $31.39
LIBRARIAN 24 $39,314 $49,052 $59,874 111 $40,813 $53,057 $65,301 $19.62 $25.51 $31.39
PARKS FACILITIES MGR 24 $39,314 $49,052 $59,874 111 $40,813 $53,057 $65,301 $19.62 $25.51 $31.39
SUPERI NTENDENT OF PARKS 10 $19,838 $24,768 $30,057 111 $40,813 $53,057 $65,301 $19.62 $25.51 $31.39
PUBLIC WORKS SUPERVISOR 26 $43,281 $54,103 $66,006 112 $43,262 $56,241 $69,220 $20.80 $27.04 $33.28
PLANNER 27 $45,446 $56,748 $70,454 113 $45,858 $59,615 $73,373 $22.05 $28.66 $35.28
SR.BLDG CONST INSPEC 27 $45,446 $56,748 $70,454 113 $45,858 $59,615 $73,373 $22.05 $28.66 $35.28
NETWORK SUPP SPEC 28 $47,730 $59,754 $74,061 114 $48,609 $63,192 $77,775 $23.37 $30.38 $37.39
DIRECTOR OF GOLF OPS 29 $50,136 $62,638 $77,668 115 $51,526 $66,984 $82,442 $24.77 $32.20 $39.64
F&B DIRECTOR 29 $50,136 $62,638 $77,668 115 $51,526 $66,984 $82,442 $24.77 $32.20 $39.64
FIRE INSPECTOR 23 $37,391 $46,769 $56,988 115 $51,526 $66,984 $82,442 $24.77 $32.20 $39.64
H/R MANAGER 22 $35,708 $44,605 $54,344 115 $51,526 $66,984 $82,442 $24.77 $32.20 $39.64
SUPERINTENDENT PWORK 29 $50,136 $62,638 $77,668 115 $51,526 $66,984 $82,442 $24.77 $32.20 $39.64
DIRECTOR OF LIBRARY 36 $60,955 $76,224 $94,501 118 $61,368 $79,779 $98,189 $29.50 $38.36 $47.21
FINANCE MANAGER 32 $58,071 $72,618 $90,052 118 $61,368 $79,779 $98,189 $29.50 $38.36 $47.21
POLICE LIEUTENANT N/A 118 $61,368 $79,779 $98,189 $29.50 $38.36 $47.21
VILLAGE CLERK 36 $60,955 $76,224 $94,501 118 $61,368 $79,779 $98,189 $29.50 $38.36 $47.21
BUILDING OFFICIAL 38 1 $63,9621 $79,953 1$100,750 119 1 $65,0501 $84,566 1$104,0811 $31.27 1 $40.66 1 $50.04
Source:Evergreen Solutions April,2013
Evergreen Solutions,LLC Page 4-10
Chapter 4-Recommendations Village of North Palm Beach,FL
Exhibit 4C(continued)
North Palm Beach Proposed Grade Order List
PROPOSED CURRENT
PROPOSED
AN.MIN AN.MID AN.MAX AN.MIN AN.MID AN.MAX HRLY MIN HRLY MID HRLY MAX
GRADE GRADE
DIRECTOR COMM DEVEL 40 $67,208 $83,919 $105,802 120 $68,953 $89,639 $110,325 $33.15 $43.10 $53.04
DIR OF INFO TECH 36 $60,955 $76,224 $94,501 121 $73,780 $95,914 $118,048 $35.47 $46.11 $56.75
DIR OF PARKS&REC 36 $60,955 $76,224 $94,501 121 $73,780 $95,914 $118,048 $35.47 $46.11 $56.75
DIRECTOR HUMAN RES 36 $60,955 $76,224 $94,501 121 $73,780 $95,914 $118,048 $35.47 $46.11 $56.75
DIRECTOR PUBLIC WRKS 40 $67,208 $83,919 $105,802 121 $73,780 $95,914 $118,048 $35.47 $46.11 $56.75
CALEA MGR 11 $20,800 $25,9701 $31,501 122 1 $78,945 $102,6281$126,312 $37.95 1 $49.34 $60.73
FIRE CAPTAIN 34 $74,975 $82,661 $92,506 122 $78,945 $102,628 $126,312 $37.95 $49.34 $60.73
POLICE CAPTAIN 34 $74,975 $82,661 $92,506 122 $78,945 $102,628 $126,312 $37.95 $49.34 $60.73
ASSISTANT CHIEF N/A 123 $84,471 $109,812 $135,153 $40.61 $52.79 $64.98
DIRECTOR OF FINANCE 42 $81,755 $102,074 $130,688 123 $84,471 $109,812 $135,153 $40.61 $52.79 $64.98
FIRE CHIEF 40 $67,208 $83,919 $105,802 123 $84,471 $109,812 $135,153 $40.61 $52.79 $64.98
POLICE CHIEF 44 $94,501 1$118,0651$151,248 125 $96,711 $125,724 $154,737 $46.50 $60.44 $74.39
VILLAGE MANAGER CONTRACT 126 $110,000 $143,000 $176,000 $52.88 $68.75 $84.62
FIREFIGHTER/EMT STEP $47,604 200 $43,500 $56,550 $69,600 $20.91 $27.19 $33.46
FIREFIGHTER/MEDIC STEP $60,772 202 $48,877 $63,540 $78,203 $23.50 $30.55 $37.60
FIRE RESCUE LT STEP $79,896 205 $58,213 $75,677 $93,141 $27.99 $36.38 $44.78
EMERG DISPATCHER STEP $45,328 300 $43,500 $56,550 $69,600 $20.91 $27.19 $33.46
RECORDS CLERK STEP $41,427 300 1 $43,5001 $56,5501 $69,600 1 $20.91 $27.19 $33.46
POLICE OFFICER STEP 1 $58,404 302 $48,877 $63,540 $78,203 $23.50 $30.55 $37.60
POLICE SERGEANT STEP 1 $71,879 306 1 $61,706 $80,217 1 $98,729 $29.67 $38.57 $47.47
Source:Evergreen Solutions April,2013
Evergreen Solutions,LLC Page 4-11