S-1440 - 10/27/2015 - SALARY ADMINISTRATION POLICY - Ordinances Supporting Documents ITEM 9.A. 1)
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AGENDA ITEM
Regular Board of Trustees Meeting
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October 27, 2015
SUBJECT: Position Classification, Salary Plan, and Salary Administration Policy
FROM: Kate Andris, Human Resource Generalist
BUDGET SOURCEJBUDGET IMPACT: Personnel Salaries
RECOMMENDED MOTION: Effective January 1,2016,I move to approve Ordinance 2015-
PSTN-COMP-SAP-EX-S-1440 an Ordinance approving the 2016-2017 Classification,Salary Plan
and Salary Administration Policy subject to final staff and attorney review.
Recent History:
Effective in 2013, the Village changed its philosophy as it relates to compensation of non-union
employees. The Village eliminated the traditional cost of living increase for this group of employees and,
instead, implemented a merit-only system with a bonus program. This approach relies heavily on market
data and strong performance review tools.
Our compensation plan was created based on an initial position analysis and external benchmark process
completed by Public Sector Personnel Consultants (PSPC}. We engaged PSPC again in early 2015 in
order to complete an up-to-date market survey and to ensure positions are slotted in the correct grades.
The market survey was sent to comparable communities and benchmarked at the 55'x' percentile. Job
analysis was also completed for specific positions. Survey and job analysis results were scrutinized by
PSPC and Village management and resulted in the recommendation to move various positions into higher
grades based on market data and changes in responsibility. Further recommendations include keeping the
salary table the same for 2016,and adjusting the salary table in 2017 by 2.5% in order to adjust for cost of
living and market considerations. Additionally, PSPC recommends ]seeping the merit increases range
between 0%and 3.5%.
Results and Recommendations:
The result of above effort is contained in the enclosed documents and will be highlighted on Tuesday via
a brief PowerPoint presentation. Since the updated "Position Classification, Salary Plan and Salary
Policy"is a large document, I do want to highlight a few KEY points:
1. The plan continues to focus on pay-for-performance principals and a bonus structure.The policy
has been streamlined to contain only pertinent information as it related to the administration of
the policy. The plan also remains effective fora two year period(2016-2017)and also offers
employees the same opportunity to earn based on performance only.
2. The plan updated the performance bonus definition to include those who are near or at the top of
their ranges and therefore frozen from earning additional base compensation.The bonus would be
available to only those who are currently frozen or very near that threshold and involves awarding
only meritorious performance with a one-time lump sum bonus up to the Consumer Price Index
(CPI)and not to exceed 2.5%.This can only be awarded with the approval of the Village
Manager.
3. The plan remains effective for two years to maximize efficiency and flexibility required to remain
competitive in the attraction and retention of highly qualified employees.Therefore,the new plan
provides for a movement of the ranges in the second year as recommended by PSPC and also
allows the Village Manager to authorize minor title and grade changes to new and existing
positions.This allows our executive to act quickly in order to retain or attract employees that are
essential to the success of our organization.
4. The plan changes the review process for new employees from being reviewed once every six
months for the first two years of employment,to once every six months for the first year of
employment. This practice supports the language in our personnel manual as it relates to
introductory employees.
5. We also recommend passage so we can move forward with accuracy in formulating our 2016
Budget documents.
6. We are recommending that those who score a needs improvement on their evaluation receive no
increase for the review period.
Financial Impact for Fiscal Year 2016*:
1. Personnel expenses comprise a large portion of the Village budget. In order for us to effectively
implement this compensation plan,we need approval to spent up to approximately$180,000 in
merit increases(Conservative number assuming all non-represented employees receive an
excellent review rating).
2. We also require the bonus program to be funded$15,000 over last year's rate for a total of
$40,000.
3. Collectively,the amount we need authorized to remain competitive is$220,000.
The Village Boards compensation philosophy sends a strong message to all our employees. We feel this
structure puts the Village and Village Management in the best position to compensate current and future
non-represented employees. Throughout this process we have considered many factors to arrive at these
recommendations. Considerations outside of market data include internal comparables,total benefits and
innovation within this industry, as we are one of very few local governments that have successfully
implemented a pure pay-for-performance structure. Please keep in mind this structure controls pay in a
justifiable way(market data)which in turn gives us a mechanism to control pension and other benefit
costs without sacrificing the morale of our employees.Approval of this ordinance and subsequent
materials will propagate the innovative practices at the Village of Oak Brook while still allowing Village
Management to reward meritorious performance. Performance which ensures the stability and
continuance of the excellent services the Village of Oak Brook expects.
Recommendation:
Pass Ordinance 2015-PSTN-COMP-SAP-EX-S-1440 which approves the 2016-2017 Classification,
Salary Plan and Salary Administration Policy subject to final staff and attorney review.
*2017 budget recommendations will be made via the budget process.
ORDINANCE 2015-PSTN-COMP-SAP-EX-S-1440
AN ORDINANCE APPROVING THE 2016-2017 POSITION CLASSIFICATION, SALARY PLAN,AND
SALARY ADMINISTRATION POLICY FOR
EMPLOYEES OF THE VILLAGE OF OAK BROOK, ILLINOIS
WHEREAS, pursuant to the Village of Oak Brook Personnel Manual, the Village endeavors to
compensate its employees fairly and competitively, and therefore has established a Position
Classification, Salary Plan, and Salary Administration Policy in Appendix A to the Village's current
Personnel Manual ("Salary Plan"); and
WHEREAS, the Village Manager has recommended that changes be made to the salary ranges,
amounts, and structure in the Salary Plan, as set forth in Exhibit A to this Ordinance; and
WHEREAS, the Village Manager also recommends the approval of these changes to the Salary
Plan to be effective as of January 1, 2016; and
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS, as follows:
Section 1. That the Village Manager's recommendation with regard to changes in the Salary
Plan is hereby accepted and those changes as reflected in Exhibit A hereto are approved.
Section 2. That all or any part of the Salary Plan that is not affected by the terms of Exhibit
A hereto shall remain in full force and effect.
Section 3. That this ordinance shall be in full force and effect force and after its passage,
approval and publication as required by law.
Section 4. That all ordinances, resolution or motions in conflict with the provisions of,this
ordinance be and the same are hereby repealed to the extent of such conflict.
APPROVED THIS 27th day of October, 2015.
Gopal G. Lalmalani
Village President
PASSED THIS 27th day of October, 2015.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
ORDINANCE 2015-PSTN-COMP-SAP-EX-S-1440
Salary Plan 2016-2017
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EXHIBIT A