R-761 - 12/12/2000 - SALARY ADMIN PLAN - Resolutions Supporting DocumentsI
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VILLAGE OF OAK BROOK
1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS 60523 -2255
December 8, 2000
70. 00-.-
PHONE: 630 990 -3000
MEMORANDUM FAX: 630 990 -0876
W E B S I T E: www.oak -brook org
Village President and Board of Trustees
2001 Salary Plan & Salary Administration Policy for Non - Represented Employees
RECOMMENDATION: That the Village Board adopt a resolution approving the Salary Plan
and Salary Administration Policy for Non - Represented Employees, effective January 1, 2001,
in the form attached hereto.
Village's Salary Administration Policy, a policy and procedure document approved annually by the
Villa; Board, states the following with respect to maintenance of the Salary Plan for non - represented
ovees:
"The Village Manager shall be responsible for reviewing the data supporting the annual grade
adjustment, as well as the performance salary guidelines, and submitting the revised Salary Plan to
the Board of Trustees for its approval
The Village Manager shall also be responsible for engaging an independent compensation
consultant once every three years, and forwarding the study, evaluations and recommendations to
the Village Board for its consideration. "
,irpose of this memorandum is to present the results of the triennial compensation program audit, the
mended 2001 Salary Plan for non - represented employees, and recommended amendments to the
Administration Policy. My recommendations are based primarily on the consultant's findings,
er they deviate from the consultant's recommendations in certain respects. The recommended 2001
Plan and Salary Administration Policy, both intended to be effective as of January 1, 2001, are
;d hereto as Exhibits A and B, respectively.
COMPENSATION PROGRAM AUDIT
As the Board knows, the goal of the Village's compensation program, and of any sound compensation
program, is to maintain a system for classification and compensation that is both internally equitable and
externally competitive. The purpose of the triennial audit procedure is to maintain those conditions within
our program.
The Salary Administration Policy provides that pay grades will normally be adjusted annually, effective on
January 1 of each year, with due consideration given to the change in the Consumer Price Index ( "CPI ") for
the Chicago- Gary-Lake Co. region, as published by the U. S. Department of Labor, for the twelve months
ended September 30 of the preceding year; the Employment Cost Index (Salaries & Wages) for the Midwest
Village President and Board of Trustees
December 8, 2000
Page 2
regions for the third quarter of the preceding year, as published by the U. S. Department of Labor; and the pay
practices of the Village's comparable communities.
The Salary Administration Policy further provides that every three years the Village will retain the services
of a compensation consultant to perform an independent analysis of the compensation program and that, in
those ,years, adjustments to the Salary Plan may be based on the results of that evaluation, as well as other
factors. In 1997, the Village retained Hay Management Consultants ( "Hay ") to conduct a comprehensive
review of all non - represented positions in the Village of Oak Brook. Resulting recommendations (as
modif ed by the Village Manager and approved by the Village Board) concerning internal comparability and
external competitiveness were incorporated into the 1998 Salary Plan.
In July of 2000, the Village again retained Hay to review the compensation program and provide
recommendations concerning the Salary Plan to be effective as of January 1, 2001. Hay's final report is
attached hereto as Exhibit C. Because Hay had reviewed all positions and assigned fob content points in
conjunction with its 1997 analysis, the current analysis involves a review of only those position descriptions
for niei positions (those that were not in existence in 1997) and those that have changed materially in the
past three years. The position description review was supplemented by interviews with department heads.
An ei aluation of the content of these new or changed positions using the Hay Guide Chart Profile system of
fob e valuation was completed. The jobs were then placed into grades along with jobs with similar overall
content, as measured by the Hay job content evaluation procedure. This constituted the internal equity
assessment portion of the study.
The external competitiveness portion of the study involved collection of salary data for benchmark positions
from the employers determined to constitute the Village's employment market in the 1997 interest arbitration
between the Village of Oak Brook and Teamsters Local Union #714 in connection with the Police
Department bargaining unit.
Historically, it was common for municipalities to use large regional salary surveys for analysis of the
external competitiveness of their salary structures. For example, for a number of years up until the early
1990 s, Oak Brook made use of a large regional survey published by Cook County. Compulsory binding
interest arbitration (applicable to certain groups of public employees pursuant to the Illinois Public Labor
Relations Act) has rendered such regional surveys irrelevant. Today, regardless of whatever comparison
meth�olds might have been used in the past, a municipality's comparator market is represented by its
most recent set of arbitrated comparable communities.
Subsequent to the 1997 interest arbitration, the Village and Teamsters Local Union #714 agreed to a list of
comparable employers applicable to the Fire bargaining unit. With the exception of the Village of Villa
Park all of the communities identified as comparable for the Fire bargaining unit are among the list
stemming from the 1997 interest arbitration. As such, data from the Village of Villa Park is also included in
the analysis.
Oak Brook's comparator market currently consists of the following employers:
Village of Bensenville
Village of Bloomingdale
Village of Burr Ridge
Village of Downers Grove
Cook County Bureau of Administration
Village President and Board of Trustees
December 8, 2000
Page 3
The
to tl
City of Elmhurst
Village of Hinsdale
Village of La Grange Park
Village of Lombard
City of Oakbrook Terrace
Village of Villa Park
Village of Westchester
Village of Western Springs
Village of Westmont
Village of Willowbrook
,ry information was collected by the Village and provided to Hay, who performed an analysis that led
commended adjustments to the salary ranges.
Internal Equity. Hay's findings and recommendations with regard to internal equity of those positions that
are new or have changed materially since the 1997 study are found on page 4 of the report (Exhibit Q. With
only a few exceptions, Hay found that the internal equity reflected by the Village's current pay program is
essentially good. In 1997, Hay recommended a Plan that consisted of eleven grades, and that structure was
adopted. The implementation of the 2000 Plan included two additional pay grades to accommodate the
newly created Deputy Police Chief position and a re- evaluation of the Police Sergeant position. Based on
the analysis of fob content of these positions, which itself was based on updated job descriptions and
inter dews, Hay recommends returning to a structure consisting of eleven grades, rather than the thirteen
grades reflected in the 2000 Salary Plan. In addition to reducing the number of pay grades, Hay recommends
that set en positions move within the salary structure in order to improve internal equity.
In general, I agree with Hay's findings concerning internal equity. However, my recommendation includes
the reclassification of four positions (in addition to those recommended by Hay) based on fob content and
market, as identified later in this memorandum. With these four exceptions, the recommended 2001 Salary
Plan reflects the grade structure as recommended by Hay.
External Competitiveness. Hay's findings and recommendations regarding external competitiveness are
presented on pages 5 and 6 of the report. In general, Hay found that the Village's existing salary ranges are
somewhat more competitive at the lower salary ranges than at the higher ranges. The report indicates that
current (2000) salaries are competitive with the 66' percentile of the market in the lower grades, but below
the 50 percentile of the market for the two highest pay grades. Hay has provided two alternatives regarding
the two highest pay grades. Alternative 1 would target the positions at the 50`h percentile, while Alternative
2 would ld target the positions at the 66`'' percentile. I recommend adopting Alternative 2, targeting these
positions at the same general position relative to the market as all other non - represented positions.
In an
Plan
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vent, Hay's findings are consistent with my general view that most of the fobs covered by the Salary
r non -union employees are somewhat "larger" (i.e., more substantial in content) than positions
the same or similar titles in other municipal organizations. This view is based primarily on the fact
: Brook has a very lean organization, especially in terms of administrative, supervisory and technical
S.
i
Village President and Board of Trustees
December 8, 2000
Page 4
RECOMMENDATIONS
Pay Ranges. The range adjustments recommended by Hay are calculated based on the midpoint of the
range. Historically, we have not used a midpoint calculation, but instead have expressed range adjustments
based on increases to the maximum of the range. On that basis, the recommended adjustments to the
maximum of each range are as follows:
i
•� Grade 1: $25,095 - $33,952 — 4.2% adjustment to range.
i
•1 Grade 2: $27,044 - $36,589 — (0.7)% adjustment to range.
• Grade 3: $29,366 - $39,731 — 3.6% adjustment to range.
• Grade 4: $32,186 - $43,546 —.7% adjustment to range.
• Grade 5: $35,296 - $47,753 — 3.5% adjustment to range.
• Grade 6: $38,945 - $52,691— 3.9% adjustment to range.
• Grade 7: $43,465 - $58,806 — 2.8% adjustment to range.
• Grade 8: $50,128 - $67,680 — This Grade includes positions that were previously included in old
Grades 8 and 9. The Hay report targeted this Grade for a 1% reduction to the range minimum and
maximum. Staff reviewed the market data for the benchmark position in this grade, and based on
our assessment and understanding of similar positions in other communities, I recommend that a
0.8% increase to the existing range would better maintain external competitiveness. For the two
positions included in old Grade 8 (i.e. Accounting Manager and Executive Chef), the change
represents a 6.5% adjustment to the range. For the positions that were included in old Grade 9 (i.e.
Chief Building Inspector, Golf Course Superintendent, Information Systems Specialist, Police
Sergeant and Public Works General Foreman), the change represents a 0.8% adjustment to range
• Grade 9: $55,781 - $75,469 — 2.7% adjustment to range.
• Grade 10: $59,157 - $85,763 — Adopt Hay Alternative 2 targeting these positions at the same
general position relative to the market as all other non -union positions. 5.5% adjustment to range.
• Grade 11: $63,815 - $92,516 — Adopt Hay Alternative 2 targeting these positions at the same
general position relative to the market as all other non -union positions. 7.4% adjustment to range.
- alendar Year Eoualization
The market data used by Hay in determining external competitiveness is based on calendar year 2000
earnings. Because the overwhelming majority of the Village's comparable communities will adjust pay
ranges mid -year (i.e. May, 2001), I recommend that the Village implement an across - the -board general
adjustment of 2 %, effective January 1, 2001, to the ranges set forth above. The percentage is based on an
assumption that the average May 1 adjustment among the comparable communities will be 3 %, and that
those communities would be implementing the adjustment following the first 1 /3`d of the year.
Village President and Board of Trustees
December 8, 2000
Page 5
The adjustments recommended by Hay to the pay ranges of individual positions (where there has not been a
reclassification) range from 0.8% to 7.4 %. With the implementation of a 2% across -the -board adjustment,
the adjustments range from 2.8% to 9.6 %. The adjustments to the pay ranges of positions that have
undergone reclassification (i.e., the content of the job has evolved to an extent material to compensation)
range from -6.0% to 19.0 %. The recommended ranges are presented on page 1 of Exhibit A.
rec
16�
i
sifications and Title Changes. The recommended 2001 Salary Plan includes the re- titling and/or
ification of the following positions:
The Police Records Clerk position has been reclassified from Grade 1 to Grade 2 based on market
data and growth in job content since the last study.
The Records Management Clerk responsible for the Village archives and freedom of information
coordination has been reclassified from Grade 1 to Grade 2 based on fob content.
The Account Clerk position has been reclassified from Grade 2 to Grade 3 and given the title
Accounting Assistant. The duties of these positions have evolved into more general Accounting
functions (i.e. not limited to simply payables, receivables, etc.).
The Purchasing and Information Services Clerk has been reclassified from Grade 2 to Grade 3
based on this position's growing responsibility for coordinating the purchasing process.
The Building Maintenance Employee position has been re- titled Building Maintenance Technician,
which is more reflective of the duties of the position.
The Personnel Specialist position has been re- titled Payroll/Benefits Specialist to more accurately
describe the duties of the position.
The Accountant position is reclassified from Grade 7 to Grade 6 based on a re- evaluation of fob
content as well as market data. This change has no impact on the current compensation of the Job
incumbent.
The Engineering Technician position has been reclassified from Grade 5 to Grade 6 based on the
comparator market.
The Public Works Mechanic position has been reclassified from Grade 5 to Grade 6 based on a re-
evaluation of the required knowledges, skills and abilities of the position.
The Circulation Services Supervisor and Technical Services Supervisor positions of the Library have
both been re- titled to Senior Librarian, and reclassified from Grade 6 to Grade 7. This places all
Library Division heads in the same pay grade.
Current Grades 8 and 9 have been re- grouped as new Grade 8. The Hay job content analysis for the
Accounting Manager position (created since the last study) warrants its inclusion with the other
positions. Internal equity surrounding the Executive Chef position was established during the last
study as well.
i
Village President and Board of Trustees
December 8, 2000
Page 6
• Current Grade 10 becomes new Grade 9, and Grade 11 is eliminated with the re- classification of the
Deputy Police Chief position to new Grade 10. The Assistant Village Manager position is also re-
classified to new Grade 10.
Implementation. If approved by the Board, it is my intention to implement the 2001 Salary Plan as follows:
11. A small number of employees with 12/31/00 salaries below the minimum of their new range would
have their salaries adjusted to the new minimum as of 1 /1 /01.
2. Employees with 12/31/00 salaries falling within their new range would receive, consistent with the
Salary Administration Policy, the increment by which their pay range moved, up to a maximum
adjustment (related to range movement) of 5 percent.
I
3,. Merit adjustments and merit bonuses would continue to be administered pursuant to the Salary
Administration Policy.
Employees whose pay ranges move by an increment greater than 5 percent will occupy a lower position within
their new range than they occupied in their old range, meaning that they will be eligible for merit adjustments
over a longer period of time (or, in the case of certain employees formerly at the range maximum, will again
become eligible for merit adjustments) until they reach the maximum of their new range. Capping the amount
of range movement that is received by the employee in 2001 will assist us in managing the program within the
constraints of our budget.
CONCLUSION
In conclusion, the Village's compensation program for its non - bargaining unit employees is and remains
very competitive with those of comparable employers and with the terms of the collective bargaining
agreements with Teamsters Local Union #714 and the Fraternal Order of Police. I believe that the
recommendations presented herein are fair and appropriate, under all the circumstances, and that they can be
implemented within the limitations of the 2001 Municipal Budget.
Please; let me know if you have any questions concerning these recommendations. This matter will appear
on the
' Active Agenda at your December 12 regular meeting
I
Stephen B. Veitch
Village Manager
/sv
attachments
Hay Manage rent Consultants
205 North Mrc^ gan Avenue
Suite 4000
Chicaao IL 6063' -5792
Tel (312) 2283-'-S-00
Fax ;312) 225-'388
October 10, 2000
Confidential
Mike Crotty
Hay Assistant Village Manager
Management � e of Oak Brook Village g
1200 Oak Brook Rd
! OakBrook, EL 60523 -225
Dear Mike:
EXHIBIT "C"
The Village of Oak Brook (the Village) recognizes the importance of reviewing its
compensation program every three years to ensure the greatest possible return on
its compensation investment. An externally competitive compensation program
should enhance the Village's ability to attract, retain, and motivate employees.
Therefore, the Village retained the services of Hay Management Consultants to
review the compensation program and provide recommendations for the coming
year.
As part of this year's review, Hay evaluated nineteen new and changed positions,
compared the Village's salary ranges to a customized peer group survey, and
developed recommendations for salary ranges for the coming year. This letter
contains our findings and recommendations.
Please find the following items in this document:
➢ TABLE OF JOB EVALUATIONS: This table includes evaluations of the
Village's new and slightly changed positions.
➢ MARKET CHART: The chart displays a comparison of the Village's salary
ranges compared to market driven salary ranges.
➢ RECOMMENDED SALARY RANGES: This table shows a side -by side
comparison of the Village's current graded salary structure to Hay's new
recommended salary structure.
TABLE OF JOB EVALUATION:
Job evaluation is the process used to measure a fob's requirements, or job content.
The job evaluation process measures each job using the same number of factors and
compares the total fob to others at the Village. Appropriate job evaluation ensures
that the relationships among the Village's jobs fairly reflect each job's complexity
in relation to others. The end result is a numerical score based on job content and
measured by job evaluation points. The total points for each job determines its
salary grade.
I -,% -,_
i
Mike Crotty
October 10, 2000
Page 2
All positions at the Village were evaluated using the Hay Guide Chart Profile
Method of Job Evaluation. The evaluations are based on interviews with
Department Heads and the position descriptions. The following factors are used in
this method to determine the value of a position:
Know -How: The sum total of every kind of skill -- however acquired -- in the
j professional/scientific, management, and human relations areas necessary for
acceptable job performance;
Problem - Solving: The original "self- starting" thinking required by the job for
analyzing, evaluating, creating, reasoning, arriving at, and making conclusions;
Accountability: The measured effect of the job on expected end results as a
function of the freedom the job has to take action to achieve those results, the
magnitude of the expected results, and the direction of the job's impact on those
results; and
Special Conditions: The extent to which fine or gross motor physical effort,
adverse work environments (dust, noise, cold, etc.), hazards or sensory
demands add special weight to the job.
The attached table contains Hay's recommendations for job evaluations and salary
grades for the new and changed jobs.
CURRENT RANGES COMPARED TO MARKET RANGES (MARKET
CHART):
To collect high quality compensation information, the Village conducted a custom
survey of pay in comparable communities. Then, the Village forwarded the
completed surveys to Hay for an analysis of competitiveness. Hay looked at the
Village's salary ranges in comparison to the salary ranges in the comparable
municipalities.
For grades 1 — 9, the chart shows the Village's current ranges compared to the 66`h
percentile market salary range minimum and maximum. For grades 10 - 11 the
Village's current ranges compared to the 501h percentile market salary range
minimum and maximum.
The chart shows that the Village's salary ranges are more competitive in grades 1 —
9 than for grades 10 and 11. For grades 1 — 9, the Village tends to be more
competitive for larger -sized jobs than for smaller sized jobs. The Village's salary
ranges for grades 10 and 11 are below the market median salary ranges.
Hay %coup
r
it
Mike Crotty
October 10, 2000
Page 3
RECOMMENDED SALARY STRUCTURE:
Since the Hay system was installed in 1997, the Village has created two new salary
grades 10 and 11. In Hay's experience, eleven grades are sufficient to
accommodate all of the Village's jobs. While we recognize that the new grades
were created to resolve discrepancies for jobs within the same department, we
recommend these issues be addressed by slotting the jobs into the original
recommended 11 grades. This will help to ensure the long -term integrity of the
program. Therefore, Hay's recommendations return the structure back into eleven
salary grades.
I
RECOMMENDED SALARY RANGES:
Grades 1 -9 Grades 10 -11
➢ Hay recommends the Village target its ➢ Hay has provided two alternatives for
salary structure midpoints at the market grades 10 and 11. Option one targets
66" percentile. This will result in an midpoints at the market median and
overall midpoint increase of 2.2 %. would result in a 4.2% overall midpoint
increase. Option two targets the 66 1h
percentile of the market and would
result in a 6.6% overall midpoint
increase.
I trust this information meets your needs. Please call me at (312) 228 -1839 if you
have questions or need further assistance.
Sincerely,
'I
Michael Haskell
Technical Associate
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$4,000,000 General Fund Certificates, Series 2001, of the Village of
Oak Brook, Illinois," as presented and waive the full reading thereof.
ROLL CALL VOTE:
Ayes: 5 - Trustees Butler, Craig, Kenny, McInerney and Savino.
j Nays: 0 - None.
Absent: 1 - Trustee Caleel. Motion carried.
Mr. Norene was in attendance of the meeting to answer any questions
by the Village Board. He indicated the Aa2 rating by Moody was very
favorable for the Village as to why the interest rate was so low for the
General Fund Certificates. President Bushy complimented the Village
Board for their fiscal responsibilities that the interest rates were so low.
4) ORDINANCE, #2000 -BU -EX3 -S -981, AN ORDINANCE
ADOPTING THE BUDGET OF THE VILLAGE OF OAK
BROOK FOR 2001:
The ordinance adopts the 2001 Municipal Budget. The entire
ordinance includes a revenue exhibit, an expenditure exhibit and a fund
summary. The figures were presented in the proposed budget
document reviewed by the Village Board at the Budget Workshop on
December 2, 2000.
Motion by Trustee McInerney, seconded by Trustee Kenny, to approve
Ordinance #2000 -BU -EX3 -S -981, "An Ordinance Adopting the Budget
of the Village of Oak Brook for 2001," as presented and waive the full
reading thereof. ROLL CALL VOTE:
Ayes: 5 - Trustees Butler, Craig, Kenny, McInerney and Savino.
Nays: 0 - None.
Absent: 1 - Trustee Caleel. Motion carried.
President Bushy publicly commended Village Manager Veitch, Finance
Director Langlois and appropriate staff for their efforts in compiling the
Municipal Budget.
i
5) RESOLUTION #2000 - SAP -EX2 -R -761, A RESOLUTION
APPROVING THE SALARY PLAN AND SALARY
ADMINISTRATION POLICY FOR NON - REPRESENTED
EMPLOYEES FOR 2001:
The Salary Administration Policy provides that pay grades will
normally be adjusted annually, effective on January 1 of each year,
with due consideration given to the change in the Consumer Price
Index ( "CPI ") for the Chicago -Gary-Lake Co. region, as published by
VILLAGE OF OAK BROOK Minutes Page 9 of 22 December 12, 2000
I
i
ORD #00 -BU-
EX3 -S -981
2001 BUDGET
RES ##00 -SAP-
EX2 -R -761
2001 SLRY
NON -REP
a
Lb
the U. S. Department of Labor, for the twelve months ended September
30 of the preceding year; the Employment Cost Index (Salaries &
Wages) for the Midwest region for the third quarter of the preceding
year, as published by the U. S. Department of Labor; and the pay
practices of the Village's comparable communities.
In July of 2000, the Village again retained Hay Management
Consultants to review the compensation program and provide
recommendations concerning the Salary Plan to be effective as of
January 1, 2001. The following would be implemented: a small
number of employees with 12/31/00 salaries below the minimum of
' their new range would have their salaries adjusted to the new minimum
as of 1/1/01; employees with 12/31/00 salaries falling within their new
" range would receive, consistent with the Salary Administration Policy,
the increment by which their pay range moved, up to a maximum
adjustment (related to range movement) of 5 percent and merit
adjustments and merit bonuses would continue to be administered
pursuant to the Salary Administration Policy.
Motion by Trustee Kenny, seconded by Trustee Savino, to adopt
Resolution #2000 - SAP -EX2 -R -7619 "A Resolution Approving the
Salary Plan and Salary Administration Policy for Non - Represented
Employees for 2001" as presented and waive the full reading thereof.
ROLL CALL VOTE:
Ayes: 5 - Trustees Butler, Craig, Kenny, McInerney and Savino.
Nays: 0 - None.
Absent: 1 - Trustee Caleel. Motion carried.
6) RESOLUTION #2000 - FLSA -R -762, A RESOLUTION
AMENDING THE FAIR LABOR STANDARDS ACT
POLICIES FOR THE VILLAGE OF OAK BROOK:
The resolution amends the Fair Labor Standards Act Policy in
conjunction with the adoption of the 2001 Salary Plan. The Policy lists
the titles of positions that are considered to be exempt under the FLSA.
Two positions that were previously listed as FLSA exempt (i.e.
Circulation Services Supervisor and Technical Services Supervisor) has
been re- titled "Senior Librarian." The resolution includes the deletion
of the Circulation Services Supervisor and Technical Services
Supervisor from the list of exempt positions.
Motion by Trustee Kenny, seconded by Trustee Savino, to adopt
Resolution #2000 - FLSA -R -762, "A Resolution Amending the Fair
l
VILLAGE OF OAK BROOK Minutes
Page 10 of 22 December 12, 2000
RES #00-
FLSA -R -762
OB POLICY
2001 SALARY PLAN - NON - REPRESENTED EMPLOYEES
Grade
jPosition
Minimum
I Maximum
Range
1
Golf Course Laborer
$25,597
$9,ET
$9,034
Receptionist
2
Police Records Clerk
$27,585
$37,321
$9,736
Records Management Clerk
3
Accounting Assistant
$29,953
$40,526
$10,573
Assistant Librarian
Associate Golf Professional
Purchasing & IS Clerk
Secretary
Water Billing Clerk
4
Communications Operator
$32,830
$44,417
$11,587
Community Service Officer
P.W. Employee I
S. C. Maintenance Employee
5
Building Maintenance Technician
$36,002
$48,708
$12,706
Communications Supervisor
Deputy Village Clerk
Librarian
Payroll /Benefits Specialist
P.W. Employee II
6
Accountant
$39,724
$53,745
$14,021
Administrative Assistant
Building Inspector
Engineering Technician
Fire Prevention Inspector
P.W. Mechanic
Sports Core Mechanic
7
Civil Engineer 1
$44,334
$59,982
$15,648
Food & Beverage Manager
P.W. Head Mechanic
Information Services Technician
P.W. Foreman
Senior Librarian
8
Accounting Manager
$51,124
$69,033
$17,909
Executive Chef
Chief Building Inspector
Golf Course Superintendent
Information Systems Specialist
Police Sergeant
P.W. General Foreman
9
Civil Engineer II
$56,897
$76,978
$20,081
Fire Captain
Police Lieutenant
10
Assistant Village Manager
$60,340
$87,478
$27,138
Bath & Tennis Club Manager
Deputy Police Chief
Director of Info Svcs & Purchasing
Golf Club Manager
Library Director
11
Director of Community Development
$65,091
$94,366
$29,275
Finance Director
Fire Chief
Police Chief
Public Works Director
Village Engineer
Approved: 12 -12 -2000
Effective: 01 -01 -2001 Exhibit A (1 of 3)
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SALARY ADMINISTRATION POLICY - NON - REPRESENTED EMPLOYEES
I. INTRODUCTION
The Salary Administration Policy is intended to establish a compensation program which is both
internally equitable and competitive with the prevailing wages paid within Oak Brook's Labor
Market Area. It is also based on a system of performance evaluations designed to recognize and
reward employees whose performance meets or exceeds standards established at the department
level as well as standards which apply generally to employees of the Village of Oak Brook.
For the purpose of maintaining wage levels that remain competitive in the appropriate market,
adjustments to the Salary Plan are normally computed annually based on a percent change that
considers the Consumer Price Index for the Chicago - Gary-Lake Co. region as published by the U. S.
Department of Labor, the Employment Cost Index (Salaries & Wages) for the Midwest region as
published by the U. S. Department of Labor, and the pay practices in the Village's comparable
communities. The Board- approved percentage adjustment is applied to the minimums and
maximums for all pay grades, with increases effective January 1st of the subsequent year. The
Village Board may, in its discretion, authorize adjustments to the Salary Plan based on other factors
(see Section II.C. below).
The Village of Oak Brook's Salary Administration Policy, as well as the fringe benefits applicable to
employees shall be further monitored every three years. An independent compensation consultant
shall be retained by the Village to compare the compensation of Village of Oak Brook positions with
similar positions in the region, and to compare the fringe benefits offered to Village of Oak Brook
employees with fringe benefits available to other employees of the region. The consultant was
retained in 1994 and will be retained every three years thereafter.
The independent consultant will submit a report including recommendations for modifications in the
Salary Plan and/or the fringe benefits package.
II. GUIDELINES
The following guidelines shall apply to review and modification of the Salary Plan:
A. Review and Adjustment of Plan - When making annual adjustments to the Plan, the change in
the Consumer Price Index for "all items" applicable to the Chicago -Gary -Lake Co. region as
published for September 30th of each year by the U. S. Department of Labor, the Employment
Cost Index (Salaries & Wages) for the Midwest region for the third quarter of each year as
published by the U. S. Department of Labor and the pay practices of the Village's comparable
communities will normally be considered.
'B. Range Spread Within Each Pay Grade - Grades 1 through 9 shall have a 35% spread from
entrance to maximum salary paid. Grades 10 and 11 include department heads and shall have a
45% spread.
C. Other Adjustments to the Salary Plan - The Salary Plan may, in the discretion of the Village
Board and upon the recommendation of the Village Manager, be adjusted based on the
evaluations and recommendations of an independent compensation consultant engaged by the
Village of Oak Brook, or based on other factors as deemed appropriate by the Board.
Approved: 12 -12 -2000 EXHIBIT B Page 1 of 5
Effective: n1 —01 -2001
III. STEPS
1. Obtain the September 30th Consumer Price Index and third quarter Employment Cost Index
(Salaries & Wages) published by the U. S. Department of Labor.
2. Obtain salary data from the Village's comparable communities.
3. Determine the percentage adjustment and calculate the minimum and maximum for each grade
accordingly.
4. Determine merit adjustment guidelines, which shall be designed to permit an employee
performing at a "Meets Standards" level to progress through the salary range in approximately
a seven year period. Employees performing at "Above Standards" or "Excellent" should
progress through the range within a six or five year period, respectively.
IV. MAINTENANCE
The Village Manager shall be responsible for reviewing the data supporting the annual grade
adjustment, as well as the performance salary guidelines, and submitting the revised Salary Plan to
the Board of Trustees for its approval.
The Village Manager shall also be responsible for engaging an independent compensation consultant
'once every three years, and forwarding the study, evaluations, and recommendations to the Village
Board for its consideration.
V. PROCEDURES
i
,
A. Starting Rate at Initial Employment: Original appointments to any position will normally be
made at the entrance rate. Upon recommendation of the department head, the Village Manager
may approve initial compensation at a rate higher than the minimum rate in the pay range for
the grade, provided that any such acceptance is based on the outstanding and unusual character
of the employee's experience and ability over and above the minimum qualifications required
for that position.
'B. Merit adjustments will be determined based upon the employee's performance as described in
the Employee Performance Appraisal and the recommendation of the employee's department
head, with review and approval by the Village Manager. Merit adjustments shall occur within
the parameters of the Salary Plan and in no event shall it exceed the maximum of the range for
the position.
C. Salary Adjustment Schedule: It is the policy of the Village of Oak Brook that salary
adjustments shall be made in a timely and orderly manner. Frequency of salary adjustments are
based upon each employee's performance and the employee's position within the applicable
grade.
1. Employees are evaluated at six month intervals for the first two years of
employment. Thereafter, evaluations occur annually on the employee's
anniversary date until the maximum compensation for the pay grade in which the
employee's position is classified is reached. "Anniversary date" is determined as
follows:
I,
Approved: 12 -12 -2000 EXHIBIT B Page 2 of 5
Effective;: 01 -01 -2001
(a) Generally, the anniversary date is the date of hire;
(b) For employees going from part-time to full -time, status the anniversary
date shall be the date the full -time position is assumed;
(c) For employees whose position is simply reclassified to a new grade (i.e.,
the job duties of the existing position have evolved such that
reclassification and possibly re- titling is warranted), the anniversary date
remains the date of hire;
(d) A promotion is deemed to have occurred when an employee assumes a
new position in a higher pay grade and is performing substantially
different duties than performed previously. For full -time employees
promoted to a new grade and new position, the date of promotion is the
new anniversary date; and
(e) Promoted employees will be reviewed every six (6) months for one (l )
year after their promotion or until they reach maximum compensation for
their respective pay grade.
2. Once an employee has reached the maximum compensation for the pay grade in
which his/her position is classified, the employee's anniversary date reverts to
January 1, and normal salary adjustments shall be effective as of that date.
3. Performance appraisals shall occur at least once each year, and may occur more
frequently, if warranted. Special merit adjustments may occur when warranted
and are not bound by the Salary Adjustment Schedule.
D. Merit Bonus: Top -of -grade full -time employees who achieve an "Above Standards" or
"Excellent" appraisal on the Employee Performance Appraisal Report shall receive a merit
bonus annually in January of each calendar year as follows:
Above Standards Excellent
(Frequently Exceeds Standards) (Exceeds all Department Standards)
$750 $1,500
Any such merit bonus shall not be considered a merit adjustment as provided in Section V.B.
hereof.
,E. Special Merit Adjustments and Special Merit Bonuses: Department heads may recommend to
the Village Manager, and the Village Manager may approve, special salary adjustments or
special merit bonuses at intervals other than as provided in paragraph V.C. hereof. Such
special merit adjustments or bonuses shall be based upon exceptional performance far
exceeding the normal standards for the position, or exceptional service to the Village beyond
the normal scope of duties expected for the position. Special merit adjustments or bonuses
shall have no effect on the schedule for normal performance evaluations and merit adjustments.
Special merit adjustments or bonuses are deemed to be extraordinary events, and may be
granted only after notice to the Village Board, and an opportunity for the Board to disapprove
the action.
Approved: 12 -12 -2000 EXHIBIT B Page 3 of 5
Effective: nl-1 -2001
F. Village Manager: The Village Manager position is not included in the Salary Plan. The salary
of the Village Manager may be adjusted only by action of the Village Board, subject to the
terms of the current employment agreement in effect between the Board and the Village
Manager.
G. Promotions: In a case where an employee is promoted from one position to another, any
increase in salary shall not be viewed as a merit adjustment, but shall represent recognition of
the additional responsibility inherent in the new position.
H. Performance Appraisal: The objectives of a performance appraisal are several:
1. To develop and improve performance and to maintain performance at the highest
possible level.
2. To provide for variation in compensation and incentive based as directly as possible
upon merit.
3. To assist supervisors in personnel administration and organizational management.
It is the responsibility of the department head or supervisor completing the Employee Appraisal
Report to review the appraisal with the employee in ep rson. During this meeting, the evaluator
is expected to discuss the employee's performance in general and point out to the employee,
first, the areas in which the employee is performing effectively, and, secondly, those areas
where improvement is needed. The evaluator is also expected to solicit the employee's views
on the appraisal.
I. Working Out of Classification: Any full -time employee performing authorized work out of
that employee's grade for a minimum of 14 days shall be entitled to additional compensation
during the period of such employment. This compensation shall be 105% of the employee's
present salary, but may not be greater than that of any employee currently working in the
position in question. Further, an employee working out of classification shall be entitled to
such additional compensation only if the employee spends the preponderance of time
performing the duties of the position.
LEVELS OF PERFORMANCE - DEFINITIONS
Unsatisfactory
(Consistently Below Standards)
Performance so poor that little useful contribution is made. Such performance calls for immediate remedial
action.
It should be noted that employees performing at this level should be notified as soon as this becomes
apparent. Under no circumstances should employees be allowed to remain in pay status until their
scheduled evaluation date; they should be advised of their substandard performance and its possible
consequences without delay.
Below Standards
In one or more of the significant standards, the employee is falling "below" standards.
Approved: 12 -12 -2000 EXHIBIT B Page 4 of 5
Effective: 01-01-2001
Needs Improvement
I
Performance that would be expected during early periods on a new job as well as during the training phase
of an individual's employment. Usually, the individual develops and moves beyond this level at the average
rate set by the supervisor or Department Head, based on the standards of performance required. It should be
used when an employee is in a training phase as well as when an experienced employee's performance has
dropped from a previous higher level.
Supervisors must set written action plans for each employee who is rated as needs improvement in each
area where the rating applies as well as timetables and deadlines for the improvement to occur.
Meets Standards
(Consistently Meets Standards)
Performance meets standards set by the Department Head. This generally applies to seasoned employees
who shave completed their training phase and have accepted full responsibility for the completion of the
duties of their position.
The rating is not based on a comparison of the employee's performance with fellow employees in the same
or similar position; it must be based solely on a comparison of the employee's performance to the standards
set by the Department and communicated to the employee.
Above Standards
(Frequently Exceeds Standards)
Performance of this caliber will be uncommon within each Department. The rating will apply to employee
performance which exceeds all Department standards and is represented by outstanding achievements over
and above the normal work assigned.
Examples of the outstanding achievements must be documented and submitted with the Performance
Evaluation form with an appropriate statement as to how the achievements favorably impacted the
Department.
Excellent
(Exceieds all Department Standards)
Performance of this caliber is exceedingly rare. It may occur in employees who are unusually gifted in a
particular area, or whose skills surpass all standards set for the average employee. It may also be earned for
excellent performance in response to an unusual occurrence which would normally not constitute an
employee's regular duties and responsibilities.
Examples of the employees particular achievements must be submitted with the Performance Evaluation
form.
Approved: 12 -12 -2000 EXHIBIT B Page 5 of 5
Effective: 01-01-2001