Report to Mayor and City Council
Tuesday, August 06, 2024
Discussion
SUBJECT:
Title
CONSIDER APPROVAL OF THE CLASSIFICATION AND COMPENSATION STUDY PHASE I RECOMMENDATIONS AND ADOPT RESOLUTION NO. 24-076 AMENDING THE FISCAL YEAR 2024-25 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE (CITY COUNCIL)
Body
I. SUMMARY
On March 2023, City Council awarded an agreement to the Segal Company to conduct a comprehensive classification and compensation study. The objective of this study was to update the City's position structure and propose a strategy to ensure reasonable, fair, and competitive compensation for employees, while properly allocating evolving positions and classifications to meet the City's needs.
Segal Company presented the City with their preliminary findings and recommended actions for our classification structure. Key recommendations include:
• Maintaining Current Classifications: Keeping existing classifications that are still relevant and appropriate.
• Rewording Job Descriptions: Updating job descriptions to reflect current responsibilities and requirements more accurately.
• Collapsing Classifications: Merging redundant or outdated classifications to streamline the structure.
• Reclassifying Positions: Adjusting classifications to align with current duties and organizational needs.
• Adding New Positions: Introducing new classifications to address emerging community needs and evolving City functions.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the Classification and Compensation Study Phase I recommendations; and
2. WAIVE further reading and ADOPT Resolution No. 24-076 “A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2024-25 BUDGET IN THE GENERAL FUND.”
Body
III. ALTERNATIVES
Take another action that the City deems appropriate.
IV. BACKGROUND
On March 2023, City Council awarded an agreement to the Segal Company to conduct a comprehensive classification and compensation study. The objective of this study was to update the City's position structure and propose a strategy to ensure reasonable, fair, and competitive compensation for employees, while properly allocating evolving positions and classifications to meet the City's needs.
The Segal Company and the Human Resources Department have collaborated to address the City's classification and compensation study in a structured and phased approach. During this first of two phases, several methods of evaluation were used to determine aspects of classification structures such as:
1. Benchmark classifications
2. Desktop audits
3. Positions Description Questionnaires (PDQs)
4. Consultant to Supervisor Interviews
5. Classification structures in various groupings
6. Equity review of categorical assignments/positions
Phase 1 (current phase) consisted of the following:
Employee Participation
• Employees were asked to complete Position Description Questionnaires (PDQs).
• Information from the PDQs was utilized in the classification structure analysis.
• Desktop audits
Classification Structure Analysis
Based on the PDQ data, classification specification review, feedback from staff, and desktop audits, recommended actions for each position fell into the following categories:
• Maintain: Retain current classifications.
• Reword: Update job descriptions to reflect current responsibilities.
• Collapse: Merge redundant or outdated classifications.
• Reclassify: Adjust positions to align with current duties and organizational needs.
• Create: New positions based on communication with Department Heads, Human Resources, Review of Council Requests and current City structural needs and assessments.
Collaborative Review and Analysis:
• Segal and HR staff conducted a thorough review of the structural analysis.
• Utilized both internal and external comparative analyses to formulate recommendations.
Completion of External Market Study:
Nine (9) public sector employers were identified based on proximity, size, competition for labor, and other similar characteristics. Participants completed a custom peer survey and Segal verified data. The external market study helped by:
• Providing a comparative salary analysis with industry standards to ensure competitive and fair compensation.
• Identifying salary ranges that attract highly qualified candidates, improving the City’s ability to recruit top talent.
• Providing data to support accurate and informed budgets for salaries and benefits.
• Analyzing existing city department structures, staffing, and resource allocation to meet service needs
• Addressing pay disparities and ensure equitable compensation across different roles and departments.
Recommendations:
The recommendations for Phase I were developed through a shared effort between Segal and the HR team. The goal was to create a classification and compensation system that is fair, competitive, and aligned with the evolving needs of the City of Carson and comparable agencies. These proposed changes aim to:
• Adapt to the demands of the 21st-century workplace.
• Support a fair and equitable work environment.
• Enhance talent attraction and retention.
• Improve resource allocation.
The Segal Company and the Human Resources Department remains determined to efficient and effective in the second Phase to follow in the upcoming months. Phase 2 proposes to provide:
• Classification overhaul
• Review of Knowledge, Skills and Abilities (KSAs)
• Review of Certification and licenses
• Fair Labor Standards Act review
• Grammatical and structural updates on classifications
• Update New and uniformed Job Descriptions
• Compensation review and analysis of collapsed classifications
• Overview of internal equity
This final phase will provide a comprehensive, collaborative, and thorough analysis of City classification and compensation structure. Several newly classifications will be created and vetted through the Met & Confer process in compliance with Meyers-Millas Brown Act (MMBA). By implementing these recommendations, we ensure that the City of Carson remains a dynamic and supportive place to work, capable of meeting both current and future challenges.
V. FISCAL IMPACT
There are no additional requested funds needed as the added positions and reclassifications will be absorbed in the FY 24/25 budget.
VI. EXHIBITS
1. Resolution No. 24-076 (pgs. 6-8)
2. Segal and HR Phase I Study (pgs.9-176)
3. Proposed New Classifications (pg. 177)
Prepared by: Joshua Boudreaux, Human Resources and William Jefferson, Finance Director