1. Town of Carolina Beach Executive Summary for the Town Council Classification and Pay Study March 2015

2. Overview This presentation provides an analysis of the methodology and data used to review and update the present Pay and Classification System. This analysis provides the data necessary to ensure the Town’s market competitiveness and to assist in attracting new employees and retaining current employees in order to meet the Town’s service requirements

3. Two Portions of Study Classification Plan Job analysis of each position Position Questionnaire Major Job Functions Management Review Onsite Interviews Comprehensive Analysis Pay Plan External Competitive Analysis Focused Target Peer Group Current Market Based Data Systematic Means to Advance Employees Consistent Salary Administration

4. Local Governments Identified to be included in the Study -similar in size and provision of services -having similar job functions -direct competitors for labor Atlantic BeachLower Cape Fear WSATopsail Beach Bald Head IslandNags HeadWallace Brunswick CountyNew Hanover CountyWilmington BurgawOak IslandWrightsville Beach Cape Fear PUAPender County Emerald IsleShallotte Kure BeachSouthport LelandSunset Beach

5. CLASSIFICATION METHODOLOGY Employees completed 19 page Position Description Questionnaire Capture every element of their position Reviewed by Supervisor, Department Head, Human Resources and Town Manager then sent to Consultants On-site interviews conducted with each employee by Consultants

6. Pay Plan Methodology Identify the relevant job market to base the comparative pay plan analysis. Primary emphasis was on those similarly sized and comparatively staffed municipalities or who are natural competitors for local workforce. Conduct the customized market salary survey focusing on benchmarking positions within the workforce. Analyze survey data and recommend a pay plan structure including pay grades and pay grade ranges as well as placement of individual classes within each pay grade.

7. Standard “Bell” Curve In a mature workforce employees would be expected to be within standard deviations and resemble the “Bell Curve” New Hire Middle of Career End of Career

8. Years of Service 50 28 16 51 1 Number of Employees

9. What Does the Graph Tell Us? What happened to all the employees in the middle of the curve? The Town has a predominantly new workforce. Town should have a pay plan in place to retain existing workforce. Recruiting must remain at competitive pay levels. ARE WE PAYING COMPETITIVE WAGES TO OUR WORKFORCE??

10. No Pay Increases Left Town Lagging Market YearCOLAMerit 2009$0 2010$0 2011$500 one time payment2% 2012$500 one time paymentUp to 1% 20132%Up to 2% 20142%Up to 3%, 4% with approval of Town Manager

11. Specific Data Collected from Study Group Position Titles Pay Grades with Salary Ranges Actual or Average salary of each employee in each Classification Years employed by the Local Government Years employed in current position Compare results to current Town pay grades and salary ranges to look for discrepancies or inconsistencies.

12. Sample Result Waste Water Treatment Plant Operator Minimum Mid-Point Maximum Actual Atlantic Beach Bald Head Island $35,055.00$52,582.00 Brunswick County$29,594.00$38,472.00$47,350.00$38,314.00 Burgaw Cape Fear PU Authority$33,728.00$42,665.00$51,603.00$38,449.00 Emerald Isle Kure Beach$27,620.00$43,840.00$40,162.00 Leland$30,663.00$36,796.00$42,929.00 Lower Cape Fear WSA Nags Head New Hanover County NHC Regional Med Cntr Oak Island$35,356.00$43,841.00$52,327.00$43,607.00 Pender County$34,294.00$44,583.00$54,871.00$38,091.00 Shallotte$31,694.00$47,541.00$42,519.00 Southport$32,000.00 Sunset Beach Topsail UNC-Wilmington Wallace$30,533.00 Wilmington Wrightsville Beach$34,133.00$43,590.00$53,043.00$38,054.00 Average$32,459.67$41,657.83$49,565.11$37,969.89 Carolina Beach$30,806.00$37,949.00$45,092.00$34,278.00

13. Findings Town should adopt the proposed updated market-based salary schedule. With the adoption of this salary schedule there will be less than 10 employees who will still fall below the new minimum for their Grade. Required funding to bring those employees up to Minimum $5,000. Adopt salary adjustments according to the employee’s relationship to the mid-point of their salary grade. Required funding $20,000. This affects approximately 18 employees. Budget for a 2% COLA 2015-2016 Fiscal Year. Without a COLA the recommended salary data will already be one year old and 2% below the market. Budget Estimate $88,000 for COLA increase.