1. City of Galveston Classification & Compensation Study Discussion Preliminary Findings and Recommendations

2. Class and Comp Study Overview Employees completed questionnaires and 150+ on-site interviews were conducted by our team. 210 titles currently in the system, 199 titles are proposed and will result in updated draft job descriptions and job titles reflecting the work being performed. Salary and benefits data has been collected from the targeted comparison employers, and a new pay plan has been designed for non-civil service positions. 2

3. Survey Methodology Job comparisons were made on actual job duties. Data point used for comparisons is pay range Midpoint, as the range width of pay plans among the comparators vary (some wide, some narrow). Benefits data was collected including health insurance and civil service certification pay. 3

4. Survey Illustration

5. Base Pay Survey Findings Pay data was compared for 114 jobs. 5 Relationship to Prevailing Rates Benchmark Job Classes % of Sample Average Variance Below (-5% or more)6759%- 11% Comparable (within 5%)3026%+0.01% Above1715%+ 12% Since actual salaries vary from Midpoints, this information simply illustrates that jobs move at different rates; over time, “blanket” adjustments to pay structures result in inconsistent market relationships (some high, some low).

6. Family Insurance Contributions by Employer 6 Market average contribution to family health is $1,010/month, Galveston $515/month However as a percentage, market pays 68% of premium to City’s 64%

7. Other Trends World at Work (formerly the American Compensation Association) surveyed 5,200 private and public employers for 2014-2015, and the national average budgeted salary adjustment is 3.1%. This is a different number than the CPI. Towers Perrin 2014-2015 National Benefits Survey of private employers finds average employer contributions of $796 per month for health insurance ($9,552 per year). Bureau of Labor Statistics’ quarterly report (January 2015): 7 Compensation ComponentPrivate IndustryState and Local Government Wages and Salaries69.40%64.10% Benefits30.60%35.90%

8. Proposed Pay Plan – Non Civil Service A new salary table has been designed to allow job placement using market averages at Midpoint. The proposed table provides 50% range width between Minimum and Maximum, and will result in actual salaries being much closer to market. All non-civil service job classes have been placed on the proposed scale using available market data, internal reporting relationship logic, and career ladder opportunities. 8

9. Sample Illustration 9 Each non-civil service job placed on a range with consideration to Market, career ladder, and internal reporting relationships

10. Employees Below Proposed Minimums 10 176 ee’s 129 ee’s 124 ee’s (166k is General Fund) (118k is General Fund) (100k is General Fund)

11. Pay Ranges – Non Civil Service 11 Full implementation of a market study can often occur over multiple budget years, and/or be prioritized according to available funding. 93% of all non-civil service are below proposed Midpoints; average time in job is 5.25 years.

12. Important Notes for Going Forward Adopting the proposed table for non-civil service, and budgeting regular salary adjustments commensurate with annual market salary movement, will bring actual salaries closer to market average. The City will have the data, tools, and template to more regularly gauge market movement and maintain an equitable, competitive, and sustainable pay plan. 12