1. P.O.C.C. Presentation 7-10-08 1 P.O.C.C. Compensation Overview Maggie Wollaston, SPHR Laurie Grenya DAS HRSD Classification and Compensation Unit

2. P.O.C.C. Presentation 7-10-082 P.O.C.C. Mission: To build a recommendation for elected officials’ salaries, considering: Total compensation, including benefits other than salary Salaries for comparable positions in neighboring states Qualifications and skills necessary for each office Level of responsibility Cost of living Budget limits Any other reasonable and appropriate factor

3. P.O.C.C. Presentation 7-10-083 Our Goal Today: Acquaint Commissioners with compensation at the State and how it relates to Public Officers’ pay. Provide some tools to assist the Commission in assessing pay. We will review: Public policies that apply State compensation practices We will have time to discuss values and beliefs around Compensation

4. P.O.C.C. Presentation 7-10-084 Total Compensation* Employee’s salary plus dollar amounts the state pays for the employee’s benefits Salary is cash paid resulting in earnings on W-2 Statement Salary or hourly rate for work performed All other taxable benefits Benefits include amounts paid for health plans, retirement, statutory benefits like Worker’s Compensation and F.I.C.A., etc. Advantages: Credit for significant investment in benefits Flexibility in choosing where to apply dollars *State Policy 20.005.01, General Compensation Policy

5. P.O.C.C. Presentation 7-10-085 Total Compensation Approach Employee’s Salary +Retirement contribution from employer* (includes 6% PERS “pickup”) +Health insurance contribution from employer** Total Compensation *2007-2009 Bargaining 17.2% **2007-2009 Bargaining $942.73

6. P.O.C.C. Presentation 7-10-086 Compensation concepts Internal equity Questions of comparability “Should this position pay more than that one?” External equity How we stand with the market “What is the pay for this in Washington State?”

7. P.O.C.C. Presentation 7-10-087 External Equity How do we compare to market? Normally we compare to Washington, Idaho, Nevada and California They are our “market”

8. P.O.C.C. Presentation 7-10-088 An example of external comparison Job:Comparator:Comparator Job Title Comparator Salary Per Month: Comparator’s Retirement Contribution Monthly Insurance Contribution PurchaserIdahoBuyer335110.39%594.00 NevadaBuyer 2423214.75%500.20 WashingtonProcurement Officer 34705.46%618.00 (The above would be compared to Oregon’s comparable job)

9. P.O.C.C. Presentation 7-10-089 General Compensation Policy “ The State shall attempt to provide total compensation to employees that is competitive with compensation for comparable services in public and private employment as the overall economic and budget condition of the state permits.” (20.005.01) We have defined “competitive” as between 95% and 105% of market This means some jobs are below 100% And some are above 100% of the market

10. P.O.C.C. Presentation 7-10-0810 What we’ve covered so far: To build a recommendation for elected officials’ salaries, considering: Total compensation, including benefits other than salary Salaries for comparable positions in neighboring states Qualifications and skills necessary for each office Level of responsibility Cost of living Budget limits Any other reasonable and appropriate factor

11. P.O.C.C. Presentation 7-10-0811 Comparability of Positions: When comparing positions and salaries, it is not enough to compare titles. We have to match levels of responsibility and qualifications and skills necessary to do the job.

12. P.O.C.C. Presentation 7-10-0812 Cost of Living Adjustments applied to a predefined formula Used to keep salaries in line with economic changes Many different formulae

13. P.O.C.C. Presentation 7-10-0813 Budget and Affordability We will work with DAS Budget and Management Impact analysis Estimates of the cost of any approved changes

14. P.O.C.C. Presentation 7-10-0814 Other sources of data: Salary surveys Book of the States States’ web sites

15. P.O.C.C. Presentation 7-10-0815 Questions and Answers ?????

16. P.O.C.C. Presentation 7-10-0816 Discussion - Beliefs and Values on Public Officials’ Compensation 1. Should pay be set using same steps as other employees? 2. Should pay be on a par with, better than, less than other states? 3. Should planning focus on today’s salaries, or should we plan to update salaries in the future? 4. Should we consider the salaries of staff these positions supervise? 5. Other?

17. P.O.C.C. Presentation 7-10-0817 Based on our discussion, we will Document our decisions Develop a roadmap Collect information from other states on salaries and benefits Analyze the information Build a recommendation