Pay Study Review
City Auditor’s Office
December 8, 2003
1
CWA Pay Study Review

Primarily Internal Equity Driven
– 21 benchmark positions represented
approximately 251 position classifications
(<10% coverage)
– The remaining 230 position classifications
were slotted based on management’s job value
judgments

Employee pay ranges increased 6.2% at
midpoints, on average
2
MAP Pay Study Review

Primarily External Equity Driven
– 54 benchmark positions represented approximately
210 position classifications (26% coverage)
– The remaining 156 (74%) position classifications
were slotted based on management’s job value
judgments


Employee pay ranges increased 19.7% at
midpoints, on average
Separately, management position pay ranges
increased 24.9% and professional/admin ranges
increased 14.6%, on average
3
MAP Cost Factors
Salaries are a key expenditure for the City
 MAP positions represent an annual payroll
of more than $19 million (salaries only)

– Approximately 354 employees averaging just
under $55,000 annual salary
Range increases exceed typical market
maintenance/COLA range adjustments of
3% by approximately 16% at midpoints
 Applied to the MAP payroll, the “salary
exposure” is increased approximately $3
million annually

4
Alachua County Financial Trends Report
5
MAP Pay Study Review

Even though the costs of the proposed
MAP Pay Plan are higher than historical
patterns, are the increases justified by the
pay study results?
6
WorldatWork Information on External
Competitiveness
Companies need to closely monitor labor
costs to make sure that they neither
overpay (leading to a higher cost than
necessary in providing a product or
service) nor underpay (possibly leading to
higher turnover, which could hurt
productivity).
Has the City of Gainesville experienced
high turnover?
7
Turnover Analysis
Summary of Employee Departures
Calendar Years 2000 and 2001
Taken from Unaudited Payroll Action Records
Resignations
7
3
18
7
74
32
Retirements
1
8
2
5
19
35
Total
8
11
20
12
93
67
Grand Total
141
70
211
1338
7.9%
5.3%
2.6%
GG Totals
GRU Totals
99
42
22
48
121
90
593
745
10.2%
6.0%
8.3%
2.8%
1.9%
3.2%
Grand Total
141
70
211
1338
7.9%
5.3%
2.6%
MGR
PROF/CONF
CWA
10
25
106
9
7
54
19
32
160
117
225
996
8.1%
7.1%
8.0%
4.3%
5.6%
5.3%
3.8%
1.6%
2.7%
Grand Total
141
70
211
1338
7.9%
5.3%
2.6%
GG MGR
GRU MGR
GG PROF/CONF
GRU PROF/CONF
GG CWA
GRU CWA
Employees
70
47
114
111
409
587
Annual Turnover %
5.7%
11.7%
8.8%
5.4%
11.4%
5.7%
Resign. %
5.0%
3.2%
7.9%
3.2%
9.0%
2.7%
Retire. %
0.7%
8.5%
0.9%
2.3%
2.3%
3.0%
8
Dept. of Labor Employee Turnover Rates
Government versus Total Industry and Government
November 2001 – October 2002
9
WorldatWork Information on External
Competitiveness
In general, companies tend to survey
other companies similar to themselves in
all or some of the following
characteristics: size, industry type,
geographical location, revenue/income
size and required job skills.
10
City of Gainesville Pay Study Assumptions
There is a “Gainesville Factor.”
We often hear talk of the Gainesville factor.”
That is, that over-qualified people work for
less in Gainesville because it is such a good
place to live. Human Resource professionals
have a name for this factor: the cost of labor
differential.
Therefore, we gave more weight to surveys
that included a cost of labor differential. For
example, in its published data Mercer takes
the market data for each survey data point,
and then reduces them by 9-12% to reflect
the cost of labor in Gainesville, a direct
reflection of the “Gainesville factor.”
11
City of Gainesville Pay Study Assumptions
Salary.com professional guidance related to
geographical indexing:
Data provided represents national averages which
are then adjusted to specific metropolitan regions
through a geographic differential to reflect
differences in pay levels in different cities or
geographic areas.
12
Salary.com Information on Industry and Organization Size
It is most common for the industry of the company to
influence the pay of senior employees and those whose
skills are less transferable to other industries. If you are
looking at a management or an executive position, the
industry is very relevant to how much you're paid.
Clerical and lower level positions are, as a rule, affected
only slightly.
It is most common for the size of the company to
influence the pay levels of more senior employees. If
you are looking at a management or an executive
position, the size of the company is one key measure to
determine pay levels.
13
MAP Pay Study Examples
•Geographic Indexing
•Industry Type
•Size of Organizations
14
Summary



We reviewed the data underlying the market
study which led management to recommend
increasing MAP pay structures significantly, on
average, approximately 20% at midpoint
We believe many of the assumptions that led to
the City’s determination of market are subjective
and that some of the issues raised by our
presentation rise to the level of policy decisions
With this information, the City Commission can
more effectively provide policy guidance to
management on general market rate issues,
resulting in fair and equitable wages for City
employees
15