2015 Annual Salary Survey and Compensation Studies

COMPREHENSIVE
SALARY STUDIES
An Overview of Salary Comparison, the
Grade/Step System, and Internal Equity
Any City, Town or County, MS
Typical Human Resources Responsibilities
• Employee Recruitment
• Development and/or Maintenance of Job Descriptions
• Development and/or Maintenance of the Employee
Handbook
• Verifying and Documenting Worker Eligibility (I-9, etc.)
• Hiring and new hire Orientation
• Employment Classification and Training
• Job Performance including Promotions and Raises
• Disciplinary Actions
• Oversight (often shared) of Payroll and Payroll Deductions
• Maintenance of employee Records for Leave, Benefits,
and Medical Records
• Maintenance of Records for Employee Expenses, company cars,
cell phones, etc.
• Compliance with State and Federal Employment Laws
(Fair Labor Standards, Family & Medical Leave, & Americans with Disabilities Acts, etc.)
What determines
compensation?
Human Resources (HR) Departments handle the paperwork
essential to maintaining a workforce. Whether you are a
Mississippi County or Municipality, at some point an employee,
supervisor, or elected official has come to you with a question
about compensation. How are raises determined? How much is a
job worth? Why is So&So making more money than I am?
All are good questions, and hopefully, you have a system in place
to give the person a good answer. If not, we’re here to tell you
about compensation studies and achieving pay equity. The simple
answer as to what determines compensations is– the market.
A Comprehensive
Salary Study
Compensation Studies involve several components:
• Surveying the same Positions employed
by similar governing entities
• Determining Job Evaluation Scores
• Assigning each Position a Grade & Step
• Determining the Mean, Median & Mode
for each Position
• Determining the Percentiles for entry, mid-level
and high end pay for each Position
• Comparing each Position’s Pay to the Mean
Types of Salary Studies
Compensation Studies involve several components:
Full Compensation Study
Survey of similar governing entities
Tabulation & Analysis of Survey Data
Job Descriptions for each Position
Interviews with each Employee
Determining Position Job Evaluation Score
Add-ons:
Employee Handbook– creation or update
Employee Incentive Plan Development
Salary Comparison Study
Survey of similar governing entities
Tabulation & Analysis of Survey Data
Data Gathering
• Surveys are sent to similar governing entities throughout
Mississippi and surrounding states in the Southeast.
• The Survey contains every position in each County or
Municipal Department. Each Position includes the duties
and responsibilities. If the Respondent’s position has a
different title, that title is requested, as well as the rate
and/or range of pay.
• Tenure in the Position is requested. Average tenure is
gathered if more than one person is employed in the
same position. Respondents often write in experience
in other positions held within the County or Municipality.
Seniority helps determine Grade/Step assignment
There are
20 3% Steps within each Grade
Steps within Grade – 1 through 20
GRADE
GRADE
G1
$15,080.24 $ 15,532.65
MONTHLY
BIWEEKLY
HOURLY
There are 20 10% Grades
G2
BIWEEKLY
HOURLY
10%
BIWEEKLY
MONTHLY
HOURLY
G4
10%
BIWEEKLY
HOURLY
G5
$597.41
$7.47
MONTHLY
HOURLY
G6
10%
BIWEEKLY
HOURLY
G7
4
$
3%
3%
$1,333.22
$1,373.22
$615.33
$7.69
$
17,598.49
16,478.59
$633.79
$7.92
$
18,126.45
$1,466.54
$1,510.54
$638.01
$7.98
$657.15
$8.21
$676.87
$8.46
$697.17
$8.71
$18,247.09 $ 18,794.50
$
19,358.34
$
19,939.09
$1,520.59
$1,566.21
$1,613.19
$1,661.59
$701.81
$8.77
$722.87
$9.04
$744.55
$9.31
$766.89
$9.59
$
21,294.17
$
21,933.00
$1,672.65
$1,722.83
$1,774.51
$1,827.75
$771.99
$9.65
$795.15
$9.94
$819.01
$10.24
$843.58
$10.54
$
23,423.59
$
24,126.30
$1,839.92
$1,895.11
$1,951.97
$2,010.52
$849.19
$10.61
$874.67
$10.93
$900.91
$11.26
$927.93
$11.60
$
25,765.95
$
26,538.93
$2,023.91
$2,084.62
$2,147.16
$2,211.58
$934.11
$11.68
$962.13
$12.03
$991.00
$12.39
$1,020.73
$12.76
$26,715.57 $ 27,517.03
10%
BIWEEKLY
15,998.63
$1,423.83
$24,286.88 $ 25,015.49
MONTHLY
$
$1,382.36
$22,078.98 $ 22,741.35
10%
BIWEEKLY
G8
$1,294.39
$580.01
$7.25
$20,071.80 $ 20,673.95
MONTHLY
20 th Percentile
3
3%
$1,256.69
$16,588.27 $ 17,085.91
MONTHLY
G3
10 th Percentile
1
2
$
28,342.54
$
29,192.82
MONTHLY
$2,226.30
$2,293.09
$2,361.88
$2,432.74
HOURLY
$1,027.52
$12.84
$1,058.35
$13.23
$1,090.10
$13.63
$1,122.80
$14.04
10%
BIWEEKLY
$29,387.12 $ 30,268.74
$
31,176.80
$
32,112.10
MONTHLY
$2,448.93
$2,522.39
$2,598.07
$2,676.01
HOURLY
$1,130.27
$14.13
$1,164.18
$14.55
$1,199.11
$14.99
$1,235.08
$15.44
Grade/Step Assignment
• The Grade/Step Chart is based upon the prevailing
minimum wage. Grade 1 / Step 1 = $7.25 an hour.
• Each County or Municipality Position is assigned a
Grade and Step based on the current rate of pay
and/or salary, the Job Evaluation Score for the
position, and the length of tenure in the position.
• The Job Evaluation Score assigns a numeric value
to the levels of responsibility within the position.
Job Evaluation Score
EXPERIENCE
200 points
Measures the experience needed to carry out the job at a competent level.
EDUCATION
200 points
Measures the amount of formal education required to satisfactorily perform the job.
Experience or knowledge through experience are not considered.
WORKING CONDITIONS
100 points
Measures job surroundings and environmental influences such as ventilation, noise and congestion.
PERSONAL HAZARDS
100 points
Measures the personal hazards inherent in a job with all reasonable precautions taken by the employer
PHYSICAL DEMANDS
100 points
Measures the kind, amount, and frequency of physical effort associated with job duties.
INDEPENDENCE OF ACTION
150 points
Measures the amount and type of supervision the position receives.
SUPERVISORY AUTHORITY
150 points
Measures the amount of supervisory authority exercised by the position.
Maximum
1000 points
EXAMPLE
Grade/Step Assignment & Job Evaluation Score
Position/Job Title
DEPARTMENT & TITLE
Courts
Chancery Court Deputy Clerk
Circuit Court Deputy Clerk
Justice Court Clerk
Justice Court Deputy Clerk
Score
Job Evalution
Factor Score
275
275
362
225
Tenure
Tenure
w/County
Salary Grade/Step
National Industry, State, & BLS Means
Actual or
Average Salary
Current
Grade
Between
Steps
or Years
Any MS County
in Position
Current
Step
Raise to
Next Step
6.6
4.7
23
11.4
39700
32700
45696
34350
43-4031 Court, Municipal, and License Clerks
Perform clerical duties for courts of law, municipalities, or
governmental licensing agencies and bureaus. May prepare
docket of cases to be called; secure information for judges
and court; prepare draft agendas or bylaws for town or city
council; answer official correspondence; keep fiscal
records and accounts; issue licenses or permits; and record
data, administer tests, or collect fees.
G11/1
G8/4
G11/6
G9/3
Bureau of Labor
Statistics
O-Net
National Mean
MS/State Mean
34800
34800
54500
34800
588
375
1008
973
National Mean Salary
28000
28000
43000
28000
Industry
Employment (1)
Percent of industry
employment
Local Government (OES
Designation)
92,790
1.75
29990
29990
46999
29990
Hourly mean Annual mean wage
wage
(2)
$17.38
$36,150
SOURCE: http://www.bls.gov/oes/current/oes434031.htm
Data Analysis
EXAMPLE
Mean Median Mode
Position/Job Title
Salary
Avg.
Actual or
Average Salary
Center
Most
Value Frequent
Survey Responses
DEPARTMENT & TITLE
Any MS County
Courts
Chancery Court Deputy Clerk
Circuit Court Deputy Clerk
Justice Court Clerk
Justice Court Deputy Clerk
Department TOTAL
39700
32700
45696
34350
152446
Mean
33320
33567
37220
31159
Median
29120
30000
38683
26208
Percentiles
Lowest
Highest
Entry
Min/Max Values
Mode
Multiple modes exist.
The smallest value is shown.
17074
19760
22765a
20000
Minimum
17074
19760
22765
20000
Mid
High
Percentiles
Maximum
60555
76514
52846
61888
25
25469
24968
27618
21500
50
29120
30000
38683
26208
75
40640
35435
43127
37092
Only the Circuit Court Deputy Clerk makes less than the MEAN.
The other positions exceed the Mean.
• Do the other clerks have more experience, longer tenure,
and/or more education? Is that the local market value of the position?
• What does that translate into real dollars?
Data Analysis
EXAMPLE
Mean Median Mode
Position/Job Title
Salary
Avg.
Actual or
Average Salary
Center
Most
Value Frequent
Courts
Chancery Court Deputy Clerk
Circuit Court Deputy Clerk
Justice Court Clerk
Justice Court Deputy Clerk
Department TOTAL
39700
32700
45696
34350
152446
Lowest
Survey Responses
DEPARTMENT & TITLE
Any MS County
Percentiles
Mean
33320
33567
37220
31159
Percentage of Mean = 97%
True Dollar Value = -$867
Median
Entry
Min/Max Values
Mode
Multiple modes exist.
The smallest value is shown.
29120
30000
38683
Actual
26208
Highest
Minimum
17074
19760
22765a
20000 Mean
or
Average Salary
39700
32700
45696
34350
33320
33567
37220
31159
Mid
High
Percentiles
Maximum
25
50
75
17074
60555
25469
29120
40640
19760
76514
24968
30000
35435
Dollar
Amount
(+/22765
27618
38683
43127
Percent 52846
Percentage
20000
61888 ) Difference
21500
26208
37092
Responses
of Mean
MEAN
of
119
97
122
110
from Mean
+
+
+
19%
3%
22%
10%
6380
-867
8476
3191
27
19
13
9
What’s in a Standard Job Description?
A job summary – an overview and a brief description
of the most important functions of the position.
A list of job requirements – education, certifications,
and experience necessary to do the job.
A list of job functions – a detailed description of the job
duties. This section provides the basis for most of the
employment decisions that are made concerning the
employees in this position.
Other information – any other important facts about
the position including working hours, travel requirements,
reporting relationships, location, physical requirements
and working conditions.
Good Reasons to have Job Descriptions:
• Job descriptions provide documentation in the event of
a wage and hour claim, workers compensation dispute, etc.,
assisting the State in determining claims issues.
• Job descriptions establish objective criteria for hiring
and performance reviews. They help determine if a job
is exempt under the Fair Labor Standards Act (FLSA).
• The EEOC uses the job description to determine essential
functions for purposes of the Americans with Disabilities Act
(ADA)
• Physicians require a copy of the job description to complete
Family Medical Leave Act (FMLA) medical forms for an
employee on extended leave.
The Employee Handbook
is written to provide:
• Clear and Consistent Written Policies
to Employees and Managers
• Answer Questions regarding
information on Benefits & Payroll
• Provide Guidance to Managers
in Decision-making
Typical Policies in an Employee Handbook
may include, but are not be limited to:
•
•
•
•
•
•
•
•
•
•
•
•
•
Access to Personnel Records
Background Checks and Drug Testing
Citizenship Verification for Employment Eligibility
Definitions of Seniority
Dual Employment
Employment of Temporary Employees
Equal Opportunity and Affirmative Action
Hiring Process
Managing Staff Promotions and Internal Transfers
Recruitment
References/Outside Inquiries Concerning Personnel
Skill Testing of Applicants
Special Employment Circumstances*
* Presented
in alphabetical order
with no weight to particular policy.
Wage/Salary Information
Recommended Contents of an Employee File
•
•
•
•
•
•
•
Job Description
Job analysis questionnaire
Payroll authorization form
Fair Labor Standards Act exemption
Compensation history
Compensation recommendations
Notification of wage and salary
increase/decrease
Questions about how Compensation
Studies, Job Descriptions, or
Employee Handbooks?
For many years, Stennis has worked with Mississippi’s
local governments– counties and municipalities– offering
technical assistance in a variety of areas. One area of expertise
is conducting salary surveys to help determine
if local compensation is competitive.
In that work, we have discovered a potential need
for additional assistance in developing Job Descriptions
and Employee Handbooks. If you feel you need assistance,
please contact us.
Stennis Institute of Government
and Community Development
Dr. Eddie French, Professor and Executive Director
Dr. Dallas Breen, Associate Director
Claudette Jones, ABD PhD, MPPA, Research Associate
Matt Peterson, MBA, Research Associate
Phone 662.325.3328
Email [email protected]
Drawer LV
Mississippi State, MS 39762
NOTES
Stennis Institute of Government
and Community Development
Phone 662.325.3328
Email [email protected]