Total Compensation - Arlingtonva
Total Compensation
Board Work Session Compensation April 2, 2013 A-4
Defined Contribution Option for Senior Management
Benefits
Benefits offered to eligible temporary employees
Merit Awards Employee Recognition
County Manager’s Excellence Awards
Competitive Salaries
Comp Maintenance Program (Yr2) Living Wage Increased
FY 13 Telework expanding Mobile Worker Initiative
Work/ Life Balance
New Hire process going “green” Working Smarter
Leverage GoToMeeting Safety Seminars
Leadership Development Cohorts lead to promotions
A-4
Development
CPR Certification Classes via Fire Dept. 2
Total Compensation Philosophy As an Employer of Choice, Arlington County recognizes our employees are the foundation of our success. This philosophy provides a broad framework to assist the County in making decisions that impact Arlington County Government total compensation. We strive to offer a meaningful, well-rounded total compensation package that:
• Enables Arlington County to recruit, retain, reward, and motivate a high caliber, diverse workforce. • Provides employees with fair, competitive pay, benefits and retirement options. • Shares the cost of benefits between the County and the employee. A-4
Adopted by County Board July 21, 2012
3
Principles •
• •
• • • •
Provide salaries that are competitive in our target market. Our target market consists of those jurisdictions and organizations of similar size and structure that would be our competitors for employees and includes at a minimum Alexandria, Fairfax and Prince William Provide employees with leave and/or disability benefits that assist in replacing a portion of income lost in order to care for themselves during qualifying periods of illness or absence. Provide a retirement program that offers defined benefit and defined contribution (including deferred compensation) options that will assist employees in achieving their individual retirement goals and targets replacement of 65% of income after a 30-year career Provide affordable healthcare that offers employees the ability to choose the option that best fits their needs. Encourage, support, and reward employees at all levels of the organization by offering learning opportunities to promote professional growth and development Enhance work-life balance through offerings such as: alternative work schedules, employee wellness programs and ancillary benefit programs like walk/bike to work, reduced County recreation fees and transit subsidies Foster a positive work environment that is meaningful, stimulating and encourages employee innovation and creativity
A-4
Adopted by County Board July 21, 2012
4
Employee Engagement Survey Results • 72% - 79% satisfaction range regarding benefits, work environment, work/life balance, learning opportunities, and diversity
• Survey Top Themes: • Employees engaged by interesting & challenging work • Employees value the difference they make within the community, interacting with clients or have a strong commitment to public service • Employees feel supported by co-workers or by providing support to other staff A-4
FY13 Progress Report Total Comp Element
FY2011
FY2012
FY2013 Year-toDate
Total benchmark classes lagging at midpoint
78%
65%
50%
Employees hired over midpoint
56% all 100% MAPs
32% all 100% MAPs
31% all 85% MAPs
Turnover
8.5% 6.7% nonretirement
10.2% 6.7% nonretirement
6.6% 4.1% nonretirement
Employees at maximum (End of Fiscal Year)
22%
18%
7% (Projected)
A-4
Compensation Maintenance Progress: After 2 Years • Focus: Improve Structure Competitiveness and Provide Pay Future • Completed*: 18 Studies covering 1950 positions • To Be Completed: 40 Studies covering 1350 positions Results
Structure Changes • 76% classes changed grade (started with those most behind) Employee Impact
• Employees at maximum reduced by 76% • 80% of employees received increase • 400 employees moved into broad band pay for performance programs • 500 moved into open ranges (Public Safety)
Cost
• Total Annual Cost to Date: $5M
*From start of program through March 31, 2013
A-4
Keeping Pay Competitive • Arlington’s actual salaries have kept pace due to continued step increases • Fairfax & PW considering alternating steps and COLA • Alexandria implementing pay improvements • Alternatives for staying competitive: – Additional step – Open Ranges – Across the board increase (mpa/cola) A-4
FY14 Proposed Health Care Increases Alexandria*
Arlington Fairfax*
Prince William*
Major health plan
3%
3%
8%
3%
Dental insurance
0%
0%
5%
10%
*Budget estimate.
Alexandria • Major plan design changes were needed to reduce projected increase from 10% to 3%
A-4
9
3% Premium Increase Means: Additional Employee Cost Per Pay Period Single
Employee + One/Spouse
Employee + Child(ren)
Family
Cigna HMO
$1.33
$3.50
$2.92
$4.92
Kaiser
$3.24
$8.52
$7.14
$11.95
THE BOTTOM LINE: A General Employee’s Pay Slip Average Annual Salary
$68,000.00
Average Step Increase: 2.75%
$1,870.00
Cigna HMO Increase (Family)
$128.00
Gross Salary Increase after Health A-4
$1,742.00
Health Care Reform Key Provisions Effective in 2014 • Individual Coverage Mandate • Employer Shared Responsibility – “pay or play” • Health Insurance Exchanges become available • Medicaid Expansion
Implementation in Virginia • Federal Govt will operate exchange for State • Medicaid expansion awaiting Governor’s signature A-4
Retirement Changes in Other Jurisdictions Alexandria • Increased Police/Fire pension contributions from 8% to 10% • Continued phase in of employee VRS contribution (year 2)
Fairfax New hires after 1/1/2013 • Increased retirement age to 55 for General employees • Changed from rule of 80 to rule of 85 (age + service) for General Employees • Capped use of sick leave for service at 2080 hours (1 yr) for all three retirement plans
Prince William • Continued phase in of employee VRS contribution (year 2)
Arlington Defined Benefit program has become more competitive due to these changes A-4
Comparison of Proposed Budget Actions Arlington
Fairfax
Alexandria
Prince William
12
11.5
11
12
Steps/Merit Increases
2.75%
0% for general Public Safety to get longevity
3.35%
0%
COLA/MPA
0
0
Holidays Current
Proposed
A-4
-Eliminate -Alternating Columbus Day merit increases -Continue Comp and COLA Maint. Program -Steps
1% for general employees to offset increase in VRS
2% plus 1% increase to offset VRS increase
-2.3% lump sum -Alternating for employees merit increases at top of grade and COLA
Moving Forward FY 13
Continue Compensation Maintenance Program
Bid Health Plan
FY 14 & Beyond Consider Open Ranges Complete Compensation Maintenance Program
A-4
Implement new Health Care Contracts
Evaluate /Implement recommendations from Total Compensation Workgroup
14
Board Work Session Compensation April 2, 2013 A-4
Defined Contribution Option for Senior Management
Benefits
Benefits offered to eligible temporary employees
Merit Awards Employee Recognition
County Manager’s Excellence Awards
Competitive Salaries
Comp Maintenance Program (Yr2) Living Wage Increased
FY 13 Telework expanding Mobile Worker Initiative
Work/ Life Balance
New Hire process going “green” Working Smarter
Leverage GoToMeeting Safety Seminars
Leadership Development Cohorts lead to promotions
A-4
Development
CPR Certification Classes via Fire Dept. 2
Total Compensation Philosophy As an Employer of Choice, Arlington County recognizes our employees are the foundation of our success. This philosophy provides a broad framework to assist the County in making decisions that impact Arlington County Government total compensation. We strive to offer a meaningful, well-rounded total compensation package that:
• Enables Arlington County to recruit, retain, reward, and motivate a high caliber, diverse workforce. • Provides employees with fair, competitive pay, benefits and retirement options. • Shares the cost of benefits between the County and the employee. A-4
Adopted by County Board July 21, 2012
3
Principles •
• •
• • • •
Provide salaries that are competitive in our target market. Our target market consists of those jurisdictions and organizations of similar size and structure that would be our competitors for employees and includes at a minimum Alexandria, Fairfax and Prince William Provide employees with leave and/or disability benefits that assist in replacing a portion of income lost in order to care for themselves during qualifying periods of illness or absence. Provide a retirement program that offers defined benefit and defined contribution (including deferred compensation) options that will assist employees in achieving their individual retirement goals and targets replacement of 65% of income after a 30-year career Provide affordable healthcare that offers employees the ability to choose the option that best fits their needs. Encourage, support, and reward employees at all levels of the organization by offering learning opportunities to promote professional growth and development Enhance work-life balance through offerings such as: alternative work schedules, employee wellness programs and ancillary benefit programs like walk/bike to work, reduced County recreation fees and transit subsidies Foster a positive work environment that is meaningful, stimulating and encourages employee innovation and creativity
A-4
Adopted by County Board July 21, 2012
4
Employee Engagement Survey Results • 72% - 79% satisfaction range regarding benefits, work environment, work/life balance, learning opportunities, and diversity
• Survey Top Themes: • Employees engaged by interesting & challenging work • Employees value the difference they make within the community, interacting with clients or have a strong commitment to public service • Employees feel supported by co-workers or by providing support to other staff A-4
FY13 Progress Report Total Comp Element
FY2011
FY2012
FY2013 Year-toDate
Total benchmark classes lagging at midpoint
78%
65%
50%
Employees hired over midpoint
56% all 100% MAPs
32% all 100% MAPs
31% all 85% MAPs
Turnover
8.5% 6.7% nonretirement
10.2% 6.7% nonretirement
6.6% 4.1% nonretirement
Employees at maximum (End of Fiscal Year)
22%
18%
7% (Projected)
A-4
Compensation Maintenance Progress: After 2 Years • Focus: Improve Structure Competitiveness and Provide Pay Future • Completed*: 18 Studies covering 1950 positions • To Be Completed: 40 Studies covering 1350 positions Results
Structure Changes • 76% classes changed grade (started with those most behind) Employee Impact
• Employees at maximum reduced by 76% • 80% of employees received increase • 400 employees moved into broad band pay for performance programs • 500 moved into open ranges (Public Safety)
Cost
• Total Annual Cost to Date: $5M
*From start of program through March 31, 2013
A-4
Keeping Pay Competitive • Arlington’s actual salaries have kept pace due to continued step increases • Fairfax & PW considering alternating steps and COLA • Alexandria implementing pay improvements • Alternatives for staying competitive: – Additional step – Open Ranges – Across the board increase (mpa/cola) A-4
FY14 Proposed Health Care Increases Alexandria*
Arlington Fairfax*
Prince William*
Major health plan
3%
3%
8%
3%
Dental insurance
0%
0%
5%
10%
*Budget estimate.
Alexandria • Major plan design changes were needed to reduce projected increase from 10% to 3%
A-4
9
3% Premium Increase Means: Additional Employee Cost Per Pay Period Single
Employee + One/Spouse
Employee + Child(ren)
Family
Cigna HMO
$1.33
$3.50
$2.92
$4.92
Kaiser
$3.24
$8.52
$7.14
$11.95
THE BOTTOM LINE: A General Employee’s Pay Slip Average Annual Salary
$68,000.00
Average Step Increase: 2.75%
$1,870.00
Cigna HMO Increase (Family)
$128.00
Gross Salary Increase after Health A-4
$1,742.00
Health Care Reform Key Provisions Effective in 2014 • Individual Coverage Mandate • Employer Shared Responsibility – “pay or play” • Health Insurance Exchanges become available • Medicaid Expansion
Implementation in Virginia • Federal Govt will operate exchange for State • Medicaid expansion awaiting Governor’s signature A-4
Retirement Changes in Other Jurisdictions Alexandria • Increased Police/Fire pension contributions from 8% to 10% • Continued phase in of employee VRS contribution (year 2)
Fairfax New hires after 1/1/2013 • Increased retirement age to 55 for General employees • Changed from rule of 80 to rule of 85 (age + service) for General Employees • Capped use of sick leave for service at 2080 hours (1 yr) for all three retirement plans
Prince William • Continued phase in of employee VRS contribution (year 2)
Arlington Defined Benefit program has become more competitive due to these changes A-4
Comparison of Proposed Budget Actions Arlington
Fairfax
Alexandria
Prince William
12
11.5
11
12
Steps/Merit Increases
2.75%
0% for general Public Safety to get longevity
3.35%
0%
COLA/MPA
0
0
Holidays Current
Proposed
A-4
-Eliminate -Alternating Columbus Day merit increases -Continue Comp and COLA Maint. Program -Steps
1% for general employees to offset increase in VRS
2% plus 1% increase to offset VRS increase
-2.3% lump sum -Alternating for employees merit increases at top of grade and COLA
Moving Forward FY 13
Continue Compensation Maintenance Program
Bid Health Plan
FY 14 & Beyond Consider Open Ranges Complete Compensation Maintenance Program
A-4
Implement new Health Care Contracts
Evaluate /Implement recommendations from Total Compensation Workgroup
14
