041508 CompensationApril 15, 2008
City of Virginia Beach
Compensation Proposal for FY08/09
and FY09/10
Presentation Focus Areas
Overview of Personnel Costs
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Proposed Compensation Program
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General Increase
?
Exceptional Performance Bonus Award
?
Funding for Hard-to-Fill Positions
?
Summary
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Overall Costs
FY08/09 Personnel Costs
$437.9M
(Includes Internal Services Funds)
Health Insurance,
8.36%
Miscellaneous Fringe
Benefits, 0.21%
Life Insurance, 0.59%
Retirement, 10.96%
F.I.C.A., 5.49%
Other Personnel
Costs
1.45%
Full-Time
67.47%
Overtime, 2.18%
Part-Time, 3.29%
Full-TimePart-TimeOvertime
Other Personnel CostsF.I.C.A.Retirement
Life InsuranceHealth InsuranceMiscellaneous Fringe Benefits
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Proposed Compensation Program
FY08/09 and FY09/10
ComponentCost
1.5% General Increase$3.9m
Exceptional Performance Bonus Award$1.0m
Hard-to-Fill Positions$0.9m
Total: $5.8m each year
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What the General Increase
Provides
1.5% adjustment to non-public safety
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employees’:
Individual Salaries
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Pay Ranges
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Hourly Positions
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Note: Per Council decision, Public Safety Employees
received increased retirement multiplier in lieu of
1.5% general increase for FY09
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What the Exceptional Performance
Bonus Award Provides
Opportunity for lump-sum incentive award for
?
Outstanding Performers in lieu of a merit increase
? Up to 20% of the full-time workforce could qualify each
year
Ratings in the performance appraisal will be used
?
to justify awards
? Beginning July 2008 –Modify existing evaluation form
? Beginning July 2009 –New evaluation criteria
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What the Exceptional Performance
Bonus Award Provides
(Continued)
Distribution of $1 million based on the number of
?
full-time positions in each department
Department Directors will review each exceptional
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performance evaluation
Distribution of bonus in the last paycheck in June
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of each year
Suspension of the current performance bonus
?
element of the program (Full program implemented
July 2003)
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What Hard-to-Fill Funding
Provides
A means to address increased difficulty in
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hiring due to:
Tight economy
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Generational differences
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Competition from private organizations
?
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What Hard-to-Fill Funding
Provides
(Continued)
Hard-to-Fill methodology will assess:
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Are we competitive in the five-city market?
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Are there other markets driving salaries?
?
Is a change in pay range needed?
?
Are changes in non-cash incentives needed?
?
$900,000 Cost Each Year
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Summary
Previous goal: 4.5% pay increase whenever fiscally
?
possible
7.00%
Proposed
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
FY 03-04FY 04-05FY 05-06FY 06-07FY 07-08FY 08-09
3.00%3.00%4.00%4.00%4.50%3.00%
Chesapeake
3.30%3.50%4.00%4.00%4.00%0.00%
Hampton
4.00%2.00%4.00%4.00%4.00%3.00%
Newport News
3.97%3.97%2.50%6.00%4.50%3.50%
Norfolk
2.00%3.00%3.00%2.50%4.50%3.00%
Portsmouth
4.05%3.00%4.50%4.50%3.50%1.50%
Virginia Beach
Virginia BeachFY 08FY09 and FY10
1.5%
General Increase
1.5%
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__0%
Merit
2.0%
3.5%
1.5%
Summary
(Continued)
We are also maximizing use of limited resources
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by:
Adding the exceptional performance bonus award
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Note: Without movement through the pay ranges,
?
some minor salary compression will be a reality
Adding hard-to-fill position funding
?
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Summary
(Continued)
We will implement a new performance
management program consisting of:
Pay increases tied to levels of performance
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Quantifiable ratings
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IMPLEMENTATION: July 2010
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PerformanceManagementTransition
July 1, 2008July 1, 2009July 1, 2010
Use new Convert to
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Use modified
?
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new form and
evaluation
evaluation
performance
criteria
form
management
Apply
?
Apply
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program
exceptional
exceptional
Eliminate use
performance
?
performance
of exceptional
bonus award
bonus award
performance
bonus award
QUESTIONS?
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