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HomeMy WebLinkAboutI. B. Market Salary Survey Update -Requested During Budget Reconciliation 2.11.2025© 2025 by The Segal Group, Inc. Summary of Findings February 11, 2025 City of Virginia Beach, VA FY25 Total Compensation Study 2 Goals, timeline, methodology Findings Recommendations │Agenda 3 Measure the City’s market position for: •Base pay •Supplemental pay •Benefits •Working arrangements Project Goals Understand current and trending compensation practices Recommend approaches to maintain (or improve) the City’s competitive position in a fiscally responsible manner 3 This study sought to 4 Timeline Project Initiation •Finalize contract and scope of work •Project plan development •Understand CVB’s data, policies, organizational structure Discovery and Methodology •Select benchmark jobs •Identify comparison organizations •Develop survey August September September/October November/December December/January Data Collection •Survey distribution •Encourage participation •Research publicly available information •Compile published data Data Analysis •Review and finalize 3,000+ job matches •Audit 5,000+ other data points and calculations •Verify and clarify information on benefits programs, pay policies, etc. •Prepare reports and summary exhibits Recommendations •Identify viable changes •Estimate implementation costs 5 The study covers about 7,500 employees •Full-time and part-time positions •General government and public safety •The five primary pay scales Methodology Employee Groups and Pay Scales Group Pay Scales Employees* General Government G, A, H 5,659 Public Safety Y, Z 1,817 Total 7,476 * Positions and pay scales excluded from the study include state employees, constitutional officers, City Council appointees, and elected officials Pay Scale Legend G = General A = Administrative H = Hourly/seasonal Y = Public safety Z = Public safety management 6 Methodology Elements of Total Compensation The market assessment included an analysis of: •Pay ranges •Compensation policies and practices •Paid time off •Health benefits •Retirement benefits •Supplemental benefits and flexible work arrangements 6 7 Virginia Outside Virginia*Private Sector Virginia Beach Public Schools Arlington, TX 5 published data sources, Hampton Roads Sanitation District Broward County, FL representing many employers Chesapeake Minneapolis, MN Newport News Raleigh, NC Norfolk Wichita, KS Fairfax County Loudoun County Albemarle County Richmond Federal government Study Methodology Market Comparisons Three market segments were included in the analysis, which represent Virginia Beach’s competitive market: •10 Virginia public sector employers •5 cities and counties outside Virginia with a similar profile •5 private sector data sources * Jurisdictions outside Virginia were chosen based on similarity to Virginia Beach in population size, cost of living, median household income and home value, as well as two that operate a convention/tourism center. Pay rates for organizations outside the commuting area were geographically adjusted to Virginia Beach. 8 Goals, timeline, methodology Findings –Pay rates and policies –Paid leave and benefits Recommendations │Agenda 9 98%100% 96% Public Sector (All) Public Sector (Virginia only) Public Sector (outside Virginia) 105% Pay Comparison within the Public Sector 95% Across all benchmark jobs, the City’s salary range midpoints are competitive with the public sector market – equal to the Virginia market (100%) and slightly under the outside-Virginia market (96%). Market Ratio = Virginia Beach’s pay rate / Market Average pay rate 10 98%100%99% Public Sector (All) Private Sector Public and Private Combined 105% Pay Comparison with Public and Private Sectors 95% Virginia Beach’s salary range midpoints are also consistent with the private sector, resulting in an Overall Market position of 99% across all benchmark jobs. Market Ratio = Virginia Beach’s pay rate / Market Average pay rate 11 99%100% 93% 89% General & Hourly Administrative Public Safety Public Safety Management Market Ratio 105% Market Position by Pay Scale 95% Competitiveness varies by pay scale group, with pay for uniformed public safety jobs less competitive than general and administrative jobs Market Ratio = Virginia Beach’s pay rate / Market average pay rate 12 Below-Market Jobs 58 benchmark jobs lag the market by at least 5% Job Title Market Ratio Job Title Market Ratio Account Clerk II 92%Deputy Comm. of the Revenue 90% Administrative Assistant 94%Deputy Director of Finance 88% Administrative Services Manager II 89%Deputy Director of Public Works 95% Animal Caretaker II 95%Electrician II 90% Assistant Superintendent 92%Emergency Management Planner II 91% Auditor II 92%Engineer V 87% BH DS Behavior Specialist I 93%Engineering Aide III 92% BH DS Clinician I 95%Exhibits Technician II 93% Budget and Policy Analyst III 93%Fire Battalion Officer 85% Business Application Specialist I 91%Fire Captain 87% Carpenter II 93%Firefighter 89% Clerk Cashier 95%Graphic Designer 93% Code Inspector II 93%Groundskeeper I 92% Construction Inspector II 94%Heating and AC Technician II 92% Contracting Agent 93%HR Business Partner II 89% Controller 93%Human Resources Manager 85% Deputy City Clerk II 87%IT Dep Chief Enterp. Solutions & Services 92% 13 Below-Market Jobs CONTINUED 58 benchmark jobs lag the market by at least 5% Job Title Market Ratio Job Title Market Ratio IT Deputy Chief of Info Security 88%Police Officer I 90% Library Branch Services Coord 92%Police Sergeant 95% Library Tech Operations Specialist I 85%Program Educator I 92% Maintenance Worker (mosquito)90%Public Safety Data Services Asst I 95% Maintenance Supervisor 90%Safety Program Specialist 94% Maintenance Worker 92%Survey Aide III 93% Media & Communications Coord II 93%Telecom. Sys. Install Tech.92% Planner II 94%Treasury Specialist I 85% Planning Technician I 95%Utility Mechanic II 89% Plans Examiner I 93%Utility Superintendent 93% Police Captain 94%Zoning Inspector I 91% Police Lieutenant 90%Zoning Inspector Supervisor 95% Market Ratio = Virginia Beach / Market average 14 At-Market Jobs 61 benchmark jobs are within 95%-105% the market average Job Title Market Ratio Job Title Market Ratio 911 Operations Supervisor 101%Deputy Dir of Human Services 103% Accountant III 104%Deputy Dir Plan & Community Devel 104% Administrative Analyst 100%Deputy Dir of Emergency Communication 103% Administrative Specialist II 101%Office Assistant II 99% Assistant Registrar II 99%Paralegal 95% Benefit Program Specialist II 99%Park Assistant 100% BH DS Assistant 95%Payroll Technician II 96% BH DS Supervisor II 102%Perf. & Account. Analyst II 98% Budget and Policy Analyst I 101%Procurement Specialist II 99% Business Development Rep. I 98%Public Safety Emerg Telecom I 105% Business Manager (CFO dept)103%Public Safety Emerg Telecom IV 101% Code Inspector Supervisor 97%Real Estate Appraiser III 100% Convention & Tour Mktg & Sale Coord 101%Recreation Specialist I 104% Custodial Worker 102%Registered Nurse 96% Cyber Security Analyst II 103%Deputy Dir of Parks and Recreation 98% Deputy. Dir. of Economic Develop 101%Engineer I 103% Deputy City Attorney 98%Engineering Technician II 103% 15 At-Market Jobs CONTINUED 61 benchmark jobs are within 95%-105% the market average Job Title Market Ratio Job Title Market Ratio Executive Assistant II 97%Mechanic Technician II 102% Food Service Assistant 101%Motor Equipment Operator II 104% Forensic Specialist II 95%Multimedia Communicate Spec. II 100% Grounds Crew Leader 98%Revenue Agent III 103% Housing Specialist I 98%Senior Attorney 99% Human Resources Assistant 100%Senior Curator 98% Human Services Supervisor I 103%Storekeeper II 96% IT Support Center Specialist II 102%Survey Technician II 103% Landscape Supervisor 101%Systems Engineer II 99% Librarian I 101%Traffic Signal Elec. Tech I 100% Library Services Specialist II 97%Utility Control Ctr. Oper. II 102% Maintenance Engineer II (Elect HVAC)104%Waste Management Administrator 98% Master Firefighter 100%Youth Detention Specialist 99% Master Police Officer 97% 16 Above-Market Jobs 33 benchmark jobs are more than 5% above the market average Job Title Market Ratio Job Title Market Ratio 311 Operations Center Coord 109%Heavy Equipment Operator 116% Activity Center Leader*111%Housing Programs Administrator 105% Animal Control Officer II 111%IT Business Analyst 110% Animal Control Shelter Manager 107%Legal Docket Clerk II 109% Associate City Attorney 110%Librarian V 109% BH DS Clinician III 106%Licensed Practical Nurse (LPN)106% Call Taker I 136%Lifeguard 124% City Arborist 105%Museum Sales Clerk 107% Convention &Tourism Rep. II 119%Parks and Recreation Aide*106% Convention Center Manager 115%Parks and Recreation Supervisor 106% Development Officer 113%Psychiatric Nurse Practitioner 127% Dpty Dir Comm. & Mktg Opers 108%Public Safety Analyst II 111% Event Coordinator 109%Systems Analyst II 107% Family Services Specialist II 109%Traffic Technician II 115% Financial Spec. (non-degreed)109%Victim Witness Caseworker I 108% Fitness Instructor*115%Waste Management Operator II 106% GIS Analyst II 127% 17$52,280$52,280$77,164$77,164$89,327$89,327$98,483$98,483$114,006$58,302$58,823$79,911$77,307$94,250$103,244$110,051$116,217$121,658Police Officer I Firefighter Master Police Officer Master Firefighter Police Sergeant Fire Captain Police Lieutenant Fire Battalion Officer Police Captain Virginia Beach Market Average Public Safety Market Comparisons Police and Fire/EMS pay generally lags the market average by 5%-10% Pay Range MidpointsEntry Rates 18 53% 47% 0% 20% 40% 60% 80% 100% Individual Performance Steps or General Wage Increases Standard Pay Increases 100% 93% 71% 50% Promotional Increases Reclassification Increases Spot Awards/ Bonuses Off-Cycle Increases Other Pay Adjustments Pay Policies The City’s policies regarding pay increases are consistent with market practices 19 Goals, timeline, methodology Findings –Pay rates and policies –Paid leave and benefits Recommendations │Agenda 20 25 30 35 40 45 50 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26+ Years of Service Total Paid Leave per year by Years of Service Virginia Peer Employers Outside Virginia Peer Employers City of Virginia Beach Paid Leave CVB’s PTO program (plus paid holidays) is 6-8 days lower than the Virginia peer employers and 3-6 days lower than those outside Virginia Includes PTO or vacation days, paid sick leave, personal days, and paid holidays per year 21 $128 $30 $154 $72$58 $43 $138 $131 $0 $50 $100 $150 $200 $250 $300 $350 $400 Point of Service (POS)CDHP/HDHP Medical, Dental, and Vision Benefits Combined (monthly costs) Employee Only Coverage Virginia Beach Virginia Peers Outside Virginia Private Sector Health Benefits Employee Cost per Year For single coverage, Virginia Beach employees pay less for health-related benefits compared to other Virginia peers (POS plan) 22 $734 $415 $695 $393 $291 $221 $646 $599 $0 $100 $200 $300 $400 $500 $600 $700 $800 Point of Service (POS)CDHP/HDHP Medical, Dental, and Vision Benefits Combined (monthly costs) Family Coverage Virginia Beach Virginia Peers Outside Virginia Private Sector Health Benefits Employee Cost per Year For family coverage, CVB employees’ monthly costs are slightly greater than the other Virginia peer employers. 23 Hybrid DB/DC 90% DB 10% Virginia Public Sector Retirement Benefits Primary Plan offered to New Employees Defined Benefit (DB) 100% Outside Virginia Public Sector Most surveyed Virginia employers participate in VRS. Outside Virginia, defined benefit pension plans still predominate. Private sector employers are more likely to offer a defined contribution plan only. 24 19% 13%12% 5% 5%5% Virginia Beach Virginia Public Sector Outside Virginia Public Sector Contribution Rates to Retirement Plans as Percent of Pay Employee Employer Retirement Benefits Contribution Rates CVB’s employee required contribution rate to VRS is consistent with the market, although this year’s actuarially determined employer contribution is somewhat higher than the average. 25 Most of the organizations in our study provide these supplemental benefits: •Tuition or education assistance •Continuing education or professional development benefits •Relocation assistance for executive-level positions In addition, most also allow at least some employees to work: •Remotely •A compressed workweek •Flexible hours However, few or none offer financial assistance with: •Personal computers or home office equipment •Gym memberships •Student loans Additional Benefits and Flexible Work Arrangements 25 26 92% 77% 69% 50% 23% 8% 54% 66% 34% 6% 54% Education/Tuition Assistance* Continuing Education/ Professional Development* Relocation Assistance for Executives* Student Loan Repayment Paid/Subsidized Gym Memberships Home PC or Office Equipment Prevalence of Additional Benefits Public Sector Private Sector Additional Benefits *Indicates benefit offered by Virginia Beach 27 85% 54%54% 75% 52% 14% Telework/Remote work Flextime Compressed Work Week Prevalence of Flexible Work Arrangements Public Sector Private Sector Flexible Work Arrangements *Indicates benefit offered by Virginia Beach (if applicable) 28 Goals, timeline, methodology Findings Recommendations │Agenda 29 We estimated the first-year implementation costs of adjusting pay ranges under two different scenarios Scenario 1—At Market Ensure all jobs are paid no less than 95% of the market average •Action: Raise pay for jobs that lag the market by at least 5% •Impact: 48% of employees receive an increase •Cost: About $21.5m (4.55% of payroll – excludes pay related fringe benefit costs) Scenario 2—Lead the Market Ensure all jobs are paid at least 105% of the market average •Action: Raise pay for jobs with a market ratio below 105% •Impact: 76% of employees receive an increase •Cost: About $55.5m (11.75% of payroll – excludes pay related fringe benefit costs) Recommendations To analyze these scenarios, benchmark jobs were linked to non-benchmarked jobs based on career path and comparability 30 Questions and Discussion