Classification & Compensation
Compensation Philosophy
Overview
In May of 1997, the City Council adopted its first-ever Compensation Philosophy statement. The statement is intended to provide a broad framework for the City Council, management, employees and the citizens in order to understand and guide decisions that affect pay. It is designed to reflect the importance public employees play in the delivery of services and programs to the community; that compensation is a clear measure of that importance; and that there is fair and equitable treatment of all employees, regardless of race, gender, or disability, and in accordance with EEO/AA goals. In addition, the statement establishes the commitment and necessity to maintain comparability with jurisdictions who are most likely to affect recruitment and retention of employees.
Competitiveness and Comparability
The intent of the compensation philosophy is to maintain a competitive compensation program in order to attract, retain, and motivate qualified employees. To that end, the following principles govern compensation programs:
- Pay programs are intended to be competitive at a minimum with the average pay of comparator organizations in the primary labor market. The primary labor market is currently defined as the Counties of Arlington, Fairfax, Prince William, Montgomery and Prince George’s.
- From time-to-time, the City Manager may recommend that other comparators should be used (e.g., Commonwealth of Virginia, agencies of the Federal government, or private sector employers or industry groups) where information from the primary labor market is considered insufficient to attract and retain specific positions or classes.
- In order to accomplish this objective, the salaries of representative benchmark classes for all occupational groups are compared to the minimum and maximum salaries, with a focus on the mid-point, of the comparator jurisdictions. The benchmark classes were selected primarily from the Local Government Personnel Association (LGPA) Salary Survey document because they represent the common job classifications used by most, if not all, local area jurisdictions, including the comparators. The benchmark matches are also reviewed and validated annually by the participating jurisdictions. More importantly, the benchmarks capture on-going evolutionary changes occurring within these occupations and provide a meaningful basis to make market rate comparisons. The remaining City job classifications that were not selected as a benchmark job, were “linked” to one of the selected benchmark classes. This process allows us to affect both the benchmark class and any classes “linked” to a benchmark class when survey results indicate a pay adjustment is necessary. In determining the appropriate linkages, input was obtained from department and office heads City-wide. The list of benchmark classes and linked classes are reviewed and updated as new classes are established or abolished in order to maintain accurate and timely data.
- In determining Alexandria’s market competitiveness, a market ratio was developed. Alexandria’s relationship to the market is shown as the market ratio falls below or rises above 100%. Job classes with a market ratio of less than 90% are considered to be below the market. If an adjustment is authorized based upon the survey results, the grade for the benchmark class(es) plus the linked class(es) would be adjusted to minimally place the class(es) within the acceptable threshold (90-110 %).
- In all instances, for benchmark jobs, information for an assessment of pay competitiveness will be ascertained through reliably published compensation survey data.
- Every five years, or more frequently when so determined by the City Manager, the Manager will conduct a market study of benchmark positions to determine the competitive posture of the organization, and propose a plan of action, if needed, to bring any positions or classes into competitive alignment. At any time the City Manager determines that one or more particular classes need to be reviewed more frequently than once every five years, necessary action may be taken to address the market position of such classes.
- Where an average salary for a class(es) falls below or exceeds market averages to the extent that attracting and retaining qualified employees may be jeopardized, the City Manager may take actions necessary to align the class(es) with the competitive market place, for implementation in the next fiscal year, or sooner if financially feasible.
General Salary Adjustments
Annually, the City Manager will recommend a budget for general salary adjustments that is based upon:
- Overall competitive posture of the organization.
- Cost-of-living changes, as determined by the CPI-U-DC (Consumer Price Index-Urban-for the Washington Metropolitan Area, published monthly by the U.S. Department of Labor, Bureau of Labor Statistics).
- Comparator organizations in the primary labor market.
- Financial affordability.
Pay Scales
The City Manager will promulgate pay scales for all employees that will provide information on salary increases within a particular grade that an employee may expect from year-to-year if performing satisfactorily. For public safety classifications, because of the unique nature of a command-based hierarchy with structured ranking of employees and a career expectation upon initial hiring, the Public Safety pay schedule will differ from the General Schedule only in the number of grades necessary to cover the amount of classes that need to be graded.
For all employees, the percentage increases in the salary schedule from year-to-year will not be the same amount every year in a particular grade, but will have some variability to reflect length of service and base salaries. To attract and retain employees in the early years of service, while base salaries are still relatively low, the percentage increase may be higher than for more senior employees, who are performing satisfactorily, and gaining more experience and providing even greater value to the City, but have a higher base salary. However, in all cases, employees will know the number of years necessary to reach maximum pay in a particular grade, performance expectations to advance in-grade, and career development opportunities to advance to another grade.
The specific schedules will be competitive with the averages for the primary labor market, and will be adjusted whenever necessary to maintain market competitiveness.
Salary increases from the pay scale are a function of satisfactory performance — merit. All employees should be made aware that such increases are a recognition of performance that meets and exceeds expectations. Performance standards and supervisory evaluations should stress that merit increases are not automatic.
Career Development Increases
The City Manager will maintain a pay structure to provide career advancement to recognize the attainment of career levels and developmental milestones that assure that the City’s career classes are paid comparably with those in the primary labor market. Such a structure, or “career ladder,” enables existing employees in career classes within the City to receive pay increases in addition to merit, and enables the City to target its pay to those employees who grow in skill and capability.
Career ladders have been established in the following class series: Legal Secretary I, II; Code Enforcement Inspector I, II, III; Code Enforcement Engineers I, II, III; Budget/Management Analyst I, II, III; Urban Planner I, II, III; Motor Equipment Operator, Equipment Operator I, II, and Heavy Equipment Operator; TES Inspector I, II; Emergency Rescue Technician I, II; Deputy Fire Marshal I, II, III; Deputy Sheriff I, II, III, IV; Fire Fighter I, II; Police Officer I, II, III, IV; Parking Enforcement Officer I, II, III; Assistant City Attorney I, II, III, IV, V; Assistant Commonwealth Attorney I, II, III, IV, V; and Buyer I, II.
Exceptions
Nothing in this compensation philosophy statement should be construed as a required benefit in the event that the City experiences a decline in revenue or a revenue growth lower than the projected increase in expenses. “Revenue” is currently defined as the two largest components of operating revenue: the real property tax base and the projected total personal property tax base.
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