KOFF & ASSOCIATES GEORG S. KRAMMER Chief Executive Officer 2835 Seventh Street Berkeley, CA 94710 www.KoffAssociates.com [email protected] Tel: 510.658.5633 Fax: 510.652.5633
October 24, 2017
Total Compensation Study
Final Report
El Dorado County Transit Authority
http://www.koffassociates.com/mailto:[email protected]
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2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com
October 24, 2017
Mindy Jackson Executive Director El Dorado County Transit Authority 6565 Commerce Way Diamond Springs, CA 95619
Dear Ms. Jackson:
Koff & Associates is pleased to present the Total Compensation Study Final Report to the El Dorado County Transit Authority. This report documents the market compensation survey methodology, findings, and recommendations for implementation.
We would like to thank you for your assistance and cooperation without which this study could not have been brought to its successful completion.
We will be glad to answer any questions or clarify any points as you are implementing the findings and recommendations. It was a pleasure working with the El Dorado County Transit Authority and we look forward to future opportunities to provide you with professional assistance.
Very truly yours,
Georg S. Krammer Chief Executive Officer
Total Compensation Study Final Report
El Dorado County Transit Authority
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Table of Contents
EXECUTIVE SUMMARY ....................................................................................................... 3
Background .................................................................................................................... 3
Summary of Findings ..................................................................................................... 3
STUDY PROCESS ................................................................................................................. 3
Benchmark Classifications ............................................................................................ 3
Comparator Agencies .................................................................................................. 4
Salary and Benefits Data .............................................................................................. 6
Data Collection ............................................................................................................. 8
Matching Methodology ............................................................................................... 8
Data Spreadsheets ........................................................................................................ 9
MARKET COMPENSATION FINDINGS ............................................................................. 10
Base Salary .................................................................................................................... 11
Total Compensation .................................................................................................... 12
Benefits .......................................................................................................................... 12
INTERNAL SALARY RELATIONSHIPS ....................................................................................... 13
RECOMMENDATIONS ...................................................................................................... 14
Pay Philosophy ............................................................................................................. 14
Proposed Salary Structure .......................................................................................... 14
Proposed Salary Range Placements ........................................................................ 14
Options for Implementation ....................................................................................... 15
USING THE MARKET DATA AS A TOOL ................................................................................. 17
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El Dorado County Transit Authority
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LIST OF TABLES
Table 1. Benchmark Classification.................................................................................. 4
Table 2. Comparator Agencies ...................................................................................... 5
Table 3. Market Compensation Results Summary...................................................... 10
Table 4. Three-Year Implementation Proposal ........................................................... 15
APPENDICES
Appendix I: Results Summary
Appendix II - A: Market Compensation Findings -- Top and Total Monthly Sorted by
Top Monthly
Appendix II - B: Market Compensation Findings -- Top and Total Monthly Sorted by
Total Monthly
Appendix II - C: Benefits Detail Sheets
Appendix III: Proposed Salary Range Schedule
Appendix IV: Salary Range Placement Recommendations Based on Total Monthly
(Total Compensation)
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El Dorado County Transit Authority
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EXECUTIVE SUMMARY
Background
In March 2017, Koff & Associates (K&A) conducted a comprehensive Total Compensation Study for El Dorado County Transit Authority (EDCTA). All compensation findings and recommendations are presented in this report.
This compensation review process was precipitated by:
The concern of the Board of Directors and management that employees should be recognized for the level and scope of work performed and that they are paid on a fair and competitive basis that allows the EDCTA to recruit and retain a high-quality staff;
The desire to have a compensation plan that can meet the needs of the EDCTA; and
The desire to ensure that internal relationships of salaries are based upon objective, non-quantitative evaluation factors, resulting in equity across the EDCTA.
The goals of the compensation study are to assist the EDCTA in developing a competitive pay and benefit plan, which is based upon market data, and to ensure that the plan is fiscally responsible and meets the needs of the EDCTA with regards to recruitment and retention of qualified staff.
Summary of Findings
This report summarizes the study methodology, analytical tools, and the total compensation (salary and benefits) survey findings. The results of the total compensation study showed:
The EDCTAs base salaries, overall, in comparison to the market median are 20.5% below the market.
The EDCTAs total compensation, overall, in comparison to the market median is 8.8% below the market.
The EDCTAs benefits package puts the EDCTA in a more competitive position compared to the market and, therefore, salary decisions should be based on total compensation versus base salary market results.
K&A considers a classification falling within 5% of the median to be competitive.
STUDY PROCESS
Benchmark Classifications
The study included 19 classifications, and of those, 16 classifications were selected in order to collect salary and benefits data within the defined labor market. Classifications that we would expect to provide a sufficient sample for analysis were selected as benchmarks to use as the basis to build the compensation plan. Benchmark classifications are those classifications that are compared to the market, and these classifications are used as a means of anchoring the EDCTAs
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El Dorado County Transit Authority
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overall compensation plan to the market. Other classifications not surveyed will be included in the compensation plan and aligned to the benchmark classifications using internal equity principles.
The benchmark classifications are listed in Table 1.
Table 1. Benchmark Classification
Classification Title
1. Administrative Coordinator
2. Custodian
3. Equipment Technician II
4. Executive Director
5. Finance Manager
6. Fiscal Technician II
7. Human Resources Manager
8. Maintenance and Facilities Supervisor
9. Maintenance Technician
10. Office Assistant II
11. Operations Manager
12. Planning and Marketing Manager
13. Safety Coordinator
14. Transit Dispatcher
15. Transit Operations Supervisor
16. Transit Operator
Comparator Agencies
Another important step in conducting a market salary study is the determination of appropriate agencies for comparison. In developing the list of potential comparator agencies, Agency selection is based on the following factors:
1. Organizational type and structure It is generally recommended that agencies of a similar size and providing similar services to that of the EDCTA be used as comparators.
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El Dorado County Transit Authority
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When it comes to technical classes, the size of an organization is not as critical, as these classes perform fairly similar work. The difference in size of an organization becomes more important when comparing classes at the management level. The scope of work and responsibility for management becomes much larger as an organization grows. Factors such as management of a large staff, consequence of error, the political nature of the job, and its visibility all grow with larger organizations. When
