Submitted By
Kira Tchang, Assistant Village Manager/HR Director
Agenda Item Title
Title
Presentation on the Village of Oak Park Classification and Compensation Study for Non-Union Employees
End
Overview
Overview
The Village Board approved a professional services agreement with GovHR USA, LLC (“GovHR”) on April 24, 2023, to conduct a Classification and Compensation Study for non-union positions in the Village. This study included a review of job descriptions, the compensation system (including benefits), and determination of the correct market pay for each position. The purpose of the project is to ensure the Village provides equitable wages for non-union employees in alignment with the Village’s compensation philosophy and to support of employee recruitment and retention.
End
Anticipated Actions/Commitments
Recommendation
Based on feedback from tonight’s session, staff will bring forward a recommendation to adopt a new Appendix I: Job Classification and Fair Labor Standards Act (FLSA) Status and Appendix VII: Appointee Pay Plan Schedule in the Village of Oak Park Personnel Manual. Should the Board adopt a new Appointee Pay Plan, the immediate fiscal impact of the adoption is approximately $133,200 to bring 24 employees who would then fall under the new grade minimums to the newly established minimums. The FY24 adopted budget includes $250,000 in the Finance Department to address the outcome of the Classification and Compensation Study. Unless otherwise directed, staff may also make additional recommendations to pay adjustments for non-union employees related to pay equity for years of service.
Report
The Human Resources Department has been working with GovHR USA, LLC since the Board authorized a resolution approving the professional services agreement on April 24, 2023. The goals of the Classification and Compensation Study were: 1) Conduct a job evaluation analysis and recommend a job classification system, 2) Conduct a salary and benefit survey for comparable communities, and 3) draft and present a final report of findings. Representatives from GovHR will present their findings to the Board of Trustees, the draft final report and presentation is attached.
DEI Impact
N/A
Alternatives
GovHR conducted their analysis based on a 50th percentile comparison with the intent of internal equity and external competitiveness. The Board may request staff seek additional information or analysis from GovHR to present alternative recommendations using a different pay philosophy, for example a 40th percentile request or a 60th percentile request, dependent on the Board’s pay philosophy.
Alternately, the Board could elect to take no action and maintain the current Appointee Pay Plan which would have no impact to employee wages.