Submitted By
Kira Tchang, Assistant Village Manager/HR Director
Reviewed By
Erin E. Baynes, Assistant to the Village Manager
Agenda Item Title
Title
A Resolution Approving Amendments to Appendix I (“Job Class and FLSA Status”) and Appendix VII (“Appointee Pay Plan Schedule”) of the Village of Oak Park Personnel Manual
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Overview
Overview
The Village of Oak Park Personnel Manual includes personnel policies that set expectations for employee and management responsibilities, ensure employees are treated in a consistent manner, inform employees of their rights and benefits, and comply with State and Federal rules and regulations. Staff regularly reviews the Personnel Manual and make periodic updates to ensure the Village complies with applicable laws and that the policy manual is consistent with the Village’s authorized budget. Appendices I and VII have been updated to reflect staff’s recommendation following a Non-Union Compensation and Classification Study conducted by GovHR and reviewed by the Board of Trustees in a study session on February 13, 2024.
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Recommendation
Recommendation
Adopt the Resolution.
Background
On February 13, 2024, the Village Board of Trustees heard a presentation from GovHR regarding a Non-Union Compensation and Classification Study conducted in the Fall of 2023. The purpose of the study session was to hear GovHR’s findings following a comprehensive review of the Village of Oak Park’s non-union job descriptions and compensation systems in addition to external market analysis.
Staff recommends the adoption of a new Appointee Pay Plan (Appendix VII) and Fair Labor Standards Act (FLSA) Status (Appendix I) which will set pay standards for non-union employees.
Based on the Board’s feedback, staff recommends implementing the New Appointee Pay Plan at the 50th percentile of the market and bringing employees into alignment with the new plan by increasing all employees who would fall below up to the new minimums. This would result in 25 active employees receiving pay increases in order to align with the new pay plan. Over 83% of impacted employees would fall in grades 1-7 of the newly proposed pay schedule and 4 impacted employees would fall in grades 8 and 9. No employees in grades 10 or 11 would be impacted by the newly proposed pay schedule.
While there was discussion at the Board table regarding a compensation philosophy that would place Oak Park non-union employees at the 60th percentile of the external market, and of making additional equity adjustments to acknowledge years of service and experience within the new pay bands, there was not a clear consensus on either of these initiatives. With regard to moving Oak Park non-union staff to the 60th percentile of the market, there is additional analysis in the alternatives section. For other equity adjustments within the pay bands, staff recommends including this analysis as a part of the long-term financial planning project that is planned to begin later this year with the intent to come back to the Board in the future with a recommendation that includes more comprehensive economic analysis that may be part of a broader conversation about the Village’s financial goals.
Fiscal Impact
The economic impact of bringing all employees into compliance with the recommended pay plan established at the 50th percentile is $132,874.60. The Village Board appropriated $250,000 in the fiscal year 2024 budget within the Finance Department’s budget to address the outcome of the compensation and classification study.
DEI Impact
Pay equity is an important aspect of advancing diversity, equity, and inclusion - specifically, racial equity. As women and people of color continue to experience pay disparities in the labor market, being proactive in assessing pay ensures the Village is responsive to market trends to attract talent from diverse and underrepresented backgrounds.
Alternatives
The Village Board could adopt an Appointee Pay Plan at the 60th percentile of the market which would result in salary minimums and maximums that range from 1.8% to 3.6% greater than those in the 50th percentile.
Grade 1: $49,000-71,050
Grade 2: $64,000-92,800
Grade 3: $68,480-99,296
Grade 4: $73,274-106,247
Grade 5: $82,000-$118,900
Grade 6: $87,740-$127,223
Grade 7: $93,882-$136,129
Grade 8: $100,454-145,658
Grade 9: $113,000-163,850
Grade 10: $124,300-180,235
Grade 11: $136,730-$198,259
Should the Board adopt an Appointee Pay Plan at the 60th percentile of the market, 28 employees would receive pay increases to bring them into alignment with the new minimums. 82% of the eligible employees would fall into the newly established grades 1-7 with the remaining 18% in grades 8 and 9. No employees in grades 10 or 11 would be impacted by a 60th percentile pay plan.
The total cost of bringing employees into compliance with a pay plan established at the 60th percentile is $175,640,76. The Village Board appropriated $250,000 in the FY24 budget within the Finance Department’s budget to address the outcome of the compensation and classification study.
Previous Board Action
The Board adopted Resolution 23-200 on June 5, 2024, updating Appendices I and VII.
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
Staff anticipates future discussion regarding pay equity adjustments for years of service and experience as a part of the long term financial planning process.
Intergovernmental Cooperation Opportunities
N/A