REPORT TO THE TOWN COUNCIL:

   A  JOB  CLASSIFICATION  AND

COMPENSATION PLAN

   FOR

   CHAPEL HILL, NORTH CAROLINA

April 2000

Dr. Stephen E. Condrey

Project Director

Condrey and Associates, Inc.

110 Sharon Circle

Athens, Georgia 30606-1715

At the request of the Town of Chapel Hill, Condrey and Associates, Inc. entered into a contract with the Town for the development of a job classification and compensation plan.  We are pleased to make this report to the Council which summarizes the process we followed in conducting the study,  recommends a classification and pay assignment for every Town position and suggests strategies to implement the recommendations.  

The Town’s objectives of the study included:

1.            Reviewing and revising the current system of classification of Town positions and the current pay plan for all employees;

2.       Producing an updated description of each job in the Town and creating an equitable classification system based on an analysis of  job content;

3.      Surveying the local and regional market to collecting wage data, both at the middle and at the 75^th percentile of the market; and

4.      Producing a recommended pay plan based on analysis of  responsibilities of the positions and on wage survey data, and suggesting an implementation strategy with costs for the pay plan.

The classification and pay plan that we have developed and recommend to you is essentially an investment in the Town’s employees.   If adopted, we believe it will better equip the Town to recruit and retain a quality workforce.  It will improve the Town’s position in the labor market, enhancing Chapel Hill’s ability to recruit and retain top-flight employees with the ultimate goal of providing better service to the Town’s citizens.  The new classification plan also provides for better internal alignment of positions within the Town and makes provision for career-based advancement within key job classifications.

We look forward to meeting with you on May 17^th to answer your questions about the study and our recommendations.

Steve Condrey, Condrey and Associates

Process followed for the Chapel Hill study:

The process used to collect the necessary data and develop the classification and compensation plan consisted of several steps or phases:

1.      Information gathering about positions:  The first step involved gathering detailed information about the work of Town positions, so that we could evaluate the duties and responsibilities and survey the market for similar positions.  We conducted orientation sessions about the study and distributed a position questionnaire; all employees had the opportunity to complete a questionnaire describing their job.  The questionnaire asked about major duties of the employee's position as well as the physical demands and work environment of the position. 

2.      Employee interviews:   After reviewing the information on the position questionnaires, Condrey and Associates interviewed  approximately 80% of position incumbents (over 300 interviews) individually and in groups.    Our experience in interviewing the Town’s employees was a positive one.  The Town should take pride in its competent and professional workforce.

3.      Analysis and ranking of positions:  The next phase in the study involved evaluating each position, grouping the same or similar positions together, and then rating the positions in comparison to a standard set of factors.  To assure consistency and reliability, all positions were rated by Condrey and Associates utilizing the Factor Evaluation System (FES).  FES was developed by the Civil Service Commission (now the Office of Personnel Management) of the federal government and is considered to be a state‑of‑the‑art system in public human resource management. We have used these factors in the hundreds of studies we have conducted of positions in local government organizations.

            FES is a point‑factor‑comparison evaluation system that uses nine factors for the evaluation of jobs: 

            -      Knowledge Required by the Position,

            -      Supervisory Controls,

            -      Guidelines,

            -      Complexity,

            -      Scope and Effect,

            -      Personal Contacts,

            -      Purpose of Contacts,

            -      Physical Demands, and

            -      Work Environment. 

In order to adapt the FES system to the local government setting, a tenth factor covering supervisory responsibility was added by Condrey and Associates. 

            Each of these factors has an assigned numerical weight (e.g., the factor called  “Knowledge Required by the Position" carries heavier weight than “Physical Demands”) .  Each factor has several levels, and each level is assigned a specified number of points.  The combined score on all the factors determines the total number of points for each position and, along with market data, its assignment to a grade in the classification plan. 

            Using the knowledge of  Town of Chapel Hill jobs gained from our  interviews and from our review of position questionnaires, we evaluated each job using the FES factors and ranked the positions.   These rankings, along with salary data, were used to develop recommendations for a salary grade for each position.   Appendix A presents  the recommended grade levels assigned all Town positions.  

            Appendix A-1 provides a copy of a sample class specification.  Condrey and Associates developed over 175 such descriptions for the Town, and, following review of draft descriptions by covered employees, is finalizing the specifications for the Town.

4.         Labor market survey: The project also involved collecting salary survey information.  Condrey and Associates conducted a salary survey of  selected public and private organizations specifically for this study  and received 40 responses to the survey.  The respondents to our survey are listed in Appendix B.  In addition, salary data already compiled by two other organizations, the International City/County Management Association, and North Carolina’s Capital Associated Industries, were also used.

            In the survey we requested information on the number of positions, the hiring rate, and the average of salaries actually paid.  At the request of the Town, we analyzed the data using both the average of the market and the 75^th percentile of the market.

            See Appendices B-1 through B-4 for summaries of the salary data obtained in response to the Condrey and Associates survey, and B-5 and B-6 for the International City/County Management Association data (Appendix B-5) and Capital Associated Industries data (Appendix B-6).

5.         New salary schedule structure:  Another component  of the study was the development of a schedule of salaries used to rank positions and to assign employees to grades.  We proposed a schedule similar in structure to the one already in use by the Town, but with some revisions.  The proposed schedule, which is included as Appendix C, consists of twenty-nine grades, and a range of  salaries approximately 50% from minimum to maximum. The range is deliberately broad so that employees can see career advancement potential in their employment with the Town. 

            We also proposed  that the salary ranges in the schedule be the same for all jobs, and not have the compressed ranges for the lowest level positions that your current schedule has.

6.            Ranking of positions:  Using the job knowledge gained through interviews and the questionnaires, the position ranking and evaluations using the FES system, and the collected and analyzed salary survey, Condrey and Associates recommended a classification and pay range for each Town position category.  These recommendations are based on  two key principles:

-           an internal value system of fairness and equity between positions based on the components of the jobs, and

-            an externally equitable and competitive pay system.

Attachment A shows the recommended assignment of Town classes of work to salary grades and salary ranges.  The Town’s Personnel Department assisted Condrey and Associates by preparing information sent to each employee on the recommended new title, salary grade, and salary range for his or her job.

            We believe that the recommended  plan, which is based on current market data, should prove to be competitive in attracting and retaining a quality workforce.

7.         Cost estimates for implementation:  The final step in the process of developing classification and pay recommendations was to  assess the cost to the Town of the recommendations based on how the salaries of individual employees would be affected by their new salary range .  Condrey and Associates suggested two different implementation strategies for the Town’s consideration and the Town’s Personnel Department calculated salary and benefits costs based on these strategies:

-               Plan A:   With any new pay plan the first priority is to raise employee salaries to the minimum of their new range.  However, unless other adjustments are made, implementing a plan may compress individual pay rates (salaries grouped closely together, regardless of length of service to the organization or quality of performance).  To help alleviate this problem, we also proposed adjusting employee salaries to the probationary step, or to the next higher step in their range.  We then proposed an in-range “equity adjustment” to reduce compression of salaries and maintain the current spread between the salaries of employees:  this equity adjustment would provide an additional step increase for any employee with at least 1 year of service  and  would recognize employee service to the Town. 

It is our understanding that your Manager’s Recommended Budget includes the funds to implement the classification and pay study based on Plan A.  We understand from the Personnel Director that the costs in salaries and benefits to implement the plan on October 1, 2000, for your current payroll is $1,088,000 :

                        $789,000                         General Fund

                        $242,000                        Transportation Fund

                        $ 42,000                           Housing Fund

                        $ 15,000                        Parking Fund

-           Plan B:  In addition to the implementation plan in A, we also proposed additional equity or compression adjustments.  We proposed that any employee with four or more years of service on June 30, 2000, receive an additional step increase so that they received two steps instead of one.  It is our understanding that, because of the additional approximately $600,000 cost of this proposal, your Manager’s Recommended Budget does not include funding for these  additional Plan B adjustments.  We would urge that you consider implementing this or a similar additional equity or compression adjustment in future fiscal years.

In the future:    

Even after completion of these phases, it may be necessary to re-evaluate positions based

on a change in duties or on a refocused job description.  It is the intention of Condrey and Associates to continue to provide technical assistance in this process.  In addition, if there are employee appeals of their classifications, we will provide the Town Manager with information about the basis of the classification and pay recommendations.

In future fiscal years, in order to keep the proposed salary table current, an annual market adjustment should be considered.  This adjustment should be applied as an increase to the salary schedule and as a general percentage salary increase for all employees when market conditions dictate.  This market adjustment should be made in addition to employee step raises.  Thus, the Town may budget for two annual personnel cost adjustments:  1) an adjustment to the rates in the salary schedule  which would raise every eligible employee’s salary to a step within the new schedule, as market conditions dictate, and 2) annual increases linked to employee service and/or performance.

In conclusion:

We appreciate the opportunity to work with the Council and staff  of the Town of Chapel Hill, and look forward to providing you with information that will help you as you consider these recommendations.

Appendix A:                             Recommended classifications by grade

Appendix A-1:             Sample of the Class Specifications (developed for every job)

Appendix B:            List of Salary Survey Respondents to Condrey and Associates survey 

Appendix B-1:                         Salary Survey Summary:  Chapel Hill area Labor Market

Appendix B-2:                         Salary Survey Summary:  All survey respondents

Appendix B-3:                         Salary Survey Summary:  North Carolina Cities and Counties 

Appendix B-4:                         Salary Survey Summary:  All Cities responding

Appendix B-5:                         Salary Survey Summary:  International City/County Management Association

Appendix B-6:                         Salary Survey Summary - Capital Associated Industries

Appendix C:                             Recommended New Salary Schedule

Appendix D:                             Report of actual salary data, by respondent

Dr. Stephen E. Condrey.  Steve Condrey, President of Condrey and Associates, is a Senior Associate and Program Director, Human Resource Management Technical Assistance with the University of Georgia’s Carl Vinson Institute of Government and Adjunct Professor of Political Science, where he teaches in the Master of Public Administration program.  He has over 20 years of professional experience in human resource management and has consulted nationally and internationally with over 250 organizations concerning personnel-related issues.  He presently serves on the editorial boards of Public Administration Review and Public Personnel Management, and has served on the publications board of the American Society for Public Administration. 

Dr. Condrey is the editor of the Handbook of Human Resource Management in Government, Jossey-Bass, 1998.  He is the 1998 recipient of the University of Georgia’s Walter Barnard Hill Award for Distinguished Achievement in Public Service and Outreach.  He is the Chair-elect of the Section on Personnel and Labor Relations of the American Society for Public Administration

Appendix A: Draft Assignment of Classes to Grades and Ranges, 10/1/00

APPENDIX A-1: SAMPLE CLASS SPECIFICATION

JOB TITLE: Transit Operator II                                                        TRAN/I I

DEPARTMENT: Transportation, Town of Chapel Hill

JOB SUMMARY: This position is responsible for operating a bus or other transit vehicle for fare-paying passengers along an assigned route and for operating charter buses on occasion.

MAJOR DUTIES:

·       Operates a fixed-rate bus along an assigned route.

·       Operates buses for charter trips within the surrounding area.

·       Conducts a safety inspection of the bus prior to leaving the garage; checks the brakes, tires, lights, wipers, and wheelchair lift; conducts a walk-around inspection for body damage; completes defect cards as necessary.

·       Records all required farebox readings; completes all required paperwork and reports.

·       Issues transfer slips as requested.

·       Provides information regarding routes, schedules, and services.

·       Assists elderly and handicapped riders as necessary; secures wheelchairs.

·       Assures that all fares and transfer slips are collected; checks passengers' identification cards to assess proper fare.

·       Maintains contact with supervisors and other drivers by two-way radio.

·       Assists with training of new drivers.

·       Picks up litter on bus; sorts items for recycling.

·       Changes destination sign as needed.

·       Places advertisements on bus.

·      May operate other transit vehicles as necessary.

·       Performs other related duties as assigned.

KNOWLEDGE REQUIRED BY THE POSITION:

          .      Knowledge of the techniques of driving a passenger bus.

Transit Operator 11, Transportation

Page 2

·       Knowledge of traffic laws and safety procedures and requirements.

·       Knowledge of the layout of the Town, including street names and school and business locations.

·       Knowledge of federal commercial driver's license regulations.

·       Knowledge of bus routes and schedules.

·       Knowledge of relevant Town and department rules and regulations.

·      Skill in defensive driving techniques.

·      Skill in record-keeping.

·      Skill in operating a bus, two-way radio, electronic farebox, electronic destination sign, wheelchair lift, and flares.

·      Skill in oral and written communication.

SUPERVISORY CONTROLS: The Transportation Supervisor assigns work in terms of somewhat general instructions.  Work is spot-checked in progress and upon completion for accuracy, compliance with established procedures, and the nature and propriety of the final results.

GUIDELINES:            Guidelines include state and local traffic laws and regulations, operating bulletins, federal Department of Transportation regulations, Town and department policies and procedures, and vehicle standard operating procedures.  These guidelines are generally clear and specific, but may require some interpretation in application.

COMPLEXITY: The work consists of related duties in operating a bus on an assigned route and on charter runs.  Heavy traffic and time constraints contribute to the complexity of the work.

SCOPE AND EFFECT: The purpose of this position is to operate a bus for fare-paying passengers along an assigned route and to operate charter buses on occasion.  Successful performance ensures that Town residents and visitors are transported safely and efficiently.

PERSONAL CONTACTS: Contacts are typically with co-workers, students, and the general public.

PURPOSE OF CONTACTS: Contacts are typically to give or exchange information and provide services.

Transit Operator 11, Transportation

Page 3

PHYSICAL DEMANDS: The work is typically performed while sitting in the driver's seat of a bus, with intermittent standing, walking, bending, crouching, or stooping.  The employee

occasionally lifts light and heavy objects and uses equipment requiring a high degree of dexterity.

WORK ENVIRONMENT: The work is typically performed on a bus.  The employee is exposed to contagious or infectious diseases, machinery with moving parts, and occasional inclement weather.

SUPERVISORY AND MANAGEMENT RESPONSIBILITY: None.

APPENDIX B

SALARY SURVEY RESPONDENTS

TOWN OF CHAPEL HILL SALARY SURVEY

North Carolina Cities                                       North Carolina Counties:

City of Asheville                                        Durham County

City of Burlington                                       Orange County

Town of Carrboro                                        Wake County

Town of Cary

City of Durham

City of Fayetteville                                     Other Government Organizations

City of Goldsboro 

City of Greenville                                       University of North Carolina at Chapel Hill

City of High Point                                        UNC Hospitals

City of Raleigh                                      Orange Water and Sewer Authority (OWASA)

City of Rocky Mount

City of Salisbury

City of Wilmington

City of Wilson

City of Winston-Salem

Transportation                                      Libraries

Durham Area Transit Authority                      High Point Public Library

Capitol Area Transit System                                Hyconeechee Regional Library

Charlotte Transit System

Triangle Transit Authority

Triangle Area Private Industries

Blue Cross/Blue Shield

Research Triangle Institute

(In addition, we utilized data from the Capital Associated Industries’ survey of 449 participating private sector employers in Eastern and Central North Carolina.)

To collect regional data for department head positions:

            South Carolina Cities            City of Greenville, City of Rock Hill,  City of Spartanburg

            Virginia Cities   City of Lynchburg, City of Roanoke, City of Suffolk

            Georgia Local Governments:  City of Albany, Athens-Clarke County, City of Marietta, City of Valdosta, City of Warner Robins

 Appendix B-1

Summary Salary Survey Results:

Chapel Hill Labor Market (Research Triangle Area Employers)

Appendix B-2

Summary Salary Survey Results

All Survey Respondents

Appendix B-3

Summary Salary Survey Results:

North Carolina Cities and Counties

Appendix B-4

Summary Salary Survey Results:

All Cities (North Carolina, South Carolina, Virginia, Georgia)

Appendix B-5

Summary Salary Survey Results:

International City/County Management Association ¹

¹Derived from Compensation 99, published by the International City/County Management Association.  Data reported is the mean salary for the South Atlantic portion of the United States factored for inflation (25,000 - 49,999 population).  Salary information for Engineering Director is derived from the 1999 survey conducted by the Professional Engineers of North Carolina (factored for inflation).  Mean 75^th percentile for this position is $78,395.  Survey information for Library Director is derived from the 1999 survey conducted by the North Carolina Public Libraries Association (factored for inflation).  Mean 75^th percentile for this position is $82,029.

Appendix B-6

Summary Salary Survey Results:

Capital Associated Industries¹

¹Derived from 1999 North Carolina Wage and Salary Survey, published by Capital Associated Industries.  Data reported is mean annual entry rate for Area 1, factored for inflation.  Salary information for the Engineer position is derived from the 1999 survey conducted by the Professional Engineers of North Carolina (factored for inflation).  Mean 75^th percentile for this position is $48,485.

APPENDIX C

RECOMMENDED SALARY SCHEDULE:  October 1, 2000