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HomeMy WebLinkAboutResolution 2024 (03) Resolution No. 3 (2024) RESOLUTION ADOPTING UPDATED WAGE GRID COVER MEMO TO: County Board of Supervisors FROM: Ken Witt, County Administrator DATE: January 2, 2024 AGENDA ITEM: Resolution Adopting Updated Wage Grid ______________________________________________________________________________ BACKGROUND INFORMATION St. Croix County contracted the McGrath Human Resources Group to conduct a Classification and Compensation Plan Update. The contract included a review of position placements, updating the compensation schedule, and providing options to modify the schedule for fiscal sustainability while maintaining market placement. McGrath conducted an external market analysis of current positions within St. Croix County to twenty-one other similar municipalities, performed a limited internal analysis of positions within St. Croix County to account for external market factors and ensure internal equity, provided recommendations to the current compensation system that will attract and retain highly qualified employees, and determined the fiscal impact of the proposed system on the County’s budget. Based on the market analysis, approximately 40% of the County’s positions fell below an acceptable market range for starting salaries and 57% of current incumbent salaries fell below the average market rate. Thus, the following recommendations were made: increase the salary schedule minimums, readjust the salary schedule to start at Step 1 and provide 18 steps, increase the percentage between grades, and provide for larger increases through Step 11. In the past years, the public sector has face some of the most significant challenges in this labor market. There has been a mass exodus of workers to the private sector, increased competition in the labor market and a rise in job openings due to retirements. With the competition for human capital, the County needs to make a concerted effort to offer competitive wages and maintain pace with the market. The implementation of this new wage grid will place the County back into a position to attract new talent and retain existing talent. The methodology of new grid adoption is to place each employee on their new grade, at a step that does not result in a decrease in pay. This results in 49 employees receiving over 2.5%, 598 below 2.5% and 4 at 0%. Of the 49 above 2.5%, 2 are over 10%, 24 are between 5- 10%, and 23 are between 2.5-5%. These all represent employees at the lower end of the grid where their positions were graded higher. The total fiscal impact to be implemented on March 3, 2024, which is the start of a new pay period, is $284,475. We reserved $500,000 fund balance in anticipation of implementing the new wage grid. The total cost increase is a half of one percent of budgeted employee compensation, spread over the entire County budget, so no budget amendment is being requested. Resolution No. 3 (2024) RESOLUTION ADOPTING UPDATED WAGE GRID 1 WHEREAS, St. Croix County implemented the McGrath Compensation Grid effective 2 January 1, 2016 with periodic amendments; and 3 4 WHEREAS, St. Croix County has engaged Dr. McGrath in a study update with wage 5 grid external and internal comparables and market trends; and 6 7 WHEREAS, the result of the study, in the form of a draft updated wage grid, were 8 reviewed with staff for further internal comparison verification; and 9 10 WHEREAS, the final proposed updated wage grid was reviewed at the Administration 11 Committee on December 19, 2023 and recommended for adoption; and 12 13 WHEREAS, the fiscal impact for implementing the wage grid on March 3, 2024 is 14 $284,475; and 15 16 WHEREAS, the updated wage grid will allow St. Croix County to remain competitive in 17 hiring employees and competitive in retaining employees. 18 19 NOW, THEREFORE, BE IT RESOLVED that the St. Croix County Board of 20 Supervisors does hereby authorize the updated Wage Grid effective March 3, 2024. Legal – Fiscal – Administrative Approvals: Legal Note: Fiscal Impact: $284,475 fiscal impact to implement March 3, 2024 12/19/23 Administration Committee RECOMMENDED RESULT: RECOMMENDED \[UNANIMOUS\] MOVER: Scott Counter, Vice-Chair SECONDER: Bob Feidler, Supervisor AYES: Bob Long, Carah Koch, Bob Feidler, Scott Counter EXCUSED: Paul Berning Vote Confirmation. St. Croix County Board of Supervisors Action: Roll Call - Vote Requirement – Majority of Supervisors Present RESULT: ADOPTED \[17 TO 1\] MOVER: Carah Koch, Supervisor SECONDER: Scott Counter, Supervisor AYES: Lind, Anderson, Long, Leaf, Koch, Adams, Berning, Ottino, Feidler, Ostness, Counter, Hansen, Sherley, Tellijohn, Carlson, Swanepoel, Ramberg NAYS: Mike Barcalow EXCUSED: Jerry VanSomeren This Resolution was Adopted by the St. Croix County Board of Supervisors on January 2, 2024 Christine Hines, County Clerk