CLARKSVILLE, TN (CLARKSVILLE NOW) – Montgomery County officials will soon vote on a new employee pay plan following a 5% cost of living adjustment (COLA) raise in July of this year.
McGrath Human Resources Group Inc. was commissioned to conduct a comprehensive compensation and classification study for all county positions. Officials said the study was performed in order to better retain employees while battling compression (higher pay for new hires bumping against low existing pay) and making sure all employees are paid fairly.
Study’s findings
According to the study, when comparing the salary schedule to the external market, the ranges were not significantly lower. The study found that the main issue is the structure of the compensation system, which does not provide annual step increases.
The report also indicated that position placement is inconsistent and that a formal methodology isn’t used, nor does the salary schedule have a market rate. The study said that employees should reach the market rate within three to five years of employment. Under the current structure, it would take 10-15 years to reach the midpoint of the salary schedule.
Other findings suggested minor changes to benefits and suggestions for tuition reimbursement. The study urged the county look at contributing to health savings accounts but did not recommend any changes to time-off benefits or health insurance premiums.
The county has a tuition reimbursement program, but it isn’t currently in use, according to the study. McGrath has recommended the county stay at $5,250 or less in tuition funding to align with IRS guidelines and keep the program as a tax-free fringe benefit.
The consultants didn’t recommend an educational stipend or extra pay for the achievement of a higher degree. Rather, they recommended the county provide tuition reimbursement for the achievement of a higher degree to be used for career advancement within the county.
Recommended plan
The consultant has recommended a 12-step system in which not only is the salary schedule adjusted annually to retain the competitiveness of the schedule; but employees would also receive an annual step increase. Employees will be placed into the new pay scale based on the assessment and where they should be in light of their time with the county.
“We didn’t want a one-year employee making the same as a 15-year employee. It’s called compression, (and) to try and figure out a way to deal with that compression, one of the things that the consultant suggested was bringing them in on five-year increments on each step for placement in the new pay scale.”
County Mayor Wes Golden noted during the meeting that employees will max out at step 12, which will take 30 years to reach.
“At that point, you’ve maxed out in the pay scale, but if there’s a cost-of-living adjustment, that would still happen,” he said, noting that the COLA would only move the pay scale, not the steps.
Commissioner Rashidah Leverett said annual pay increases will still have to be approved by the commission, and such increases are not guaranteed.
Golden said the plan would ensure the county is prepared to deal with changing market conditions, but the plan is called a plan for a reason.
“Sometimes plans change. The reason the plan is there is so that you are keeping up with the market so that we can hire and retain the best personnel possible,” Golden said.
The measure was added to the consent agenda and will be voted on by the County Commission on Monday, Nov. 14, at 6 p.m. at the County Courthouse.