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May 24, 2004 <br /> <br /> Ms. Read reviewed the overall compensation plan, indicating the city's market- <br />based pay plan has not created hoped-for changes in the overall pay structure. A <br />biennial survey by the human resources staff indicated the city's hire-in ranges are <br />competitive, but a compression problem keeps senior employees' salaries closer to <br />starting employees' salaries. Ms. Read did not recommend changing starting ranges, <br />but indicated the survey showed average employees' salaries were below comparable <br />positions in other localities by 10 percent or more. <br /> <br /> Ms. Read stated that long-term movement of salaries in ranges is the way to fix <br />the problem, and that a one percent increase in salaries for the coming year costs <br />approximately $103,000 in the overall budget. <br /> <br /> In response to Mr. Cobbe's question about turnover rate, Ms. Read said <br />employee turnover is small, attributable to current economic conditions. Mr. Bartlett said <br />that, while turnover is small, the city is seeing more mobility in employees. Select <br />employees, including mechanics, electric workers, water and wastewater service <br />workers and clerical employees, have more flexibility to find new opportunities because <br />of licensure status and demand for employees in the private sector. <br /> <br /> Mr. Bartlett stated employees with ten years of service have more incentive to <br />stay due to retirement benefits. A large number of employees are Set to retire in the next <br />five years, and then heavier turnover is expected. <br /> <br /> Mayor Teague stated the pay disparity problem worsens when the plan is not <br />fully funded, indicating that council had awarded an average pay increase of 2.8 percent <br />annually over the past seven years. He indicated his belief that council should fund an <br />"affordable" three percent increase in the new budget. Ms. Read told council that a <br /> <br /> <br />