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P.O.C.C. Compensation Overview

P.O.C.C. Compensation Overview. Maggie Wollaston, SPHR Laurie Grenya DAS HRSD Classification and Compensation Unit . P.O.C.C. Mission:. To build a recommendation for elected officials’ salaries, considering: Total compensation, including benefits other than salary

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P.O.C.C. Compensation Overview

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  1. P.O.C.C. Compensation Overview Maggie Wollaston, SPHR Laurie Grenya DAS HRSD Classification and Compensation Unit P.O.C.C. Presentation 7-10-08

  2. P.O.C.C. Mission: • To build a recommendation for elected officials’ salaries, considering: • Total compensation, including benefits other than salary • Salaries for comparable positions in neighboring states • Qualifications and skills necessary for each office • Level of responsibility • Cost of living • Budget limits • Any other reasonable and appropriate factor P.O.C.C. Presentation 7-10-08

  3. Our Goal Today: • Acquaint Commissioners with compensation at the State and how it relates to Public Officers’ pay. • Provide some tools to assist the Commission in assessing pay. • We will review: • Public policies that apply • State compensation practices • We will have time to discuss values and beliefs around Compensation P.O.C.C. Presentation 7-10-08

  4. Total Compensation* • Employee’s salary plus dollar amounts the state pays for the employee’s benefits • Salary is cash paid resulting in earnings on W-2 Statement • Salary or hourly rate for work performed • All other taxable benefits • Benefits include amounts paid for health plans, retirement, statutory benefits like Worker’s Compensation and F.I.C.A., etc. • Advantages: • Credit for significant investment in benefits • Flexibility in choosing where to apply dollars *State Policy 20.005.01, General Compensation Policy P.O.C.C. Presentation 7-10-08

  5. Total Compensation Approach Employee’s Salary + Retirement contribution from employer* (includes 6% PERS “pickup”) + Health insurance contribution from employer** Total Compensation *2007-2009 Bargaining 17.2% **2007-2009 Bargaining $942.73 P.O.C.C. Presentation 7-10-08

  6. Compensation concepts • Internal equity • Questions of comparability • “Should this position pay more than that one?” • External equity • How we stand with the market • “What is the pay for this in Washington State?” P.O.C.C. Presentation 7-10-08

  7. External Equity • How do we compare to market? • Normally we compare to Washington, Idaho, Nevada and California • They are our “market” P.O.C.C. Presentation 7-10-08

  8. An example of external comparison P.O.C.C. Presentation 7-10-08

  9. General Compensation Policy • “The State shall attempt to provide total compensation to employees that is competitive with compensation for comparable services in public and private employment as the overall economic and budget condition of the state permits.” (20.005.01) • We have defined “competitive” as between 95% and 105% of market • This means some jobs are below 100% • And some are above 100% of the market P.O.C.C. Presentation 7-10-08

  10. What we’ve covered so far: • To build a recommendation for elected officials’ salaries, considering: • Total compensation, including benefits other than salary • Salaries for comparable positions in neighboring states • Qualifications and skills necessary for each office • Level of responsibility • Cost of living • Budget limits • Any other reasonable and appropriate factor P.O.C.C. Presentation 7-10-08

  11. Comparability of Positions: • When comparing positions and salaries, it is not enough to compare titles. • We have to match levels of responsibility and qualifications and skills necessary to do the job. P.O.C.C. Presentation 7-10-08

  12. Cost of Living • Adjustments applied to a predefined formula • Used to keep salaries in line with economic changes • Many different formulae P.O.C.C. Presentation 7-10-08

  13. Budget and Affordability • We will work with DAS Budget and Management • Impact analysis • Estimates of the cost of any approved changes P.O.C.C. Presentation 7-10-08

  14. Other sources of data: • Salary surveys • Book of the States • States’ web sites P.O.C.C. Presentation 7-10-08

  15. Questions and Answers ????? P.O.C.C. Presentation 7-10-08

  16. Discussion - Beliefs and Values on Public Officials’ Compensation • Should pay be set using same steps as other employees? • Should pay be on a par with, better than, less than other states? • Should planning focus on today’s salaries, or should we plan to update salaries in the future? • Should we consider the salaries of staff these positions supervise? • Other? P.O.C.C. Presentation 7-10-08

  17. Based on our discussion, we will • Document our decisions • Develop a roadmap • Collect information from other states on salaries and benefits • Analyze the information • Build a recommendation P.O.C.C. Presentation 7-10-08

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