Tucson manager unveils multi‑year compensation plan; targets in‑range pay for 896 employees and performance reviews

Tucson City Manager Michael Tamir and Human Resources Director Dr. Terry Train on April 8 presented a multi‑year compensation plan for FY2026 that aims to address pay compression and restore market alignment across city jobs.

The plan outlines three main components: in‑range pay placement for incumbent employees identified in a fall 2023 audit (about 896 people), an annual base pay progression of 1.5%, and multi‑year market adjustments for job classifications found below market—particularly non‑commission police and fire and many other titles. Tamir told the council the city is reserving dollars in the FY2026 recommended budget to implement the first phase and to continue corrections in FY2027 and FY2028.

Why it matters: City leaders said the package is intended to reduce pay compression, reward experience and education, and reduce turnover by moving employees toward market‑appropriate pay. Tamir said the general‑fund portion of the FY2026 recommendation is roughly $13.6 million (plus another $7.3 million in non‑general funds) — a total of about $21 million in recommended employee investment for FY2026. Over three years the plan represents about $60 million of investment in employee compensation in the city manager's presentation.

Key mechanics and timing: The plan would use a “base pay calculator” to place employees appropriately within pay ranges; it also requires a baseline performance review before employees eligible for in‑range pay placement receive adjustments. Tamir said directors will be provided lists of incumbents and that about 896 employees are in the first round; those employees must complete a performance review meeting standards by mid‑June for pay adjustments to be applied in the first full July pay period (July 13). Dr. Train said the city has moved performance reviews and employee experience/education records into the Workday HRIS and is offering virtual trainings to help employees update records and supervisors complete evaluations.

Market adjustments and public safety: The city performed a detailed market analysis for police and fire with a consultant (McGrath); the recommendation is to move affected public‑safety job ranges toward market plus 1% over three years and to continue annual pay progression. City staff said roughly 97 job titles (about 526 employees) are impacted by a targeted market adjustment because they were found 10–29% below market during the analysis.

Exceptions and limits: The plan contains special handling for employees already paid above the top of their pay range (the memo proposes giving those employees half of the annual pay progression rather than the full 1.5% to avoid pushing salaries above safe harbor limits). Tamir said the city will re‑run the placement analysis next spring after employees update education/experience data in Workday and will reserve funds to address additional corrections.

Implementation and next steps: Staff described multiple engagement steps (department briefings, mayor’s hearing opportunities, and individual HR appointments) to let employees review their data and ask questions. Managers said in‑range placements and market adjustments require final budget approval and additional administrative steps (e.g., documentation in Workday) before pay changes occur.

What council members asked: Council members asked about the timing, how ranges were displayed in Workday (a prior miscommunication over showing a ‘safe harbor’ upper range was corrected in staff materials), how pay progression would interact with job reclassification, and whether performance metrics will tie to department priorities. Dr. Train said supervisors are being trained to set 3–5 professional goals for employees tied to essential functions and department strategic metrics.

Ending: City staff said the compensation proposal is an initial—yet significant—investment to correct long‑standing compensation variation, and that more adjustments may follow as employees update records and staff refine the pay calculator in subsequent cycles.