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Orem staff outline multi-pronged employee compensation plan to retain recruits
Summary
City HR and finance staff described a compensation strategy that combines twice-yearly market studies, targeted market adjustments for hard-to-fill roles (notably police and fire), step/merit increases and non-salary benefits, with a planned market study this fall to guide further adjustments.
Staff presented the council with Orem's approach to compensation and staffing as part of the budget work session. The presentation emphasized frequent market reviews, targeted adjustments for positions with recruitment/retention pressures, and investments in employee benefits and career ladders.
Jim (human resources) described the process: the city runs market surveys twice a year using a core comparator group (large Utah cities, county and state) and a compensation database to compare pay ranges and benefits. The city then applies targeted market adjustments where positions lag—recently police and fire saw larger increases because of market pressure—while also maintaining a standard merit/step program for eligible employees.
Staff said they will run an additional market study this fall to firm up adjustments and better align pay changes with health-insurance premium increases so employees do not suffer net losses from rising benefits costs. The presentation also listed non-salary measures: a career-ladder program, tuition reimbursement, supervisor training and a planned employee health center to reduce healthcare friction for staff and families.
Council asked about the mechanics and whether market or COLA approaches drive adjustments; staff clarified that practice combines market analysis, budget availability and targeted increases where needed rather than an across-the-board cost-of-living adjustment tied to a fixed index.
No pay changes were adopted in the session; staff said they will return with market-study results and recommended budget language to fund merit, step and targeted market adjustments.
