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Council hears equity, compression concerns as staff outlines slotting and years-of-service rules
Summary
Staff acknowledged pay compression and equity issues from previous pay-plan placements (seven-year midpoint rule), and explained a service-adjustment calculation to limit pay regressions while respecting range maximums.
Schrage reviewed how the city's 2023–2024 pay plan placed employees with seven or more years of service at midpoint while placing others at starting pay, a practice he said has led to compression and separation concerns when new hires approach tenured employees' pay. He said staff tracked positions in the new model to avoid moving employees 'backwards' and applied range maximums where appropriate.
To account for years of service, staff described a service-adjustment method: determine step value and range, multiply by years in position to calculate a service adjustment, add that to starting rate, and then compare to a 3.5% COLA — applying the greater of the calculated rate or COLA. Council asked for department-onboarding dollar figures and directors' views on merit raises and evaluations to better assess equity effects.
