Consultants update council on compensation study: compression remains, market review recommended

Evergreen Solutions presented an update on the city’s 2022 compensation and classification study and the plan implemented in 2023. Consultant Mark Holcomb summarized key findings: many employees remain below midpoints of their assigned pay ranges and the city likely has a modest market gap driven by national salary moves since the original study. He recommended adopting an adjusted pay plan, continued targeted classification changes, annual step increases and a periodic (every 3–5 years) holistic review.

Holcomb said the original implementation addressed compression but that market movement and inflation have likely reintroduced gaps. "More than 80% of employees were below midpoint, and more than 50% of employees were in the 1st quartile of their pay range," he told council, citing internal compression and the need for ongoing market monitoring. Council members asked Evergreen to prioritize analysis of lower pay‑grade jobs and to return cost estimates; staff confirmed funding for a contracted post‑implementation market review is available in the existing scope and purchase order.

Councilors debated sustainability and funding options. Several members urged targeting increases to entry‑level positions making under about $50,000 and asked HR and Evergreen to produce scenarios that concentrate resources on lower wages while preserving public‑safety competitiveness. Evergreen said the three‑year post‑implementation market review is in contract and can proceed; staff said funding for that analysis is already budgeted.