Title
Classification and Compensation Study Report by The Archer Company
PURPOSE: The purpose of this item is to have The Archer Company present the findings of a comprehensive position classification and compensation study.
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Department
DEPARTMENT: Human Resources Department
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Council Direction
COUNCIL DIRECTION:
__X_ Race/Equity ____ Climate __X__ Comprehensive Plan ____Other
Council Direction Statement
This study addresses pay equity including recommendations to provide fair market pay for work completed by Town employees, a competitive benefit package as well as addresses the comprehensive plan goals below.
Chapter 10 Public Services and Communications
Human Resources
2. Research, review, and recommend competitive and cost-effective benefits to attract and retain highly qualified staff.
3. Research and review pay and position classification policies and programs that support Council’s goals for competitive, living wages and that also provide employees with an affordable housing wage.
A. Ensure that every position, whether full-time or parttime, is paid at least a living wage equivalent to the rates established by the Orange County Living Wage non-profit.
B. Conduct and respond to salary surveys on a regular basis to ensure staff are competitively compensated.end
Information
INFORMATION: Funding for a comprehensive position classification and compensation study was included in the FY204-25 budget. The Town contracted with The Archer Company to complete this work. The goal of this study is to position the Town of Carrboro as a competitive employer by providing a sound compensation strategy, ensuring equitable compensation across all Town positions, and addressing recruitment and retention challenges within a volatile labor market.
The Archer Company initially met with Department Directors to explain the study's approach, methodology, and process. The comprehensive study included receiving employee input related to one hundred (100) positions in the Town at the time of the study as well as a market survey benchmarking fifty percent (50%) of all positions against twenty (20) peer and competitor government employers. Ultimately, it is determined that the Town's pay ranges are lagging the market rate at an average of 14%. Additionally, all non-public safety positions were placed in a new general pay structure with employees performing the same level of duties and responsibilities positioned in the same class and pay grade. The same was completed for public safety positions, and a new public safety pay structure was created. New ranges in both pay structures are competitive with the market.end
Fiscal and Staff Impact
FISCAL IMPACT: The recommended implementation scenario to move all employees to a market competitive salary and address pay compression will cost $1.62M and represents a 12.8% increase to the base payroll. Final implementation recommendations will be included in the Manager’s recommended FY2025-26 budget and would become effective in the new fiscal year with Town Council approval.
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Recommendation
RECOMMENDATION: It is recommended that Town Council accept the presentation from The Archer Company.
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