Agenda - 08-21-2012 - 5f - Laserfiche WebLink

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001 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date:August 21, 2012 Action Agenda Item No.5-f SUBJECT: Adjustment to Salary Range Maximums DEPARTMENT:Human Resources PUBLIC HEARING: (Y/N)No ATTACHMENT(S):INFORMATION CONTACT: Nicole Clark, Human Resources Director, (919) 245-2552 PURPOSE: To consider approvingatwo percent(2%) increase in allsalary range maximums to correspond to the two percent (2%) Cost of Living Adjustment(COLA)increase authorized in the approved FY 2012-13 budget effective July 1, 2012. BACKGROUND: The County maintains a Salary Schedule, defined as a schedule of salary ranges systematized into sequential rates including minimum and maximum salaries for each class assigned to any given salary range. Every County position has been studied at least once during the past three years, and the findings indicate that theCounty’s salary ranges remain competitive with the labor market. Amajor issue affecting employee morale and recruitmentis compression.Employee salaries did not increase during FY2009-10, FY 2010-11, and FY 2011-12.Departments have found it difficult to offer competitive salaries to new employees when current employee salaries are compressed in the lower half of the salary ranges. In response, the County Manager recommended and the Board approved a 2% Cost of Living Adjustmentincrease.To aid in addressing the compression issue, theCost of LivingAdjustmentapplied to Permanent employees’ annual salaries and did not affect the salary ranges. The majority of County employee salariesare at or below the midpoint for their respective salary range. When the recommended budget was developed, 86% of Permanent employees were at or below the midpoint for their respective salary range.Currently, 83% are at or below the midpoint, following the effective date ofthe Cost of Living Adjustment. Prior to July 1, 2012, the annual salaries of seven Permanent employees wereat or above the maximum salary for their respective salary ranges. Article V, Sec. 28-68 – “Salary increase maximum”, of the Orange County Personnel Ordinance states: “When an employee attains the maximum rate of a salary range for present position, no further salary increases will be received unless (a) the position is reclassified; (b) the employee is promoted to another position with a higher salary range; or (c) the salary range for the present position is increased.”