Orange County NC Website
DocuSign Envelope ID: E2A3FD22-97F6-4032-AE98-8051BF17AD9A <br /> Arthur J. Gallagher& Co. <br /> Background <br /> In today's environment, with changing workforce demographics, retirements, and the ever- <br /> increasing need to accommodate change, compensation systems need to be engineered to provide <br /> flexibility. Frequently we find that compensation systems have grown more complex over time and <br /> occasionally need to be refined to more accurately reflect the work that is currently conducted. <br /> Given that public organizations typically spend between 50% and 80% of their operating budgets on <br /> employee compensation, it only makes sense that the money be spent in a manner that helps the <br /> agency achieve its strategic and budget objectives. We understand that all classification and <br /> compensation systems, regardless of their design, require continuing evaluation and maintenance <br /> to ensure ongoing competitiveness. Having supported many organizations implement and update <br /> a wide range of classification and compensation programs, we are acutely aware of the need to <br /> maintain these systems in a manner that supports the County's ongoing goals of achieving internal <br /> equity. <br /> The overall scope of the study will address: <br /> ■ County Compensation Philosophy and supporting strategies; and <br /> ■ Pay compression analysis with suggested methods to eliminate and correct deficiencies as <br /> identified to include fiscal impact. <br /> In order to accomplish your stated objectives, the following activities will be addressed: <br /> • Facilitation of discussions with County leadership to confirm the overall strategy and <br /> direction for your job classification and compensation systems. <br /> • Conduct of a detailed review of the County compensation system to analyze and determine <br /> pay compression issues based on HR analytic data provided by the County. <br /> • Recommendations to strengthen the County's overall compensation program using the <br /> results of the pay compression study and review of compensation processes. <br /> • Recommendations for methods to implement the findings of the study and options and <br /> directions. <br /> • Transition plans for implementing the findings of the study. Our recommendations will take <br /> into consideration the culture and financial resources of the County of Orange, NC. <br /> Project Work Plan <br /> Phase I - Study Initiation and Compensation Philosophy <br /> We find that a review of the compensation philosophy and related discussions to be extremely <br /> valuable during the course of studies such as these and to assist in determining the <br /> implementation parameters. This phase is primarily used to determine the specifics and <br /> strategic/technical aspects of the project, including timelines, key dates, and communication <br /> strategies. We believe that the initial strategy confirmation process, addressing compensation <br /> objectives, is necessary to frame the project as a whole. <br /> Gallagher Benefit Services,Inc. p 651.234.0848 <br /> 16064 Parsons Road f 651.234.0849 2 <br /> Beaverdam,VA 23015 ajg.com <br />