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8 <br /> 1 employees. As a result, the pay of these employees is compressed with respect to their time <br /> 2 and experience within the organization. <br /> 3 <br /> 4 To help quantify this issue for Orange County, Human Resources contracted with Gallagher <br /> 5 Benefit Services Inc.'s Fox Lawson Group (FLG) to conduct a Compensation Philosophy <br /> 6 Development and Pay Compression Study. The study found that the County experiencing pay <br /> 7 compression at most grades in the salary schedule. The compression has been caused by <br /> 8 several different issues but is primarily due to the absence of a mechanism to move existing <br /> 9 employees forward in the salary plan. Compression was also caused by structural issues within <br /> 10 the current classification plan and lack of a strong pay philosophy across hiring managers. <br /> 11 <br /> 12 The County Manager's Recommended Operating Budget for FY 2016-17 is expected to include <br /> 13 a recommendation to begin addressing salary compression. <br /> 14 <br /> 15 Meritorious Service Awards <br /> 16 The Code of County Ordinances Section 28-61 provides a program of Meritorious Service <br /> 17 Awards to financially reward employees whose work performance and accomplishments are <br /> 18 exceptional or superior. Section 28-61 (c) provides that the award amount is subject to the <br /> 19 Board of Commissioners' annual approval of funding. It also establishes award levels at $1,500 <br /> 20 for exceptional performance and $750 for superior performance. The performance incentives <br /> 21 are paid as one-time payment, which does not become a part of an employee's annual base <br /> 22 salary. <br /> 23 <br /> 24 The current Meritorious Service Award program is being administered using three award tiers. <br /> 25 The current program recognizes exceptional performance with a $1,000 payment and superior <br /> 26 and proficient performance with a $500 payment. As currently administered, the ordinance and <br /> 27 current practice are not aligned. <br /> 28 <br /> 29 The County Manager's Recommended Operating Budget for FY 2016-17 is expected to address <br /> 30 these inconsistencies and make the award levels more granular. <br /> 31 <br /> 32 Brenda Bartholomew, Orange County Human Resources Director, presented the <br /> 33 following Power Point: <br /> 34 <br /> 35 Employee Benefits and Pay Review <br /> 36 Insurance Programs <br /> 37 Compression <br /> 38 Meritorious Service Awards <br /> 39 Brenda Bartholomew <br /> 40 March 29, 2016 <br /> 41 <br /> 42 Insurance Programs <br /> 43 • Self-funded since 2014 <br /> 44 • Transitioned to a Fiscal Year renewal in 2015 <br /> 45 • Contracted with Gallagher Benefit Services (GSB) as Broker of Record in 2015 <br /> 46 • Third Party Administrator (TPA) Solicitation — County Manager Recommendation at the <br /> 47 BOCC April 5, 2016 Meeting <br /> 48 <br /> 49 Budget Recommendations FY 2016/2017 <br /> 50 • Total Health Insurance Costs will remain flat or decrease slightly <br /> 51 • If rate decrease, premium equivalent will be decreased <br />