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