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Attachment 5 <br />May 21, 1991 <br />FISCAL YEAR 1987 -88 <br />PAY PLAN CHANGES <br />In Fiscal Year 1987 -88 Orange County implemented: <br />-A new salary schedule and <br />- Salary grade revisions for a number of classes. <br />The new salary schedule provided for an equal percent <br />difference between salary grades and an equal percent <br />difference between steps in the salary grade. In Fiscal Year <br />1987 -88, this percent difference was 4.6 percent. In Fiscal <br />Year 1988 -89 this percent difference became five percent. <br />According to available information, the County had <br />previously used the State Salary Schedule even though it did <br />not use the State classification and pay plan or pay <br />policies. That schedule did not provide for an equal percent <br />difference between steps or grades. This resulted in <br />variations in the actual salary increase percentage being <br />awarded even though, for example, the employees, performance <br />rating was the same; that is, the "five percent" level. <br />The variation in the percentage difference between <br />salary grades and between salary steps had been <br />compounded by the addition.of a flat $900 cost -of- living <br />increase to the salary schedule in Fiscal Year 1986 -87. <br />With the salary schedule change, the County retained the <br />current 11 salary steps to avoid an adverse impact on longer <br />service employees. The County had found through a market <br />salary survey that County salaries were approximately five <br />percent below that of other employers surveyed and it wanted <br />to provide for a more competitive beginning rate. For this <br />reason, the County eliminated the hiring rate (Step 0) at the <br />beginning of the salary range for each salary grade on the <br />salary schedule. <br />In addition to the adoption of the new salary schedule, <br />the County implemented a number of salary grade revisions to <br />move specific classes to higher salary grades. These changes <br />resulted from the market survey indicating County pay levels <br />were about five percent below other employers surveyed and up <br />to 15 percent below other employers for some classes. <br />