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2 <br />Pay and Benefits Report <br />Under separate cover, staff has provided a Pay and Benefits Report as background information <br />to the Board's consideration of the pay and benefits plan in the November 30 work session. As <br />specifically requested by the Board, the report includes sections on cafeteria benefits, vacation <br />buy back option, domestic partner benefit coverage and retirement incentives. In addition the <br />report provides updated information on the Cost of Living Increase, In-Range Increase, <br />Meritorious Service Awards, area local government pay plans, 401 (k) plan and the Orange <br />County employee work force. <br />Staff Feedback As To Possible Directions <br />In the Board's consideration of the directions in the pay and benefits plan, staff would offer the <br />following feedback. <br />Base Salaries <br />Employee base salaries continue to be a top priority from both an employee perspective and <br />from the perspective of the County's need to maintain a competitive pay plan in support of <br />employee recruitment and retention. The County continues to experience intense labor <br />market pressure. Section C of the Pay and Benefits report on the In-Range Increase <br />includes data as to the County's current recruitment experience. <br />Base salaries are most impacted by the cost of living and in-range increase elements of the <br />pay plan and staff recommends the Board continue the present focus on these elements of <br />the pay plan. <br />County-Wide Position Classification and Pay Study <br />Given the 10 years that have elapsed since the County's last county-wide classification and <br />pay study and the need to maintain a competitive and equitable pay plan, the County <br />Manager and Personnel Director recommend that the Board pursue conducting a <br />classification and pay study of all County positions in the upcoming two year period to <br />update the plan on a comprehensive basis. <br />This comprehensive study would reassess internal salary relationships among all positions <br />and re-establish the County's position in the labor market in relation to County employers. If <br />the Board desires, staff will return with a specific proposal, plan and estimated costs for <br />conducting such a study. <br />County 401(k) Plan Contribution <br />In terms of the County's employee benefits plan, increasing the County's 401 (k) plan <br />contribution from the present $15 per pay period continues to be an employee priority and <br />increasingly has become a significant issue in the County's recruitment efforts given the <br />higher 401 (k) plan contribution provided by area local government employers. If the Board <br />wishes to give this further consideration, the Section G 401 (k) plan portion of the Pay and <br />Benefits Report provides several options. <br />