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Orange County Personnel Department <br />208 South Cameron Street Elaine Holmes <br />Post Office Box 8181 Director <br />Hillsborough, NC 27278 <br />June 10, 2005 <br />MEMORANDUM <br />TO: Orange County Board of Commissioners <br />John Link, County Manager <br />FROM: Elaine Holmes, Personnel Directo ` <br />SUBJECT: Differentiated Pay Question Follow Up Information <br />Tel (919) 245 -2550 <br />Fax (919) 644 -3009 <br />www.co.orange.nc.us <br />Following the Manager's Budget Presentation, the Board asked staff to be thinking about <br />differentiated pay for employees. As I understand it, the question relates to providing pay <br />in a way that confers a relatively greater benefit to a lower salaried employee than a higher <br />salaried employee. <br />As the Board is aware, the County in the past has taken a number of pay and benefit <br />actions that benefit lower salaried employees. The Attachment 1 list shows these actions <br />over recent years. <br />As to the broader question of differentiated pay as an element of the pay plan, there is an <br />approach to provide a different percentage increase amount for employees in the lower <br />portion of the assigned salary range than employees in the higher portion of the salary <br />range. Such plans are used to address the in -range element of pay rather than the cost of <br />living. Typically such a plan provides for a higher percentage increase to employees <br />below the midpoint of the salary range and a lower percentage increase to employees <br />whose salaries are at or above the midpoint. For example, if warranted by work <br />performance, employees below the midpoint receive a 3 percent in -range increase and <br />employees at or above the midpoint receive a 2 percent in -range increase. <br />I've provided on Attachment 2 a list of some impacts of such pay increases differentiated <br />by relative position in the salary range. If the Board chose to pursue such a direction, staff <br />would do everything possible to develop a plan and implement it effectively within the time <br />available. <br />Please let me know if you wish me to provide any additional information. <br />An Equal Opportunity /Affirmative Action Employer <br />