COMPREHENSIVE SALARY STUDIES An Overview of Salary Comparison, the

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COMPREHENSIVE

SALARY STUDIES

An Overview of Salary Comparison, the

Grade/Step System, and Internal Equity

Any City, Town or County, MS

Typical Human Resources Responsibilities

• Employee Recruitment

• Development and/or Maintenance of Job Descriptions

• Development and/or Maintenance of the Employee

Handbook

• Verifying and Documenting Worker Eligibility (I-9, etc.)

• Hiring and new hire Orientation

• Employment Classification and Training

• Job Performance including Promotions and Raises

• Disciplinary Actions

• Oversight (often shared) of Payroll and Payroll Deductions

• Maintenance of employee Records for Leave, Benefits, and Medical Records

• Maintenance of Records for Employee Expenses, company cars, cell phones, etc.

• Compliance with State and Federal Employment Laws

(Fair Labor Standards, Family & Medical Leave, & Americans with Disabilities Acts, etc.)

What determines compensation?

Human Resources (HR) Departments handle the paperwork essential to maintaining a workforce. Whether you are a

Mississippi County or Municipality, at some point an employee, supervisor, or elected official has come to you with a question about compensation. How are raises determined? How much is a job worth? Why is So&So making more money than I am?

All are good questions, and hopefully, you have a system in place to give the person a good answer. If not, we’re here to tell you about compensation studies and achieving pay equity. The simple answer as to what determines compensations is– the market.

A Comprehensive

Salary Study

Compensation Studies involve several components:

• Surveying the same Positions employed by similar governing entities

• Determining Job Evaluation Scores

• Assigning each Position a Grade & Step

• Determining the Mean, Median & Mode for each Position

• Determining the Percentiles for entry, mid-level and high end pay for each Position

• Comparing each Position’s Pay to the Mean

Types of Salary Studies

Compensation Studies involve several components:

Full Compensation Study

Survey of similar governing entities

Tabulation & Analysis of Survey Data

Job Descriptions for each Position

Interviews with each Employee

Determining Position Job Evaluation Score

Add-ons:

Employee Handbook – creation or update

Employee Incentive Plan Development

Salary Comparison Study

Survey of similar governing entities

Tabulation & Analysis of Survey Data

Data Gathering

• Surveys are sent to similar governing entities throughout

Mississippi and surrounding states in the Southeast.

• The Survey contains every position in each County or

Municipal Department. Each Position includes the duties and responsibilities. If the Respondent’s position has a different title, that title is requested, as well as the rate and/or range of pay.

• Tenure in the Position is requested. Average tenure is gathered if more than one person is employed in the same position. Respondents often write in experience in other positions held within the County or Municipality.

Seniority helps determine Grade/Step assignment

G1

G2

G3

G4

G5

G6

G7

G8

There are 20 3% Steps within each Grade

Steps within Grade – 1 through 20

20 th Percentile

1

10 th Percentile

2 3 4

MONTHLY

BIWEEKLY

HOURLY

MONTHLY

BIWEEKLY

HOURLY

BIWEEKLY

HOURLY

BIWEEKLY

HOURLY

BIWEEKLY

HOURLY

BIWEEKLY

HOURLY

BIWEEKLY

HOURLY

BIWEEKLY

HOURLY

$15,080.24

$1,256.69

$580.01

$7.25

$16,588.27

$1,382.36

$638.01

$7.98

$ 15,532.65

$597.41

$7.47

$ 17,085.91

$1,423.83

$657.15

$8.21

$ 15,998.63

$1,333.22

$615.33

$7.69

$ 16,478.59

$1,373.22

$633.79

$7.92

$ 17,598.49

$1,466.54

$676.87

$8.46

$ 18,126.45

$1,510.54

$697.17

$8.71

$18,247.09

$1,520.59

$701.81

$8.77

$ 18,794.50

$1,566.21

$722.87

$9.04

$ 19,358.34

$1,613.19

$744.55

$9.31

$ 19,939.09

$1,661.59

$766.89

$9.59

$20,071.80

$1,672.65

$771.99

$9.65

$22,078.98

$1,839.92

$849.19

$10.61

$ 20,673.95

$1,722.83

$795.15

$9.94

$ 22,741.35

$1,895.11

$874.67

$10.93

$ 21,294.17

$1,774.51

$819.01

$10.24

$ 23,423.59

$1,951.97

$900.91

$11.26

$24,286.88

$2,023.91

$934.11

$11.68

$ 25,015.49

$2,084.62

$962.13

$12.03

$ 25,765.95

$2,147.16

$991.00

$12.39

$26,715.57

$2,226.30

$1,027.52

$12.84

$ 27,517.03

$2,293.09

$1,058.35

$13.23

$ 28,342.54

$2,361.88

$1,090.10

$13.63

$29,387.12

$2,448.93

$1,130.27

$14.13

$ 30,268.74

$2,522.39

$1,164.18

$14.55

$ 31,176.80

$2,598.07

$1,199.11

$14.99

$ 21,933.00

$1,827.75

$843.58

$10.54

$ 24,126.30

$

$2,010.52

$927.93

$11.60

26,538.93

$2,211.58

$1,020.73

$12.76

$ 29,192.82

$2,432.74

$1,122.80

$14.04

$ 32,112.10

$2,676.01

$1,235.08

$15.44

Grade/Step Assignment

• The Grade/Step Chart is based upon the prevailing minimum wage. Grade 1 / Step 1 = $7.25 an hour.

• Each County or Municipality Position is assigned a

Grade and Step based on the current rate of pay and/or salary, the Job Evaluation Score for the position, and the length of tenure in the position.

• The Job Evaluation Score assigns a numeric value to the levels of responsibility within the position.

Job Evaluation Score

EXPERIENCE

Measures the experience needed to carry out the job at a competent level.

EDUCATION

Measures the amount of formal education required to satisfactorily perform the job.

Experience or knowledge through experience are not considered.

200 points

200 points

WORKING CONDITIONS

Measures job surroundings and environmental influences such as ventilation, noise and congestion.

PERSONAL HAZARDS

Measures the personal hazards inherent in a job with all reasonable precautions taken by the employer

PHYSICAL DEMANDS

Measures the kind, amount, and frequency of physical effort associated with job duties.

INDEPENDENCE OF ACTION

Measures the amount and type of supervision the position receives.

SUPERVISORY AUTHORITY

Measures the amount of supervisory authority exercised by the position.

100 points

100 points

100 points

150 points

150 points

Maximum 1000 points

EXAMPLE

Grade/Step Assignment & Job Evaluation Score

Position/Job Title Score Tenure Salary Grade/Step National Industry, State, & BLS Means

DEPARTMENT & TITLE

Tenure w/County

Job Evalution

Factor Score or Years in Position

Actual or

Average Salary

Any MS County

Current

Grade

Current

Step

Between

Steps

Raise to

Next Step

O-Net

National Mean

Bureau of Labor

Statistics

MS/State Mean National Mean Salary

Courts

Chancery Court Deputy Clerk

Circuit Court Deputy Clerk

Justice Court Clerk

Justice Court Deputy Clerk

275

275

362

225

6.6

4.7

23

11.4

39700

32700

45696

34350

43-4031 Court, Municipal, and License Clerks

Perform clerical duties for courts of law, municipalities, or governmental licensing agencies and bureaus. May prepare docket of cases to be called; secure information for judges and court; prepare draft agendas or bylaws for town or city council; answer official correspondence; keep fiscal records and accounts; issue licenses or permits; and record data, administer tests, or collect fees.

G11/ 1

G8/ 4

G11/ 6

G9/ 3

588

375

1008

973

Industry

Local Government (OES

Designation)

Employment (1)

92,790

34800

34800

54500

34800

Percent of industry employment

1.75

28000

28000

43000

28000

Hourly mean wage

Annual mean wage

(2)

$17.38

29990

29990

46999

29990

$36,150

SOURCE: http://www.bls.gov/oes/current/oes434031.htm

EXAMPLE

Data Analysis

Mean Median Mode Percentiles

Center Most

Position/Job Title Salary Avg. Value Frequent Lowest Highest Entry Mid High

Actual or

Average Salary

Survey Responses Min/Max Values Percentiles

DEPARTMENT & TITLE

Any MS County Mean Median

Mode

Multiple modes exist.

The smallest value is shown.

Minimum Maximum 25 50 75

Courts

Chancery Court Deputy Clerk

Circuit Court Deputy Clerk

Justice Court Clerk

Justice Court Deputy Clerk

Department TOTAL

39700

32700

45696

34350

152446

33320

33567

37220

31159

29120

30000

38683

26208

17074

19760

22765 a

20000

17074

19760

22765

20000

60555

76514

52846

61888

25469

24968

27618

21500

29120

30000

38683

26208

40640

35435

43127

37092

Only the Circuit Court Deputy Clerk makes less than the MEAN.

The other positions exceed the Mean.

• Do the other clerks have more experience, longer tenure, and/or more education? Is that the local market value of the position?

• What does that translate into real dollars?

EXAMPLE

Data Analysis

Mean Median Mode

Center Most

Percentiles

Position/Job Title Salary Avg. Value Frequent Lowest Highest Entry Mid High

Actual or

Average Salary

Survey Responses Min/Max Values Percentiles

DEPARTMENT & TITLE

Any MS County Mean Median

Mode

Multiple modes exist.

The smallest value is shown.

Minimum Maximum 25 50 75

Courts

Chancery Court Deputy Clerk

Circuit Court Deputy Clerk

Justice Court Clerk

Justice Court Deputy Clerk

Department TOTAL

39700

32700

45696

34350

152446

33320

33567

37220

31159

29120 17074

30000 19760

38683

Actual or

26208

Average Salary

22765 a

20000 Mean

17074 60555 25469 29120

19760 76514 24968 30000

22765

Percent of Mean

Dollar Amount (+/-

61888 from Mean

38683

26208

40640

35435

43127

Percentage of Mean = 97%

True Dollar Value = -$867

39700

32700

45696

34350

33320

33567

37220

31159

119

97

122

110

+ 19%

3%

+ 22%

+ 10%

6380

-867

8476

3191

27

19

13

9

What’s in a Standard Job Description?

A job summary – an overview and a brief description of the most important functions of the position.

A list of job requirements – education, certifications, and experience necessary to do the job.

A list of job functions – a detailed description of the job duties. This section provides the basis for most of the employment decisions that are made concerning the employees in this position.

Other information – any other important facts about the position including working hours, travel requirements, reporting relationships, location, physical requirements and working conditions.

Good Reasons to have Job Descriptions:

• Job descriptions provide documentation in the event of a wage and hour claim, workers compensation dispute, etc., assisting the State in determining claims issues.

• Job descriptions establish objective criteria for hiring and performance reviews. They help determine if a job is exempt under the Fair Labor Standards Act (FLSA).

• The EEOC uses the job description to determine essential functions for purposes of the Americans with Disabilities Act

(ADA)

• Physicians require a copy of the job description to complete

Family Medical Leave Act (FMLA) medical forms for an employee on extended leave.

The Employee Handbook is written to provide:

Clear and Consistent Written Policies to Employees and Managers

Answer Questions regarding information on Benefits & Payroll

Provide Guidance to Managers in Decision-making

Typical Policies in an Employee Handbook may include, but are not be limited to:

• Access to Personnel Records

• Background Checks and Drug Testing

• Citizenship Verification for Employment Eligibility

• Definitions of Seniority

• Dual Employment

• Employment of Temporary Employees

• Equal Opportunity and Affirmative Action

• Hiring Process

• Managing Staff Promotions and Internal Transfers

• Recruitment

• References/Outside Inquiries Concerning Personnel

• Skill Testing of Applicants

• Special Employment Circumstances *

* Presented in alphabetical order with no weight to particular policy.

Wage/Salary Information

Recommended Contents of an Employee File

Job Description

Job analysis questionnaire

Payroll authorization form

Fair Labor Standards Act exemption

Compensation history

Compensation recommendations

Notification of wage and salary increase/decrease

Questions about how Compensation

Studies, Job Descriptions, or

Employee Handbooks?

For many years, Stennis has worked with Mississippi’s local governments– counties and municipalities– offering technical assistance in a variety of areas. One area of expertise is conducting salary surveys to help determine if local compensation is competitive.

In that work, we have discovered a potential need for additional assistance in developing Job Descriptions and Employee Handbooks. If you feel you need assistance, please contact us.

Stennis Institute of Government and Community Development

Dr. Eddie French, Professor and Executive Director

Dr. Dallas Breen, Associate Director

Claudette Jones, ABD PhD, MPPA, Research Associate

Matt Peterson, MBA, Research Associate

Phone 662.325.3328

Email info@sig.msstate.edu

Drawer LV

Mississippi State, MS 39762

NOTES

Stennis Institute of Government and Community Development

Phone 662.325.3328

Email info@sig.msstate.edu

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