Update on Compensation Study

 

Submitted by Anna Lyle

We have been working with Evergreen Solutions to conduct a salary study, develop a new pay grades system, and place existing positions into this new system.  I am pleased to share that Evergreen has completed their study and recommendations and we are now taking steps to implement the new pay plan in the future.

At last week’s Library Board meeting, the Board unanimously approved the Library’s calendar year 2022 funding request to Forsyth County Government.  This included $502,000 to implement Evergreen’s recommendations.  Please understand that this is not approval of the funding; this is approval to request the funding.  We will not know until late 2021 whether we will receive this funding.  If it is approved, changes would be implemented in January 2022.

Any discussion of compensation is awkward and uncomfortable because it involves placing relative values on job classifications when all positions and staff are valued and essential to our mission.  

Because we know that staff are very interested in the results of this plan, we are sharing the proposed pay grades and placement of positions within these grades.  We will continue to operate under our current pay grades and placements until we have the funding to implement the new system. 

Following are key points to understand: 

·       Everyone’s pay will either stay the same or increase. 

·       The new pay grades and grade placements are based on both market value (as determined by the salary study) and internal equity (comparison of positions within FCPL).  These placements are the result of careful analysis of data and levels of responsibility, as well as recognition of what comparable positions are paid in similar organizations.

·       If the pay range for your position has not increased significantly, please understand that this means that you are already being paid in line with the market.

·       The degree to which we can implement the plan depends on the amount of funding we receive.  If we receive the full $502,000, we will be able to bring all staff to the minimum of their new paygrades and make additional adjustments for length of time in the position using three tiers (0 - 3 years, 3 – 7 years, 7+ years). 

·       $502,000 would cover both salary and associated benefits.  (The cost of implementing a $1 pay increase for a classified staff member is actually $1.29, when benefits are included.)

·       The County may choose to fund a lower amount.  In the event that the full amount is not funded, we would work with Evergreen to develop a solution that would have the highest positive impact.  Our goals would be to address the positions with the largest gap between current and proposed pay, and to benefit as many staff as possible.

·       Although our goal (supported by the Library Board) is to reach the 65^th percentile relative to our peer groups (meaning 65% of peers would earn less than staff in a comparable position at FCPL), we will have to accomplish this through a phased approach.  The $502,000 would enable us to ensure positions are paid at the average of our peers. 

·       Who are our peers?  Evergreen sent the salary survey to 19 market peers and 16 responded, including 8 adjacent and metro library systems, 3 school systems, and 5 county governments.  Information about private sector compensation was also consulted. 

·       Typically pay adjustments due to a salary study are separate from merit increases.  We do not know how this request will impact our request for funding for merit increases in 2022. 

·       Our 2022 funding request is significantly higher than typical years.  We are requesting $502,000 increase in salaries/benefits, $75,000 increase in materials, and $100,000 toward the replacement of Post Road Library’s automated materials handling system.  However, we are optimistic that the County will be supportive of our request because they went through a similar process with Evergreen Solutions a few years ago. 

Having the plan is an important step to ensuring fair and equitable pay.  We now have specific goals to target—goals that are substantiated and documented. 

If you have any questions about the compensation study, please reach out to Nikki or me.