Arlington County Government Total Compensation FY2020 1
Total Compensation Goals Pay, Benefits and Retirement options that attract, retain, reward and motivate current and future employees in labor market that is at full employment. We want to maintain: • Competitiveness • Affordability • Sustainability
Employee Demographics Age Years of Service 3
Exit Interviews Top 10 reasons people left Arlington County * Employees ranked their top five reasons 4
Exit Interviews What industry are you moving to? Local Government 29% Government (unspecified) 17% Retail / Service Industry 14% Federal Government 12% Police (unspecified) 10% Health Care 7% Education / Non-Profit 5% State Government 5% IT 2% 5
Compensation Maintenance Plan • Implementation over five years Goals • Create accurate job descriptions • Ensure competitive salary ranges o Establish future alignment with market o Provide affordable salary improvement 6
Job Family Study Process • The process includes: – Employee communications/ recorded kick-off meetings – Updating of position descriptions: • Interviews, employee observations and/or questionnaires • Employees and managers provide feedback on updated position descriptions – Evaluate market competitiveness • Based upon the County’s Total Compensation Philosophy • Employees can provide additional employer comparators – Implementation • When classes found to be behind, salary ranges will be adjusted, and employees receive an increase 7
FY20 Proposed Budget Items for General Employees • Continued Open Range Pay Plan - 3.25% increase up to max of grade ranges • 2% Increase to Each Grade - General Employees’ salary range will increase by 2.0% Pay Structure Adjustments - Range Max Increase Avg Annual Jurisdiction FY15 FY16 FY17 FY18 FY 19 Total % Range Max Increase City of Alexandria 1.00% 1.00% 1.00% 2.30% 0.00% 5.30% 1.06% Fairfax County 2.29% 1.10% 1.33% 1.65% 2.25% 8.62% 1.72% Prince William County 1.00% 3.00% 1.00% 1.00% 0.00% 6.00% 1.20% Arlington County 0.00% 0.00% 1.75% 0.00% 1.00% 2.75% 0.55% 8
FY20 Proposed Budget Items for Public Safety Employees • Continued Open Range Pay Plan - 5.5% merit increase up to max of grade ranges • Implementation of Kelly Day for Fire Department - Provides an extra day off per 28-day cycle - Reduces the workweek to a level closer to other jurisdictions - Reduces burn-out and some overtime costs - Adds 36 uniformed employees over four years; adding nine new FTEs per year 9
Proposed Public Safety Entry Pay Increases FY20 ACG FY20 ACG FY19 Leading Entry FY19 ACG Proposed Proposed Leading Rate FY19 ACG Entry Rate Entry Entry Rate Entry Rate Dept Entry Rate Jurisdiction vs. Market Minimum vs. Market FIR $55,672 Fairfax $50,648 -9.9% $55,723 +0.1% POL $55,919 MWAA $54,933 -1.8% $56,035 +0.2% SRF $51,938 Arlington $51,938 +0.7% $51,938 +0.7% Note: The FY20 salaries do not include any adjustments in other jurisdictions’ budget proposals. 10
Competitive Metrics Total Comp FY2016 FY2017 FY2018 FY2019 Element to Date Benchmark 16% 18% 24% 29% classes lagging at maximum (General) Employees hired 43% all 24% all 42% all 39% all over midpoint 75% MAPs 80% MAPs 73% MAPs 75% MAPs (General) Turnover 10.5% 9.3% 11.5% 5.5% 7.4% non- 5.9% non- 7.6% non- 4.1% non- retirement retirement retirement retirement 10% (Gen.) Employees at max 11% (Gen.) 16% (Gen.) 11% (Gen.) 20% (PS) 16% (PS) 19% (PS) 20% (PS)* *Projected employees at max by end of FY19 is 19% for General and 21% for Public Safety. 11
Comparison of Proposed FY 2020 Comp Adjustments in the Region Merit Increases Structure Change Average Other (Range Increase) Increase Arlington 3.25% General 2% 3.46% 3.5% (PFP) 5.5% (PS) Fairfax 1.25% - 3.0% General 1.0% COLA (to N/A Funding for specific 5% Step (PS) range & to pay) job classes Alexandria 2.3% - 5% None - General/PS 2.84% 5% - 12% - Exec Prince 3.0% General N/A N/A 1%-2% one-time William 3.0% Public Safety N/A bonus for EEs at max Loudoun 3.0% N/A N/A Comp Study 12
Benefits Study Work Group Update Health Care and Leave & Other Benefits Groups have completed their work • Recommendations proposed for July 1 implementation are on the following slides Retirement Work Group currently meeting • Improved Financial Wellness and Retirement Readiness • Sustainability • Portability 13
FY20 Proposed New Benefits High Option Dental Plan • Higher annual limit ($2,500 vs. $1,500) • Covers adult orthodontia (separate limits) • 50/50 premium cost sharing Employee-paid Long-term Disability Insurance • Coordinates with our existing County-paid Disability Income Program • Replaces 60% of salary • Employee pays 100% of premium 14
FY20 Proposed Changes to Current Plans RETIREMENT • Purchase Credit for Military Service o Recruiting tool o Former active-duty military may purchase up to 4 years of service credit in pension system o Employee will pay full cost of purchase 15
FY20 Proposed Changes to Current Plans HEALTH CARE • Change to coinsurance for prescription drug coverage o Pay a percentage of cost, up to a maximum amount. o Generic drugs remain $10 or less o Certain preventive generic drugs at no cost 16
Consumer Directed Health Plan with Health Savings Account • Proposed for July 2020 • Lower biweekly premiums, higher deductible • Preventive care at no cost to the employee • Out-of-Pocket expenses covered through Health Savings Account (HSA) o HSA can only be used with Consumer Directed Health Plans (CDHP) o County and employee contributions o Build up savings for future health care expenses, including in retirement 17
FY20 Proposed Health Care Increases Across the Region Prince Alexandria Arlington Fairfax William Major health plan 0% 0% 5% 1.6% City/Employee County/Employee County/Employee County/Employee Cost Sharing Individual 80/20 80/20 85/15 95/5 2-Party/Family 80/20 75/25 75/25 75/25 • 1.9% increase for Kaiser premiums • 0% increase for current dental plan 18
Family Friendly Benefits • Paid Parental Leave • Adoption Assistance o Up to $5,000 reimbursement for expenses • Dependent Care FSA Reimbursement o Up to $500 per year 19
Workforce Housing Initiative Survey Participant Profile • CPHD conducted survey of County and APS employees o ~ 1,900 responses o 56% of respondents have no children under 18 Household Gross Annual Income “Missing Middle” 20
Workforce Housing Initiative Survey Key Takeaways • 55% spend more than 30% of their income on housing costs • 41% of renters say they would like to purchase a home in Arlington, but most don’t believe they can find something affordable 21
Live Where You Work Grants 22
Looking Ahead Looking Ahead • Continue the compensation maintenance plan for years 3-5 Pay • Evaluate pay policies for hiring and internal movement • Look for opportunities to simplify pay scales • Communicate benefit plan additions/changes Benefits • Educate employees on upcoming CDHP and HSA • Develop Retiree Work Group Recommendations • Pilot application referral without names Diversity & • Continue Unconscious Bias training Inclusion • Barrier Analysis 23
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