FY 2016 PROPOSED ANNUAL OPERATING BUDGET E MPLOYEE C OMPENSATION - PowerPoint PPT Presentation

FY 2016 PROPOSED ANNUAL OPERATING BUDGET E MPLOYEE C OMPENSATION & B ENEFITS “B UILDING AND S UPPORTING O UR E MPLOYEES ” Presented by Lori Steward, Human Resources Director August 26, 2015

NEW IN FY 2016  2% Cost of Living Adjustment for all civilian employees  $13 Entry Wage  Minimal changes to civilian health plans 2

STRATEGIC GOALS C OMPETITIVE W AGES O PPORTUNITIES FOR G ROWTH E XCELLENT B ENEFITS 3

OUR WORKFORCE 5,310 11,922 4,095 Step Pay Uniform Plan FY 2016 7,827 Authorized Positions 97 Civilian Executives 2,420 Professional, Managerial, 4 Appointed Officials

OUR CIVILIAN COMPENSATION All Employees • 2% Cost of Living Adjustment Support Lowest • $13 Entry Wage Wage Earners Reward • Step Pay Plan Movement – 2-4% Experience Reward Strong • Performance Pay for Professionals and Above – 3% Pool Performance 5

STEP PAY PLAN Step Pay Facts: • Established in 2008 with input 2% from the Employee Management 2% Committee 2% • Implemented over 6 years with a cost of over $80 M 3% • Over 5,000 positions on 3% the Step Pay Plan 3% 4% 4% 4% 4% 6

ENTRY WAGE & COMPRESSION $11.47 Maintenance Worker Maintenance Crew Leader II (supervisor) $13.15 7

ENTRY WAGE & COMPRESSION $13.00 Maintenance Worker Maintenance Crew Leader II (supervisor) $14.79 8

ENTRY WAGE COMPARISON Chicago* $13.00 San $15.00 Francisco* Dallas Dallas Fort Worth Fort Worth $10.62 $8.49 $9.96 $9.96 Houston Austin Oakland* $15.00 Houston $10.00 $13.03 $10.00 Los San Antonio $15.00 $13.00 Angeles* *Target entry wages to be phased in over 3 to 6 years Seattle* $15.00 9

ENTRY WAGE COMPARISON Adjusted Hourly Wage Chicago* $10.29 San $8.27 Francisco* Dallas Dallas Fort Worth Fort Worth $10.62 $8.49 $9.96 $9.96 Houston Austin Oakland* $9.90 Houston $10.00 $13.03 $10.00 Los San Antonio $10.26 $13.00 Angeles* *Target entry wages to be phased in over 3 to 6 years Seattle* $10.92 10

OUR GROWTH OPPORTUNITIES It all starts with hiring great employees 11

OUR GROWTH OPPORTUNITIES Professional Development • Supervisor Excellence Training • Leadership Development Programs • Skills Training Education • GED Program • Tuition Reimbursement 12

SUCCESS STORIES Enrique Saucedo Side Load Equipment Operator Solid Waste Management “With the encouragement and support of my wife, kids, and coworkers I was able to accomplish my goal of becoming a driver. Now I can better provide for my family.” “The City’s Tuition Reimbursement Program helped me pay for books and tuition, especially when I was attending community college.” Patricia Medellin Assistant District Manager 13 Solid Waste Management

TUITION REIMBURSEMENT PROGRAM Average 190 Average $260K Participants Reimbursed per Year per Year 55% of Participants Working Towards 560 Classes Associates or Taken per Year Bachelor’s Degrees 14

OUR BENEFITS Health Personal & Pension (TMRS) Insurance Annual Leave Leave Buyback Life Insurance Disability Deferred 13 Paid Holidays VIA Bus Pass Compensation Cell Phone Reimbursement 15

INCREASING COSTS OF HEALTHCARE Employee Healthcare Cumulative Growth 140% Uniform Active 120% Healthcare Costs Cumulative Growth Rate 100% Civilian Active Healthcare Costs 80% 60% 40% 20% 0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Estimate -20% 16

CIVILIAN BENEFIT PLANS C ONSUMER C HOICE D EBUTS C ONSUMER C HOICE AS A P LAN O PTION I NCREASES TO 33% 2013 2014 S TANDARD & V ALUE M ERGE TO FORM N EW V ALUE 2015 C ONSUMER C HOICE I NCREASES TO 47% N EW V ALUE & C ONSUMER C HOICE P LANS 17 R EMAIN Premier

CIVILIAN COST MANAGEMENT FY 2016 • I NCREASE W ELLNESS & E NGAGEMENT E DUCATION E MPLOYEE C OST FY 2016 S HARING • M INOR C HANGES TO P LAN FY 2016 P HARMACY • C ONTINUED B ENEFITS D ESIGN P ROGRESS T OWARDS C OST S HARING G OALS 18

WELLNESS Over 450 participants since 2013 Record registration in 2015 65% employee participation; nearly $1 M in wellness rewards Confidential services since 2013 available to employees 10% decrease in and members of smoker population household since 2013 19

WELLNESS EDUCATION SERIES • Established January 2015 • Topics include: diabetes management, heart health, sleep health, stress management, and blood pressure. • To-date nearly 30 sessions held with over 600 attendees 20

SUCCESS STORIES “If I can do it, anyone can do it. It’s not about celebrating with food anymore. If I want to reward myself, I buy a pair of Capri pants to walk in or treat myself to a manicure or pedicure.” Minga Luna Time & Attendance Coordinator Finance “After quitting tobacco, I was able to run my first mile in over 20 years. Now I ride mountain bikes, have lowered my blood pressure levels, and just feel better overall.” Noel Gonzales AV Producer Government & Public Affairs 21

ANNUAL COST OF ACTIVE EMPLOYEE HEALTHCARE Uniform Uniform $19,260 Uniform $16,927 Uniform Legacy $16,400 $15,260 Plan Uniform $12,758 $12,485 City’s Civilian March Civilian Civilian Civilian Civilian $7,800 Proposal $7,604 $7,440 $7,080 $7,234 2013 2014 2015 2015 Estimate 2016 Proposed 22

CONCLUSION C OMPETITIVE W AGES O PPORTUNITIES FOR G ROWTH E XCELLENT B ENEFITS 23

FY 2016 PROPOSED ANNUAL OPERATING BUDGET E MPLOYEE C OMPENSATION & B ENEFITS “B UILDING AND S UPPORTING O UR E MPLOYEES ” Presented by Lori Steward, Human Resources Director August 26, 2015