Compensation Best Practices and Market Analysis for Elected Officials

This document discusses compensation best practices for elected officials, including considerations such as market analysis, the importance of median pay, and using market windows for salary comparison. It also outlines a survey update on salaries of elected officials in various cities. The content emphasizes the significance of aligning pay with market rates to ensure competitive compensation for elected officials.

• Compensation
• Elected Officials
• Market Analysis
• Best Practices

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Uploaded on Jul 17, 2024 | 0 Views

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1. 2022 Citizens Commission on Elected Official Compensation Michael Kasler, Chair Compensation Best Practices Compensation Best Practices Greg Beaverson, Compensation Manager City of Columbus February 2, 2022 Commissioner Sarah Ingles Commissioner Keisha Jenkins Commissioner Fred Ransier Commissioner Quiana Williams

2. The Market The market is the prevailing salary of a given job, and answers the question, What are employers willing to pay for this job? Several Considerations: Level of Responsibility Comparable Region: Local, State, National Number of Employees in the Organization Population Salaries of actual employees are collected and the median is determined. This is the market. Pay ranges are typically arbitrary and are not useful in determining the market. 2

3. The Median The median is preferred over the mean (average). It represents the greater tendency. Median means middle Of the numbers 5, 10, 50, 100, 100,000: 50 is the median 20,033 is the average For our purposes, some elected officials are paid much less because the job is part-time, is not equivalent to the same job elsewhere, or they ve taken a voluntary significant cut in pay. This is where the median is more representative of the true market. 3

4. Competitive Pay Range: The Market Window When it comes time for comparison, salaries will rarely exactly match the market rate. Therefore, a market window is useful in determining whether a job is at, below, or above market. Market: $50,000 Comparator Salary: $48,000 An established market window of +/-5% would produce acceptable market rates of $47,500 and $52,500. Therefore, the comparator salary of $48,000 would be considered to be within market. Organizations can choose to set the width of the market window (or choose not to have one), but compensation best practice typically falls in the range of +/-5% to +/-10%. 4

5. Survey Update 24 Cities Surveyed 5 Complete Responses 21% Response Rate Requested Due Date: February 11, 2022 5