Compensation study

The goal is to perform a compensation study for all positions and compare compensation to relevant labor markets/competitors. The study will ensure that positions performing similar work with the same level of complexity, responsibility and knowledge are classified together. The information gathered will help develop a competitive classification and compensation structure.

It is important to note that this project was not designed to evaluate individual employee performance capabilities, reorganize departments, identify staffing levels, guarantee salary increases or recommend salary decreases.

Management Advisory Group, Inc. (MAG, Inc.) methodology

  • Captured key employee data.
  • Identified jobs where recruitment and retention are concerns.
  • Requested top management input.
  • Gathered salary and compensation data from competitor organizations.
  • Reviewed current job descriptions and over 1,100 completed employee job questionnaires to evaluate classifications.
  • Developed an internally equitable and externally competitive system.
  • Provided implementation/transition costs.

Study timeline

Phase One

March and April 2022 

  • Job Profile Questionnaires (JPQs) completed by employees 
  • Over 1,100 JPQs submitted
  • All classifications were represented by at least one JPQ


Late April 2022

  •  Supervisors completed reviews of JPQs


May to August 2022 

  • MAG, Inc. performed the initial JPQ and Market Study Analysis


August and September 2022

  • Commissioners and directors reviewed the proposed draft structure


September 2022

  • MAG, Inc. conducted a final review


October 11, 2022

  • Presentation to Council at Work Session Results
  • Establish a competitive pay structure overall and for all jobs.
  • Make the entry levels competitive.
  • Bring the ranges in line with the market.


October 27, 2022

  • Second reading by Council to implement the recommendations of the study effective Monday, Nov. 7, 2022.
  • Any adjustments will be reflected on your Nov. 25, 2022, paycheck. 
  • Administrative review process opens (see below)


Phase Two

November 29, 2022

  • Council has requested a review of the Compensation Study to be presented at the Budget, Finance & Economic Development Committee meeting on Nov. 29, 2022. 

Implementation report

How to read the implementation report.

Implementation report

Notes for implementation report:

  • This report reflects the position you were in on Sept. 22, 2022.
  • If you have been promoted since then, your calculation will be different. Contact Human Resources for additional information.
  • The implementation report rounds to whole dollars.
  • Once the council has approved the Implementation Report, you will also receive a personalized letter, mailed to your home address, with specifics about your position and salary.

Three types of outcome

Implementation outcomes.

How to calculate target salary

Here is a step-by-step presentation to show how to calculate a target salary for an equity adjustment. This example uses Pay Grade 515.

Target salary calculation step-by-step guide

Calculator

A calculator is provided for your convenience.  The steps are as follows:

  • Enter your proposed pay grade (from the implementation report)
  • Enter your entry date into your current position
  • Your Target Salary will be calculated based on using the date of Nov. 7, 2022
    • If your current salary is above the target salary, then no adjustment was recommended
    • If your current salary is below the target salary, then the difference would be your salary adjustment from the study
  • Please note that this number could vary with alternate implementation dates
     

Target salary calculator

Next steps

  • Council – Adopt the proposed pay plan structure and ranges to be effective the first payroll Monday following the passage of council.
  • Human Resources – Implement new structure and market adjustments
  • Provide written notification to each employee regarding their individual recommendation from the study (job classification title, pay grade, salary)
  • Implement title, pay grade, and salary changes in PeopleSoft once approved by council
  • Add any new positions using the same methodology to retain the plan's integrity.


If you have any questions, email CompStudy@lexingtonky.gov

MAG study presentation to council

Administrative review process

A formal administrative review process has been established:

  • An employee may request a review of their classification and/or pay grade assignment by filling out an administrative review form and securing the signatures of both the division director and the commissioner and submitting it to CompStudy@lexingtonky.gov or through interoffice mail addressed to HR – Comp Study. 
    • Requests for review shall include the reason the review is being requested and any supplemental documentation. 
  • All review requests shall be filed with the Division of Human Resources no later than Friday, Dec. 30, 2022, at 5 p.m.

 

Procedures

  • A comprehensive review shall be conducted by Human Resources and shall include a study of all aspects of the grade/classification assignment. The findings will be reviewed and approved by the Director of Human Resources and presented to the applicable division director and commissioner of the department in which the issue originated.
  • If the division director and commissioner agree with the findings and decision, the decision shall become final.
  • If the division director and/or commissioner disagree with the findings and decision, the matter may, at the request of the commissioner and/or division director be referred to the Management Advisory Group International, Inc. for review and opinion. Any cost associated with the consultants’ review shall be the responsibility of the department and/or division that submitted the administrative review request.
  • The findings and opinions of the consultants shall become final unless there is an objection by the Director of Human Resources, the division director or the commissioner. 
  • If there is an objection, the Director of Human Resources shall request a review by the Chief Administrative Officer.
  • The decision of the Chief Administrative Officer is final.

Contact