Management Advisory Group, Inc. Executive Summary City of Fairfax Compensation and Classification Study July 1, 2016

© Management Advisory Group, Inc

Scope of Work  Conducted employee orientation sessions;  Administered and reviewed Job Analysis Questionnaires;  Conducted department head/employee interviews;  Conducted job analysis of all City classifications;  Gathered salary and compensation data from competitor organizations;  Developed a revised classification structure and plan;  Provided a revised compensation and pay plan; and,  Recommended changes to support an internally equitable compensation system. 3

© Management Advisory Group, Inc Peer and Competitors included in the Market Survey  Arlington County  City of Alexandria  City of Falls Church  City of Manassas  Fairfax County  Prince William County  Town of Herndon  Town of Vienna 4 Overall the City was competitive in the market. Individual job placement adjustments were made to more closely align with market when appropriate.

© Management Advisory Group, Inc Recommendations  City of Fairfax proposed average range width:  Fire and Police is 60% with 58% at the top of the structure. This is consistent with market findings.  Unified (general employees) pay plan is also set to a 60% range width, also consistent overall with market findings.  MAG realigned some jobs internally to be competitive with market values and to reflect internal organizational values.  Results:  Establishes a competitive position overall and for all positions.  Makes the entry levels competitive.  Brings the ranges in line with the market. 5

© Management Advisory Group, Inc  The benchmarked positions included in the survey (50) were used as reference points for the overall competitive posture of the City and represented major job families.  The recommended structure reflects a competitive salary structure with a proposed implementation on July 1,  The structure is moved forward to anticipate market changes during this fiscal year. Market Competitiveness Survey Results 6

© Management Advisory Group, Inc Implementation Summary  Both the Fire and Police and the Unified (general employees) pay plans are recommended as “open range” plans, i.e., not steps within the ranges.  Using set criteria for implementation, the Classification Manager software program generates an internally equitable placement recommendation for each individual salary.  Formula for placement of current employees:  Target salary for employees is based on length of service in the current position, calculated down to the total number of days to July 1,

© Management Advisory Group, Inc Equity Adjustment Report – Unified Pay Plan  Proposed equity adjustments are simply a formula to migrate employees from the current pay structure to the proposed structure.  No equity adjustment is intended as a “pay raise”. Equity adjustments are made to bring an individual to the range minimum.  Each individual employee’s current salary is then compared with a target salary based on uniform progression within the plan.  Of the 384 employees covered in this study, 28 employees are below the proposed market minimums.  72 employees are recommended for an in-range equity adjustment.  All other salaries are above the equity adjustment target salary. 8

© Management Advisory Group, Inc Equity Adjustment Report –Estimated Costs for an Implementation Date of July 1, Total of 154 Proposed Classes Covering 384 employees Adjustment to Minimum (28)$ 47,862 Employee equity adjustments based on promotion date. (72) $105,832 Total Estimated Equity Adjustments:$152,694* Number of people with adjustments of any kind.80 Change in Total Payroll for included positions *Salary only – excludes the cost of merit increases for employees who are currently at the maximum of their range..58%

© Management Advisory Group, Inc Recommendations  MAG has provided a “best practices” set of personnel policies for the City’s consideration which include broad suggestions regarding:  Reclassification  Promotion  Lateral Transfer  Demotion  Temporary Assignment  Hiring.  The suggested policies are meant to be a starting point. 10

© Management Advisory Group, Inc Transition Plan Next steps include the following:  Adopt the new compensation plan structure and ranges.  Review, adjust and adopt personnel polices to guide key aspects of compensation.  Implement new structure and equity adjustments. 11