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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
HUMAN RESOURCES DEPARTMENT
DATE: OCTOBER 29, 2024
FROM: HUMAN RESOURCES DEPARTMENT
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH THE SEGAL COMPANY, WESTERN STATES, INC. FOR THE CITYWIDE
CLASSIFICATION AND COMPENSATION STUDY
ATTACHMENT (Y/N): YES ITEM # 18
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve an Agreement (“Agreement”) with The Segal Company, Western States, Inc. (“Segal”), in an amount not-to-exceed $125,000 for continued consulting services for purposes of classification and compensation implementation strategies, authorize the Human Resources Director or designee, to execute the Agreement and enter into any other additional agreements or amendments thereto, for as needed services that may be required for implementation, in an amount not to exceed $50,000, and to take any and all actions as are necessary to implement and administer the Agreement.
DISCUSSION:
In compliance with the provisions of the Anaheim Municipal Code, the City of Anaheim (City) maintains a personnel system comprised in part by a position classification plan and a plan of compensation. The position classification plan is the organization’s process for grouping jobs in common classifications based on similarities in duties, responsibilities, scope, complexity and job requirements. The current position classification plans contain approximately 1,000 full-time and part-time classifications which includes about 740 unique classifications. These classifications cover approximately 2,000 full-time and 1,200 part-time employees that serve the City. Each classification has a unique written class specification outlining details of the job, the essential job functions, minimum qualifications and working conditions for the classification. These specifications not only inform the employees of the nature of their responsibilities and the type of work they may be assigned but also ensure the City appropriately identifies common characteristics among classifications, legal requirements, and specific safety concerns.
The compensation plan places each classification in an assigned salary range as approved by the City Council through either ratification of collective bargaining agreements or resolution. These salary ranges along with other forms of compensation Professional Services Agreement with The Segal Company, Western States, Inc. for the Citywide Classification and Compensation Study
October 29, 2024
make up the City’s plan of compensation, which includes approximately 416 different pay ranges. Base pay for employees is set within the range for the classification in which they serve. To meet the objectives of attracting the best and most qualified persons to serve the City and ensure that positions with similar duties and responsibilities are compensated on a uniform basis, the City must from time to time analyze the plan of compensation for internal equity and external competitiveness. The last study conducted was in 2016 and was limited in scope.
On August 15, 2023, the City Council approved a Professional Services Agreement with The Segal Company, Western States, Inc. to conduct a citywide classification and compensation study. The purpose of the study was to assess the current classification and compensation system and practices across the City and all bargaining units (15 MOUs) to determine appropriate strategies to ensure that the City consistently maintains (1) the ability to successfully recruit and retain a talented and highly qualified workforce, (2) review compensation practices that achieve internal equity and external competitiveness, and (3) provide a safe, productive work environment with high employee engagement.
Segal has completed the bulk of the initial scope of work that included a i) Planning Phase, ii) Classification Study Phase, and iii) the Compensation Study Phase. The scope of work was comprehensive and required significant partnership and collaboration with stakeholders, including City Council, executive management, employees and labor organizations to deploy, review, and analyze over 800 job description questionnaires, select appropriate benchmark classifications (117), and selecting comparator agencies (16 plus two published sources). Other critical areas completed or are ongoing by Segal include reviewing and updating over 800 job classifications, Fair Labor Standards Act analysis, identifying career paths/ladders and appropriate benchmark classifications, developing compensation strategies to withstand minimum wage increases, consideration of compaction, extensive surveys of agencies, and determining the City’s market position.
Critical project milestones have been met and Segal is preparing its final report. Upon receipt of the report, the proposed Agreement will put the City in a position to continue working with Segal on strategies as the City considers the recommendations on the classification structure and compensation model based on market data and in alignment with a competitive market compensation philosophy. The implementation phase will require extensive work to ensure internal equity, external competitiveness, compaction amongst classifications and bargaining units, and short and long term cost impacts.
Any changes to classification or compensation that fall within mandatory subjects of bargaining will require the City to meet and confer with the impacted bargaining unit prior to implementation.
The proposed Agreement for implementing a citywide classification and compensation study supports the City’s Strategic Plan Goal D – Foster a High-Performing Organization, Strategy 3 – Implement the comprehensive classifications and compensations study to attract and retain quality employees.
Professional Services Agreement with The Segal Company, Western States, Inc. for the Citywide Classification and Compensation Study
October 29, 2024
IMPACT ON BUDGET:
Sufficient funds are included in the FY 2024/25 Human Resources’ budget.
Respectfully submitted,
Linda N. Andal
Human Resources Director
Attachment:
1. Agreement between the City of Anaheim and The Segal Company, Western States, Inc.