CLASSIFICATION & COMPENSATION STUDY - FAQS
These FAQs are intended to help employees understand the City’s classification and compensation study, the process used, and what to expect moving forward. While the study includes recommendations, no changes to pay or classifications occur unless reviewed through the labor negotiation process and approved by the City Council.
UNDERSTANDING THE CLASS & COMPENSATION STUDY
1. What information does Baker Tilly provide back to the City when this study is completed? Baker Tilly will provide a final report documenting the methodology used to conduct the study, along with its key findings and recommendations. Baker Tilly will also present the results to City Leadership, employees, and the City Council.
2. Are you now completely done with the classification and compensation study? Almost. The following components are left:
• Finalize implementation scenarios and employee allocations. • Complete pay policy analysis and job description updates. • Prepare the final report as well as a council presentation. • Baker Tilly to train HR staff on how to administer and maintain the new classification and compensation system, which includes the SAFE job evaluation process, following meeting with labor groups and City Council
3. Why is this study important beyond salary changes?
The study is about more than salary. It helps modernize job classifications, promote internal equity, support succession planning, and strengthen career paths and progressions across the organization. The study also provides a structured framework to help the City maintain consistency and transparency in how positions are evaluated over time.
4. How was employee input considered in the study?
Employee input played an important role in the study. Information collected through employee surveys and Position Analysis Questionnaires (PAQs) provided critical input into the work performed. This feedback helped ensure that the study’s recommendations accurately reflect job duties and responsibilities across the organization.
5. What parts of the study can the City share now, and what must wait? The City can share information about the study’s purpose, methodology, timeline, and general findings. However, specific recommendations related to pay or classification cannot be finalized or discussed in detail until they are reviewed through the labor negotiation process, as applicable. The City will continue to communicate when appropriate and to the extent possible.
METHODOLOGY & HOW JOBS WERE EVALUATED
6. Is Baker Tilly going to give an exact salary recommendation for any given position? No: Baker Tilly will recommend a salary range for each classification based on market data and internal alignment. The City will review these recommendations through the labor negotiation process. After negotiations are complete, placement of employees within an approved salary range will follow a consistent Citywide methodology.
7. What are salary recommendations based on, and what did that process include? Attachment 2
47 Baker Tilly recommendations are based on a combination of internal job evaluation and external market data. Internally, positions were evaluated using the SAFE factor scoring methodology to assess relative job value and promote internal equity.
Externally, Baker Tilly analyzed comparable market data to the City’s pay ranges remain competitive.
Initial grade placements were established based on existing midpoints to crosswalk positions into the new pay plan and then further refined to promote internal equity via job evaluation scores, reflect market results, career progressions, supervisorsubordinate separation, and to address grade compression.
These recommendations were reviewed with the City’s project team and department heads. Final grade assignments will be confirmed following the labor negotiation process, as applicable, and will ultimately require City Council approval.
The following information was not considered when assigning positions to a pay grade: the individual employee in the position, individual performance, length of service, or an employee’s existing salary.
8. Did this study also look at benefits in addition to salary? Yes. Baker Tilly collected and analyzed benefit information from the peer organizations, including pay plans and compensation practices, paid time off, health benefits, supplemental benefits, and retirement. This information was used to provide context for other compensation practices, but did not result in direct recommendations to change individual employee benefits.
9. What are the nine compensable SAFE factors that Baker Tilly used? Baker Tilly evaluates positions using nine compensable SAFE factors, each assigned a specific weight based on its importance and relevance to the job’s responsibilities. The use of structured weighting allows for a consistent and objective evaluation of the relative complexity and demands of each position across the organization. To ensure compliance with ADA guidelines, the factors related to “Physical Demands” and “Working Conditions” are given lower weights to ensure physical requirements of positions are not overemphasized.
# Compensable Factors Descriptions / Measurements
1 Education Minimum education level required by the position 2 Experience Minimum years of experience required by the position 3 Level of Work Degree of difficulty of work performed by the position 4 Human Relations Type and level of human interactions
5 Working Conditions Environmental conditions experienced by the position 6 Physical Demands Physical exertion regularly performed by the position 7 Independence to Act Degree of independence to make decisions and act 8 Impact of Actions Severity of consequences as a result of decisions 9 Supervision Exercised Type and level of supervision exercised
10. How did you handle employees that have the same job title but do different work based on where they are located (different departments)?
When employees with the same job title work in different departments or areas of the organization, each position was reviewed using the Position Analysis Questionnaire (PAQ) completed by the employees. The PAQ provided detailed information about the specific job duties performed, required skills, level of responsibility, and working conditions for each position, allowing Baker Tilly to evaluate roles based on the actual work performed rather than the job title alone. 48 Based on the results from these PAQs, if positions with different titles were found to be performing substantially similar duties across different locations, Baker Tilly may recommend consolidating the classifications. Where meaningful differences were identified in positions with the same title, those distinctions were considered in the evaluation and a new title or classification may be recommended. This approach ensures that our classification and compensation recommendations accurately reflect the work performed and support a fair and equitable pay structure Citywide.
11. At the start of the project, it was emphasized that the study focuses on the positions, not the person. How is pay determined under that approach?
Baker Tilly collected extensive information and documents from the City at the start of the study, including pay structures, pay policies, job descriptions, organization charts, and salary and pay range data. Recommendations regarding classification structure and pay ranges were based on information provided through Position Analysis Questionnaires (PAQs) and the external market assessment. Individual factors such as employee performance, tenure, or current salary were not considered when evaluating positions.
At the implementation stage, after pay ranges are established, the City will review individual employee placement within any approved ranges to address factors such as range placement and potential compression, using a consistent Citywide methodology. Final placement decisions are subject to labor negotiations, as applicable, and City Council approval.
12. Will job descriptions change as part of this study? Possibly. As part of the study, Baker Tilly reviewed job descriptions to ensure they accurately reflect current job duties and responsibilities. Any updates will be reviewed with Human Resources and the labor associations through the labor negotiation process, as applicable. Once finalized, updated job descriptions will help clarify job expectations and support future career development.
13. If my job title changes, does that mean my job is changing? Not necessarily. Job titles may be recommended to improve consistency across the organization or better reflect the work performed. Any proposed title changes will be reviewed through the negotiation process, as applicable, before they are finalized. If implemented, Human Resources will communicate whether any changes affect job duties or reporting relationships.
SALARY, BENEFITS & MARKET FINDINGS
14. Will my salary be lowered?
No. No employee's salary will be lowered as a result of this study. Any future adjustments will not result in a decrease in anyone’s current pay.
15. If my position is below market, will I get a salary increase? Possibly. The purpose of this study was to ensure the City’s classification and compensation system is fair, internally equitable, and competitive with the market. Any recommendations related to salary will be reviewed through the formal labor negotiation process, as applicable, once the study is complete. No changes will be finalized until that process concludes.
16. How did the City’s salaries compare with peer organizations? Baker Tilly benchmarked 137 job classifications against comparable public-sector organizations. On average, the City’s current minimums are about 102% of market; midpoints are at 100% of market; and maximums are 104% of market.
17. Was cost-of-living considered when reviewing information from other peer organizations? 49 Yes. Economic factors, including cost of living, were considered when identifying and selecting comparable peer organizations.
Cost-of-living data was used to help ensure reasonable market comparisons, but it was not applied as a separate adjustment or formula to individual salary recommendations.
18. How will the City ensure fairness in how employees are placed within new ranges? If new salary ranges are adopted, employee placement will follow a consistent methodology applied Citywide. Factors such as individual performance, tenure, or an employee’s existing salary are not used to determine the pay range or grade assignment.
Any final placement decisions will be addressed through the labor negotiation process, as applicable.
19. Should I expect major changes from this study?
Not necessarily. Early findings suggest that many positions are already generally aligned with the market. The study’s biggest value may be updating job descriptions, strengthening internal equity, and clarifying career progressions. Any changes that are considered will be reviewed through the labor negotiation process, as applicable.
PEER ORGANIZATIONS & COMPARISONS
20. Which peer organizations were used, and how were they selected? Baker Tilly received input from the City’s department heads, labor associations, and worked with HR to establish the list of peer organizations. The final list was reviewed and approved by the City Council. • City of Anaheim
• City of Brea
• City of Costa Mesa
• City of Huntington Beach
• City of Irvine
• Irvine Ranch Water District
• City of Malibu
• City of Manhattan Beach
• City of Newport Beach
• City of Orange
• Orange County
• Orange County Fire Authority
• City of Santa Ana
• City of Tustin
Data was additionally sourced from the following peers to ensure adequate matches for Marine Safety positions:
• City of Long Beach
• Los Angeles County
• City of San Diego
To represent ‘the private sector,’ Baker Tilly included matches, as appropriate, from the following sources:
• Bureau of Labor Statistics
• Comp Analyst
• Economic Research Institute
50 21. Was cost-of-living considered when reviewing information from other peer organizations? Yes. Economic factors, including cost of living, were considered when identifying and selecting comparable peer organizations.
Cost-of-living data was used to help ensure reasonable market comparisons, but it was not applied as a separate adjustment or formula to individual salary recommendations.
PAY PLANS & CLASSIFICATION STRUCTURE
22. Coming into the study, the City had several pay plans/groups. Did those change? As part of the study, Baker Tilly led discussions with the City’s project team to review the number, type, and overall design of the City’s pay plans. Based on that review, Baker Tilly recommended the following separate pay structures for the following groups:
• Police
• Fire
• Marine Safety
• “General”
• Management
These recommended pay structures reflect differences in labor markets, job requirements, and career progressions across the respective groups. Final pay plan design and implementation are subject to the labor negotiation process, as applicable, and City Council approval.
23. Why five pay plans, and how do they differ?
Public safety positions tend to be more sensitive to the market conditions than other classifications. Establishing a separate pay structure for Police, Fire, and Marine Safety allows the City to better respond to market competitiveness, recruitment, and retention needs specific to those roles.
Management positions already operate under an open-range pay plan, and the study recommended maintaining that structure.
The “General” pay plan includes the remaining professional (non-sworn) and general classifications and reflects more common career progression and market patterns.
Having multiple pay plans allows the City to maintain internal equity while also recognizing differences in labor markets, job requirements, and career structures across employee groups.
24. Will this structure be reviewed regularly?
Baker Tilly recommended that the City conduct periodic market assessments to help ensure the classification and compensation structure remain competitive and aligned with industry standards. Any future reviews would be subject to City priorities, available resources, and applicable labor agreements.
25. Was my supervisor involved in the new pay plan that affects my department? Supervisors were asked to review and provide feedback on employees' completed Position Analysis Questionnaires (PAQs) early in the process to help ensure the accuracy of the information. Department directors provided input on grade assignments.
Final pay plan design and implementation are subject to the labor negotiations process, as applicable, and City Council approval.
51 TIMELINE, NEXT STEPS & NEGOTIATIONS
26. When will the implementation take effect?
The classification and compensation study is expected to be presented to the City Council on January 13, 2026, as an informational item. Any recommended changes resulting from the study will be addressed through the labor negotiation process, as applicable. Additional information regarding the timing and implementation of any approved changes will be provided after those discussions are complete. Updates will be shared with employees through email communications and the City’s intranet, as appropriate.
27. What happens after the final report is presented to the City Council? After the informational presentation to the City Council on January 13, 2026, the City will make the study available to help inform future discussions with the labor associations. Recommendations from the study will be reviewed during these discussions, as appropriate. No changes to pay, titles, or classifications will occur unless and until they are addressed through the labor negotiation process, as applicable, and approved by the City Council.
28. Why does implementation take so long?
Implementing classification and compensation changes requires City Council direction and review through the labor negotiations process, which may take several months. This deliberate approach helps ensure that recommendations are evaluated thoroughly, consistently, and fairly with employee associations before decisions are finalized.
29. Will all recommendations in the study be implemented immediately? Not necessarily. Recommendations in the study, including potential pay or classification adjustments, will be carefully reviewed during labor negotiations. Any changes will only be implemented after negotiations are complete.
30. How will the City keep employees informed during negotiations? While some information must remain confidential during labor negotiations, the City will share updates when appropriate and to the extent possible. Employees will receive updates via email and/or updates on SharePoint as milestones in the process are reached.
31. How often will the City share updates?
Updates will be shared at key milestones. Additional information and resources will be available through email communications and on SharePoint, as appropriate.
EMPLOYEE QUESTIONS, CONCERNS & SUPPORT
32. What if I have concerns about my classification or salary adjustment? Employees are encouraged to bring questions or concerns to their manager or to Human Resources. The City is committed to providing information and assistance to help employees understand the classification and compensation study and how it may affect them.
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