City Council Agenda Report
June 17, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Carina Montes, Director of Human Resources/Risk Manager SUBJECT: CITYWIDE CLASSIFICATION AND COMPENSATION STUDY Background:
The Classification and Compensation study conducted by CPS HR Consulting, at the request of the Council, provides the City of Norwalk (“City”) with a comprehensive analysis and recommendation.
The study analyzed the City’s current compensation structure, compared it with market data from comparable municipalities, and developed recommendations for an updated salary structure.
This new structure aligns with current market conditions and public sector best practices, ensuring that employee compensation is competitive.
This report presents the findings and recommendations from the compensation study conducted for the City of Norwalk (California) in collaboration with CPS HR Consulting. The study analyzed the City's current compensation structure, compared it with market data from comparable municipalities, and developed recommendations for an updated salary structure that aligns with the market and public sector best practices.
The analysis revealed that 36% of the City-wide benchmark classifications lagged the market (based on the midpoint of the salary range). Sixty-four percent led, or were at, the market (based on the midpoint of the salary range). The study also identified limitations in the City's current 5- step salary schedule, including inconsistent grade separation, limited room for wage growth, and salary compression/lack of wage growth among long-term employees.
Based on these findings and through numerous workshops with the City, CPS HR developed a 9-step salary schedule with consistent grade separation, appropriate bandwidth, and a more measured progression between steps. This revised, market-competitive structure will enhance
City Council June 17, 2025
Citywide Classification and Compensation Study Page No. 2 1 4
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the City's ability to attract and retain talent, address current wage compaction, and provide appropriate paths for compensation growth.
CPS HR will recap their initial findings and present their final recommendations.
Fiscal Impact:
The financial impact of the Classification and Compensation Study will be finalized after the conclusion of labor negotiations and will be included as part of the fiscal year 2025/26 annual budget.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 1: Provide high quality customer service to the community.
Recommended Action:
Receive and File.
Attachments:
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