According to the City of Miami Classification and Compensation Study Report 13 of the city's employees are below proposed grade minimums.
Blair Johanson, president of the Johanson Group, presented the Miami City Council with the results of their classification and compensation study.
He said the focus of the study was how the city can find and keep the best people, develop current job descriptions, determine internal job values, evaluate job classifications and pay grades, improve the value for compensation expense, market pay competitiveness, ensure compliance with regulations and ongoing internal compensation management.
The three phases of the study, Johanson said, are:
• Job descriptions and job ratings. This involved the development of 145 job descriptions and the rating of them.
• Market salary study. He said they did 98 position comparisons of 120 job titles. They used 12 cities, utilities and state data to get this information.
• Salary administration.
Here they downloaded the city's employee information and market data into a compensation management database to come up with a proposed grade structure.
Johanson said the new pay scale showed 13 city employees were below the pay scale proposed.
Johanson said their market study showed the city's pay scale varies from 11.7 percent behind to 11.7 percent above.
The salary mean average is 2.75 percent below market level and the medium average salary is 4.65 percent below market level.
He said they also did a separate compensation study of the city's Electric Department. That study showed the pay was good for all the positions, except for the meter technician, which at $30,048 is 12.85 percent below the market average.
The Johanson Group, he said, urges the council to adopt the recommended pay grade structure.
Johanson said the city should also eliminate its existing pay steps and switch to a system using minimum, midpoint and maximum.
The group also recommends adjusting the pay line average by 3.75 percent.
The city, he said, should bring the 13 employees below the proposed pay grade minimums to above it. This will cost Miami $27,638.
The study also recommends the city budget and allocate a 3 percent employee base pay adjustment for 2011-2012.
Johanson said 3 percent is the average pay adjustment employees in public and private sectors in Oklahoma and Arkansas are receiving.
"This will help your employees pay for goods, which are ever increasing," he said.
The study, Johanson said, showed 11 of the city's employees will be above the maximum rate on the pay schedule. He recommends the city pay these employees a one-time payment yearly so it doesn't add to their salary.
He said they chose municipalities of the same size, some utilities and a state study to get information from the public and private segments.
The group used Ada, Altus, Bixby, Claremore, Glenpool, Grand River Dam Authority, Pryor, Oklahoma Department of Labor, Oklahoma Office of Personnel Management Study, Owasso, Salary Source, Tahlequah and Wagoner.
Councilman Rudy Schultz asked if the Johanson Group had looked at the city's benefit package. Johanson said they had only looked at the pay structure.