01/16/1991 Meeting - Laserfiche WebLink

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. . . Responding to a question from Mr. MacDonald, Mr. Gleason said that among the factors to consider with respect to employee recruitment is the perception that exists about the City's racial and ethnic tolerance. Recruitment is enhanced if the City is viewed as a place that celebrates diversity. Relating to the issue of competition for personnel, Mr. MacDonald suggested that in conjunction with competitive market rates, the council needs to keep in mind the effect of favorable working conditions and environment on re- cruitment. Mr. Gleason concurred, noting that although Eugene is slightly under market when it comes to salaries, the quality of the organization has a positive impact on the City's ability to recruit. Ms. Norris explained that in Oregon, labor unions may negotiate on direct and indirect monetary benefits, hours, vacation, sick leave, grievance proce- dures, and other conditions of employment. The City recognizes four labor unions, which represent approximately 70 percent of the City's employees. Ms. Norris said to ensure that the City can hire and keep qualified employ- ees, the City follows a "market-based" approach to setting pay. This means the City's compensation is based on compensation for similar jobs in compara- ble agencies. While in theory an agency can lead, lag behind, or stay even with the market, the council's direction has been to stay even with the mar- ket. Ms. Norris walked through the factors which are considered in the sala- ry-setting process for both exempt and union-represented employees. When establishing salary ranges, Ms. Norris explained that comparisons are made between Eugene and other cities and agencies of comparable size. Local markets are'used for some positions, statewide comparisons are used for oth- ers, and regional comparisons are used for exempt positions. The City col- lects salary information on "benchmark" positionsujobs which are commonly found in the labor market. Based on comparisons, Eugene falls at the median for salary setting. She explained further that Eugene determines salary maximums from the survey data and establishes an entry-level rate that is 25 percent lower than the maximum rate. Mr. Gleason pointed out that because of this Eugene is slightly below market rate, and that it is in a competitive disadvantage at the upper end of the pay scale. Despite this, Eugene can compete effectively for personnel because of positive livability conditions and organizational quality. Mr. Nicholson requested information comparing the median income of Eugene residents with the median income of citizens from other cities of comparable size. Noting that benefits are a part of compensation, Ms. Norris reported that the City's goal for employee benefits is to provide market-based benefits consis- tent with the City's philosophy in the most cost-effective manner possible. Mandatory benefits (those that are mandated by either State or Federal au- thorities) currently account for more than 40 percent of the City's total benefits costs. MINUTES--Eugene City Council January 16, 1991 Page 7