Non-Union Classification and Compensation Study slide deck for FinCom 1.30.25 — File 25-0261

Non-Union Compensation Study Presented to Finance Committee of the Whole Thursday, January 30th, 2025

Agenda 1. Core Principles & Methodology 2. Proposed Classification Plan 3. Proposed Compensation Plan 4. Boards, Commissions & Elected Officials 5. Timeline & Rollout 6. Question & Answer

Within the City-Wide Classification & Compensation Study… 9 bargaining units 575+ unique positions

SEIU School Custodians Local 76 Fire Alarm Local 888 e911 Local 76 Firefighters SPEA Patrol Officers SPSOA Police Superiors SMEU (B unit) SMEU (A & D units) Non-Union Boards, Commissions, & Elected Officials Five contracts settled in the past year

Section 1: Core Principles & Methodology

EQUITY Comparable positions analyzed across and within departments 6

CLARITY Position grading is simpler and easier for individuals and managers to understand and communicate 7

Consultant Review Process Create pay bands Group similar positions & compare salaries Score positions on 13 grading criteria Collect salary data from comparable communities Review Job Descriptions

Full List • Arlington • Boston (Water & Sewer) • Brookline • Brockton (not pictured) • Cambridge • Framingham • Malden • Melrose • MWRA (not pictured) • Newton • Quincy • Waltham • Weymouth • Worcester (not pictured) Map of comparable communities

Classification In compliance with the Massachusetts Pay Equity Law (M.G.L. Chapter 149, Section 105A), a point factor evaluation system is used to measure the “comparable value” of a position. Point factor analysis (PFA) is a systemic approach used to objectively evaluate in a consistent manner a position’s “comparable worth” that requires substantially similar “skill, effort, and responsibility performed under similar working conditions.”

13 Grading Criteria based on Job Duties Skill The knowledge, ability and skill requirements of a job, rather than an employee's personal skillset • Education/Knowledge • Experience Effort Job factors which cause mental fatigue and stress, as well as those which alleviate fatigue Responsibility The degree of discretion or independence as well as supervisory responsibility and the degree to which the employee is involved in decision-making • Physical Demands • Motor Skills • Occupational Risk • Work Environment • Accountability • Judgement • Confidentiality • Complexity • Supervision Required • Personal Contacts • Supervisory Responsibility

Section 2: Proposed Classification Plan

Similar to Old Scale • Established minimum and maximum salaries • Starting step for new hires will increase over time • Number of steps increased each FY subject to economic conditions • Standard set of metrics to grade and approve any new positions

Classification Plan is easily understandable for staff and managers I II III IV V VI Executive Leadership Major Dept Heads; City-wide accountability and authority Independent judgment and discretion, work leader Advanced knowledge required of a specific trade/field & may supervise others Reports into VI or to Executive; authority over Department Under general direction of Dept Head, high level of independence, judgment, supervisory Department Leadership Work Group Supervisor/Specialist Manager Under general supervision; duties governed by rules, instructions or procedures Individual Contributor II Pay Band Non-Union Classification Plan Individual Contributor I

New Structure - S Track Positions requiring specific degrees or credentials, or a combination of high scope, risk and responsibility Specific Degrees or Credentials High Levels of Scope, Risk & Responsibility • Positions that require a specific degree as part of the Job Description, such as a Masters in Library Science or degree in Data Science • Positions that require as part of the Job Description professional licensing specific to the field, usually in addition to specific degrees, such as Certified Public Accountants (CPA) or Licensed Independent Clinical Social Worker (LICSW) Positions that take on some combination of: • Authority to oversee projects with substantial scope • High degree of financial and/or legal risk to the city • Organizational responsibilities that impact multi-departmental or citywide operations and service provision

Addition of S Track recognizes roles with additional requirements I II S Track III S Track IV V S Track VI Pay Band Non-Union Classification Plan Individual Contributor I Under general supervision; duties governed by rules, instructions or procedures Individual Contributor II Independent judgment and discretion, work leader specific degree/credential or high risk/scope/responsibility Work Group Supervisor/Specialist Manager Under general direction of Dept Head, high level of independence, judgment, supervisory Advanced knowledge of a specific trade/field & may supervise others specific degree/credential or high risk/scope/responsibility Executive Leadership Department Leadership Reports into VI or to Executive; authority over Department specific degree/credential or high risk/scope/responsibility Major Dept Heads; City-wide accountability and authority

New Structure - M Track Fields that qualify under S Track and that are not necessarily in-house departments for a municipality, but require expertise from credentialling such as a Juris Doctorate degree or Professional Engineer licensing, are classified as a 'market' track. Comparable data from municipalities is minimal because this work is typically outsourced to consultants & law firms These additional pay bands are added for: III M: Specialist V M: Department Leadership VI M: Executive Leadership

Proposed Non-Union Classification Grading I II S Track III S Track IV V S Track VI IIIM VM VIM Pay Band Non-Union Classification Plan Individual Contributor I Under general supervision; duties governed by rules, instructions or procedures Individual Contributor II Independent judgment and discretion, work leader specific degree/credential or high risk/scope/responsibility Work Group Supervisor/Specialist Manager Under general direction of Dept Head, high level of independence, judgment, supervisory Advanced knowledge of a specific trade/field & may supervise others specific degree/credential or high risk/scope/responsibility Executive Leadership Department Leadership Reports into VI or to Executive; authority over Department specific degree/credential or high risk/scope/responsibility Major Dept Heads; City-wide accountability and authority Fields that qualify under S Track and that are not typically in-house departments for a municipality, but required expertise from credentialling such as Juris Doctorates and Professional Engineer licensing Professional Field Classification Plan

Section 3: Proposed Compensation Plan

Proposed Non-Union Compensation Ranges I II S Track III S Track IV V S Track VI IIIM VM VIM Pay Band Non-Union Classification Plan Individual Contributor I Under general supervision; duties governed by rules, instructions or procedures Individual Contributor II Independent judgment and discretion, work leader specific degree/credential or high risk/scope/responsibility Work Group Supervisor/Specialist Manager Under general direction of Dept Head, high level of independence, judgment, supervisory Advanced knowledge of a specific trade/field & may supervise others specific degree/credential or high risk/scope/responsibility Executive Leadership Department Leadership Reports into VI or to Executive; authority over Department specific degree/credential or high risk/scope/responsibility Major Dept Heads; City-wide accountability and authority Fields that qualify under S Track and that are not typically in-house departments for a municipality, but required expertise from credentialling such as Juris Doctorates and Professional Engineer licensing Professional Field Classification Plan I II S Track III S Track IV V S Track VI IIIM $110,000 - $152,900 VM $155,000 - $215,450 VIM $180,000 - $250,200 Pay Band Non-Union Compensation Ranges Individual Contributor I $85,000 - $118,150 $65,000 - $90,350 Individual Contributor II $75,000 - $104,250 Work Group Supervisor/Specialist $100,000 - $139,000 Manager $110,000 - $152,900 $90,000 - $125,100 Executive Leadership Leadership $120,000 - $166,800 $130,000 - $180,700 $155,000 - $215,450 Professional Field Compensation Ranges

Current Non-Union Ranges Minimum pay under new scale at $65,000 lifts those previously at NU12 - NU14

$65,000 $75,000 $85,000 $90,000 $100,000 $110,000 $110,000 $120,000 $130,000 $155,000 $155,000 $180,000 $90,350 $104,250 $118,150 $125,100 $139,000 $152,900 $152,900 $166,800 $180,700 $215,450 $215,450 $250,200 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 I II IIS III IIIS IIIM IV V VS VM VI VIM Proposed New Non-Union Salary Band Ranges Individual Contributors (49% of staff) Work Group Leaders, Specialists, & Managers (37% of staff) Department & City Leadership (13% of staff)

Distribution of Classification Under Old Scheme Two-thirds of employees are between NU13 and NU8, lacking clear differentiation between roles that are all considered Individual Contributors

Distribution of Classification Under New Scheme Individual Contributors make up 49% of the new distribution, with those who have supervisor responsibilities/higher expertise regraded accordingly (III or IV)

How will this transition impact compensation across the workforce?

Employees earning less will benefit the most from the proposed plan Largest increases are proposed for staff at the lower end of the pay scale. Lower current salary range Higher current salary range Lower proposed increase Higher proposed increase

Distribution of Old & New Classification New classification plan provides equity for roles with similar skill, effort & responsibility required

Section 4: Boards, Commissions & Elected Officials

Proposed changes to Boards & Commissions Each board, commission, or committee was assessed based on three factors: 1. Advisory Role: Provides recommendations or guidance on policy matters. 2. Enforcement Authority: Has the power to enforce regulations or ordinances. 3. Financial Responsibility: Controls or influences budgetary expenditures. Once assessed, each Board and Commission was placed into one of three tiers. As roles and responsibilities evolve, so can the tiering. Additionally, standard increases for chair of committees (+5%) and alternate members (50% stipend) are proposed.

Three-Tiered Pay Scale Tier 3 $6,000 stipend Highest Responsibility • Job Creation and Retention Board* • Affordable Housing Trust* • Planning Board • Zoning Board of Appeals Tier 2 $4,000 stipend High Responsibility • Redevelopment Authority • Board of Health • Licensing Commission • Community Preservation Committee* • Condominium Review Board • Election Commission Tier 1 No stipend Volunteer Basis • Historic Preservation Commission • Arts Council Board • Fair Housing Commission • Traffic Commission • Urban Forestry Committee • Commission for Persons with Disabilities • Ethics Commission • Urban Design Commission & more… * denotes a Board or Commission receiving no stipend under the status quo

Elected Officials Based on a review of peer cities, no changes are recommended at this time for: •City Councilors •School Committee Members •Mayor

City Council Stated Responsibilities & Further Review Comparable Communities • In further analysis for City Councilors, estimates were developed with City Clerk staff for duties required in an official capacity including engaging with constituents (15 hrs/month), participating in community events & public meetings (5 hrs/month), & collaborating with city staff and stakeholders (5 hrs/month). Additionally, based on Legistar data, Councilors attend between 90-155 hours per year in meetings. • Based on nearby communities with Mayor/Council forms of government, compensation in Somerville is above both the median ($23,135) and average ($21,449) pay. No changes to salaries proposed at this time. Financial Analysis – Hourly Rate Estimated • 155 + 12 * (15 + 5 + 5) = 450 hours estimated per year in an official capacity. • A conservative buffer of an additional 33% of hours increases the estimate to 600 annual hours required of a Somerville City Councilor in their official capacity. • $40,000 compensation / 600 hours = $66.67 hourly rate estimated. City* Council Compensation Somerville $40,000 Medford $29,359 Springfield $28,000 Lynn $25,182 Everett $25,000 Revere $25,000 Waltham $23,135 Brockton $21,464 Quincy $19,700 Malden $17,500 Newton $15,500 Framingham $5,000 Melrose $4,000 *Comparable communities were selected from a list of Mayor/Council governments within the Boston metro area

School Committee Comparable Communities • For 13 communities surveyed, Somerville School Committee members ranked the 3rd highest paid, behind Quincy and Springfield. • Compensation at $16,500 annually is above the median ($12,000) and average ($11,683) for the region No changes to salaries proposed at this time. City School Committee Compensation Quincy $20,000 Springfield $18,000 Somerville $16,500 Brockton $15,000 Waltham $13,525 Everett $12,500 Medford $12,000 Malden $12,000 Revere $10,000 Lynn $9,600 Newton $7,750 Framingham $5,000 Melrose $0

Mayor Comparable Communities • For 13 communities surveyed, the Mayor’s salary ranked 4th highest paid, behind Everett, Quincy, and Brockton. • Compensation at $180,000 annually compares favorably to the median of $165,000 and average $168,820 for peer cities. City Mayor Compensation Everett $225,000 Quincy $218,000 Brockton $188,590 Somerville $180,000 Springfield $175,000 Revere $167,500 Framingham $165,000 Waltham $160,533 Newton $155,000 Malden $150,000 Lynn $145,000 Medford $140,035 Melrose $125,000 No changes to salaries proposed at this time.

Section 5: Timeline & Rollout

Implementation retroactive to January 2025 The FY25 Budget includes funding for salary adjustments for union and non-union staff. Mayor Ballantyne and the City Council have identified recruiting and retaining top talent as a priority across the organization. Proposed salary adjustments are funded for implementation with an effective date of the first payroll in January, if funded by the City Council.

Thank You 37

Questions and Answers