Classification and Compensation Study

At the end of March 2023, City Administration and the Department of Human Resources were provided a final overview of the City-wide compensation study, including recommendations by Arthur J. Gallagher, Human Resources and Compensation Consulting.  The objectives of the study still remain the same, which is to help ensure that our job classification system is updated, and our compensation structure system aligns with the labor market and the City’s compensation policy/philosophy/strategy. Through use of this study, it is our goal to take actions that continue to retain and attract employees; and to help ensure fair and equitable compensation that aligns with the city’s Diversity, Equity, and Inclusion values and ensure competitiveness with the labor market.

As part of the study process, Gallagher provided a presentation to Council at the April 3, 2023, Council meeting. It is no surprise that the study reflects that there is some market pay range misalignment. 

• The study also reflects that some positions were below the market, some remain competitive within the market and in some instances lead the market. Not all positions will be eligible to receive a pay adjustment. 
• Several scenarios were proposed by Gallagher to potentially address compensation gaps with base costs varying from a few million to upwards of $6.6 million.
• In anticipation of the groups that will be starting collective bargaining in the late spring (as authorized by Charlottesville’s collective bargaining ordinance) the City asked Gallagher to propose separate pay plans for sworn police officers, sworn firefighters and transit.  These three proposed pay plans comprise the majority of the costs of recommended implementation and will be subject to any applicable collective bargaining process. 
• Additionally, we will be looking further at the process of bringing positions to up to the market 50th percentile and updating our pay range structure which will require an implementation process in phases.  

During the process of implementing our compensation study, we will be working to be as transparent as possible and share updates when feasible. While we anticipate that there will be some position pay adjustments and an updated compensation policy as a part of this process, it’s important to remind employees that we will be carefully working through any implementation process, and this will take time and is also contingent upon city revenues and City Council approval.