Hanover, New Hampshire Development News

Classification and Compensation Study Recommendations Presented by Evergreen Solutions

Evergreen Solutions, a public sector consulting firm with over 20 years of experience, presented the findings of a classification and compensation study. The study assessed current conditions, internal equity, and external market competitiveness to provide recommendations for updating the classification and compensation plans. The firm reviewed the town's employee database, pay plans, and policies, noting 95 unique classifications and 166 filled positions across 13 departments. Key findings included potential overclassification with an average of 1.7 employees per classification, a 10-step pay structure with a 52.5% range spread, and 65% of employees compensated below the midpoint. Employee outreach revealed concerns about recruitment and retention challenges, particularly for licensed and trades positions, as well as issues with classification titles not matching current duties, lack of defined career growth paths, and questions about exempt versus non-exempt status. Compensation concerns included compression between new hires and tenured staff, long step scales, and limited movement after reaching the pay scale maximum. Benefits were generally viewed positively, with health insurance employer contributions exceeding the market average and strong life insurance offerings. The study also compared market data for compensation and benefits, finding that while some administrative and clerical support roles are near market, public works operations, public safety command, skilled trades, utilities, and frontline public safety roles tend to be further behind market position. Recommendations include adopting a structured classification framework with standardized titles and defined career levels, replacing 10 pay schedules with five market-aligned step pay plans, and implementing changes in a phased approach. The proposed plan includes a 2% step increase, a 5% grade progression, and a 23-step scale per grade, aiming to align with the 75th percentile of the market. The estimated cost for a full implementation at the 75th percentile is approximately $500,000, with a phased 'bring to minimum' approach costing around $135,000 in year one. The presentation also touched upon the appointment of new arts committee members and the denial of a water abatement request.