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Elgin City Council unani mously passed the implementation of a new employee compensation plan to raise wages for city workers and better compete in an increasingly competitive marketplace.
Human Resources Director Pamela Sanders presented the findings from her 2024 Compensation Study to Council, sharing what it will take to maintain a competitive edge on other cities and how to reward and retain talent.
“We’re pleased with the result. We think this will represent the final step of a journey we’ve been on the last four or five years, to bring all of our positions into appropriate compensation level for the people that are here, and a competitive compensation level for these positions as the city continues to grow,” said City Manager Thomas Mattis.
Elgin has implemented cost of living adjustments over the past five years, but has not been able to match compensation levels of neighboring cities until now.
Criteria for the new study included number of employees, population served, economic value, budget size and proximity, selecting jurisdictions most similar to Elgin. A focus was put on cities westward and within a 60-mile commute, as places to the east “haven’t caught up to Elgin” and are still considered a “small town,” according to Sanders.
The director claimed that Elgin can’t compete with cities like Austin, Round Rock or Georgetown, and instead focused on information gathered from similar regions like Bastrop, Taylor and Manor.
By factoring in internal job analysis surveys completed by staff members and external salary surveys returned by 25 other cities, the council has reorganized positions and structured a plan that will help lower the city’s turnover rate, according to speakers.
“Compensation plays a huge factor in our turnover rate, and if we get our salaries where they need to be, it is my hope, that helps us to recruit new employees and retain the ones we have,” said Sanders.
Elgin had a turnover rate of 31% in 2023, 20% excluding seasonal workers. This is the highest rate Elgin has seen in 29 years, according to the study.
“We’re losing people because Georgetown can pay five dollars an hour more and it’s just right down the road. For the same jobs, they have more employees, their benefits are better,” added Sanders.
The proposed pay plan features an open range design to allow flexibility and management between 25 pay grades with a constant spread at 50%, according to the human resources director. Classifications are slotted individually in pay grades based on both internal and external equity.
Over $303,000 total funds will be disbursed for salary increases in stages, with planning and zoning employees receiving the most, almost $31,000.
This funding comes from the $314,000 already set aside in the budget.
“We’re confident we got all of our positions where they should be in the market range and competitive range, so for the city moving forward, as long as we can keep up with this from the cost of living or inflation standpoint, the city shouldn’t have to make $300,000 jumps in any one year anymore,” said Mattis.
Of the 153 active city employees, about 60% will be impacted by the cost of living adjustments. Lower-level positions will not be affected as much as the higher-level managerial roles, according to Sanders. The minimum salary for all city employees will be at or above the $18 per hour mark.
The Council expects to see the turnover rate needle move within the next three years, but “there will always be people that will chase the dollar,” added Sanders.
“Compensation plays a huge factor in our turnover rate, and if we get our salaries where they need to be, it is my hope, that helps us to recruit new employees and retain the ones we have.”
— Human Resources Director Pamela Sanders
