Meeting Summary
The city council meeting focused on employee recruitment and retention challenges, proposing several initiatives to address these issues. Key discussions included potential cost of living adjustments for general employees, a pilot program for flexible work schedules at City Hall, and adjustments to the employee retirement plan's vesting schedule and employer contributions. An employee engagement survey validated the need for these changes, highlighting concerns about compensation, morale, and personal growth opportunities.
Key Decisions & Votes
Pilot Flexible Work Schedule for City Hall
A pilot program for a 'four nines plus four' work schedule (Monday-Thursday 7:30 AM-5:30 PM, Friday 7:30 AM-11:30 AM) for City Hall employees was approved to run from Memorial Day to Labor Day 2022. This aims to increase service hours for citizens and improve work-life balance for employees.
Financial Matters
Cost of Living Adjustment (COLA) for General Employees
Discussion on potential COLA. A 2% increase across the board would cost approximately $500,000, 3% about $710,000, and 4% about $950,000. Specific positions may require additional adjustments beyond a general COLA.
Employee Retirement Plan Employer Match Increase
Proposal to increase the employer match for the general employee retirement plan. The current match is 6% for a 3% employee contribution. The proposal suggests a graduated match, potentially reaching 10% employer contribution for a 7% employee contribution. Maximum exposure for a 10% match for all eligible employees is estimated at $2.4 million, a $1 million increase from the current $1.4 million.
Compensation Consultant Engagement
Further discussions with a compensation consultant to develop a long-term compensation strategy for the city, moving away from traditional municipality pay structures.
Coming Up
Deadlines
- Fiscal Year 23 budget development by end of month
Watch For
- Detailed results of the employee engagement survey by department
- Further discussion on employee retirement plan adjustments (vesting schedule and employer contributions) with the FY23 budget
- Evaluation of the City Hall flexible work schedule pilot program
Announcements
- City of Stillwater is a charter member of the Oklahoma Municipal Retirement Fund (OMRF) since July 1966.
- The city moved from a defined benefit plan to a defined contribution plan on July 1, 1985.
Agenda Summary
Employee Recruitment and Retention Challenges
Presentation on the difficulties faced by the city in recruiting and retaining employees, including long-term vacancies, understaffed departments, and competition with the private sector.
Review of Employee Benefits
Discussion on the importance of benefits for recruitment and retention, anticipating an increase in insurance plan costs for the coming fiscal year.
General Employee Retirement Plan Review
Analysis of the current 10-year vesting schedule and 3% employee/6% employer contribution, with proposals for a 7-year vesting schedule and increased employer match.
Salary Competitiveness and Cost of Living Adjustment
Discussion on the need for salary adjustments to remain competitive, proposing a one-time cost of living increase and engagement of a compensation consultant.
Work Schedule Flexibility
Presentation on the need for more flexible work schedules, particularly for City Hall employees, to improve retention and recruitment.
City Hall Flexible Work Schedule Pilot Program
Proposal for a pilot program to adjust City Hall hours to 7:30 AM-5:30 PM Monday-Thursday and 7:30 AM-11:30 AM on Fridays during summer 2022.
Employee Engagement Survey Results
Preliminary high-level results of an employee engagement survey, showing an 80% engagement score and 81% satisfaction with supervisors, but highlighting concerns about appropriate pay, overall morale, and personal growth opportunities.