The Bloomington City Council is set to consider a new salary grade system for non-union employees that could lead to significant pay increases. The current system consists of 12 grades, each with a range of compensation assigned to different job titles. The proposed new system would introduce 14 grades, with many of them offering higher salaries at both the low and high ends of the ranges.
The main goal of the new salary grade system is to address pay compression issues between mid-level employees and their supervisors, as well as to better differentiate between grades. Pay compression refers to a situation where there is a minimal difference in pay among employees regardless of their skills, experience, or job responsibilities.
In addition to the changes in the salary grades, the council will also be asked to approve the creation of a new deputy clerk position for communication and outreach to support city boards and commissions. This position is expected to have a fiscal impact of $87,998.77, including salary, benefits, retirement contributions, and taxes.
The transition from the current 12-grade system to the proposed 14-grade system will not have an immediate impact on the city’s budget. However, once the regrading process is completed, the new system is expected to have a significant financial impact, potentially costing the city millions of dollars. The administration will need to determine the pace at which the changes can be implemented and which positions will be prioritized for adjustment.
While union employee wages will not be affected by the new salary grade system, the changes in non-union compensation are likely to influence future collective bargaining negotiations. The total personnel line for all departments in the city of Bloomington for 2024 is approximately $40 million, and a 17% increase in the mid-point of the 14-grade system could result in a $7 million impact citywide.
Overall, the proposed changes to the salary grade system for non-union employees in Bloomington represent a significant shift that could have far-reaching implications for the city’s budget and workforce. It will be interesting to see how the city council deliberates on this issue and what the ultimate impact will be on employee compensation and city operations.
