Public Works and Utilities
Overview:
CRI has extensive experience working with Public Works and Utilities firms to develop effective compensation programs that are aligned with organizational goals and objectives.
Types of firms served:
- Gas/Electric Utilities
- Phone/Communications
- Sanitation
- Water Commissions
Case Studies:
Case Study #1: Salary Administration Program
Issues:
- Concerned regarding credibility of compensation process
- Utilized the point-factor system for determining internal job value tied to salary increases and grade assignments
- Job descriptions often rewritten to increase job value
- Often provided mid-year adjustments to "hot jobs" due to market pressures
- Compression occurred between new hires and experienced employees
- Desired to develop a market pricing designed program to attract and retain employees
Solutions:
- Adopted a Compensation Philosophy that emphasized a market driven approach for salary administration
- Market priced all positions based on a market driven approach
- Developed appropriate salary structures for various employee groups
- Compensated employees at the competitive market levels
- Provided increases to employees that were tied to performance
- Developed salary administration guidelines and procedures to ensure consistency
- Communicated with employees regarding the new program
Case Study #2: Executive Compensation Analysis
Issues:
- Board of Directors of non-profit hospital needed to determine executive compensation levels in light of IRS regulations
- An examination of reasonable compensation for Senior Management needed to be conducted
Solutions:
- Interviewed members of the Board of Directors in order to confirm their position on compensation
- Interviewed executives to fully understand their duties and responsibilities
- Conducted a market analysis to determine reasonableness of compensation utilizing published survey and peer Form 990 data
- Provided recommendations for appropriate compensation levels to the Board of Directors
Case Study #3: Performance Management Program
Issues:
- Performance management process was very cumbersome and subjective
- Evaluation forms did not differentiate performance levels
- Reviews were not performed on a consistent, systematic basis
- Infrequent communications regarding employee performance
- Not enough management training
Solutions:
- Developed simplified forms specific for management and staff
- Decreased number of performance ratings in order to provide for differentiation
- Conducted performance evaluations twice a year
- Conducted management training on proper use of forms
- Communicated with employees regarding the new program
Clients Served:
- General Public Utility Corporation
- Orange & Rockland Utilities
- Public Service Electric & Gas Company
- Southwestern Bell Telephone Company
- Trigen Energy
