Committee of the Whole Meeting - Compensation Study Review - September 15, 2026

The Oswego Village Board Committee of the Whole met on September 15, 2026, to receive the results and recommendations of the 2026 compensation and classification study conducted by Gallagher. The study, the first consultant-led effort since 2018 (with an internal review in 2022), aimed to ensure competitive, equitable, and transparent pay structures. Presenters included Deputy Village Administrator Gene and Gallagher Principal Consultant Zach Stolberg (participating electronically). The board discussed study findings, proposed pay structures, compression issues, and a recommended pay-for-performance system. No formal vote was taken; recommendations will be incorporated into the 2027 budget workshop and personnel policy revisions.

Presentation and Discussion

• Study Overview: The study followed best practices including job duty matching (not title matching), geographic adjustments, aging data forward, and a deep library of published surveys plus custom comparator data from 22 organizations. The classification phase identified 12 job families, 63 unique classifications, and 18 functions. No FLSA compliance issues were flagged.
• Market Comparison Results:
  • Against the full market: Village pay at 25th percentile is 7% ahead, at median 4% behind, at 75th percentile 12% behind.
  • Against custom comparators only: Village pay is 6% behind 25th percentile, 14% behind median, 20% behind 75th percentile.
  • Pay structure analysis: Village minimums are 13% lower than full market, midpoints 4% lower, maximums 4% higher. For custom comparators: minimums 15% lower, midpoints 12% lower, maximums 11% lower.
  • Data was obtained for 87% of unique job titles covering 91% of employees.
• Recommendations:
  1. Adopt proposed pay structures (details to be finalized in budget workshop).
  2. Adjust pay for compression and internal equity; bring employees below minimum to at least the new minimum (estimated cost ~1.5% of payroll, primarily for hourly employees).
  3. Implement pay discipline for employees above maximum using lump-sum payments rather than base salary increases.
  4. Annual market-based review and proactive pay planning.
  5. Adopt a pay-for-performance merit matrix combining cost-of-living adjustments (COLA) and merit increases, with higher increases for employees below midpoint and high performers.
• Discussion Highlights:
  • Compression was defined and identified as a concern, particularly in the police department paramilitary layers.
  • Trustee noted that raising below-minimum employees to minimum may not fully resolve compression if new hires enter at the same base, potentially disadvantaging longer-tenured employees.
  • Gene explained the proposed merit matrix: employees in lower quartiles of range with high performance receive larger total increases (COLA + merit), decreasing as they progress, to encourage career progression while retaining seasoned staff.
  • Bonuses (brighter performer up to $1,000, education up to $500, spot $50) are unique but not factored into market comparisons; they are primarily for non-union employees.
  • A question about vacancy rates and hiring difficulty led to clarification that such factors are addressed during implementation, not in the study data; the village retains flexibility to adjust grades based on recruitment needs.
  • Clarification that pay grades are based on job duties and qualifications, not tenure.

Key Outcomes

• The board received the presentation and engaged in detailed discussion; no action or vote was taken.
• Staff will bring the Gallagher recommendations to the 2027 budget workshop for further deliberation and will prepare policy changes to the employee personnel manual.
• The board acknowledged the work of Gene, Pam, and Maddie in supporting the study.
• The Committee of the Whole meeting adjourned at approximately 7:05 PM to proceed to the regular village board meeting.