As part of Mayor Bill Haslam's budget proposal, the city is proposing an overhaul of its employee compensation plan.

The proposed compensation plan is the result of recommendations by a consulting firm hired to study the city's current system. It is intended to bring salaries in line with "market rates" and minimize "salary compression" where new hires are making close to the same as more senior employees, particularly in the police and fire departments.

There are two new proposed salary schedules, one for general government employees and one for uniformed police/fire personnel. Job classifications are assigned a pay grade (in the case general government employees) or a "step" (in the case of police/fire personnel).

Within a pay grade/step, there is a minimum, midpoint, and maximum pay which is based on the pay grade/step and number of years at that position. Most employees would expect to reach the "midpoint" after ten years of service.

Implementation will be over a three year period, with the goal of having all city employees at 100% of "market" rates of compensation by FY 2010-2011.

According to the report, every City of Knoxville employee, including those who are presently at or above market compensation for their position, will receive at least a 2.5% increase in each of the next three years. By July 1, 2010 every full time employee in the City of Knoxville’s base salary will exceed $20,000.

Employees already at or above market rate will still receive a 2.5% increase and will not have their pay reduced.

Once implemented, the minimum salary for a general government employee at pay grade 1 will be $20,439. The maximum salary for pay grade 14 will be $139,399.

The starting salary for police officer recruits at step zero will be $31,816, and the maximum for a deputy chief at step 19 will be $95,063. For firefighters, recruits at step zero will start at $31,226, and the maximum for a deputy chief at step 19 will be $95,063.

Here are some specific job title examples, with pay grade, minimum, midpoint, and maximum proposed for the first year of implementation (the upcoming budget year):

Note there are only two job classifications at pay grade 13 and both appear to be in information technology. There are no job classifications in pay grade 14.

According to Sr. Director of Policy and Communications Bill Lyons, the proposed pay plan has buy-in from the administration, city council, department heads, and representatives from various employee groups including police and firefighters who were all represented on an advisory committee that guided the study and the final recommendations.

It's not clear from the draft proposal how radically different the new plan is from the current system, but it does appear to be comprehensive and fair. And it gets city employee compensation in line with "market" rates within three years. I'd be curious to know how it's being received by city employees, and what they think about the plan.