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Classification & Compensation Study

Compensation Study Overview

The City of Albuquerque completed a comprehensive compensation study with Evergreen Solutions to ensure that its compensation and classification system is competitive, fair, and equitable. This study was essential to help the City attract and retain talented employees by aligning salaries and job classifications with the market and accurately reflecting the duties and responsibilities of each role. The study was completed in the middle of 2024 and today we can share information about the City’s steps to implement changes based on it.

Review the Compensation and Classification Study for the City of Albuquerque-Final Report by Evergreen Solutions, LLC.

Key Findings

Market Competitiveness: The City’s compensation levels were compared with similar positions in the local, regional, or national markets. The study revealed that while some positions are competitive, other positions require adjustments to meet market standards. The City’s overall market positioning indicated that the City was approximately 5.0 percent below on average. Adjustments to some positions within the City will bring them to a more competitive position within the market.

Internal Equity: The study highlighted the need for adjustments to ensure fair compensation relative to job complexity, responsibilities, and qualifications. Evergreen made recommendations for position adjustments to align within the new salary structure and new system. No decrease in salaries were recommend as a result of the study. If a position was being paid over the projections from the study, the recommendation was for the employee to maintain their current salary.

Compliance: All recommendations were made to ensure that the City maintains compliance with federal and state regulations regarding compensation. The City’s Human Resources Class & Comp Division (HR), steering committee, legal counsel, and Evergreen worked closely together from the beginning to ensure compliance with all applicable laws and regulations.

Recommendations and Changes

New Pay Plan: The City had multiple pay plans, so the study recommended a unified compensation structure for all classified employees. This plan outlines clear salary ranges for each position, continuing to promote compensation best practices for fairness and transparency. As of March 2024, the City has adopted this single pay plan structure.

CABQ Pay Plan

Position Adjustments: With this new pay plan structure, position classifications were all assigned a pay range based on internal and external factors. The new recommended pay range collapsed the City’s multiple pay plans into one. Position placement may continue over a multi-year phased approach.

Salary Adjustments: Guided by the study’s recommendations, some positions may receive pay adjustments. In addition to the adjustments in the FY 2025 budget that took effect in July 2024, the City is working to implement pay adjustments in the following order, although these are subject to change based on budgetary constraints and may change:

  1. The City has begun inviting Unions to negotiate and bargain employee salaries with the hope of collaboratively implementing changes guided by the study.
  2. Effective December 28, 2024, the City is adjusting classified non-union positions that were found to be below their assigned range up to the minimum of their pay ranges.  
  3. The City is evaluating whether to adjust priority positions to a higher percentage of their pay range to improve the City’s ability to recruit and retain employees for those highly competitive roles.

*All salary adjustments are done only as financial constraints allow, and the City has a plan to try to account for all recommendations within three fiscal years.

 

Links to positions in Phase-I adjust December 28, 2024:

List of classified non-union positions

List of classified non-union priority positions adjusted to 15th percentile

 

For questions, please email [email protected]