TCRP Report 127 Employee Compensation Guidelines for Transit Providers in Rural and Small Urban Areas

1. TCRP Report 127 Employee Compensation Guidelines for Transit Providers in Rural and Small Urban Areas Sue Knapp KFH Group, Incorporated Bethesda, Maryland

2. Study Purpose Develop guidelines for rural and small urban transit compensation decisions • Compensation – salary levels and benefits • Attracting and Retaining Quality Employees

3. Audience and Uses Audiences • Local Transit Agencies • Transit Boards • Local Elected Officials Uses • Make Decisions on Wages (salary levels and process) • Make Decisions on Benefits (offered and subsidized) • Resource for Attracting and Retaining Employees

4. Definition of Compensation Wages/Salaries • Base wages • Overtime or compensatory time Benefits • Paid leave • Insurances • Pension • Education/tuition reimbursements • Wellness programs

5. Guidebook and Tool Part 1 – Compensation Guidelines – Salaries and Benefits • Wages and Benefit Data • Guide for Making Compensation Decisions • Computer Tool Part 2 - Recruitment and RetentionStrategies

6. Compensation Data • Compensation Data (2007) • 360 Transit Systems from 45 States • Cross section of operators • Service area • Transit system size • Funding • Organizational characteristics • Types of services operated

7. Compensation Data • Systems in the Database • 82% are S.5311 recipients; 22% receive S. 5307 for small urban areas • About 50% have an urbanized area within their primary service area • Most have a mix of fixed route, demand responsive and subscription service • Most have full time and part time employees • 82% provide overtime pay (time and a half); average 6.2% wages • 80% do not have unions

8. Compensation • What affects compensation? • Proximity to Urban Areas • Service Area Size • Region of the Country • System Size • Organization Type • Service Type • Employee Characteristics • Unemployment Rates

9. Compensation • How? • Proximity to Urban Areas • Systems serving urbanized areas have higher wages and slightly higher benefits • S. 5307 systems offer significantly better benefits • Service Area Size • Systems serving larger areas have lower wages and lower benefits • Region of the Country • Significant regional differences • System Size • Systems with more employees have higher wages and better employee benefits but higher turnover rates • Larger systems tend to have fewer part time staff, more CDL drivers, serve urban areas, have unions and few, if any volunteers

10. Compensation • How? • Organization Type • Governmental units have higher pay and better benefits than private-non-profits • Service Type • Fixed route systems have higher wages and better benefits than demand responsive systems • Employee Characteristics • Unionized employees have higher pay and better benefits • Systems with more full time employees have higher wages and better benefits • Systems that use volunteers have lower wages and benefits • Systems with staff shortages do not pay lower wages or lower unemployment rates

11. Processes for Setting Wages/Benefits • Determining General Wage Ranges • Informal Surveys of Market Conditions • Formal Salary and Benefit Studies • Setting Wages and Benefits • County Commissioners/Boards of Director • Negotiation with Unions • Contractor

12. Processes for Setting Wages/Benefits • Determining Raises • Annual Review • Periodic Step Increases • Bonuses for High Performance • Raises for Improving Skills • COLAs • What Influences Raises • Health of organization • Local labor markets • Collective bargaining agreements • Individual employee performance

13. Wages Administrative Staff (annual) • Director $48K $14K - $105K • Admin Assist $28K $12K - $55K • Planner $36K $15K - $83K • Bookkeeper $30K $12K - $67K • Marketing Specialist $37K $17K - $58K • Computer Operator $38K $18K - $50K • Safety/Training Mgr. $34K $12K - $56K • Trainer $31K $16K - $54K • Rideshare Coordin. $30K $19K - $56K

14. Wages Operating Staff (per hour) • Clerk $11.20 $6.12 – $19.45 • Ops Supervisor $17.70 $7.25 - $32.81 • Street Supervisor $16.48 $10.29 – $26.80 • Scheduler $11.59 $6.50 – $24.93 • Dispatcher $11.62 $6.50 - $20.25 • Maintenance Mgr $18.65 $7.50 - $33.39 • Mechanic $15.94 $9.90 - $23.58 • Maintenance Clerk $13.37 $6.68 - $21.15 • Mechanic Assistant $11.73 $6.83 - $17.62 • Maint.Utility Worker $11.63 $5.85 - $18.07 • Bus Driver–CDL $11.19 $5.85 – $20.00 • Bus Driver–non CDL $8.96 $5.85 – $16.18

15. Wage Tables in Report 127

16. Employee Benefits* • Insurances • Health – employees 88% • Health – family 63% • Disability 52% • Life 73% • Retirement Plan78% • Time • Vacation 95% • Sick Leave 89% • Compensatory Time 48% • Educational Opportunities41% • Wellness Program27% *Generally provided on full time employees only

17. Wages/Benefits Relative to Market • 68% feel wages are about or above average for labor market (14% above and 54% about) • 84% feel benefits are about or above average for labor market (44% above and 40% about) • 11% average turnover rate • Of the 43% that have staff shortages, almost all are short drivers • Average unemployment rate was 5.4%

18. Employee Attraction/Retention Transit System as Employer • Strive to be Employer of Choice • Proactive rather than reactive • Prove you’re a good, stable employer • Have an HR strategy even if no HR department Stages of the Employment Cycle – Integrating • Recruiting • Hiring • Training and Development • Retaining • Exit Interviews

19. Assessing Needs • Assess needs • Job Development • Job descriptions/skills • Qualifications/requirements • Compensation package

20. Recruiting • Tailor to job requirements • Common methods • Newspaper ads • Internet ads • Employee/personal referrals • On-vehicle recruiting • Job fairs/newsletters • Useful hints • Keep a log of what gets responses • Employment agencies • Local community colleges • Internships or apprenticeships • Workforce development programs

21. Hiring • Pre-employment Screening • Skills • Drug/alcohol • Personality tests • Background checks • Physicals • Developing the Interview • Interviewing • Making an Offer

22. Training • Initial Training • Language Training • Probationary Period • Re-training

23. Retaining • Compensation • Performance Reviews • Promotional Opportunities • Recognition • Personal and Professional Development • On-going training • Cross training • Professional certificates • Peer mentoring

24. Retaining • Employee “buy in” or Ownership • Work Environment • Open communications • Management interaction • Established policies and procedures • Safety focus

25. Successful Retention Strategies • Extra days off for safe work environment • Sick leave donations • Retention bonus • Personal leave instead of vacation and sick leave • Flexible off-time for PT workers; allow PT workers to take off whenever they request • Subsidized college-level classes

26. Completing the Cycle • Exit Interviews • Organizational Health Assessments

27. Computer Tool • Computer-based tool on compensation – user friendly and menu driven • User inputs – system and service area characteristics • Tool Outputs • Wage ranges similar systems and/or similar labor markets • Benefits offered/subsidized in similar systems

28. Computer Tool -Input Screen

29. Computer Tool-Output Screen

30. Computer Tool-Output Screen