What is a Classification and Compensation Study? 

A Classification and Compensation Study is a holistic analysis of an organization’s job classifications and corresponding compensation structures to assess if the structure is meeting the needs of the organization and to identify areas where changes may be needed. The City undertook a Classification and Compensation study that began in August of 2022. Results were delivered to the City in late 2023. The Compensation portion of the study was completed in 2024, and the City will complete the Classification portion of the study in 2025. 

What is Job Classification? 

Job classification is the process of identifying the qualities and attributes of a job that includes an outline of the job duties; the level of supervision a position receives; the level of autonomy, judgment, and discretion one can employ in completing job duties; the complexity of job duties; the consequence of error; and the prerequisite knowledge, skills, and abilities necessary for someone to successfully perform the job duties. This information is then used to arrange jobs into a systematic structure. 

Why did the City of Reno Conduct a Classification and Compensation Study? 

It is a recognized best practice for organizations to routinely conduct these types of assessments to ensure job classifications reflect the work being performed, are structures in a manner that lends itself to successive career paths, and the compensation associated with job classifications is cohesive, coordinated, sustainable, equitable, and appropriately competitive within the market. 

Beyond the most immediate benefit of better aligned roles and compensation structures, a well aligned classification and compensation program enhances employee engagement and satisfaction and helps organizations to attract and retain a diverse and highly qualified workforce. This study also addressed other challenges the City would sometimes experience, such as supervisors being compensated less than their subordinates. 

What is the Market? 

The market is a list of comparator agencies that the City collected compensation data from. These are agencies the City has customarily used in compensation analysis, and provide a solid representation of public sector agencies in the Reno-Sparks Metropolitan Statistical Area, state-wide public sector agencies, and similarly situated regional public sector agencies. They are: 

Are all Classifications Examined? 

In short, no.  It is best practice to benchmark the salaries of specific classifications, where roles are chosen to compare employee pay to the market to ensure competitiveness in compensation.  These are typically classifications that are easy to compare and that exist in most organizations, like Police Officer, Firefighter, Maintenance Worker, Civil Engineer, Public Safety Dispatcher, and Office Assistant. 

Recommendations are then made by extrapolating data based on these benchmarked positions, using data from the job classification process to examine all positions both horizontally-related and vertically-related to those benchmarked classifications. 

Results 

Titling Recommendations 

The City’s classification structure had 314 different job classifications.  Based upon the questionnaires completed by employees, and reviewed by supervisors and Department Heads, the City’s classification and compensation consultant developed titling and job description recommendations. These recommendations were based upon the descriptions of the scope and nature of the work being performed as compared to similar positions within the market to identify applicable titling conventions and more accurate job duties. 

Compensation Benchmark 

The City’s classification and compensation consultant collected base salary data for comparable jobs from the market. 62% of the City’s classifications were more than 5% ahead of market. 33% of the City’s classifications were at market. 5% of the City’s classifications were behind market.