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Home My WebLink About(CM1) Port Arthur Final Presentation Evergreen Solutions Inc. - v3 Port Arthur, TXCOMPENSATION, CLASSIFICATION & benefits Study Rob Williamson, Project Manager September 2025 AGENDA STUDY GOALS INTERNAL REVIEWAssessment of Current Conditions Salary & Tenure Distribution INTERNAL REVIEWAssessment of Current Conditions The average tenure for included employees is 10.76 years; median is 7.5 years. 56.6 % of employees are compensated below the midpoint of their pay ranges. 26 employees are compensated above the published maximum. Tenure does tend to increase throughout pay range quartiles (breaking pay ranges into 4 equal parts) Current step plan is 10 steps w/2.5% between steps. After employees reach the midpoint, step progression slows to one step every three years. INTERNAL REVIEWEmployee Outreach - Focus Groups & Employee Survey INTERNAL REVIEW Factors Reviewed in JAT Analysis: EXTERNAL REVIEW Market Survey Goals EXTERNAL REVIEW National Economic Forces and shifts in post-election Policy Priorities will continue to impact Public Sector Labor Market Most recent Dept. of Labor report shows wages still increasing slightly, hiring slowing significantly and inflation decreasing but remaining “sticky” placing continued pressure on employee earnings. Market now only forecasting 1 Fed rate cut for remainder of 2025. (September .25% forecasted) Dept of Labor - Year over year wage increases averaging >3% (May 2025). More than 28% of Americans are searching for new jobs – highest rate in 10 years. Pool of applicants for Public Sector increasing slightly with Federal reduction in workforce. Consumer price inflation rose 2.7% between May 2024 and May 2025 down from peak inflation of 9% in June 2022. *March 2.7% and April 2.4% EXTERNAL REVIEW EXTERNAL REVIEW Approved Target Market Peers EXTERNAL REVIEW Summary of Metrics Number of Market Peers 20 Number of Respondents 13 Percentage Received 65% Number of Port Arthur Positions Included 125 Positions with Limited Matches (<4) 34 Percentage of Positions with Sufficient Data for Inclusion 72% (90 of 125) Total Quality Matches 574 Average Match Count 7 EXTERNAL REVIEW Market Results PA is competitive at the minimum starting salaries of the published pay ranges. Due to smaller range spreads than market peers, (24 vs 48) PA is less competitive toward the maximum of the published range. Overall, PA is within the top 5 in relation to selected market peers at pay range minimums. EXTERNAL REVIEW Market Results Cont’d EXTERNAL REVIEW Market Results Cont’d EXTERNAL REVIEW Overall Market Average Port Arthur’s published pay range is competitive when compared to the market minimum. Due to the narrow range spread, PA market competitiveness erodes. Benefits Review Summary Advantages: Tuition reimbursement leads the market $3k vs $1750 Retirement is consistent with market for vesting and contribution. Paid Time Off accrual annual rollover. Disadvantages: PA lags the market slightly for PPO Health Plan individual and family coverages. Life Insurance death benefit lags the market $25k vs $7500 EAP visits lag the market 5.9 vs 4. Paid holidays lag the market slightly (12.1 vs 11) *Overall benefits offerings seem to be consistent with market. Key considerations Evergreen does not recommend the reduction of individual employee salaries. Implementation first aligns positions with pay ranges based on several factors: current internal equity, JAT employee survey, the market response and project team review/feedback. Employees are placed equitably into new pay ranges based on job classification and methodology calculation, not personalities or performance. Improve Benefits to create advantage in the market. Staffing Study to maximize resource allocation. Key RECOMMENDATIONS RECOMMENDATIONS Implementation Methods and Estimated Costs for 1/1/26 RECOMMENDATIONS Proposed Classification Structure RECOMMENDATIONS NEXT STEP QUESTIONS Rob WilliamsonEVERGREEN SOLUTIONS, LLC 2528 Barrington Circle, Suite 2 Tallahassee, Florida 32308 The Assessment of Current Conditions allows for an understanding of current status, strengths and weaknesses of the current system, and provides the baseline for recommendations. Of the 98 pay grades being utilized, 39 grades contain less than 5 employees The Division does not utilize a true defined pay range; rather employees are advanced on an annual basis as budget allows. The calculated range is the published range. The Assessment of Current Conditions allows for an understanding of current status, strengths and weaknesses of the current system, and provides the baseline for recommendations. Focus groups were held both virtually and in-person October 2024 Also released an anonymous outreach survey that elicited 1405 responses JAT was open for approximately 6 weeks; employees had roughly 3 weeks to complete their assessments and supervisors were given about 3 weeks to review submissions. Employee completion rate – 20.16%; of those 28.26% were reviewed by supervisors. This encompasses about 65% of the classifications included in the study JAT was provided both virtually and through paper copies in both English and Spanish to encourage participation. EGS utilized a point-factor scale to determine the relative value of a position within an organization. Compensable factors include Leadership, Working Conditions, Complexity, Decision Making, and Relationships. Market data was adjusted for Cost of Living 19 peer organizations solicited; also used secondary source data (ERI) to gather information on 122 benchmarked positions Market data was adjusted for Cost of Living 19 peer organizations solicited; also used secondary source data (ERI) to gather information on 122 benchmarked positions Market data was adjusted for Cost of Living 19 peer organizations solicited; also used secondary source data (ERI) to gather information on 122 benchmarked positions The 75th percentile was selected as the primary comparison point for consistency with compensation philosophy and to best align with the competitive landscape in which PA operates, particularly within the refinery area, where attracting and retaining high-quality employees requires offering compensation that is slightly above the market median. The 75th percentile was selected as the primary comparison point for consistency with compensation philosophy and to best align with the competitive landscape in which PA operates, particularly within the refinery area, where attracting and retaining high-quality employees requires offering compensation that is slightly above the market median. The 75th percentile was selected as the primary comparison point for consistency with compensation philosophy and to best align with the competitive landscape in which PA operates, particularly within the refinery area, where attracting and retaining high-quality employees requires offering compensation that is slightly above the market median. The 60th percentile was selected as the primary comparison point for consistency with previous studies and to best align with the competitive landscape in which RPS operates, particularly within the Richmond area, where attracting and retaining high-quality employees requires offering compensation that is slightly above the market median. The 60th percentile was selected as the primary comparison point for consistency with previous studies and to best align with the competitive landscape in which RPS operates, particularly within the Richmond area, where attracting and retaining high-quality employees requires offering compensation that is slightly above the market median. Implementation strategies can be phased in over a multiyear implementation approach if necessary that also aligns with bargaining schedules Base salary adjustments only; does not include supplements and/or fringe benefit markup Implementation strategies can be phased in over a multiyear implementation approach if necessary that also aligns with bargaining schedules