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CC SR 20240702 E - Recruitment Changes - Engineer Positions CITY COUNCIL MEETING DATE: 07/02/2023 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to receive a status report on the current Senior Engineer and Principal Engineer recruitments. RECOMMENDED COUNCIL ACTION: (1) Receive and file a status report on recruitments in Public Works Department consisting of underfilling one Senior Engineer vacant position as an Associate Engineer position and offering a sign-on incentive bonus for the recruitment of two Principal Engineer positions; and (2) Receive and file a status report to offer an incentive sign-on bonus of $12,000 each for two Principal Engineer positions for a combined total of $24,000. FISCAL IMPACT: The Fiscal Year 2024-25 budget for the Senior Engineer and Principal Engineer positions is $430,400 for salaries and benefits. The total incentive bonus of $24,000 will be funded from the available budget of approximately $40,000 from underfilling the Senior Engineer position to Associate Engineer. VR Amount Budgeted: $3,282,300 Additional Appropriation: N/A Account Number(s): 101-400-3110-41XX (various accounts) (General Fund – Public Works – Salaries & Benefits) 330-400-3110-41XX (various accounts) (CIP Fund – Public Works – Salaries & Benefits) VR ORIGINATED BY: Eileen Jacinto, HR Analyst REVIEWED BY: Ramzi Awwad, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Revised Organizational Chart for Public Works (page A-1) B. Recruitment Incentive Program (page B-1) 1 BACKGROUND: The Public Works Department, despite its recent recruitments in the past year, continues to face challenges in recruiting critical engineering positions based on the Department’s current organizational chart. These positions include one Senior Engineer and two Principal Engineer positions. These vacant positions are advers ely impacting the operations of the Department and responding to City Council and community requests. Thus, Staff is providing the City Council with a status report and recruitment strategies. DISCUSSION: Senior Engineer Recruitment In April 2023, the City Council approved a professional services agreement with Gallagher Benefits Services, Inc. (Gallagher) to help with recruiting four engineering positions , two Associate Engineer and two Senior Engineer. Prior to working with Gallagher, these positions had been vacant for two years, and the City’s Human Resources Division had conducted five separate recruitments, but with no successful h ires. Since April 2023, Gallagher’s team has filled three of the four vacancies with highly qualified individuals. There is one vacancy for Senior Engineer left unfilled. This position has been open with Gallagher since July 2023, and has yielded few results. Over the past several years, there have been continuous recruitment challenges in the public and private sectors to attract highly qualified senior-level candidates in civil engineering. In contrast, the Associate Engineer recruitment that was conducted by Gallagher in 2023 produced two superior hires for the City within two and three months of being open. Based on these positive results, the Director of Public Works would like to underfill the Senior Engineer position with an Associate Engineer. It is our belief that in the next few years we will see our Associate Engineers grow and develop in their positions at which point we could revisit and potentially re-open a Senior Engineer position and recruit internally for it. Underfilling the Senior Engineer vacancy with an Associate Engineer provides budget savings of about $40,000 annually. This evening, Staff is asking City Council to receive and file a revised organization chart for Public Works that reflects this change (Attachment A). Principal Engineer Recruitment Incentive Bonus On May 17, 2022, the City Council approved a Recruitment Incentive Program as part of the Administrative Instruction Manual No. 2-21 (Attachment B), which allows the City Manager to approve a one-time signing bonus in amounts determined by the City Manager based on the approved budget for the fiscal year. To use the incentive bonus , recruitment “must have demonstratable recruitment difficulty”. Recruitment difficulty may be based on any one of the following: limited applicant pool, recruitment difficulty, and a continued high vacancy rate.” A full-time employee recruited under the program would be 2 eligible for up to 25% of the bonus on their first paycheck, another 25% after successfully passing the probationary period (one year), and the final 50% after completing 24 months of employment. In January of 2024, the employee that held the Principal Engineer position retired. Gallagher was approved by the City Council to provide recruitment services and help fill this position. In March of 2024, the City Council approved adding a second Principal Engineer position based on the growing needs of the department. Gallagher has been running this recruitment now for several months and has been unable to produce the level of highly skilled candidates for the position. Based on the difficulty of this recruitment and time length of time the recruitment has been opened for, the City Manager has approved a $12,000 sign-on bonus for each hire for a total of $24,000. Staff believes the sign-on bonus will incentivize and secure highly qualified employees for these two difficult-to-fill vacancies. Pursuant to the City Council-approved Recruitment Incentive Program, Staff is providing the City Council with a report on the pending implementation of this program. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Direct Staff not to underfill the Senior Engineer position. 2. Direct Staff not to apply the Recruitment Incentive Program. 3. Take other action, as deemed appropriate. 3 Organizational Chart Capital Projects Director of Public Works (Civil/Roadway) Senior Engineer (Transportation) Associate Engineer (Utilities) Associate Engineer (Utilities) Permit Technician Permit Technician Assistant Engineer Project Manager (Facilities) Maintenance Worker Lead Worker Staff Assistant Administrative Assistant Maintenance Worker Deputy Director of Public Works Maintenance Superintendent Senior Administrative Analyst (Budget) Maintenance Project Manager (Environmental) Principal Engineer (Operations) Operations Principal Engineer (CIP) Senior Engineer (Under-fill w/ Associate Engineer) A-1 CITY OF RANCHO PALOS VERDES ADMINISTRATIVE INSTRUCTION MANUAL NUMBER 2-21 SUBJECT: RECRUITMENT INCENTIVE PROGRAM I. BACKGROUND/ PURPOSE The City shall make available to appointing authorities a Recruitment Incentive Program to incentivize and secure highly qualified employees for positions that the City has determined to be difficult to recruit in accordance with the guidelines established herein and when funding is available. II. DEFINITIONS a. APPOINTING AUTHORITIES: City Manager and/or designated Subject Matter Expert (SME) assigned to the recruitment , inclusive of Human Resources b. HARD-TO-RECRUIT POSITIONS: Classification must have demonstratable recruitment difficulty, which includes limited applicant pool, recruitment difficulty, or a continued high vacancy rate. Job requirements such as technical expertise, certifications, licensing and/or advanced educational requirements may limit the pool of qualified applicants. If two or more consecutive recruitments have been done, resulting in a limited applicant pool, the recruitment would be defined as difficult to re cruit. A continued high vacancy rate is demonstrated through actively recruited positions that continue to remain vacant. III. PROGRAM APPLICABILITY Appointing authorities may request authorization to apply the Recruitment Incentive Program to assist in filling difficult-to-recruit positions in their department. To apply, said position/classification must have demonstratable recruitment difficulty. Recruitment difficulty may be based on any one of the following: limited applicant pool, recruitment difficulty, and/or a continued high vacancy rate. The Human Resources Manager shall have the authority to determine the applicability to each requested position/classification and shall submit a request to the City Manager for consideration. The City Manager or his/her designee shall approve, deny, or amend the request based on the information provided. Prior to advertising a position utilizing the Recruitment B-1 Incentive Program, the City Manager shall notify the City Council in writing by explaining the reason for utilizing the program and how it will be implemented and funded. IV. PROGRAM A full-time employee hired into a position/classification certified for participation in the program shall be eligible to receive a recruitment incentive in an amount set by the City Manager and/or designee based on available funding, as described below: a. The full-time incumbent will be eligible for 25% of the incentive on their first paycheck. b. After successfully passing the probationary period, the full-time incumbent will be eligible for a second 25% payment. c. After completing 24 months of employment, the full-time incumbent will be eligible for the final 50% incentive payment. Each incentive payment shall be considered taxable income and subject to withholdings. V. JOB POSTING Prior to the posting of vacant positions, the Recruitment Incentive Program description must be included in the job posting advising applicants they must meet the eligibility requirements. VI. LIMITATIONS AND EXCLUSIONS No incentive will be paid for any candidate whose recruitment does not meet program applicability and has not had applicability certified. No incentive will be paid to any candidate whose name was placed on the eligible list for full-time positions in the classification prior to the determination of program applicability. Similarly, no incentive will be paid to any candidate whose name was placed on the eligible list for full-time positions or forwarded to the department for part-time positions, if applicability was not previously certified by the City Manager and/or designee. In the event the employee is unable or unwilling to work, is taken off work, or is on an approved leave of absence, any payments owed shall be delayed the same amount of time as the employee remains off work. In the event the employee resigns, is terminated from employment, or fails to successfully complete the probationary period with a “meets” or greater overall B-2 rating, the employee will not be eligible to receive any outstanding payments owed. The Recruitment Incentive Program will remain in effect while funds are available. B-3