Compensation

The City of Olathe’s compensation philosophy is to provide a compensation program which will attract, motivate, and retain qualified employees to meet the objectives of the organization and will reward individual effort, performance, and contribution.

This page has been designed to help you become familiar with the compensation program for employees of the City of Olathe, Kansas. 

The policies summarized in this section have been adopted voluntarily by the City of Olathe, Kansas, and are subject to change from time to time. 

Compensation Topics

Compensation Philosophy

Salary Surveys

Pay Structures

 

Compensation Philosophy

Per Council Resolution No. 98-1210, the City’s compensation program should be fair, internally and externally equitable, responsive to change in economic conditions and be consistently applied throughout the organization and shall comply with all state and federal regulations and shall not discriminate against employees based on race, color, religion, sex, age, national origin, disability, or veteran status.

To this end, the City of Olathe surveys the market place to ensure the system is externally equitable while at the same time ensures internal job worth is maintained.   The City strives to pay market rates in conjunction with approved budgets to compensate all employees consistently based on demonstrated performance, job skill, and experience. 

The City’s philosophy is reflective through our market based salary structure, a pay for performance system which rewards employee performance, and market based step system for public safety positions. 

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Salary Surveys

In order to maintain external equity and ensure the City is paying market wages, periodic market studies are conducted.  These surveys allow the City to ensure our rates of pay are consistent with the pay rates in other jurisdictions.  Surveys are conducted on jobs which are similar in nature and scope of responsibility.  The market sources we compare to vary from job to job depending on the knowledge, skills, and abilities required.  The source of market data utilized (local survey, regional survey, or national survey) depends on the scope of work, responsibility, and general recruiting pool for the specific job.

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Pay Structures

The City of Olathe currently operates three separate pay structures: Career Banding Pay Structure, Fire Step Pay Structure, and Police Step Pay Structure.  The pay structures all have elements of market rates of pay and internal equity built in. 

Career Banding Pay Structure

The Career Banding Pay Structure is the pay structure which covers all employees with the exception of Police and Fire Step Employees.  The pay structure is divided into 5 bands: Administrative/Customer Support, Skilled Labor, Technical Professional, General Management, and Executive.  Each job in the City of Olathe is placed into one of these five bands and the structure is administered similarly across all bands.  The target rate of pay for each job reflects the competitive rate paid in the identified job market.  The competitive rate is the average actual wage paid by surveyed comparators.  The City of Olathe sets the target rate of pay at 100% of the average actual wage paid by surveyed comparators.  Each job will be adjusted according to the specific market analysis and individual jobs will not necessarily adjust at the same rate. 

The salary range is then established with a range of 22% above and below each market target rate of pay.  For example, if the market target rate for a job is $50,000 per year, the minimum is 78% of the market rate, or $39,000.  Likewise, the maximum rate of pay is 122% of the market target rate, or $61,000.

Within the Career Banding system, the City of Olathe allows the flexibility to pay within the salary range based on the following factors:

  • experience an applicant possesses,
  • knowledge, skills, and abilities applicable to the job,
  • demand in the labor market

Fire Step Pay Structure

The Fire Step Pay Structure provides annual pay increases for Firefighters, Paramedics, Fire Apparatus Operators, Emergency Services Specialists, and Captains.  The market is surveyed annually to ensure competitive ranges.  Each pay range is considered and adjusted independently.

Employees progress to the next step in the range upon satisfactory performance in the annual review.  Employees who are at the top of the step range receive a lump sum payment in lieu of a salary increase.

Ranks above Fire Captain are compensated in the Career Band Structure.

Police Step Pay Structure

The Police Step Pay Structure provides annual pay increases for Police Officers and Police Sergeants.  The market for these positions is surveyed annually to ensure competitive ranges.

Employees progress to the next step in the range upon satisfactory performance in the annual review.  Employees who are at the top of the step range receive a lump sum payment in lieu of a salary increase.

Ranks above Police Sergeant are compensated in the Career Band Structure.

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