Waco council considers boosting city workers' pay, benefits

The city of Waco is considering measures including pay raises, education opportunities and more generous leave policies in an effort to stop new and experienced workers alike from leaving for greener pastures.

The Waco City Council met with staff from human resources, budget and other departments during a council retreat Wednesday that marked the start of the city’s 2022-23 budgeting process. The council spent four hours discussing broader city council goals for Waco, starting with employee retention.

Human Resources Director Missie Pustejovsky said the city loses some 30% of new employees within the first year. She said Texas’ quit rate remained steady in March at 3%, or 400,000 employees.

She cited Bureau of Labor Statistics figures showing that almost 5 million Americans who left the workforce during the pandemic have not returned and don’t plan to do so.

“So even though the economy is on track … there are not going to be enough people to fill positions,” Pustejovsky said. “Market conditions have shifted dramatically, and proactive employers are taking action, not taking the cautious ‘wait and see’ approach.”

The council discussed a survey of 5,000 workers conducted by Grant Thornton, called “The State of Work in America,” that listed compensation and opportunities for career advancement as workers’ top priorities.

District 1 Councilwoman Andrea Barefield said creating a career ladder would be especially helpful.

“You’ve got a lot of tenured folks who’ve been here, and I don’t know how they advance,” Barefield said. “I don’t know that they want to leave, but … is there not a space between leading the department and middle management?”

She said the survey indicates workers are looking for uncommon benefits that differentiate employers from others. To that end, she said the city should consider bringing back an education assistance program for employees that existed until 2003, which would reimburse employees’ tuition costs.

District 4 Councilwoman Kelly Palmer said parental leave could also fit the bill. The city of Waco follows standards set by the Family and Medical Leave Act, which allows for 12 unpaid weeks of leave. Employees can use their sick days and vacation days to stay at home with a newborn or new foster child.

Palmer referenced the city of Houston’s recently enacted paid parental leave policy and said a similar policy would make Waco more competitive.

“I would encourage us, as a group, to really consider looking into this, especially considering the family-friendly narrative we use as a community,” Palmer said. “This is a benefit I know I, as a woman of childbearing age, really look at every time I look for a job.”

District 4 Councilman Josh Borderud said paid parental leave isn’t a “crazy outlier idea,” and has become fairly standard.

The city increased its lowest paid positions to $15 an hour last September and increased other salaries, but Pustejovsky said it’s already time to consider raising pay rates again to keep up with rising inflation and other employers.

She cited another survey conducted by WorldatWork that estimated median corporate salaries will increase 5% in 2023, and said a 5% adjustment to city employees’ pay would be reasonable.

Compensation reviews for dispatch, legal, utilities, animal shelter and zoo employees are underway.

She said the department is also considering an employee referral program, a housing assistance program, a paid time off buyback program that would let workers sell their time off back to the city in exchange for more pay, and cost of living adjustments for retired employees.

Assistant City Manager Paul Cain said high inflation can drive employees to keep working longer than they want to because they can’t afford to retire.

“We want to make sure we’re providing opportunities so people who’ve served the city well and wish to retire can do that,” Cain said. “It also provides opportunities for young people.”