Financial FAQ

Here are some common questions and answers and an example of a condensed wage schedule vs the current timeline with gaps to illustrate potential lost earnings due to the number of years and the gaps between steps.

• What is a wage schedule?
  • The ESP wage schedule in JEFFCO forecast’s career growth for every ESP job category. The current wage schedule starts at step 1 and increases to step 21 but the assumption there are 21 steps to move is wrong. Steps 1-6, 7, 11, 16 and 21 are the only steps that are available for ES’s to move to. Technically JEFFCO’s ESP wage schedule only has 10 steps which can take 21 years to complete.
    
  • Longevity gaps delay step movement to ESPs.
• What is a step? What is a Cost of Living Adjustment?
  • Steps are intended to serve as annual wage increases that are predictable and guaranteed based on years of service.
  • A Cost of Living Adjustment (COLA) is an increase to a worker’s wages to account for the increased cost of living due to inflation. The purpose of a COLA is to help maintain the purchasing power of a worker’s wages over time, particularly in an economy where prices for goods and services are increasing. COLAs can be applied to a variety of compensation structures, including hourly wages, weekly wages, and annual salaries.
  • COLAs can be calculated in a number of ways, but one common approach is to use an index such as the Consumer Price Index (CPI), which tracks changes in the prices of a basket of goods and services over time. If the CPI indicates that the cost of living has increased by a certain percentage, an employer might apply a COLA to a worker’s wages to ensure that their purchasing power remains roughly the same.
• When do I get a step and a COLA? Are they guaranteed?
  • Step Increases and COLAs should be automatic each year, meaning that they could built into a compensation structure and applied automatically based on changes in the index used to calculate them, however, we must fight for COLAs, step increases, and wage adjustments each year in Jeffco, and Jeffco historically offers less than CPI, has frozen steps, or offers one-time stipends in lieu of raises.  That is why JESPA members are fighting so hard to get wages back where they need to be to attract and retain our top talent!
• Why is it important to close gaps in the schedule and increase top pay?
  • Increasing top pay incentivizes ESPs to stay with the district. Reaching top pay faster increases lifetime earnings, putting more money in members’ pockets.
  • If you reach top pay in fewer years, your lifetime earnings could increase significantly compared to a scenario where it takes longer to reach top pay.
  • Let’s say you start a job with starting pay of $25,000 which currently has top pay at $40,000. This scenario shows $86,607  LOST earnings when gaps in pay raises and a long wage schedule keep employees from moving up!  This is WITHOUT factoring in Cost of Living Adjustments!

Difference in lifetime earnings over 25 years – $86,607 (this is BEFORE applying COLAs)

• This can help to improve employee retention by providing a clear path for career advancement and financial growth within the organization. When employees see a clear opportunity to reach higher pay levels within a shorter timeframe, they may be more motivated to stay with the district and work towards achieving their career goals.
• A shorter wage schedule can help to attract new talent to the district since pay is more competitive. In a competitive job market, job seekers may be more attracted to jobs that offer faster opportunities for career advancement and higher pay.
• This can help to reduce labor costs over time. While it may require higher wages, it can ultimately save money by reducing the amount of time and resources spent on turnover, training, and hiring new employees to replace those who leave for higher-paying jobs elsewhere.