Employee survey shows improved morale and ongoing compensation concerns; HR highlights market adjustments and retention gains

Champions of Team Flagstaff and HR staff presented results from the city’s recent employee survey and summarized talent-investment work completed and planned.

Survey results: the survey collected 510 responses (~49% of staff). Positive trends since the prior survey include higher agreement that employees can manage workloads without burnout (+14% vs. prior year) and improved satisfaction with work-life balance (+8%). Perceptions of fair pay improved (+7%), but compensation, promotion paths and succession planning remain areas employees flagged for improvement in open comments.

Workforce investments and outcomes: HR reported recent, major investments in pay: the city completed a four-year market-review cycle and provided market adjustments last year that HR characterized as roughly a $4 million investment to align classifications. HR also maintains a midyear market-adjustment bank to respond to difficult-to-fill classifications. Retention indicators improved: turnover trended down toward ~12% and vacancy rates have stabilized, HR said. Application volumes for city jobs increased to roughly 6,900 this year, an HR speaker said, and offer-acceptance rates remain high (roughly 84% of offers accepted).

Why it matters: council members heard that pay and benefits remain important drivers of recruitment and retention and that additional investments may be needed to maintain competitiveness, especially with minimum-wage increases coming into effect regionally.

Next steps: HR is evaluating a market-philosophy study with a consultant and said it will continue to monitor benefits costs, which may drive premium increases during future budget cycles.