Wage study considered by city

NEW LONDON – The city of New London is considering whether it should have a wage study conducted this year, possibly by a third-party consultant.
A wage study was one of the items discussed by the New London Finance & Personnel Committee when it met March 11.
At the meeting, New London City Administrator Chad Hoerth told the committee that the discussion was meant to determine how the committee wanted to proceed in regard to a potential wage study. He said the city last conducted a wage study in 2022, adding that the city typically conducts a wage study every four or five years.
“It’s outlined in our municipal code to stay on that four-year cycle because the point is to keep us up to par with the external municipal job market,” Hoerth said.
He pointed out that the wage study conducted in 2022 was done internally by the city, but added that most of the studies conducted in the past were done with a third-party consultant. The last time a third-party consultant was used was in 2017. That wage study cost the city $10,830.

While using a third-party consultant can be costly, Hoerth said conducting a wage study internally requires a lot of time by city employees.
“Also, there is something to be said about an independent third-party completing these studies to kind of give us objectivity and a broader expertise in the subject,” Hoerth said.
He added that wage studies are a “sensitive topic” because wages comprise a significant portion of the city’s expenses.
“It’s a tricky balance between staying competitive with the labor market, showing that we value our employees, and keeping them here versus respecting property owners’ desire to keep taxes manageable,” Hoerth said. “Completely understand there has to be a balancing act with that. It should also be mentioned we also have levy limit restrictions imposed on municipalities that can make it also more challenging.”
Being able to attract and retain qualified staff is also important, Hoerth said.
“Post COVID, things have gone crazy with the job market,” Hoerth said. “Keeping employees is very difficult and high employee turnover does carry significant financial costs.”
He added that the city has had at least seven fulltime employees leave their jobs with the city within the past year because of higher paying opportunities.
Ald. BaLynda Croy asked if the city has a dollar amount associated with training a new employee.
New London Finance Director Judy Radke said the city considers a new employee to be in “training” for five years after their hire.
“There is so much that goes on within our offices, that unless you are here consistently for five years, you can’t begin to understand the cycles and the changes that happen from season to season,” Radke said.
Ald. Tim Roberts said it would be a good idea to have a third-party consultant conduct the wage study this time because the last wage study was done internally.
Ald. David Dorsey agreed.
“I think we need to go external on this one,” Dorsey said.
Ald. John Faucher said the cost of having a wage study conducted by a third-party consultant has probably risen to close to $25,000. But he agreed that the city needs a “broader, deeper dive” that a third-party consultant would provide.
“Just be prepared to pay a lot more than $10,830,” Faucher said.
Ald. John Hass reminded the committee that the city of New London is not a large city, and it will not be able to compete with the bigger cities.
“That’s the issue,” Hass said. “I mean, you can pay your guys whatever you think for a small-town wage, and there’s going to be an Oshkosh, or an Appleton, or whoever, that we’re not going to be able to touch.”
Roberts said he hopes the wage study would also consider the strong benefit package that the city offers its employees.
Hass said the benefit packages offered by different cities are not much different.
“It’s more the bigger towns want to pay more, and they can afford it,” Hass said.