Total Compensation
Our total compensation package represents a significant investment by the
city in its employees. The city believes that employees are a valuable
resource, and it must protect and support them by offering competitive
pay and benefits. Our total compensation package is a comprehensive reward
and recognition program that includes cash payments, benefit programs and
services. Although a particular benefit plan or program may not have the
same value to every employee, together, they are intended to provide a
comprehensive set of balanced offerings which satisfy the overall needs
of city employees.
A Significant Commitment to our Employees
The city obviously cares strongly about the well being of its employees.
In total, the city spent 47 percent of all operating expenses on providing pay
and benefits (personnel costs) to our employees
last year, by far the largest single item in the costs of running our municipality.
Operating Costs for the City of Overland Park
The package contains two distinct forms of compensation: direct and indirect. Direct compensation consists of cash payments made to employees in exchange for their contributions to the city. Indirect compensation is made in the form of non-cash benefits. Let's take a closer look at each form of compensation.
Direct Compensation
Direct compensation consists of actual cash payments –
- Base salary
- Step increases
- Shift differential
- Performance increases
- Bonuses, promotions
- Overtime (including compensatory time)
Other forms of cash payments include –
- Paid time off for sick leave
- Personal holidays
- Vacation
- Bereavement
- Workers' compensation leave
- Family sick leave, safety days
- Holidays
- Military leave
- Civic leave
Indirect Compensation
Indirect compensation includes a number of important benefits that are not
necessarily itemized on employees' paychecks or paycheck vouchers.
They are intended to provide a broad foundation on which employees can
provide for their needs and for the well-being of their families. These
benefits are either fully or partially funded by the city and fall into
three categories:
- Health and welfare benefits
- Government-mandated benefits
- Retirement benefits
| Health and Welfare Benefits | Government-Mandated Benefits | Retirement Benefits |
|---|---|---|
|
|
|
Total Compensation Example
When considering a career with the city, it's helpful to understand
the components of total compensation as it relates to individual employees.
While a variety of factors comprise total compensation, the paycheck, or
direct compensation, is just one element. To illustrate how total compensation
impacts each employee, let's take a look at a representative employee.
| Annual direct compensation | |
|---|---|
| Salary | $32,540.00 |
| Paid Time Off (includes vacation, sick leave, holidays, etc.) |
3,460.00 |
| Total direct compensation | $36,000.00 |
| Annual indirect compensation | |
| Health and Welfare Benefits: | |
| Health Insurance | $7,029.00 |
| Educational Reimbursement | 1,000.00 |
| Dental Insurance | 275.00 |
| Wellness Program | 225.00 |
| Life Insurance | 183.60 |
| Long-term Care Insurance | 100.00 |
| Section 125 Administration Fee | 24.00 |
| Employee Assistance Program | 20.00 |
| Government Mandated Benefits: | |
| Social Security | $2,754.00 |
| KPERS | 1,267.00 |
| Unemployment Insurance Tax | 36.00 |
| Workers Compensation Insurance | 34.00 |
| Retirement Benefits: | |
| MEPP | $3,600.00 |
| Total indirect compensation | $16,547.60 |
| TOTAL COMPENSATION | $52,547.60 |
Breakdown of J. Doe's Compensation
