Compensation Strategy for Bloomington Department of Transportation By: Miranda Lockwood, Zack Luers, Haipeng Lin, and Olaia Martinez Bloomington Department of Transportation Vision Statement: “Provide a safe, efficient, accessible and connected system of transportation that emphasizes public transit, walking, and biking to enhance options to reduce our overall dependence on the automobile” (Bloomington Transportation Plan). In addition, Bloomington Department of Transportation supports these principles: Take good care of Bloomington’s downtown center of the community. Ensure all land development activity is a positive and sustainable contribution. Embrace and protect all Bloomington neighborhoods. Enhance the community’s role as a regional economic center. Encourage healthy lifestyles by providing high quality public places and recreational activities and events. Transportation Goals and Values The most important value for the Bloomington Department of Transportation and the residents of Bloomington is to Create and Maintain Sustainable Transportation. (Bloomington Transportation Plan, Page 8) Direct and Indirect Pay Direct: Standard Base Pay Safe Driver Bonuses Route Efficiency Bonuses Indirect: Personal and Family Health Insurance Flexible Work Schedules Retirement and 401k Plans Tuition Benefits Through Indiana University Intrinsic Pay Rewards Creating a Safe and Affordable Transportation System for its Riders Engaging With Riders and Interacting With a Diverse Set of People Reducing Impact on Environment Process for Internal Pay Equity Type of Job Evaluation: Point-Factor Method Quantitative method that evaluates jobs fairly and reduces bias. Each job is evaluated on compensable factors and divided into categories such as skills, responsibilities, effort, and working conditions, each with several subfactors. For example skills will be divided into education, experience, and ability. Later assigned points and weighted. Since many of the jobs available at Bloomington Transit are common this type of evaluation is easy to use and not likely to need frequent updating. Evaluation Results for Internal Pay Equity Once evaluations are completed we will create a pay grade. Similar jobs will be in the same pay grade, in turn, they will have a similar pay range. For example highway technicians and signal technicians will have similar pay ranges. Bus drivers and managers will have very different pay ranges. Creating pay grades will give employees an understanding on what they are being compensated for. Little to no experience will lead to lower pay ranges, more experience will lead to higher pay ranges. Higher-education and qualifications will lead to higher pay. Match Pay Structure for Internal Pay Equity We will match the current market by paying comparable wages. By matching the pay rates with that of our competitors, we are able to ensure that the compensation structure remains competitive. ...

1. Compensation Strategy for Bloomington Department of
Transportation
By: Miranda Lockwood, Zack Luers, Haipeng Lin, and Olaia
Martinez
Bloomington Department of Transportation
Vision Statement:
“Provide a safe, efficient, accessible and connected system of
transportation that emphasizes public transit, walking, and
biking to enhance options to reduce our overall dependence on
the automobile” (Bloomington Transportation Plan).
In addition, Bloomington Department of Transportation
supports these principles:
Take good care of Bloomington’s downtown center of the
community.
Ensure all land development activity is a positive and
sustainable contribution.
Embrace and protect all Bloomington neighborhoods.
Enhance the community’s role as a regional economic center.
Encourage healthy lifestyles by providing high quality public
places and recreational activities and events.
Transportation Goals and Values
The most important value for the Bloomington Department of
Transportation and the residents of Bloomington is to Create

2. and Maintain Sustainable Transportation.
(Bloomington Transportation Plan, Page 8)
Direct and Indirect Pay
Direct:
Standard Base Pay
Safe Driver Bonuses
Route Efficiency Bonuses
Indirect:
Personal and Family Health Insurance
Flexible Work Schedules
Retirement and 401k Plans
Tuition Benefits Through Indiana University
Intrinsic Pay Rewards
Creating a Safe and Affordable Transportation System for its
Riders
Engaging With Riders and Interacting With a Diverse Set of
People
Reducing Impact on Environment
Process for Internal Pay Equity
Type of Job Evaluation: Point-Factor Method

3. Quantitative method that evaluates jobs fairly and reduces bias.
Each job is evaluated on compensable factors and divided into
categories such as skills, responsibilities, effort, and working
conditions, each with several subfactors.
For example skills will be divided into education, experience,
and ability.
Later assigned points and weighted.
Since many of the jobs available at Bloomington Transit are
common this type of evaluation is easy to use and not likely to
need frequent updating.
Evaluation Results for Internal Pay Equity
Once evaluations are completed we will create a pay grade.
Similar jobs will be in the same pay grade, in turn, they will
have a similar pay range.
For example highway technicians and signal technicians will
have similar pay ranges.
Bus drivers and managers will have very different pay ranges.
Creating pay grades will give employees an understanding on
what they are being compensated for.
Little to no experience will lead to lower pay ranges, more
experience will lead to higher pay ranges.
Higher-education and qualifications will lead to higher pay.
Match Pay Structure for Internal Pay Equity
We will match the current market by paying comparable wages.
By matching the pay rates with that of our competitors, we are
able to ensure that the compensation structure remains

4. competitive.
Remaining competitive will improve the ability to attract and
retain employees.
Additionally, by doing this we will be sure that our employees
are not being underpaid.
This can turn to be expensive for the department so we will
need to be on top of the market changes.
Challenges for Internal Pay Equity
The Bloomington Department of Transportation may have a
hard time retaining employees that receive lower incomes such
as bus drivers.
To avoid this issue we will provide our employees with health
insurance and other benefits.
Employees may feel that they are being underpaid compared to
their colleagues.
We will assure that every employee is comfortable speaking
with higher officials to discuss concerns they may have.
We comply with all federal and state laws, rules and
regulations, we will make sure that every employee is fairly
compensated.
Conclusion
The Bloomington Department of Transportation strives to
compensate all workers fairly and value each individuals skills.
To ensure fairness in the workplace we will:
Define all compensable factors
Use the point factor method so that employees know what they
are being paid to do and to avoid bias

5. We will match the market by paying comparable wages
We will have various intrinsic and extrinsic rewards available to
retain and attract employees
By implementing these strategies we believe that we will reach
great results and continue to attract and retain qualified
candidates for our positions.
Works Cited
Bloomington Transportation Plan. (2018, June 29). Retrieved
from
https://bloomington.in.gov/sites/default/files/2018-
07/Bloomington%20Trans%20Plan_F
INAL%20DRAFT.pdf
Milkovich, G. (2020). Compensation. McGraw-Hill/Irwin.
Compensation Team 6
Haipeng Lin, Miranda Lockwood, Zack Luers, Olaia Martinez
11/19/2019
Overview:
Internal Pay Equity is the comparison between positions
within your business to ensure fair pay. When judging internal
equity you could use the most common method, the point
method, which uses explicit criteria for compensable factors.
This method can be considered to use less bias, but it is time
consuming and expensive. Ranking is the quickest and least
expensive, however it may not be the most detailed.
Classification is good for benchmarks, however when job and
grade descriptions do not match well the evaluators tend to use
their subjective judgement.
External equity the situation that exists when an organization's

6. pay rates are at least equal to market rates. It is also known as
matching strategy. When addressing external equity you can
lead, lag, or match the market. When you lead with
compensation in the market, you are acquiring top talent best
used if your business is using a differentiation strategy
(Milkovich, 2020). However, this can be too expensive for most
businesses. Some businesses may choose to lag the market, and
lower wages. You may save money this way, but it could attract
fewer people. Matching the market makes you competitive with
others, but may not anticipate future needs, resulting in playing
catch up. It is important to have a clear consistent method for
pay equity so employees feel they are being compensated fairly.
Internal Pay Equity:
Employees must not feel that they are being underpaid
compared to their colleagues. Bloomington Transit System
prides themselves on their employees and assures that
employees are treated fairly in the pay structure. We comply
with all federal and state laws, rules and regulations.For
Bloomington Transit we chose to use the point method evaluate
jobs and ensure internal pay equity.This quantitative method
ensures each job is evaluated fairly without bias (Milkovich,
2020). This way employees know exactly what skills they are
being paid for. Each job has a set of clearly defined standards
by which we evaluate the value of each job and the performance
of each employee. We focus on adopting a straightforward and
honest paying structure, and also offer compensation that fits
the employees. These compensable factors include skills (level
of education, years of experience, and ability), responsibilities
(number of direct reports), mental and physical effort, and
working conditions. Each of these factors will be assigned
points that can be used in the point method to determine pay.
Once evaluations have been completed we will create pay
grades. Similar jobs will be in the same grade, which will then
have a pay range. By defining pay grades and seeing similar
positions and qualifications, employees will have a good
understanding of what they are being compensated for. For

7. example bus drivers could be in one pay grade. Those with no
experience would be at the lower pay range and those with more
experience would be at the upper pay range. The next grade
could be managers who oversee other employees, hire and fire,
and make more decisions.
External Pay Equity:
According to job market data, organizational size, geographic
location, cost of living, benchmark position and internal
structure to decide our pay ranges, we will make sure that our
pay is high enough to be competitive to attract talents who are
able to provide skills and capacities required by organization’s
strategies, for example, bus drivers, mechanics, full-time transit
service attendants, and part-time BT-access operators. We will
use a match strategy when it comes to pay. This ensures we are
competitive within the market (Milkovich, 2020). We can attract
more employees with our benefits, like 401K plans, PTO, and
health insurance. We also can offer targeted individual
incentives like bonuses for good driving.We differentiate
ourselves from the market by also offering intrinsic of
satisfaction for employees knowing they are making our whole
community better. The employees will be making a meaningful
contribution to safe transportation in the community. In
addition, our competitive pay and benefits will contribute to our
retention rate, which can help us retain talented employees.
Conclusion:
Bloomington Transit wants all employees to feel they are valued
for their skills, and compensated fairly. By clearing defining
compensable factors and using the point method, employees can
easily see what they are being paid to do. This helps ensure
there is no bias when it comes to pay. This helps foster a
positive work environment. When it comes to external equity,
Bloomington Transit matches the market when it comes to base
pay. However, we offer a multitude of intrinsic and extrinsic
rewards and benefits that also attract employees. By using these
methods, we hope to attract quality candidates who feel valued
and remain at the company for a long time.

8. Works Cited
Bloomington Transportation Plan. (2018, June 29). Retrieved
from
https://bloomington.in.gov/sites/default/files/2018-
07/Bloomington%20Trans%20Plan_F
INAL%20DRAFT.pdf
Milkovich, G. (2020). Compensation. McGraw-Hill/Irwin.
Job Opportunities. (2019, August 15). Retrieved November 20,
2019, from
https://bloomingtontransit.com/jobs/.