Total Employer Cost of Compensation (TECC)

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"We are excited to be a part of TECC for many reasons. This tool is easy to use and extremely robust. Having information available that is accurate and useful for comparability is essential to help us make better business and labor management decisions."

-Megan Phelan, Assistant City Manager / Human Resources Director, City of Lake Oswego

 

 

Oregon's Looming "TECC" Challenge

Calculator instructions.

 

 

TECC - A Brief History 

In a 2012 study of 22 jurisdictions and 13 job titles, public administration researchers at PSU's Center for Public Service identified the Total Employer Cost of Compensation (TECC) using over 50 different components. These included salary, employer-paid health insurance, pension payments, and payroll taxes—as well as overtime, specialty pay, supplemental insurance, retirement programs, and the value of paid time off.

The TECC study showed that salary was only half the compensation cost of an employee; the annual TECC cost for a $50,000 salary was approximately $100,000. The study also found wide variation, both within and between comparable jurisdictions and job titles.

In 2014, the Center received funding from PSU’s University Venture Development Fund (UVDF) to develop a software-enabled, subscription-based tool to help government officials, employees, and citizens better understand and manage their TECC costs.

 

The TECC Value Proposition

It's a familiar adage: You can't manage what you don't manage. Total Employer Cost of Compensation (TECC) focuses on what public sector employees cost their employers, rather than the value to the employee. Government employees are the public sector’s most important assets. In most cases, they’re also governments’ single largest expense. Yet too often, the answers to key questions aren’t well understood, such as:

In addition to an annual salary, what are other key components of employer paid compensation?

For a given job, how should the TECC be calculated?

How much does TECC vary between employees at different seniority levels?

How might one jurisdiction’s TECC costs compare to other jurisdictions’ TECC costs, for the same or similar positions?

How do TECC costs change over time, and by how much?

How might a deeper understanding of TECC costs facilitate better decision-making, and a more cost-effective allocation of limited public resources?

CPS’ TECC Calculation and Comparison Tool is designed to answer these, and many other related, questions.

View an excerpt of the TECC Comparables Report

 

How TECC Works

Subscribers can:

Upload key information – e.g. salary schedules, benefit costs, pension-related data, and paid time off – using a software-enabled interface that guides data collection.

Receive TECC data using a standard measurement methodology, cost components are organized into 6 categories:

• Salary

• Health Insurance

• Retirement

• Post Employment Health

• Other Insurance

• Paid Time Off

Evaluate job titles for apples-to-apples comparisons with other jurisdictions.

The more jurisdictions that submit data through the TECC tool, the greater the value for every participant. The goal is to have 100 participating jurisdictions by 2016, giving participants an exceptionally rich data set by which to inform their decision making.

 

 

Current TECC Subscribers

City of Albany

City of Beaverton

City of Coos Bay

City of Dallas

City of Florence

City of Gresham

City of Happy Valley

City of Hillsboro

City of Hood River

City of Independence

City of Keizer

City of Klamath Falls

City of Lake Oswego

City of Lebanon

City of Lincoln City

City of McMinville

City of Medford

City of Oregon City

City of Roseburg


 

City of Sandy

City of Shelton

City of Springfield

City of St. Helens

City of Sweet Home

City of The Dalles

City of Tigard

City of Troutdale

City of West Linn

Clackamas County

Jefferson County

Lincoln County

Linn County

Marion County

Oregon City

Polk County

Clackamas River Water

Rockwood Water People’s Utility District

Rogue Valley Sanitary Services

Sunset Empire Transportation District

Tualatin Valley Parks and Recreation District


 

 

 

 

 

 

 

Subscription Terms

View the End-User Licensing Agreement 

TECC's subscription fees are paid annually and based on the size and type of jurisdiction indicated below.

Jurisdiction Size 3 Year Fee Payment Schedule
Tier 1 Tier 2 Tier 3
Smallest $2,000 $1,000 $500 $500
Small $4,000 $2,000 $1,000 $1,000
Medium $5,500 $2,750 $1,375 $1,375
Large $7,000 $3,500 $1,750 $1,750
Note:

Smallest: Counties and SD: pop. up to 10,000; Cities: up to 5,000

Small: Counties and SD: pop. 10,000 to 100,000; Cities: 5,000 to 20,000

Medium: Counties and SD: pop. 100,000 to 200,000; Cities: 20,000 to 50,000

Large: Counties and SD: pop. over 200,000; Cities: over 50,000

 

 

Interested?

Are you interested or do you want to learn more? Continue on to the TECC website to see report examples and the form to sign up, or contact our team for more information.

Phone: 503-725-5116