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TRANSIT
TCRP REPORT 127
COOPERATIVE
RESEARCH
PROGRAM
Sponsored by
the Federal
Transit Administration
Employee Compensation
Guidelines for Transit Providers
in Rural and Small Urban Areas
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TCRP OVERSIGHT AND PROJECT TRANSPORTATION RESEARCH BOARD 2008 EXECUTIVE COMMITTEE*
SELECTION COMMITTEE*
CHAIR OFFICERS
Robert I. Brownstein
AECOM Consult, Inc. CHAIR: Debra L. Miller, Secretary, Kansas DOT, Topeka
VICE CHAIR: Adib K. Kanafani, Cahill Professor of Civil Engineering, University of California, Berkeley
MEMBERS EXECUTIVE DIRECTOR: Robert E. Skinner, Jr., Transportation Research Board
Ann August
Santee Wateree Regional Transportation Authority
John Bartosiewicz
MEMBERS
McDonald Transit Associates J. Barry Barker, Executive Director, Transit Authority of River City, Louisville, KY
Linda J. Bohlinger Allen D. Biehler, Secretary, Pennsylvania DOT, Harrisburg
HNTB Corp.
Peter Cannito
John D. Bowe, President, Americas Region, APL Limited, Oakland, CA
Metropolitan Transportation Authority--Metro Larry L. Brown, Sr., Executive Director, Mississippi DOT, Jackson
North Railroad Deborah H. Butler, Executive Vice President, Planning, and CIO, Norfolk Southern Corporation,
Gregory Cook Norfolk, VA
Veolia Transportation William A.V. Clark, Professor, Department of Geography, University of California, Los Angeles
Nathaniel P. Ford
San Francisco MUNI
David S. Ekern, Commissioner, Virginia DOT, Richmond
Fred M. Gilliam Nicholas J. Garber, Henry L. Kinnier Professor, Department of Civil Engineering, University of Virginia,
Capital Metropolitan Transportation Authority Charlottesville
Kim R. Green Jeffrey W. Hamiel, Executive Director, Metropolitan Airports Commission, Minneapolis, MN
GFI GENFARE Edward A. (Ned) Helme, President, Center for Clean Air Policy, Washington, DC
Jill A. Hough
North Dakota State University
Will Kempton, Director, California DOT, Sacramento
John Inglish Susan Martinovich, Director, Nevada DOT, Carson City
Utah Transit Authority Michael D. Meyer, Professor, School of Civil and Environmental Engineering, Georgia Institute of
Jeanne W. Krieg Technology, Atlanta
Eastern Contra Costa Transit Authority Michael R. Morris, Director of Transportation, North Central Texas Council of Governments, Arlington
David A. Lee
Connecticut Transit
Neil J. Pedersen, Administrator, Maryland State Highway Administration, Baltimore
Clarence W. Marsella Pete K. Rahn, Director, Missouri DOT, Jefferson City
Denver Regional Transportation District Sandra Rosenbloom, Professor of Planning, University of Arizona, Tucson
Gary W. McNeil Tracy L. Rosser, Vice President, Corporate Traffic, Wal-Mart Stores, Inc., Bentonville, AR
GO Transit Rosa Clausell Rountree, Executive Director, Georgia State Road and Tollway Authority, Atlanta
Michael P. Melaniphy
Motor Coach Industries
Henry G. (Gerry) Schwartz, Jr., Chairman (retired), Jacobs/Sverdrup Civil, Inc., St. Louis, MO
Frank Otero C. Michael Walton, Ernest H. Cockrell Centennial Chair in Engineering, University of Texas, Austin
PACO Technologies Linda S. Watson, CEO, LYNXCentral Florida Regional Transportation Authority, Orlando
Robert H. Prince, Jr. Steve Williams, Chairman and CEO, Maverick Transportation, Inc., Little Rock, AR
DMJM+Harris
Jeffrey M. Rosenberg EX OFFICIO MEMBERS
Amalgamated Transit Union
Michael Scanlon Thad Allen (Adm., U.S. Coast Guard), Commandant, U.S. Coast Guard, Washington, DC
San Mateo County Transit District Joseph H. Boardman, Federal Railroad Administrator, U.S.DOT
Beverly Scott Rebecca M. Brewster, President and COO, American Transportation Research Institute, Smyrna, GA
Metropolitan Atlanta Rapid Transit Authority
James S. Simpson Paul R. Brubaker, Research and Innovative Technology Administrator, U.S.DOT
FTA George Bugliarello, Chancellor, Polytechnic University of New York, Brooklyn, and Foreign Secretary,
Frank Tobey National Academy of Engineering, Washington, DC
First Transit Sean T. Connaughton, Maritime Administrator, U.S.DOT
Frank Wilson LeRoy Gishi, Chief, Division of Transportation, Bureau of Indian Affairs, U.S. Department of the
Metropolitan Transit Authority of Harris County
Interior, Washington, DC
EX OFFICIO MEMBERS Edward R. Hamberger, President and CEO, Association of American Railroads, Washington, DC
William W. Millar John H. Hill, Federal Motor Carrier Safety Administrator, U.S.DOT
APTA John C. Horsley, Executive Director, American Association of State Highway and Transportation
Robert E. Skinner, Jr.
TRB Officials, Washington, DC
John C. Horsley Carl T. Johnson, Pipeline and Hazardous Materials Safety Administrator, U.S.DOT
AASHTO J. Edward Johnson, Director, Applied Science Directorate, National Aeronautics and Space
J. Richard Capka Administration, John C. Stennis Space Center, MS
FHWA William W. Millar, President, American Public Transportation Association, Washington, DC
TDC EXECUTIVE DIRECTOR Nicole R. Nason, National Highway Traffic Safety Administrator, U.S.DOT
Louis Sanders James Ray, Acting Administrator, Federal Highway Administration, U.S.DOT
APTA James S. Simpson, Federal Transit Administrator, U.S.DOT
SECRETARY Robert A. Sturgell, Acting Administrator, Federal Aviation Administration, U.S.DOT
Christopher W. Jenks Robert L. Van Antwerp (Lt. Gen., U.S. Army), Chief of Engineers and Commanding General,
TRB U.S. Army Corps of Engineers, Washington, DC
*Membership as of January 2008. *Membership as of May 2008.
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TRANSIT COOPERATIVE RESEARCH PROGRAM
TCRP REPORT 127
Employee Compensation
Guidelines for Transit Providers
in Rural and Small Urban Areas
KFH Group, Inc.
Bethesda, MD
Subject Areas
Planning and Administration · Public Transit
Research sponsored by the Federal Transit Administration in cooperation with the Transit Development Corporation
TRANSPORTATION RESEARCH BOARD
WASHINGTON, D.C.
2008
www.TRB.org
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TRANSIT COOPERATIVE RESEARCH PROGRAM TCRP REPORT 127
The nation's growth and the need to meet mobility, environmental, Project F-12
and energy objectives place demands on public transit systems. Current ISSN 1073-4872
systems, some of which are old and in need of upgrading, must expand ISBN: 978-0-309-11746-3
service area, increase service frequency, and improve efficiency to serve Library of Congress Control Number 2008906709
these demands. Research is necessary to solve operating problems, to © 2008 Transportation Research Board
adapt appropriate new technologies from other industries, and to intro-
duce innovations into the transit industry. The Transit Cooperative
Research Program (TCRP) serves as one of the principal means by
which the transit industry can develop innovative near-term solutions COPYRIGHT PERMISSION
to meet demands placed on it. Authors herein are responsible for the authenticity of their materials and for obtaining
written permissions from publishers or persons who own the copyright to any previously
The need for TCRP was originally identified in TRB Special Report
published or copyrighted material used herein.
213--Research for Public Transit: New Directions, published in 1987
Cooperative Research Programs (CRP) grants permission to reproduce material in this
and based on a study sponsored by the Urban Mass Transportation
publication for classroom and not-for-profit purposes. Permission is given with the
Administration--now the Federal Transit Administration (FTA). A understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA,
report by the American Public Transportation Association (APTA), FMCSA, FTA, or Transit Development Corporation endorsement of a particular product,
Transportation 2000, also recognized the need for local, problem- method, or practice. It is expected that those reproducing the material in this document for
educational and not-for-profit uses will give appropriate acknowledgment of the source of
solving research. TCRP, modeled after the longstanding and success- any reprinted or reproduced material. For other uses of the material, request permission
ful National Cooperative Highway Research Program, undertakes from CRP.
research and other technical activities in response to the needs of tran-
sit service providers. The scope of TCRP includes a variety of transit
research fields including planning, service configuration, equipment,
NOTICE
facilities, operations, human resources, maintenance, policy, and
The project that is the subject of this report was a part of the Transit Cooperative Research
administrative practices.
Program conducted by the Transportation Research Board with the approval of the
TCRP was established under FTA sponsorship in July 1992. Pro- Governing Board of the National Research Council. Such approval reflects the Governing
posed by the U.S. Department of Transportation, TCRP was autho- Board's judgment that the project concerned is appropriate with respect to both the
rized as part of the Intermodal Surface Transportation Efficiency Act purposes and resources of the National Research Council.
of 1991 (ISTEA). On May 13, 1992, a memorandum agreement out- The members of the technical advisory panel selected to monitor this project and to review
lining TCRP operating procedures was executed by the three cooper- this report were chosen for recognized scholarly competence and with due consideration
for the balance of disciplines appropriate to the project. The opinions and conclusions
ating organizations: FTA, the National Academies, acting through the expressed or implied are those of the research agency that performed the research, and
Transportation Research Board (TRB); and the Transit Development while they have been accepted as appropriate by the technical panel, they are not
Corporation, Inc. (TDC), a nonprofit educational and research orga- necessarily those of the Transportation Research Board, the National Research Council,
nization established by APTA. TDC is responsible for forming the the Transit Development Corporation, or the Federal Transit Administration of the U.S.
Department of Transportation.
independent governing board, designated as the TCRP Oversight and
Project Selection (TOPS) Committee. Each report is reviewed and accepted for publication by the technical panel according to
procedures established and monitored by the Transportation Research Board Executive
Research problem statements for TCRP are solicited periodically but Committee and the Governing Board of the National Research Council.
may be submitted to TRB by anyone at any time. It is the responsibility
The Transportation Research Board of the National Academies, the National Research
of the TOPS Committee to formulate the research program by identi- Council, the Transit Development Corporation, and the Federal Transit Administration
fying the highest priority projects. As part of the evaluation, the TOPS (sponsor of the Transit Cooperative Research Program) do not endorse products or
Committee defines funding levels and expected products. manufacturers. Trade or manufacturers' names appear herein solely because they are
considered essential to the clarity and completeness of the project reporting.
Once selected, each project is assigned to an expert panel, appointed
by the Transportation Research Board. The panels prepare project state-
ments (requests for proposals), select contractors, and provide techni-
cal guidance and counsel throughout the life of the project. The process
for developing research problem statements and selecting research
agencies has been used by TRB in managing cooperative research pro-
grams since 1962. As in other TRB activities, TCRP project panels serve
voluntarily without compensation.
Because research cannot have the desired impact if products fail to
reach the intended audience, special emphasis is placed on dissemi-
Published reports of the
nating TCRP results to the intended end users of the research: tran-
sit agencies, service providers, and suppliers. TRB provides a series TRANSIT COOPERATIVE RESEARCH PROGRAM
of research reports, syntheses of transit practice, and other support- are available from:
ing material developed by TCRP research. APTA will arrange for Transportation Research Board
workshops, training aids, field visits, and other activities to ensure Business Office
that results are implemented by urban and rural transit industry 500 Fifth Street, NW
Washington, DC 20001
practitioners.
The TCRP provides a forum where transit agencies can cooperatively and can be ordered through the Internet at
address common operational problems. The TCRP results support and http://www.national-academies.org/trb/bookstore
complement other ongoing transit research and training programs. Printed in the United States of America
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COOPERATIVE RESEARCH PROGRAMS
CRP STAFF FOR TCRP REPORT 127
Christopher W. Jenks, Director, Cooperative Research Programs
Crawford F. Jencks, Deputy Director, Cooperative Research Programs
Dianne S. Schwager, Senior Program Officer
Eileen P. Delaney, Director of Publications
Hilary Freer, Senior Editor
Natalie Barnes, Editor
TCRP PROJECT F-12 PANEL
Field of Human Resources
Ann August, Santee Wateree Regional Transportation Authority, Sumter, SC (Chair)
Tom Ashby, Coordinated Transportation Development, Centralia, IL
Gary A. De Leo, Illinois DOT, Chicago, IL
Pamela D. Evans, CARE-A-VAN Transportation, Hobbs, NM
Lyn Hellegaard, Missoula Ravali Transportation Management Association, Missoula, MT
Jill A. Hough, North Dakota State University, Fargo, ND
Amanda Jones, Centre Area Transportation Authority, State College, PA
Ann Martinez, Southeast Nebraska Community Action Council, Humboldt, NE
Shirley J. Tarwater, Missouri DOT, Jefferson City, MO
Khuong Luu, FTA Liaison
Cathy Monroe, FTA Liaison
Lorna R. Wilson, FTA Liaison
David Barr, American Public Works Association Liaison
Christopher Zeilinger, Community Transportation Association of America Liaison
Peter Shaw, TRB Liaison
AUTHOR ACKNOWLEDGMENTS
The research conducted for this Guidebook was performed through TCRP Project F-12 by the KFH
Group, Inc.
Sue Knapp, President of the KFH Group, was the Principal Investigator for the project and primary
author of the Guidebook. Elisabeth (Lib) Fetting, Jason Quan, and Samantha Erickson assisted with the
research and the survey effort. Dorothy Hersey contributed to the chapter on attracting and retaining
employees, and Lib Fetting contributed to the chapter on making compensation decisions. Samantha
Erickson provided support throughout the project, including an in-depth analysis of the national wage
data. Finally, Jason Quan's extraordinary computer skills were used to help build the Interactive Tool.
We would also like to sincerely thank the many rural and small urban transit systems that participated
in the research project for sharing their data and insights with the research team.
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FOREWORD
By Dianne S. Schwager
Staff Officer
Transportation Research Board
TCRP Report 127: Employee Compensation Guidelines for Transit Providers in Rural and
Small Urban Areas will be of interest to local transit providers and their governing boards.
While the Guidebook largely addresses compensation, it also assists transit providers to
recruit, hire and retain qualified employees. The Guidebook is accompanied by an interac-
tive computer tool (located on the TRB website at http://trb.org/news/blurb_detail.asp?
id=9282) that provides an easy way to explore salary and benefit characteristics of transit
systems in rural and small urban areas.
The primary purpose of the project was to collect and analyze current compensation data
and develop guidelines for employee compensation so that rural and small urban transit
managers have a meaningful resource to use when making wage and benefit decisions. The
secondary project purpose was to provide transit managers with information that can be
used to attract and retain employees in the unique environment and with the challenges
faced by rural and small urban transit managers.
The Guidebook and interactive computer tool were developed based on quantitative and
qualitative information gathered from various sources, including a literature review and pre-
vious research, a survey of transit operators, and one-on-one interviews. The primary source
of data for the computer tool was a survey of rural and small urban operators across the coun-
try. The project team developed and revised the survey instrument and tested it in one state
before conducting a nationwide survey. A copy of the survey is included as Appendix A.
The interactive computer tool that accompanies this Guidebook allows transit managers
to quickly and easily obtain meaningful compensation and benefit data from comparable
transit systems. By entering the basic characteristics of a transit system, service area, and
operating environment, transit managers will query the database to compute and report
salary and benefit characteristics of comparable systems. Section 3 of the report and the TRB
website include details on how to use the tool.
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CONTENTS
1 Section 1 Introduction
1 Objective of the Guidebook
2 Definition of Compensation
2 Compensation Issues Unique to Rural and Small Urban Transit
4 Guidebook Development
7 Guide Organization
8 Section 2 Wage and Benefit Data
8 Survey Data
11 System and Service Types in Relation to Compensation Levels
30 Summary of Compensation Factors
31 Section 3 Guide to Compensation Decisions
31 Setting or Adjusting Compensation Levels
33 Defining Consistent Job Categories
58 Other Influences--Wages and Compensation
59 Peer Comparisons Using the Computer Tool
61 Section 4 Recruiting, Hiring, and Retaining Staff
61 The Role of Human Resources
62 The Employment Cycle
62 Job Development
65 Recruiting
68 Hiring
71 Initial Training
73 Retention
83 Completing the Cycle
85 References
86 Bibliography
87 Appendix A Transit Agency Survey and Survey Responses
109 Appendix B Detailed Project Survey Data Disaggregated
by Service Area Descriptions (2006-2007)
141 Appendix C Survey Project Data Disaggregated
by System Size Descriptors (2006-2007)
158 Appendix D Survey Project Data Disaggregated
by Organizational Descriptors (2006-2007)
171 Appendix E Survey Project Data Disaggregated
by Transit Service Descriptors (2006-2007)
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176 Appendix F Detailed Project Survey Data Disaggregated
by Selected Employee Characteristics (2006-2007)
186 Appendix G Bureau of Labor Statistics Selected Wage Data,
May 2006
193 Appendix H Exit Interviews
