HomeMy WebLinkAbout9C Compensation Study Request Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JANUARY 23, 2017
AGENDA #: 9C
PREPARED BY: LORI OLSON, ASSISTANT CITY MANAGER
PRESENTED BY: LORI OLSON
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE
MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S
STANDARDIZED PROFESSIONAL SERVICES AGREEMENT WITH
KEYSTONE COMPENSATION GROUP LLC TO PREPARE THE
INFORMATION REQUIRED FOR THE STATUTORILY MANDATED PAY
EQUITY REPORT AND TO CONDUCT A COMPREHENSIVE
COMPENSATION PROGRAM STUDY
DISCUSSION: Introduction
The purpose of this agenda item is to request City Council approval to
enter into a contract with the Keystone Compensation Group, LLC for a
comprehensive analysis of the City’s compensation program. The contract
amount requested is $28,020.
Minnesota Statutes require that public employers complete a pay equity
report every three years. This study will evaluate the City’s existing job
classification system and master salary plan to ensure a proper pay
structure for consistency with the market. The study also will develop a
defined process for grading and pointing newly established positions and
ensuring compliance with State pay equity requirements.
Given that 64% of the City’s annual budget is for payroll, it is important to
determine if the current pay structure is appropriate or needs adjustment.
Recommendations conceived from this study would be brought forward for
City Council approval. (More detailed information can be found in the
attached proposal.)
Background
One of the elements of the 2040 Strategic Vision is “Effective City
Resources.” The Vision calls for the recruitment and retention of highly
capable staff as a key factor in successfully delivering services that meet
resident expectations. The information from this study is intended, among
other things, to accomplish these ends.
The City recognizes the need to periodically review and update its job
description classification and compensation systems to remain a
competitive employer. The most recent analysis of these systems was
conducted in 2007. Over the last 10 years, existing positions’ duties and
functions have evolved, and market conditions have changed. It is a
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common practice for government agencies to review their compensation
program and calibrate with the market. This is more important now that the
economy has emerged from a major recession and the unemployment rate
has declined to a pre-recession level.
Minnesota’s unemployment rate is ranked 11th lowest in the nation at 4.0%,
which impacts the City’s ability to recruit and retain quality staff. For
example, 13 full and part-time positions were vacated in 2016 that required
recruitment. The City anticipates several retirements and significant
turnover of the workforce over the next two years, losing institutional
memory and valuable experience. In addition, little documentation is
available on the City’s current job evaluation system which limits the City’s
ability to reevaluate current jobs or evaluate new positions based on
changes in business requirements.
Current Circumstances
Several factors influenced the decision to pursue this study in now:
1. Pay Equity. In 1984, the state legislature passed the Local
Government Pay Equity Act which requires all public jurisdictions
(cities, counties, schools) to eliminate any gender-based wage
inequities in compensation. Subsequently, each local government
unit is required to submit current pay equity reports once every
three years. Achieving pay equity usually means (1) that all jobs are
evaluated and given points according to the level of knowledge and
responsibility required to do the job; and (2) that salary adjustments
will be made if it is discovered that a female dominated class is
consistently paid less than male-dominated jobs with similar points.
The City’s pay equity report is due in 2017.
2. Labor Negotiations. The city will negotiate three labor agreements
in 2017 for years 2018-2020. Salary grades and steps are
established as part of the contract and cannot be changed once
adopted without reopening negotiations. By completing the
compensation study in 2017, the City will have updated job
positions, appropriate pay scales, comparison data from other
communities and accurate information moving into negotiations.
The study will evaluate the City’s competitive pay position relative
to the market provide the necessary benchmarking information
needed to negotiate these contracts. While the city has the
obligation to bargain in good faith, the information from this study
will provide important information to be utilized in that process.
3. FY18 Budget. The results and recommendations of this study will
be factored in one respect or another into the FY18 budget. A
deliverable of the Keystone proposal is conducting a budget impact
analysis of the report’s recommendations.
4. Ongoing Compensation Program Compliance and Support.
The City has not been able to secure reliable support to maintain
the current job classification system and address job changes. This
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study will provide the City with a credible job evaluation system to
maintain our job classification process and ensure pay equity
compliance going forward without substantial reliance upon outside
assistance.
Conclusion
City staff recommends retaining an external expert to conduct the analysis
of the City’s compensation program. City staff does not have the expertise
nor the capacity to conduct such a study. Once completed the staff would
implement the results on an ongoing basis. Also, an external expert
ensures neutrality by using a well-established methodology and is more
likely to be perceived as unbiased by staff.
City staff recommends the Keystone Compensation Group, LLC as the
vendor for this project. Keystone has significant experience working with
several cities and counties around the state (see attachment for more
information and bios of key staff) and has received high marks from other
municipal human resources staff in the metro area.
Key deliverables of the Keystone proposal include:
1. Review of all city job descriptions, including interviews with staff
and supervisors
2. Evaluate all city jobs using the Keystone Job Leveling System. (See
attached proposal).
3. Conduct a statistical analysis of the current pay program.
4. Conduct market pricing research for City benchmark jobs and
prepare comparisons with the market.
5. Prepare budget impact analysis for proposed salary ranges.
6. Develop final recommendations into a report.
7. Presentations and meetings with city leadership and elected
officials as necessary.
Keystone anticipates the work can be completed by early summer 2017.
FINANCIAL
IMPACT:
The City received two proposals for this study. One from Keystone in the
amount of $28,020 and the other, from Arthur J. Gallagher & Co. in the
amount of $34,791. Since this expenditure was not included in the 2017
budget, a budget amendment is necessary. The recommended funding
source is the general fund balance.
ALTERNATIVES: 1. Motion and second to (1) enter into a standardized professional
services contract with the Keystone Compensation Group, LLC in
the amount of $28,020 for a comprehensive analysis of the City’s
compensation program and (2) approve a budget amendment to
the Human Resources budget in the amount of $28,020 from the
general fund reserves to fund this study.
2. Take no action and direct staff with respect to this agenda item...
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-___
A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE
CITY’S STANDARDIZED PROFESSIONAL SERVICES AGREEMENT WITH KEYSTONE
COMPENSATION GROUP LLC TO PREPARE THE INFORMATION REQUIRED FOR THE
STATUTORILY MANDATED PAY EQUITY REPORT AND TO CONDUCT A
COMPREHENSIVE COMPENSATION PROGRAM STUDY
Motion By: Second By:
WHEREAS, The City recognizes the need to periodically review and update its job classification
and compensation systems to remain a competitive employer.
WHEREAS, Given that 64% of the City’s annual budget is for payroll, it is important to
determine if the current pay structure is appropriate or needs adjustment.
WHEREAS, The most recent analysis of the compensation program was conducted in 2007.
WHEREAS, Several factors influenced the decision to pursue this study in 2017, including pay
equity reporting and labor negotiations.
WHEREAS, City staff does not have the expertise nor the capacity to conduct such a study.
WHEREAS, An external expert ensures neutrality by using a well-established methodology and
is more likely to be perceived as unbiased by staff.
WHEREAS, Staff recommends the Keystone Compensation Group, LLC as the vendor for this
study.
WHEREAS, The 2017 Human Resources budget is amended to reflect the expenditure of
$28,020 from general fund reserves balance to complete the compensation study.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are hereby authorized to enter into a standardized
professional services contract with the Keystone Compensation Group, LLC in the amount
of $28,020 for a comprehensive analysis of the City’s compensation program.
3. The 2017 general fund is amended by the addition of $28,020 for Human Resources (101-
4182.00-53100.80) expenditures to fund the compensation study.
Passed and adopted by the Prior Lake City Council this 23 day of January, 2017
C:\Users\aschroeder\Desktop\17-XXX Compensation Study.docx 2
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
Proposal
Compensation Program Review
For City of Prior Lake, Minnesota
12/20/2016
Prepared by:
Keystone Compensation Group LLC
3316 Ensign Ave N
Minneapolis MN 55427
Telephone: 612-810-3522
E-Mail: Sabboud@keystonecomp.net
Web: www.keystonecomp.net
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 2
Table of Contents
Topic Page #
Background and Objectives ------------------------------------------------------------------------------- 3
Project Summary and Deliverables ---------------------------------------------------------------------- 3
Framework for Conducting Compensation Program Review -------------------------------------- 4
Steps for Completing This Study ------------------------------------------------------------------------- 5
Project Team and Related Experience ------------------------------------------------------------------ 8
Estimated Financial Budget and Preliminary Timeline ---------------------------------------------- 9
Proposal Approval ------------------------------------------------------------------------------------------ 10
Biographies of Project Team ------------------------------------------------------------------------------ 11
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 3
Background and Objectives
City of Prior Lake (City) requested a proposal from Keystone Compensation Group LLC for
providing compensation consulting services. These services include reviewing the current job
descriptions, conducting employee interviews, evaluating City jobs, conducting a competitive
market analysis, and preparing recommendations for updating the City’s salary ranges.
The City has about 90 full-time and part-time employees in approximately 55 job classifications.
The City uses a step pay program with varying number of steps, ranges spread, and years to
maximum. Insufficient documentation is available on the current job evaluation system; and the
current compensation program has not been reviewed for several years.
This proposal outlines our understanding of the scope of this study, steps we would take to meet its
objectives, approximate timeline, and an estimate of the financial budget to complete the work.
Project Summary and Deliverables
1. Conduct a meeting with City leadership to review and evaluate the current compensation
program and explore alternatives, discuss compensation strategy, and set the overall
direction for the project. Consultant would also assist with selecting the initial peer group
for the City.
2. Provide high level review for the current job descriptions and interview employees to
confirm job duties, ensure consistent terminology, and validate job requirements. Step is
completed with administrative support from City staff.
3. Evaluate City jobs using the Keystone Job Leveling System (fact sheet provided).
4. Benchmark City jobs using the League of Minnesota Cities Survey.
5. Conduct competitive market analyses and comparisons for City jobs.
6. Calibrate the current wage structure and align it with the market.
7. Perform statistical analyses and create scatterplots to illustrate the relationship between
City pay level, market, and program internal equity.
8. Prepare recommendations for revising the current wage structure based on internal job
evaluation results and market analysis.
9. Work with City staff to prepare a cost estimate for the impact of the recommended wage
structure on total payroll budget and individual employees pay.
10. Prepare a summary to outline study processes and analysis and their implications on City’s
compensation program.
11. Throughout the project create opportunities for City leadership to be involved as deemed
necessary by the project team. The goal is to inform and build credibility in the program
review process and study outcomes.
4 | P a g e
Framework for Conducting Compensation Program Review for The City of Prior Lake
Leadership Discussion
of Compensation
Strategy and Future
State
Confirm and Revise Job
Descriptions Based on
Employees Input
Evaluate Jobs
Benchmark Jobs &
Collect Market
Data
Review Survey Data and
Build Compensation
Database
Statistical Analysis of
Market & City Data
Prepare Pay
Comparisons and
Confirm Internal Equity
Calibrate Wage
Structure and Job
Levels
Determine Financial
Budget Impact of New
Ranges
Develop
Recommendations
Prepare Final
Project
Summary
Review Results
with City
December 20, 2016 Compensation Program Review
Keystone Compensation Group LLC
Confidential
Page 5
Steps for Completing This Study
The lead consultant typically starts the project with an initial planning meeting with the City Project
Team (City Manager and Assistant City Manager) and other stakeholders as appropriate. The
purpose of this meeting would be for the City team and the consultant to exchange the necessary
information related to this project, discuss the overall process, and approve the project timeline.
Keystone proposes the following steps for completing this study:
1. Initial planning meeting with leadership
a. Review current pay practices and confirm deliverables. This includes gathering current
compensation program information and outline important areas to be addressed.
b. Discuss City’s compensation strategy. This includes discussing the market for talent
(peer group selection), where the City would like to stack its pay program relative to the
market, program design, and compensation administration guidelines.
c. Confirm pay structure design (steps and spread) to align with the stated compensation
strategy.
d. Discuss process for collecting market data, job descriptions review, employee
interviews scheduling, and City staff involvement in supporting the interviews.
2. Review job descriptions
a. In our call with the Assistant City Manager we learned that job descriptions need to be
reviewed with employees to validate job contents. Our review would be for general
consistency and to provide an outside perspective for maintaining these descriptions by
the City.
b. The review process involves asking employees and their supervisors to make initial
round of review to confirm that most current job documentation.
c. City staff would schedule employee interviews at the rate of 25 minutes for each job.
This step assumes all job documentations are available in MS Word format. City’s
administrative staff would make revisions and finalize each document after interviews.
d. The process does not involve asking employees to complete Position Description
Questionnaires but to confirm key job duties and add important information.
e. Depending on the overall project schedule, the consultant could provide an overview on
writing job descriptions to Supervisors to help them focus on key components. This
alleviates the possibility of employees spending too much time writing long documents
with little impact on outcomes.
3. Evaluate City jobs using the Keystone Job Leveling System
a. Keystone Job Leveling System would be used to evaluate City jobs. A factsheet about the
system is provided to explain the compensable factors used in the evaluation.
b. As a background, Keystone Consultants have extensive experience with point-factor job
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 6
evaluation systems and generally recommend such system if the current job evaluation
process is not working well. Dr. Abboud has been involved in multiple revisions of point
factor systems since 1990. This system does not require proprietary computer software
and uses Excel program for job scoring and record keeping. City would receive a system
manual as part of this project.
c. Evaluate all (50-55) jobs and review the results with the City project team. This step
typically requires multiple revisions and includes input from managers in order to
minimize the need for job review requests later and after program rollout. In our
experience, this happens when managers are not involved in the calibration of their
department jobs.
d. The final evaluations would be used in combination with market data to assign jobs to
grades and to update the City’s wage structure.
e. Keystone would provide City with a job review request form to be used for future job re-
evaluation requests when jobs change significantly.
4. Conduct statistical analysis for the current pay program
a. Review historical analysis and current individual employees’ compensation and grades.
b. Conduct appropriate statistical analysis and prepare scatterplots to help understand
patterns and trends as well as any existing internal equity issues.
c. Summarize findings and develop a possible course of action to correct issues.
d. Share results of these analyses with the project team/management as needed.
5. Conduct market pricing for City benchmark jobs
a. Use job descriptions and reporting relationships to match City jobs to the League of
Minnesota Cities Compensation survey benchmark jobs.
b. Collect base pay data from the public sector survey (LMNC). Statistics we collect are
actual pay and salary range information.
c. Scrub survey data to make sure that matches by peer group cities are valid. We may call
some participants to verify some rates, if necessary.
d. If no solid benchmark match for a job is available, the job would be slotted in the grade
structure using its job evaluation points and internal comparisons with other jobs
within the City.
e. Review market analysis with City team to ensure understanding of the results and their
implications.
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
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6. Prepare comparisons with the market and calibrate salary ranges
a. Use market data and job evaluation points to evaluate the current ranges and compare
them with the market.
b. Prepare scatterplots and trend lines for the new ranges and actual salaries to illustrate
City’s pay position relative to the market. This step also helps identify any anomalies or
potential issues with internal equity going forward (State Pay Equity Act).
c. Use market pricing data and general trend surveys to recommend 2017 grade ranges.
d. Review outcomes with City team before moving to next step.
7. Work with City staff to conduct budget impact analysis for the proposed ranges
a. City prepares employee roster and compensation data using a template provided by
Keystone.
b. Evaluate wages for employees relative to market and the new ranges.
c. Create an overall summary of the budget impact for the recommended ranges.
d. Determine salary actions needed and provide recommendations.
e. This step is typically completed in collaboration with City staff.
8. Opportunity for stakeholders’ involvement
The success of this project will depend on making sure that key stakeholders are informed
or involved as necessary. This enhances the trust in the final outcomes and helps with open
communications and transparency. Meetings with the City Manager, Assistant City
Manager, and Department Heads may be held as necessary to inform about the process,
describe how the program works, and to receive feedback (budget is based on actual
number of onsite meetings held).
9. Prepare the final summary
Consultant would prepare a summary that includes methodology, benchmark analysis
results, specific observations, and recommendations. All information would be provided to
City electronically. City would also receive a copy of the Keystone Job Leveling System
with its final job evaluation points and grade assignment to maintain system internally.
10. Ongoing program support
We approach this study as being your business partner invested in the success of this
program. Our goal is to ensure knowledge transfer from consultant to City staff and to help
the City sustain the program internally going forward. We would be available to support
the City after project completion and to answer questions. Simple and short inquiries are
answered at no additional cost, while more substantial work would be quoted on a project
basis.
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 8
Project Team and Related Experience
This project would be led by Dr. Saado Y. Abboud who would be the first contact for the City. Stefan
Peterson, a Sr. Consultant with Keystone, assists with employee interviews and provides
benchmarking and analytical support to this project.
Among the specific experience that Saado has related to public sector compensation and this study:
1. Currently managing a compensation survey with 14 major counties and large cities in
Minnesota covering over 160 jobs. Counties and cities like Hennepin County, Ramsey,
Dakota, Anoka, St. Louis County, Olmsted, Stearns, Washington, Sherburne, Carver, Scott,
City of Rochester, City of Bloomington, and other agencies participate in this annual market
study.
2. Had managed the annual market survey for Minnesota metro cities and counties for over 12
years (Stanton Group Metro Survey). This survey is currently part of the League of MN
Cities Survey.
3. Extensive experience with developing and implementing compensation programs in various
industries including government, non-profit, and private sectors.
4. Has significant experience working with several counties and cities. Among our client
Counties and Cities: Scott, Dakota, Anoka, City of St. Louis Park, City of Faribault, City of
Chanhassen, City of Rochester, City of Hutchinson, City of Maplewood, City of Apple Valley,
Carlton County, McLeod County, and Crow Wing County among others.
5. Saado also co-authored a ground-braking article in the WorldatWork Journal on the
performance-based compensation program at Scott County. He received Author of the Year
Award in 2011 for writing this article.
6. Many years of experience as a corporate compensation manager, a professional consultant,
and Board leadership of several professional compensation associations.
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 9
Estimated Financial Budget and Preliminary Timeline
Notes
1. Keystone would invoice the City after completion of each key milestone (steps 2, 4, 8).
2. This estimate is a not-to-exceed amount and is based on our understanding of the scope of the
project.
3. Timeline is a placeholder for steps. Upon accepting proposal, consultant would prepare a
project plan with more precise timeline and desired completion date while giving each step
enough time for proper completion.
4. This budget and timeline may be adjusted if the City modified project processes.
Step Description Tentative
Timeline Total Comments
1 Initial planning, document collection, roles
and responsibilities, and timeline approval Weeks 1-2 $900 With City Manager and
Assistant City Manager
2 Initial job review, job interviews, high level
update (50-55 jobs)Weeks 3-8 $8,750 City administrative staff to
support documents update
3
Evaluate jobs using Keystone Job Leveling
System, calibration with managers, and
finalize results
Weeks 9-14 $5,040 Involves reviewing with
department managers
4 Benchmarking of Jobs Weeks 10-14 $5,040 League of MN Cities
Survey (peer group)
5 Compensation analysis, update structure,
compliance check, recommendations Weeks 15-18 $2,520
6 Program costing and budget analysis Week 19 $900
Identify employees
outside the established
pay range
7 Update meetings with project team and
Department Heads (three onsite meetings)Varies $2,520 Onsite meetings based on
key milestones
8 Final presentation to the City Council.
Includes preparation and onsite meeting.Project End $750 Work with City Manager
and staff on contents
9 Final summary, project documentation,
administrative Varies $1,600 Electronic documents
provided
Overall Budget Weeks 1- 20 $28,020 Duration varies based on
availability of City staff
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 10
Why Keystone!
1. Client Relationship Focus: Our consultants emphasize strong relationships with our
clients based on mutual respect, responsiveness, and a genuine desire to help.
2. Knowledge and Expertise: With an average experience of 25 years in the field, our
consultants have acquired significant knowledge and expertise in various industries and
organizations.
3. Our Values: Integrity, excellence, and service guide our working relationship with our
clients.
4. Business Acumen: We invest significant amount of time upfront to better understand the
issues are resolving. We view compensation as a strategic investment that organizations
make in their employees. Our role is to help clients manage this investment in order to
better attract, motivate, and retain their talent and improve their business outcomes.
Proposal Approval
This proposal is prepared based on our understanding of the scope of the services
requested. Additional work outside of the scope may be priced separately upon request from
the City.
We can start this study within two-three weeks after receiving approval for this proposal.
Specific dates may be determined once the project is approved.
We are privileged to be considered for this project and look forward to the opportunity to
work with you on this important study! If you have any questions, please call Saado Abboud
at: 612.810.3522 or email him at: sabboud@keystonecomp.net .
If you approve this proposal, please sign below and return a copy of this page this
agreement to Saado Abboud at: sabboud@keystonecomp.net
City Authorized Signature:
Approved by Title Date
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 11
Keystone Compensation Group, LLC
Principal Consultant
3316 Ensign Ave North
Minneapolis MN 55427
Tel: 612.810.3522
Sabboud@keystonecomp.net
www.keystonecomp.net
Saado Y. Abboud, Ph.D.
Saado is a founding partner of Keystone Compensation Group LLC with over twenty five years of
experience in the field of compensation. His experience involves all phases of compensation
program development, strategy, design and management. His clients include organizations in
private, public sector, and nonprofit. He consults with top executives and board of directors on
executive compensation design and management. His combined experience in managing
compensation programs within a Fortune 100 company and as a professional consultant gives him a
balanced view for solving compensation issues.
Most recently Saado served as Vice President, Compensation Practice for Stanton Group, a regional
consulting and survey research firm in Minneapolis. He worked closely with business and HR
leaders as well as Boards of Directors to develop rewards programs for executives, middle
management, and other employees. Saado’s compensation experience includes developing base pay,
short-term and long-term incentive programs to attract and motivate employees. He also helps his
clients with communicating reward programs.
Prior to joining Stanton Group, Saado spent several years in a senior leadership position at Best Buy
Co. with responsibilities over corporate compensation programs as well as executive compensation.
Among his other accomplishments was taking a key role in restructuring the HR function and
leading several technology initiatives to support business growth. He contributed articles and
interviews to several trade publications, including Workspan, a monthly journal for total rewards
professionals, Minnesota Bankers News and the Twin Cities Business Journal.
Early in his career, Saado taught at the college and graduate school levels, domestically and abroad.
He has a doctorate and master’s degrees from the University of Minnesota in Quantitative Analysis.
He also received his MBA degree in Corporate Finance from the University of St. Thomas. Saado is a
certified compensation professional (CCP), a member of WorldatWork, and past Chairman of the
Local Network Advisory Board for WorldatWork. Saado also served for several years on as the
Chairman of the Twin Cities Compensation Network Board of Directors.
December 20, 2016 Compensation Program Review for Prior Lake
Keystone Compensation Group LLC
Confidential
Page 12
Keystone Compensation Group, LLC
Principal Consultant
3316 Ensign Ave North
Minneapolis MN 55427
Tel: 952.270.1114
Speterson@keystonecomp.net
www.keystonecomp.net
Stefan K. Peterson, CCP
Stefan is a Senior Compensation Consultant at Keystone Compensation Group LLC with over thirty
years of experience in the field of compensation. His experience involves managing compensation,
benefits, and human resources systems. His compensation and benefits career included
organizations in the healthcare, retail, technology, and manufacturing industries. His experience in
managing compensation and benefits programs within Fortune 100 companies and midsize
organizations uniquely qualifies him to solve diverse client challenges.
Most recently Stefan served as Sr. Director of Compensation and Benefits at Fairview Health
Services, a premier healthcare organization in Minneapolis. He had responsibility over a team
charged with the redesigning of compensation and benefits programs as well as the implementation
of new human resources and payroll systems. He also provided executive compensation consulting
services and developed HR Committee meeting materials. Stefan’s compensation experience
includes developing base pay, short-term, and long-term incentive programs to attract and motivate
employees.
Prior to joining Fairview Health Services, Stefan held several senior leadership positions at Nash
Finch Company, Pearson Inc., National Computer Systems, BMC Industries, Alliant Techsystems and
Honeywell Inc. In all these organizations he had broad responsibilities over base pay programs, job
evaluation, and executive compensation.
Stefan has a Master’s degree from Gonzaga University in Human Resources Management and a
Bachelor’s degree in Political Science from University of North Dakota. He has been a faculty
member at the Metropolitan State University for over twenty years teaching compensation and
benefits classes. He is a Certified Compensation Professional (CCP) and a Senior Professional in
Human Resources (SPHR). Stefan is a member of WorldatWork and the Twin Cities Compensation
Network (TCCN). He also served on the Twin Cities Compensation Network Board of Directors.