HomeMy WebLinkAbout07 10 2017 Compensation Plan Update PresentationCOMPENSATION STUDY
CITY COUNCIL WORK SESSION
JULY 10, 2017
BACKGROUND
•In February, City Council approved a $28,000 contract with Keystone
for comprehensive analysis of city’s compensation program
•Staff recommended an external expert because staff does not have the
expertise nor the capacity
•An external expert bring credibility and neutrality
2
RATIONALE
•Last study done in 2007
•Positions not evaluated for grade/pay range since that time
•New employees starting higher than first step
•21% workforce retired/resigned in two years
•Tight job market
•Few qualified applicants applying for positions
•Labor negotiations require this data
3
GOALS
4
The goal of this study is to ensure a pay structure that is consistent
with the market by conducting an evaluation of the City’s existing job
classification system, hierarchy, and master salary plan.
Evaluate Create Develop Compliance Recruit and
Retain
Assess city’s job
evaluation system
Create a process
for pointing
newly established
positions and
assessing job
reclassification
requests
Develop a system
city staff can
administer
ourselves moving
forward
Ensure city is
compliant with
State pay equity
requirements
Attract and keep
high quality
employees with
competitive
compensation
that is in line with
market
PROCESS
1.Employees reviewed job descriptions
2.Supervisors reviewed employee changes
3.Consultant interviewed employees
4.Job descriptions revised
5.Supervisors and employees confirmed accuracy of updated job descriptions
6.Department Heads approved changes
7.City job descriptions evaluated by consultant and assigned grade based on job points
8.Wages benchmarked against cities of similar size
9.Department heads reviewed proposed grades and department hierarchies
10.Developed new pay scale based on comparables and internal equity
5
EVALUATION METHOD
(KEYSTONE JOB LEVELING SYSTEM)
JOB
GRADE
Competence,
Knowledge,
Skills
20%
Contacts and
Interpersonal
Communication
20%
Working
Conditions and
Environment
10%
Complexity and
Mental Effort
15%
Responsibility and
Accountability
35%
6
ORGANIZATIONAL HIERARCHY
(CLASSIFICATION PLAN)
7
New Grade Admin Finance Comm Dev Fire Police Public Works
260 City Manager
250
240 Director Chief Director
230
220 Asst City Manager Director Chief Asst PW Director
210 Leiutenant City Engineer
200
190 Accounting Manager Bldg Official Superintendent
185 Sergeant
180 IT Coordinator
Project Engineer
Water Resource Engineer
175 Police Officer
170
Info Syst Coordinator
Recreation Manager
Comms Coordinator
Building Inspector
Planner
Code Enforce Officer
Foreman
Engineering Tech 4
160 Executive Assistant Accountant Records Supervisor Engineering Tech 3
150 Accounting Specialist
Maintenance Worker
Water Operator
Facilities Maintenance
Mechanic
PW Technician
PW Asst
140 Rec Prog Assistant
130 Utility Billing Clerk Dev Services Asst Records Clerk Dev Services Asst
120 Receptionist CSO
PEER CITIES
Compared against metro-area cities of similar size
8
Shakopee 39,900 Ramsey 24,935
Maplewood 37,755 White Bear Lake 24,734
Cottage Grove 34,502 Chanhassen 24,432
Inver Grove Heights 34,461 Chaska 24,177
Roseville 34,178 Champlin 23,934
Richfield 33,859 Rosemount 23,244
Andover 31,298 Hastings 22,491
Savage 30,391 New Brighton 22,321
Brooklyn Center 30,104 Crystal 22,014
Oakdale 27,344 Lino Lakes 21,200
Fridley 26,347 New Hope 20,718
Shoreview 25,882 Golden Valley 20,312
Prior Lake 25,325 South St. Paul 20,1880
FINDINGS
•Most significant changes due to this study are:
✓Appropriate grading of jobs relative to each other
✓Establishing pay range that is in line with the market
while maintaining internal equity
✓Updating organizational hierarchy and classification
plan
•Prior Lake is within range of comparable cities but
maximum of pay scale below market
•Prior Lake has not kept pace with salary increases in
comparable cities
9
FINDINGS
•Continue step progression system that is based upon
tenure and annual performance review
•To make non-union wage adjustments in 2017 will
cost approximately $22,000
•Cost of implementing union position recommendations
in 2018 and beyond dependent upon contract
negotiations
10
CITY MANAGER RECOMMENDATIONS
•Approve organizational hierarchy and classification plan
•Implement new grade scale for non-union positions fourth
quarter 2017:
✓Employees move to the closest step within their
grade based on current pay
✓22 non-union positions with increases ranging from
$0 to $1,800
•Utilize data from study together with benefits analysis
for labor negotiations for union positions
11
IMPLEMENTATION
•Bylaws Working Group on June 30
•Council Work Session on July 10
•City Council Approval in July or August
•Staff communication and roll out
•Train HR and Admin staff on Keystone job leveling system
•Labor negotiations in fall 2017
12
DISCUSSION
-Is there other information the
City Council needs?
-Comments on city manager
recommendations?
-Concur with next steps?
Based upon tonight’s discussion,
a final report and
recommendations will be
brought to the City Council for
consideration.
13