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Arden Hills <br />OUR PHILOSOPHY FOR COMPENSATION <br />AND CLASSIFICATION STUDIES <br />Government is in the service delivery business, and quality service requires quality employees. An <br />effective compensation system will help you attract and keep talented employees. Likewise, an out-of- <br />date or ill-conceived compensation system will produce turnover and hamper efforts to recruit quality <br />replacements. <br />In the real world of limited resources, government is increasingly expected to do more with less. <br />Accordingly, a community's pay philosophy must strike a reasonable balance between a desire to pay <br />your good employees well to retain their good services, while at the same time controlling costs to keep <br />faith with the taxpayers. Designing a pay system is not easy, every community is different, and a "one <br />size fits all" approach seldom produces a good result. <br />We approach compensation study work as a practical, common-sense process — not as some theoretical <br />or statistical exercise in regression analysis. We collect information, analyze it, and communicate our <br />findings in simple understandable ways. Our honest goal is to help you design a compensation system <br />that is technically solid, is one you actually understand, and one that works better than what you have <br />now. <br />As we work with you to build the best compensation system for your community, we keep four very <br />practical objectives in mind: <br />• Competitive to <br />• Satisfy MN Pay <br />• Be open and fair to • Establish a pay <br />hire, retain, and <br />Equity <br />employees, philosophy based <br />motivate qualified <br />Requirements <br />managers and on your <br />employees <br />unions organization <br />DDA Human Resources believes your compensation and classifications systems should be based on: <br />1. Updated job descriptions <br />2. Market Competitiveness set by a decided pay philosophy <br />3. Pay Equity <br />• Assist in the attraction of the most qualified professionals available. <br />• Retain talented employees. <br />developedF A pay plan is <br />• Job descriptions <br />• Pay equity of job descriptions (hierarchy of jobs) <br />• Market analysis of base pay <br />• Market definition influenced by industry, size, geographic location, and tax capacity <br />• Pay philosophy <br />r Board: <br />• Influenced by industry, size, geographic location and tax capacity <br />• Includes objectives and statement of where organization wants to be in relation to market <br />PAGE 6 <br />