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Home My WebLink AboutItem 1C, 2008 Proposed Compensation Plan ~ ~~HILLS MEMORANDUM DATE: TO: FROM: SUBJECT: November 19, 2007 AGENDA ITEM: 1.c. Mayor and City Council Michelle Wolfe, City Administrator ~ Pay Equity and Compensation Study BACKGROUND At the September 17 City Council Work Session, the City's compensation consultant, Mr. Rod Kelsey, presented pay equity and compensation plan information. A follow-up discussion was scheduled for September 24. At the conclusion of that discussion, Council directed that a subcommittee of the Council work with staff and Mr. Kelsey to develop a recommendation back to the full Council. DISCUSSION At the September 24 Work Session, Council discussed which quartile should be used for market comparisons. The City has not had a clear stated policy in the past regarding which quartile of the market should be used for comparisons. While there was consensus from Council that the 60th percentile would be a goal to work toward, Council concluded that it could not accomplish that goal in one year. Council also discussed the desire to be competitive in the local government marketplace and a discussion ensured regarding what constituted a comparable jurisdiction. Council discussed separating Level 13, City Administrator, from the rest of the plan. Finally, the Council requested new matrices that were more closely tied to the market survey data. Council also asked that the new matrices be prepared based on the 55th percentile. The Council subcommittee met with City staff and the consultant on November 9. At that meeting, the group reviewed revised market-based pay matrices using the 55th percentile. In other words, the range maximums were based on a percentage of the survey market data. The difference between each pay grade was not an equal percentage (previous drafts were constructed with an equal percentage between each pay grade). The subcommittee was comfortable with this approach. After discussing the topic of comparison communities, the subcommittee decided to remove Shoreview from the list. Shoreview has not been used in previous studies for the City; it was suggested during a work session this past summer that we should include them for study purposes. Memorandum to Mayor and City Council Re: Pay Equity and Compensation Study November 19, 2007 Page 2 of 4 The group then discussed the pros and cons of constructing the pay matrix with symmetry between the grades (i.e. vertically). It was noted, for example, that salary compression can occur ifthere is not symmetry between the pay grades. Ultimately, after discussion, it was determined that Mr. Kelsey should study the draft market-based matrix, look at any pay grades that were quite close together, and make reasonable symmetrical adjustments; however, not go to the extent of an exact same percentage between each range. Therefore, the final direction ofthe subcommittee to Mr. Kelsey was as follows: Create a new draft pay plan matrix with the following guidelines: I. The maximum of the pay ranges should be market based 2. The plan should be based on the 55th percentile (with the understanding that in future years the City can work towards the 60th percentile) 3. Look at implementing some reasonable symmetry between the pay grades within the matrix 4. Remove the City of Shoreview from the list of comparison cities It was agreed that staff and Mr. Kelsey would prepare the supporting information for discussion at the November 19 Work Session. Attached are the following documents for City Council review: A. Documentation of the Proposed 2008 Pay Plan for Council Review and Comment (dated November 2007) B. Job Evaluation Factors in the Job Evaluation System (this is the system used to evaluate the job description questionnaires submitted by employees last summer, which was reviewed by Mr. Kelsey at the September 17 work session) C. Proposed 2008 Classification Placement Roster by Level (this list, which illustrates the proposed levels for each position, is unchanged since presentation at the September 17 Work Session) D. Roster of Peer Comparison Cities (this list has been changed since the September Work Session, to delete the City of Shoreview) E. Survey Benchmark Title Roster (these are the positions which were studied in relation to the market survey data) F. Survey Data Supporting the 2008 Base Pay Matrix (this is a new document illustratin~ the market data for each surveyed position, which is the basis for determining the 55' percentile and creating the maximum pay rate for each level) G. Metropolitan Area Salary Surrey Summary (this is the same data presented at the September Work Session) H. Proposed 2008 Base Pay Matrix Finance Director Iverson is developing an estimate for the costs of implementing the proposed pay matrix. Staff will have an estimate available for the Work Session. Memorandum to Mayor and City Council Re: Pay Equity and Compensation Study November 19, 2007 Page 3 of3 ANALYSIS The scope of work for this study included three primary purposes: I. Analysis of our compensation plan in preparation for submitting the required Pay Equity Report in January 2008. The Compensation consultant analyzed the City's current compensation plan and determined that it meets the pay equity requirements under State Statute. The proposed new compensation plan also meets State requirements. 2. Analysis of our compensation plan to evaluate internal equity and external equity (are we competitive with the market.) In terms of external equity, the data indicates that some City positions are below market. The proposed new compensation plan addresses the market issues. Implementation of the market adjustments according to this proposed plan, along with aunual adjustments (i.e. COLA), should keep the City competitive. Compensation studies are not an exact science, however, staff believes adoption of the proposed plan will improve the City's ability to attract and retain good employees. 3. Updating our position descriptions. DIRECTION REQUESTED Provide staff with input and feedback regarding the study results and subcommittee recommendation. If Council is comfortable with the plan as proposed, staff can take the following actions: I. Prepare an agenda item for approval at the December 10 City Council meeting 2. Prepare an implementation plan 3. Authorize the consultant tD work with staff to prepare our final pay equity report for submission in January 4. Meet with employees to share the proposed new plan information MW 1 Imetro-inetlardenhillslAdmin I City AdministratorlMemo 12007111-19-07 Memo RE Pay Equity Study. doc ~ ~~HILLS DOCUMENTATION OF THE PROPOSED 2008 PAY PLAN FOR COUNCIL REVIEW AND COMMENT AS PRESENTED AT THE NOVEMBER WORK SESSION November 2007 Riley, Dettmann & Kelsey LLC 11900 Wayzata Boulevard - Suite 104 Minnetonka, MN 55305 Phone: (952) 542-9400 Fax: (952) 542-2212 E-Mail: rdkmn@earthlink.net Website: www.rdkcompsource.com RILEY, DETTMANN & KELSEY LLC _ Paqe SECTION 1 Summary of Job Evaluation Factors ..................................................................... 1 SECTION 2 Proposed 2008 Classification Placement Roster By level................................. 2 SECTION 3 Roster of Peer Comparision Cities........................................................................ 3 SECTION 4 Market Survey Data Summary ............................................................................... 4 SECTION 5 Proposed 2008 Base Pay Progression Matrix ...................................................... 22 RILEY, DETTMANN & KELSEY LLC Summary of Job Evaluation Factors in the RDK Job Evaluation System ( Including Rating Parameters for Each Factor) Formal Preparation and Experience This jDb evaluatiDn factor is applied tD determine the mDst representative cDmbinatiDn of formal preparatiDn (SchoDling at whatever level) and relevant UDb-linked) experience typically required to qualifv for the position being evaluated. It is important in this factDr tD verify the minimum acceptable qualificatiDns fDr the pDsitiDn being evaluated. [There are tWD decisions made Dn this factor - one related tD formal preparatiDn and Dne made related tD relevant experience.] ~ The 2 rating parameters fDr this factDr go from ND Required SDecificatiDns tD DoctDrate (eight levels) for fDrmal preparation and gD from 0 to 12+ vears (eight levels) fDr years Df relevant experience. Decision Maklna (fmpactl This job evaluation factor is applied tD determine the regular and ongDing freedom tD act; the extent Df the DrganizatiDn affected by thDse actiDns; and the best characterization Df decisiDn-making typical Df the positiDn being evaluated. [There are three decisiDns made Dn this factor - Dne related tD the degree Df freedom tD act; Dne related tD the extent Df such judgments; and Dne related tD the nature of decisiDn making.] ~ The 3 rating parameters fDr this factDr gD from Least to Inclusive (six levels) fDr impact and gD from JDb-Centered tD OrqanizatiDn-wide (fDur levels) for extent Df decisiDn making and gD from Ancillarv to Final (fDur levels) for type Df decisiDn making. Thinkina ChaJ/enaes and Problem So/vina This jDb evaluatiDn factor is applied tD determine the representative thinking challenges and problem sDlving required on an ongDing basis and thereafter the depth Df intellectual respDnse tD thDse challenges and creativity invDlved in solving problems. [There are tWD decisions made Dn this factor - one related tD the cDntext and cDmplexity Df challenges I problems and one related tD the depth Df respDnse required to address and resDlve such challenges and problems.] ~ The 2 rating parameters fDr this factDr gD from LDW to Dealinq with Governance Issues fDr cDntext and cDmplexity (seven levels) and gD from Make Clearcut ChDices tD DevelDD Oriqinal. Creative SDlutiDns (five levels) for responses. Interactions and Communications This jDb evaluatiDn factDr is applied tD determine the cDntext of business-related interactions and cDmmunications that are an Dngoing part Df performing the pDsitiDn being evaluated. [There are two decisiDns made Dn this factDr - one related tD the type and cDntext Df business interactions and Dne related tD the impact Df the outcDmes and effects on infDrmatiDn cDntent and fiow throughDUt the DrganizatiDn.] ~ The 2 rating parameters fDr this factDr go from ResDonses Provided tD Others fDr cDntext Df cDmmunications to InteractiDns CDnsistentlv FDcused on Critical OoeratiDnal/GDvernance Issues (6 levels) and gD from Effective WDrkinq RelatiDnshios tD Dealinq with the MDSt MaiDr ODeratiDnal I GDvernance Issues (five levels) fDr Dutcomes and effects. Work Environment This jDb evaluation factDr is applied to determine the pDtential fDr injury in performing the pDsitiDn being evaluated and also determine what recDgnized health hazards regularly exist in the typical work environment of the pDsition being evaluated. [There are two decisiDns made Dn this factDr - Dne related to potential fDr injury and Dne cDvering the recDgnized health hazards in the work environment.] ~ The 2 rating parameters fDr this factDr gD from Minimal PDtential to ContinuDus PDtential (6 levels) and gD from Low to Hiqh (3 levels) for physical requirements. RILEY, DETTMANN & KELSEY LLC 1 Arden Hills, Minnesota Proposed 2008 Classification Placement Roster By Level Level 13 City Administrator Level 12 Open Level 11 Public WDrks DirectDr CDmmunity DevelDpment DirectDr Finance DirectDr I Treasurer Level 10 Assistant City AdministratDr Level 9 Building Official Level 8 Parks and RecreatiDn Manager Public Works Superintendent City Planner Level 7 Accounting Anaiyst Building InspectDr Level 6 AssDciate Planner (Future PositiDn) LevelS Public WDrks Maintenance Worker AccDunting Clerk Level 4 Office SUppDrl Specialist Level 3 Customer Service Representative RILEY, DETTMANN & KELSEY LLC 2 Arden Hills, Minnesota Roster of Peer Comparison Cities Anoka Dayton East Bethel Ham Lake Hugo Little Canada Mendota Heights Mound Mounds View New Brighton North Saint Paul Robbinsdale Vadnais Heights Revised November 2007 Removing Shoreview As Directed RILEY, DETTMANN & KELSEY LLC 3 ~ :;; CD .9 -" > " is ~ :;; ~ S 1: 1: 0> is ~ :;; CD CD '" <II .9 CD c " 1: 5 " ." <II '" .c ~ <II '" C C ]2 CD ::;: " CD 1;) -" '" '" CD 0. - E ." is CD c 1: co CD c '" 0- S ~ CD .~ .5 tl: 0 ::;: 1;) 0 .E 1: CD ~ ,., is ~ Qj - .m 0- 0- CD ~ co -" 0 ." .Cd is ::> (f) " ~ :;; t5 co e > -0: 2i ::;: (f) .~ ;:: c CD t5 -e c c " c (3 CD .5 0 Z- ::> 0 0 CD 0 -0: 0- 1;) D- ~ '" '" 0 CD ~ '" '" '" .!!! 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"E :g 0> 0> '" ::> Z- is CD c c (f) (f) :;; :;; a fJ "E c c E " CD CD ~ ::> ::> ::;: t5 c CD CD C C CD "iB 0 0 :g :g E ::> "E 1: " " c c CD t; " " z- 0- ~ '" " 0- ::> " " .S .S 0 CD c .m .m IE' IE' '" '" CD CD ::> Vl -0: -0: (l) (l) (3 u 0 is u: ::;: ::;: 0 0 0: 0: tl: tl: (f) 0 z 0 ~ N '" .,. en <D "- DO .c ~ N '" .,. en <D "- DO Q) ~ ~ ~ ~ ~ ~ ~ ~ ~ 0 .., "- o o N ~ Q) .D E Q) "- Q) (f) " ::l &i rJl '" r.1 :.: .!8 z Z <( := t i:l ~ '" ill Arden Hills, Minnesota SURVEY DATA SUPPORTING THE 2008 BASE PAY MATRIX CDnfidential Controlled Distribution I Quartiles Level 3 37.7 35.2 35.3 38.2 43.6 34.2 39.1 50th Pet. 37.7 47.1 I 55th Pet. 37.9 60th Pet 38.0 Level 4 Level 5 Level 6 Level 7 Level 8 Level 9 Level 10 Level 11 Level131 44.7 54.0 52.5 59.1 66.5 66.5 78.4 96.0 107.6 41.5 47.2 51.5 54.0 57.7 73.7 78.6 84.1 112.4 44.0 46.8 57.7 49.9 78.0 71.3 90.7 94.2 42.3 46.5 52.5 58.3 74.7 83.7 106.4 44.3 60.4 75.3 67.5 98.3 95.6 43.6 59.1 64.1 68.1 80.9 96.6 36.2 59.0 71.9 78.2 104.4 41.4 62.6 71.8 78.0 101.0 66.5 62.9 84.1 121.2 59.1 82.7 126.0 61.4 89.5 118.8 55.4 84.2 102.8 96.0 80.0 90.0 78.0 84.1 79.8 83.3 94.8 83.9 102.9 86.7 100.9 86.1 43.0 52.0 105.4 58.4 60.3 71.8 78.4 84.1 47.0 43.4 52.1 106.5 58.8 61.5 71.8 78.4 84.6 43.7 52.1 107.1 59.1 62.1 71.9 78.4 86.3 47.1 Riley, Dettmann and Kelsey November 2007 rn 5 ~5 ~.o ti=~ 50 0" .$ .E ::J cl, Cl - " " ,;, :o!? :o!? .. >< 0 "l ~ 0 0 " oi oi oi oi oi oi 00 00 0:: ...<:: - cO cO :E:!::: 0 '" "' "' "' "' "' "' " ~ -' 00 00 0 ~ 'iij III " ...: ...: ...: ...: ...: ...: ...: .... .... ~ .<:: oi oi (/) a. - 0 ., " " " " " " Q) '!l' -' .... .... >- - ~ Q) '1 C: :J: ::> ;;; :o!? :o!? 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