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HomeMy WebLinkAbout11-26-07 Item 4D, 2007 Amended Compensation Plan Administration _ _ N:~_y_~~_~_~~__~_~~__~.9_Q'L _ _ p.~~_~"'!l_~_~E__~,.L~gQ7.".. Agenda Item:....".,.".,.".".".,_,,_,,_,."_:4_~p_. 2007 Amended Compensation Plan Budgeted Amount: ________ _______________ -* Actual Amount: $1,945 Funding Source: _ General Fun~~"E"nie.rprisc .F~'nd~ ~ ~HILLS Request for Council Action Prepared By: Dept.: Council Mtg. Date: Final Action Needed By: MW the 2007 Amended Compensation Plan and Direct Implementation as Outlined in the staff report dated November 26, 2007" --- the 2007 Amended Compensation Plan and Direct Implementation as Outlined in the staff report dated November 26, 2007. Planning: PTRC X Memorandum from City Administrator Wolfe dated 11-26-07 No.: No.: Engineering Recommendation: ---- - -- Attorney Recommendation: Other: Proposed 2007 Amended Compensation Plan; Packet Materials from November 19, 2007 Council Work Session ~~lj)Ii\~rlj,[JmlilIlifgnS!r,]HI]f""r!I!]r!']~r!illfr I The cost for implementing the proposed amended plan is just under $2l000. While not specifically budgeted in 2007, with savings from position vacancies the."e are sufficient funds available in the 2007 budget. ~ ~~HILLS MEMORANDUM Mayor and City Council Michelle Wolfe, City Administrator ~ AGENDA ITEM: 4.D. DATE: TO: FROM: November 26, 2007 SUBJECT: Approval of Aruended 2007 Compensation Plan BACKGROUND At the November 19, 2007 Work Session, City Council reviewed the attached report and recommendations regarding the Pay Equity Report and Compensation Study. DISCUSSION Council was in general agreement with the recommendations from the Compensation Subcommittee. As a result, staff was directed to proceed with preparing an Aruended 2007 Compensation Plan for the November 26 City Council meeting. Staff is recommending approval of the attached 2007 Amended Compensation Plan and implementation effective December 1, 2007. The implementation of this plan will be completed by moving employees to the next step closest to the current rate of pay. Three additional steps will be taken to complete this pay equity and compensation study: 1. Preparation of a 2008 Compensation Plan for Council action at the December 10, 2007 meeting. The amended 2007 plan will be adjusted by 3% for adoption effective January 1, 2008. 2. Preparation and submission of the 2008 Pay Equity Repot as required by State Statute 3. Updating of City position descriptions based on the Job Description Questionnaires completed as part of this study. 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'" (OI'-N Ol-~ '<t N -~ ~N~ ~ ~coN o~O I'-NCO co-~ ('OJ N -~ ~N~ ~ N ~(O~ ~ I'- co 1'-", -~ . 1'-",,,, N -~ ~N~ ~ '" N '<t~0 ~ .'<t OlNOl cD;:!jN N -~ ~N~ ~ l'-~CO ~ . 0 Ocol!) CD-~ N N -~ ~N~ ~ O"'~ N~t-: ~"'o - Ol . I!)ON N -~ ~N~ ~ ~ ~ ~~HILLS MEMORANDUM DATE: TO: FROM: November 19, 2007 AGENDA ITEM: 1.c. Mayor and City Council Michelle Wolfe, City Administrator ~ SUBJECT: 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 govemment 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 if there 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 of the subcommittee to Mr. Kelsey was as follows: Create a new draft pay plan matrix with the following guidelines: 1. 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 illustrating the market data for each surveyed position, which is the basis for determining the 55th 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: 1. 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 annual 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: 1. Prepare an agenda item for approval at the December 10 City Council meeting 2. Prepare an implementation plan 3. Authorize the consultant to 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 Ilmetro-inetlardenhillslAdminlCity AdministratorlMemoI2007111-19-07 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 job evaluation factor is applied to determine the most representative combination of formal preparation (schooling at whatever level) and relevant Uob-linked) experience typically required to qualifv for the position being evaluated. It is important in this factor to verify the minimum acceptable qualifications for the position being evaluated. [There are two decisions made on this factor - one related to formal preparation and one made related to relevant experience.] ~ The 2 rating parameters for this factor go from No Required Specifications to Doctorate (eight levels) for formal preparation and go from 0 to 12+ vears (eight levels) for years of relevant experience. Decision MakinCl (Impact) This job evaluation factor is applied to determine the regular and ongoing freedom to act; the extent of the organization affected by those actions; and the best characterization of decision-making typical of the position being evaluated. [There are three decisions made on this factor - one related to the degree of freedom to act; one related to the extent of such judgments; and one related to the nature of decision making.] ~ The 3 rating parameters for this factor go from Least to Inclusive (six levels) for impact and go from Job-Centered to Orqanization-wide (four levels) for extent of decision making and go from Ancillarv to Final (four levels) for type of decision making. ThinkinCl ChallenCles and Problem SolvinCl This job evaluation factor is applied to determine the representative thinking challenges and problem solving required on an ongoing basis and thereafter the depth of intellectual response to those challenges and creativity involved in solving problems. [There are two decisions made on this factor - one related to the context and complexity of challenges i problems and one related to the depth of response required to address and resolve such challenges and problems.] ~ The 2 rating parameters for this factor go from Low to Dealinq with Governance Issues for context and complexity (seven levels) and go from Make Clearcut Choices to Develop Oriqinal. Creative Solutions (five levels) for responses. Interactions and Communications This job evaluation factor is applied to determine the context of business-related interactions and communications that are an ongoing part of performing the position being evaluated. [There are two decisions made on this factor - one related to the type and context of business interactions and one related to the impact of the outcomes and effects on information content and flow throughout the organization.] ~ The 2 rating parameters for this factor go from Responses Provided to Others for context of communications to Interactions Consistentlv Focused on Critical OperationaliGovernance Issues (6 levels) and go from Effective Workinq Relationships to Dealinq with the Most Maior Operational 1 Governance Issues (five levels) for outcomes and effects. Work Environment This job evaluation factor is applied to determine the potential for injury in performing the position being evaluated and also determine what recognized health hazards regularly exist in the typical work environment of the position being evaluated. [There are two decisions made on this factor - one related to potential for injury and one covering the recognized health hazards in the work environment.] ~ The 2 rating parameters for this factor go from Minimal Potential to Continuous Potential (6 levels) and go 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 Works Director Community Development Director Finance Director 1 Treasurer Level 10 Assistant City Administrator Level 9 Buiiding Official LevelS Parks and Recreation Manager Public Works Superintendent City Planner Levell Accounting Analyst Building Inspector Level 6 Associate Planner (Future Position) LevelS Public Works Maintenance Worker Accounting Clerk Level 4 Office Support 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 0 " Q) -'" > 1:5 0 ~ " [I! s: c c '" <5 ~ " '" .. .8 Q) Q) Q) c: Q) C 5 <.l "C .. 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