Laserfiche WebLink
Each system provides advantages and disadvantages,which should be evaluated by the <br />community to determine the most appropriate system to be established. <br />Recommendation: Defined Step Increment Plan <br />MGTis recommendinga Defined Step Increment Plan. A Defined Step Increment Plan has <br />salary ranges with minimums and maximums with defined percentageincrements inbetween <br />gcej"uvgr0"Gornq{ggu"ctg"cfxcpegf"vjtqwij"vjguvgrudcugf"qp"vjg"Ekv{Ҁu"guvcdnkujgf"rc{" <br />practices. <br />This structured approach provides a clear and consistent framework for managing employee <br />compensation while promoting transparency across the organization. By establishing defined <br />steps within each salary range, employees can better understand how their pay progresses over <br />time. Overall, this model supports equitable pay practices, simplifies compensation <br />administration, and aligns employee growth with organizational goals. <br />Proposed Compensation Plan and Structure <br />thththth, <br />Ykvjkp"vjg"octmgv"cpcn{uku."OIV"tghgtu"vq"҃rgtegpvkngu҄"*hqt"gzcorng<""72, 60, 65, 75and <br />th <br />80percentiles). Percentiles indicate where salaries or salary ranges fall in comparison to the <br />th <br />other salaries or salary ranges from the comparable communities. The 50percentile is the <br />median (or middle) of the data set. When a community is considering which percentile to <br />compensate employees at, they are deciding where they want their employee salaries and <br />salary ranges to fall within the market of comparable communities. For example, if a community <br />thth <br />selects the 50percentile, that means they would be paying a fair market rate at the 50 <br />th <br />percentile or the middle of the comparablecommunities. If a community selects the 60 <br />percentile, then the salary ranges would be 10% higher than the middle of the market. <br />An important component in the process of developing a Compensation Plan is understanding <br />and applying the pay philosophy of theCity. For the purposes of this study, MGT worked with <br />th <br />the Cityon recommending a pay planat the 60percentile. This 60th percentile <br />recommendation recognizes that, although the City may differ in size from many comparable <br />organizations, it operates within a shared labor market and must compete with larger employers <br />for qualified talent. <br />Compensation structure design should reflect both market realities and organizational <br />rjknquqrj{0"Ikxgp"vjg"Ekv{Ҁu"eqorgpucvkqp"rjknquqrj{"gorjcuk|kpi"octmgv"eqorgvkvkxgpguu" <br />and consistency with peer practices, MGT is recommending a 30% range spread. This approach <br />better aligns the City with market and peer data while still providing a practical level of flexibility <br />in managing employee pay within each range. <br />Vjg"Ekv{Ҁu"ewttgpv"rc{"uvtwevwtg"tghngevu"c"tcpig"urtgcf"qh"69'."yjkej"ku"ukipkhkecpvn{"ykfgt"vjcp" <br />both market norms and peer practices. Market data gathered from peers shows a range spread <br />between 20% and 31%. While narrower ranges are common, MGT generally prefers slightly <br />wider ranges to maintain flexibility; however, alignment with market practices remains the <br />primary driver in determining the appropriate structure. <br />The next step in this process is to combine the Skill Levels included in Table 1 with the <br />proposed salary ranges in Table 2. The Classification and Compensation Plan consists of <br />fourteen (14) pay grades, with one (1) being the lowest and fourteen (14) being the highest. <br />City of Centerville, MN| May 2026 <br />10 <br />CLASSIFICATION, COMPENSATION, AND PAY EQUITY <br />16 <br />REPORT <br /> <br />