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WORK SESSION GENDA ITEM NO. 3 INTEROFFICE MEMORANDUM Date: march 31, 1998 To: Steve Sarkozy From: Karen M. Kurt rt RE: compensation Study Update As you know, the City embarked on a comprehensive study of its compensation plans at the beginning of 1997. The implementation of the study completes three significant objectives outlined in the Human Resources work plan for 11998 (see attached), as reviewed by the city Council. The study was undertaken for the following reasons; The last comprehensive study was conducted over 12 gears ago. Since that time, department meads have requested that fourteen staff positions be reevaluated based on changed job duties. The job evaluation system used by the City was modified, making it difficult to study Individual positions and make comparisons across the organization. A compensation system that is based on an accurate, current job evaluation process is necessary to remain in compliance with the Minnesota Pay Equity Act. Recommendations based on the results of the study have been completed. Changes to simplify plan design were incorporated into the study recommendations, as well as range adjustments for specific classifications. The former management, supervisory/confidential, and clerical/technical plains would be consolidated into two plans titled "Exempt" and "Ion-exempt". Assignment to a particular plan would be determined by using the same criteria outlined under the Fair Labor Standards Act to assess eligibility for overtime pay. The newly designed plains would have the following characteristics' Exern t Plan • Same range design as former management plan, although individual positions may assigned to a different range. • Same merit-based annual increase structure as former management plan • Would include all of the positions formerly in the management plan, as well some positions from the supervisory/confidenti ai and clerical/technical plans. Non-exempt Plan Flange design is similar to the former clerical/technical plan. However, number of ranges was reduced from fourteen to nine. Same step system and standard annual increase as former clerical/technical plan. Includes most positions formerly in the clerica lltech nical plans, as well as some positions from the supervisory/confidential plan. Salary range adjustments were recommended in cases where strong internal (comparisons between positions within the organization) and external (comparison with positions outside of the organization) equity concerns were present. We feel that these adjustments will promote market competitiveness overall, in additional to addressing specific staff concerns. The recommendations also include moving the position of Administrative/Human Resources Assistant from temporary/seasonal status to the Non-exempt Plain.