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REQUEST FOR COUNCIL ACTION Date:February 27, 2023 Item No.: 7.b Department Approval City Manager Approval Item Description: Consider Awarding Contract for a City-Wide Classification and Compensation Study 1 B ACKGROUND 2 As part of the 2023 budget process, Council set aside funds to hire a consultant to conduct a city- 3 wide classification and compensation study. Staff solicited proposals from qualified firms and 4 received a total of seven (7) responses. 5 6 Classification and compensation studies review internal equity (pay relationships between positions) 7 and external competitiveness (pay relationships with labor market competitors). This helps achieve 8 human resource objectives such as employee recruitment and retention. Classification and 9 compensation plans group positions on the basis of a uniform criteria. It then allocates positions to 10 salary grades that reflect their relative worth to the organization. A properly designed and 11 maintained classification and compensation plan allows an organization to: 12 Receive fewer requests for reclassifications 13 Receive fewer pay inequities and remain in compliance with Minnesota Pay Equity laws 14 Establish position qualifications for recruitment and selection 15 Establish a basis to evaluate work performance 16 Remain competitive in the job market 17 18 The City of Roseville last conducted a classification and compensation study in 2012. Industry 19 standards recommend conducting a review of the overall salary structure every 3-5 years to 20 determine whether the structure is still aligned with the city’s needs and labor market. Over the past 21 decade, job duties have gradually shifted, there have been changes in organizational relationships 22 and responsibilities,and skills and qualifications for positions have also changed either to reflect 23 new mandates or changing duties and responsibilities. A classification and compensation study 24 includes new job descriptions, position evaluation tools and a market competitive wage and salary 25 structure. 26 27 It is anticipated that the study will be completed prior toCouncil receiving the 2024 City Manager 28 recommended budget which would incorporate any potential cost to implement the new 29 classification and compensation plan. In addition, as part of this process, job descriptions will be 30 updated and a new classification system implemented. 31 32 After reviewing proposals and conducting interviews, staff recommends entering into a contract with 33 Abdo given their experience, cost as well as their understanding of and ability to mitigate equity 34 impacts within a new job classification system. Page 1 of 3