Tuesday, August 1, 2017

Classification and Compensation



In the State of Minnesota governmental jurisdictions are required to meet the Pay Equity law.  Pay equity was established to provide equity in compensation between male and female workers.  In essence this means that like work is to be paid similarly.  That may sound simple on the surface but how do you compare one job to another?  To accomplish this each job is reviewed considering a number of factors. 

These factors include:
          Education and experience to do the job
          The nature of decision making required
          The nature of problem solving
          The nature of relationships needed
          Mental and physical efforts
          Elements of the work environment

These factors are then rated using a point system and points from each category are added up.  These amounts are then posted to a wage scale to determine appropriate compensation for each position. 
 
The city council decided that a Classification and Compensation study should be accomplished.  This study will be done by David Drown and Associates.  With the assistance of NJPA the cost for this study is minimal.  Each position will be reviewed to classify it.  The classification process has been started and before we’re done a market analysis will be conducted to determine competitive compensations for each position within the region.  When this is completed the consultant will make a recommendation to the city council.  The recommendation will include where wage rates should be based on the classifications made and market analysis conducted.  The recommendation will then be considered by the city council.  The goal of the city council is to pay employees fairly and be competitive to attract quality employees.   It is hoped the process will be completed near the end of October.