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Home My WebLink AboutAdd-on 6.p. Pay EquityROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: January 14, 2013 ISSUE The Department of Employee Relations requires us to submit our Pay Equity Report every three years, The report will be submitted to the Department of Employee Relations upon Council approval. Our report is due to be submitted by January 31, 2013. This report shows data in place as of December 31, 2012. Staff has worked with Ann Antonsen of Springsted, Incorporated to prepare the City's Pay Equity Implementation Report. The report indicates that the Department of Employee relations should find the City "in compliance ". Please see the attached letter which explains the 4 tests of compliance. The job classification points are assigned using the "Hay Management Consultant" job evaluation system and are based on benchmarked job values under this system. City Council is required to approve the Pay Equity Report. The report is required by the Local Government Pay Equity Act, M.S. 471.991- 471.999 and Minnesota Rules, Chapter 3920. The City's next compliance report will be due in three years. BACKGROUND The previous Pay Equity Report was submitted in January 2010 and the City was found "in compliance ". SUMMARY It is requested that the City Council approve the 2013 Pay Equity Implementation Report for 2012 Compliance. AGENDA SECTION: AGENDA ITEM: Pay Equity Consent PREPARED BY: Emmy Foster, Assistant City AGENDA NO. Administrator ATTACHMENTS: Springsted Compliance Letter & APPROVED BY: Pay Equity Compliance Report.. RECOMMENDED ACTION: Motion to approve the 2013 Pay Equity Implementation Report for 2012 Compliance ISSUE The Department of Employee Relations requires us to submit our Pay Equity Report every three years, The report will be submitted to the Department of Employee Relations upon Council approval. Our report is due to be submitted by January 31, 2013. This report shows data in place as of December 31, 2012. Staff has worked with Ann Antonsen of Springsted, Incorporated to prepare the City's Pay Equity Implementation Report. The report indicates that the Department of Employee relations should find the City "in compliance ". Please see the attached letter which explains the 4 tests of compliance. The job classification points are assigned using the "Hay Management Consultant" job evaluation system and are based on benchmarked job values under this system. City Council is required to approve the Pay Equity Report. The report is required by the Local Government Pay Equity Act, M.S. 471.991- 471.999 and Minnesota Rules, Chapter 3920. The City's next compliance report will be due in three years. BACKGROUND The previous Pay Equity Report was submitted in January 2010 and the City was found "in compliance ". SUMMARY It is requested that the City Council approve the 2013 Pay Equity Implementation Report for 2012 Compliance. Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101 -2887 Springsted Tel: 651 - 223 -3000 January 13, 2013 Fax: 651- 223 -3002 www.springsted.com Ms. Emmy Foster Assistant City Administrator City of Rosemount 2875 —145th Street West Rosemount, MN 55068 Dear Ms. Foster: Springsted has prepared the City's Pay Equity Implementation Report and utilized the Minnesota Management and Budget web -based pay equity reporting system to analyze the City's 2012 wage information. There are four tests for compliance with the State of Minnesota Local Government Pay Equity Act. Following are the tests and the results: 1. Completeness and Accuracy Test: The City will pass this test if the report is submitted electronically by January 31, 2013. Springsted will submit the report for the City upon approval of the report by the City Council. 2. Statistical Analysis Test: To pass this test the City must have 6 or more male classes and at least one class with an established salary range, or four or five male classes and an underpayment ratio of 80 or more. The City's underpayment ratio is 330.43, which is well above the established standard, therefore the City would be found in compliance with this test. 3. Salary Range Test: For organizations with established salary ranges for positions, this measures whether male classes are reaching the top of their salary range faster than female classes. This result must either be 0 or above 80 to be found in compliance. The result of the salary range test for the City is 89.57, which is also above the established standard and indicates that the City would also pass this test. 4. Exceptional Service Pay Test: This test analyzes whether there is a larger percentage of male classes receiving longevity or performance pay than female classes. For this test the result must either be 0 if less than 20% of male classes receive exceptional service pay or be above 80. The results of this test are 101.94 and indicates that the City also passes this test. Please review the enclosed information and if there are no changes please have the report reviewed and approved by the City Council prior to January 31, 2013. Springsted will submit the report to the Department of Management and Budget upon notification of approval by the City Council. Please let me know if you have any questions or concerns. Sincerely, Oqim 04ntonben Ann Antonsen, Vice President Consultant Public Sector Advisors Compliance Report Jurisdiction: Rosemount Report Year: 2013 2875 - 145th Street West Case: 1 - 2012 Data (Private (Jur Only)) Rosemount MN 55068 Contact: Emmy Foster Phone: (651) 322 -2002 E -Mail: emmy.foster @ci.rosemount.mn.0 The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity report data. Parts II, III and IV give you the test results. For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports. I. GENERAL JOB CLASS INFORMATION II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 330.43 Male Classes a. # At or above Predicted Pay 11 b. # Below Predicted Pay 12 c. TOTAL 23 d. % Below Predicted Pay 52.17 (b divided by c = d) *(Result is % of male classes below predicted pay divided by % of fei B. T -test Results Female Classes 16 3 19 15.79 nale classes below predicted pay.) Degrees of Freedom (DF) = 64 Value of T = -1.958 a. Avg. diff. in pay from predicted pay for male jobs = $43 b. Avg. diff. in pay from predicted pay for female jobs = $149 111. SALARY RANGE TEST = 89.57 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 4.48 B. Avg. # of years to max salary for female jobs = 5.00 IV. EXCEPTIONAL SERVICE PAY TEST = 101.94 (Result is B divided by A) A. % of male classes receiving ESP 82.61 B. % of female classes receiving ESP 84.21 *(If 20% or less, test result will be 0.00) Male Female Balanced All Job Classes Classes Classes Classes # Job Classes 23 19 2 44 # Employees 42 24 20 86 Avg. Max Monthly 5,418.17 4,932.41 5,271.05 Pay per employee II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 330.43 Male Classes a. # At or above Predicted Pay 11 b. # Below Predicted Pay 12 c. TOTAL 23 d. % Below Predicted Pay 52.17 (b divided by c = d) *(Result is % of male classes below predicted pay divided by % of fei B. T -test Results Female Classes 16 3 19 15.79 nale classes below predicted pay.) Degrees of Freedom (DF) = 64 Value of T = -1.958 a. Avg. diff. in pay from predicted pay for male jobs = $43 b. Avg. diff. in pay from predicted pay for female jobs = $149 111. SALARY RANGE TEST = 89.57 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 4.48 B. Avg. # of years to max salary for female jobs = 5.00 IV. EXCEPTIONAL SERVICE PAY TEST = 101.94 (Result is B divided by A) A. % of male classes receiving ESP 82.61 B. % of female classes receiving ESP 84.21 *(If 20% or less, test result will be 0.00)