HomeMy WebLinkAbout6.f. Pay Equity
E X E C U T I V E S U M M A R Y
City Council Meeting: January 19, 2016
AGENDA ITEM: Pay Equity AGENDA SECTION:
Consent
PREPARED BY: Emmy Foster, Assistant City
Administrator AGENDA NO. 6.f.
ATTACHMENTS: Springsted Compliance Letter &
Pay Equity Compliance Report APPROVED BY: ddj
RECOMMENDED ACTION: Motion to approve the 2016 Pay Equity Implementation
Report for 2015 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, 2016. This report shows data in place as of December 31,
2015.
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 four 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 2013 and the City was found “in compliance”.
SUMMARY
It is requested that the City Council approve the 2016 Pay Equity Implementation Report for 2015
Compliance.
January 11, 2016
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 2015 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, 2016. 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 302.90, 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 95.65, 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 92.57 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, 2016. 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,
Ann Antonsen
Ann Antonsen, Vice President
Consultant
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101-2887
Tel: 651-223-3000
Fax: 651-223-3002
www.springsted.com
Compliance Report
Jurisdiction:
Contact:Phone:
Rosemount
2875 - 145th Street West
Rosemount MN 55068
2016
Case:
Report Year:
1 - 2015 Data (Private (Jur Only))
Emmy Foster emmy.foster@ci.rosemount.mn.us(651) 322-2002 E-Mail:
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
Male
Classes
Female
Classes
Balanced
Classes
All Job
Classes
# Job Classes
# Employees
Avg. Max Monthly
Pay per employee
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio =
Male
Classes
Female
Classes
a. # At or above Predicted Pay
b. # Below Predicted Pay
c. TOTAL
d. % Below Predicted Pay
(b divided by c = d)
*
*(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.)
B. T-test Results
Degrees of Freedom (DF) = Value of T =
a. Avg. diff. in pay from predicted pay for male jobs =
b. Avg. diff. in pay from predicted pay for female jobs =
III. SALARY RANGE TEST = (Result is A divided by B)
A. Avg. # of years to max salary for male jobs =
B. Avg. # of years to max salary for female jobs =
IV. EXCEPTIONAL SERVICE PAY TEST = (Result is B divided by A)
A. % of male classes receiving ESP *
B. % of female classes receiving ESP
*(If 20% or less, test result will be 0.00)
23 19 2 44
42 24 26 92
5,997.34 5,366.74 5,546.53
302.90
12 16
11 3
23 19
47.83 15.79
64 -1.279
$59
$141
95.65
4.78
5.00
92.57
73.91
68.42