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HomeMy WebLinkAbout5.a. Compensation Program - Review & Development Processr CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: NOVEMBER 17, 1992 AGENDA ITEM: EMPLOYEE COMPENSATION PROGRAM AGENDA SECTION: REVIEW AND DEVELOPMENT PROCESS OLD BUSINESS PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR AQENDAE�jA M ,7p�¢ 5 A ATTACEXENTS : WORK PROGRAM AP',P D i On Tuesday, November 3, 1992, the City Council took to prepare a work program which would provide for tb analysis and development of a compensation program f the City of Rosemount. This directive came after discussion on pay equity r need to comply with state laws in that regard the Ci for compensation and how the City should deal with f compensation program that relates to: a. The City's financial resources b. The City's administrative structure a relationships C. The market place effect on employee s d. Performance based pay system e. Long range as well as short range sol Susan Walsh and I have developed the attached work r which when approved by Council will be utilized to h Relations, Inc. provide a proposal to work with the for this work. ction directing staff complete review, r city employees for aquirements, the City's ty's existing program ature development of a d internal pay laries/benefits tions rogram in this regard ave Cy Smythe of Labor City on a cost estimate RECOMMENDED ACTION: Motion to approve the work program for completion of the review and analysis of the Employee Compensation Program and the development of a compensation system for the City,of Rosemount which will be consistent with state and federal law, general principals of equitable compensation and the City's financial resources and to direct the city administrator to request a proposal from'Labor Relations, Inc. for its completion. COUNCIL ACTION: COMPENSATION SYSTEM DEVELO, WORK PROGRAM CITY OF ROSEMO UNT November 17, 1992 Purpose: To develop a performance and/or merit compensation system for the City of Rosemount w] consistent with Federal and Minnesota State Law; principles of equitable compensation and the Cil financial resources. Background: The city of Rosemount is a growing staffing needs to meet service demands in the c City is not unlike other communities with limit resources not being able to meet these growing The City Council understands and supports the n retain highly trained and professional employee service needs. In order to justly compensate t while dealing with the financial restraints of City Council feels that it is essential to deve compensation program that will meet these deman The City currently has a compensation program developed approximately five years ago and had comparable worth requirements of the State of market analysis of other municipal pay/benefit City again finds itself in the throws of pay e and major changes in its administrative struct local decision and community growth. The City most appropriate to conduct a thorough review compensation program to determine how it relat with the "Local Government Pay Equity Act", in individual city employee positions relate to c externally how employees are being or should b relating to other governmental entities, the p performance that the employee exhibits. The City Council understands the opportunity it the City employees in developing this program employees, the City council and the taxpayers t work together in formulating a reasonable and 4 It is the further desire of the City Council t] assistance in this process is necessary so tha' fair process is followed while insuring that a: utilized in establishing such a program is fol: outside assistance will not govern the process technical assistance and guidance in the compl, program. 1 based rich will be general .v of Rosemount' s community with mmunity. The d financial ervice demands. ed to employ and to meet these ese employees, is tax base, the op an employment place which was s its basis the nnesotaand the rograms. The ity compliance e due to the ouncil feels it its existing to and complies rnally as another and compensated .vate sector and has to work with .o that the t Rosemount can quitable program. fat outside a credible and ,'l criteria !owed. This but provide stion of the final The following "work program" is necessitated to follow in this -process. The consultant will be asked to outline the expected opportunities for City Council and City staff involvement in this process to insure the City Council's ownership of the final program. WORK PROGRAM 1. Identify appropriate external market comparisons for selected benchmark jobs based on similar organizational structure, job responsibilities, scope of authority, financial, socio-economic, and other relevant factors. 2. Review salary relationships (wage and wage equivalents) between City employees. Identify patterns of comparison which have contributed to existing compensation differentials. 3. Analyze and compare internal and external compensation levels and structures. Determine variance between internal and external market comparisons. 4. Provide guidance and make recommendations on how to incorporate and implement the results of the Job Evaluation Study currently being coordinated by the Metropolitan Area Management Association. Coordinate recommendations with the consulting firm the City may contract with to provide updated job values. 5. Develop preliminary recommendations for a City salary structure based on internal and external comparisons. Conduct statistical and other analyses to determine whether preliminary recommendations comply with the "equitable" and "reasonable" compensation relationship standards required by the State Local Government Pay Equity Act, other State and Federal legislation, and with generally accepted principles of compensation equity (s) . Develop recommendations which provide for performance standards, performance evaluation and salary adjustment opportunities within this system. 6. Develop recommendations which provide for performance standards, performance evaluation and compensation adjustments opportunities within this system. 7. Review employee job description and make recommendations for any changes based upon the recommended compensation program and State and Federal laws with regard to American Disabilities Act. E S. Revise recommendations as necessary to meet applicable legal and practical compensation requirements. 9. Present recommendations to City Council for their consideration and comments. The City Council must have opportunities to understand what the short!,term and long term effects of the proposed program will require and how the analysis and recommendation were devel©ped. 10. Revise recommendations per agreement with City Council. 11. Present final recommendation to City Counc consideration and adoption. Project Timetable The City wishes that the project should be compl 90 days from the authorized initiation date. Project Costs The consultant should provide estimated costs fc involvement in the project. If any of the Work can or should be completed and separated out fox consultant should note these in the proposal. Project Consultant The consultant should provide information on the employees which will be involved in the project background and experience. Any information on other governmental agencies provides similar services for should also be p The consultant is requested to respond with a w the completion of the program and to make a ver] the City council on the proposal in order to ha: fully understand the scope of the work program, expected "product" before proceeding. 3 for f inal ed no later than the consultant's ?rogram elements cost purposes the se consultant and their hat the consultant vided. itten proposal for al presentation to e the Council its costs and