03-23-2022 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of the City Council FROM: Chris Heineman, City Administrator Heidi Heller, City Clerk/HR Manager Brenda Malinowski, Finance Director DATE: March 23, 2022 RE: Classification & Compensation Study and Implementation Plan ACTION TO BE CONSIDERED Approve the Pay Grades and Grid developed by DDA Human Resources, Inc., and adopt the proposed implementation plan. BACKGROUND: At the City Council Workshop on February 23, 2022, Dr. Tessia Melvin from DDA Human Resources, Inc. presented the results of the classification and compensation study. This study provides an updated compensation system that is understandable and will help with the retention of current staff and will enable the City to attract, hire, and retain a high level of talent as positions become available. This initiative also adheres to the strategic objectives of the 5-year Strategic Plan adopted in 2019. Completing a classification and compensation study falls into the fourth Strategic Direction under the heading of Creating Operational Efficiency and aligns with the strategic initiative of optimizing our organizational structure. The classification and compensation study included an analysis of our current compensation plan for compliance in the Minnesota Pay Equity Program. As a result of the study, DDA Human Resources recommended an update to our current pay plan to include 15 pay grades and 7 steps for each grade. This will enable employees to earn additional step increases, even for employees who have worked for the City for many years and been at the top of the previous pay scale. Following the City Council workshop on February 23, the City Council referred the classification and compensation study to the City Council Personnel Committee for further consideration. A Personnel Committee meeting was held on March 8, 2022 including Administrator Heineman, City Clerk/HR Manager Heller, Finance Director Malinowski, and City Council members McGraw and Fischer. Dr. Melvin from DDA Human Resources also joined the meeting to explain how the salary data from other cities was used to compare to positions in Little Canada. She reviewed how no cities have the same populations, budget, job positions or amenities (such as number of parks or miles of streets), which means very few job positions can be compared directly to each other. Dr. Melvin and her staff compare positions based on five-point match to determine how much each position can be compared directly to one in another city, even a position with the same title.