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CITY OF LITTLE CANADA | MARCH 16, 2026 RFP | CLASSIFICATION AND COMPENSATION STUDY PAGE 8 Project Approach & Timeline A detailed work plan and deliverables to guide a successful study. Project Understanding The City of Little Canada seeks to evaluate and modernize its classification and compensation framework to ensure the system remains equitable, competitive, and sustainable for long-term workforce management. The City currently utilizes the Minnesota State Job Match Evaluation System as the basis for its job classification framework. This system was originally designed as a simplified tool to help local governments meet the requirements of the Minnesota Local Government Pay Equity Act by assigning job points based on comparisons with previously evaluated state job classifications. While the State Job Match system has historically served as a practical approach for establishing comparable job values and supporting pay equity compliance, it presents several limitations for organizations seeking a modern and flexible compensation framework. The methodology primarily relies on matching local government positions to pre-rated state job descriptions rather than evaluating each role directly through a detailed analysis of job content. This approach can create challenges when positions do not closely align with existing state benchmarks. Key limitations of this approach include: • Benchmark dependency: Positions must be matched to existing state classifications, even when duties and responsibilities differ from those roles. • Limited evaluation precision: Roles that do not closely align with available benchmarks may be “slotted” into approximate classifications. • Reduced differentiation: Important distinctions in job complexity, decision-making authority or organizational impact may not be fully captured. The job match framework was designed primarily to support pay equity reporting requirements, rather than to serve as a comprehensive classification and compensation strategy. Minnesota’s Pay Equity law focuses on ensuring that compensation relationships do not produce gender- based wage disparities among jobs of comparable value. While this compliance objective is essential, it does not address several strategic workforce considerations that modern compensation systems must support. As a result, organizations relying solely on this framework may encounter limitations such as: • Limited market alignment: The system does not incorporate direct benchmarking against current labor market compensation practices. • Recruitment and retention challenges: It provides limited insight into whether compensation levels remain competitive with peer organizations. • Career progression clarity: The framework does not inherently support structured career pathways or internal progression models.