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CITY COUNCIL WORK SESSION October 6, 2008 <br />APPROVED <br />89 (considering the offer to the commission to participate in the newsletter) and the request <br />90 for funding for additional services. <br />91 <br />92 COMPENSATION AUDIT REPORT <br />93 <br />94 Ann Antonsen, Springsted, Incorporated, presented the consultant's completed Human <br />95 Resource Audit report. The audit provides a review of current compensation levels, <br />96 classification system, external and internal comparability, current performance evaluation <br />97 system, and the methodology used for the report. It asks the question of a pay <br />98 philosophy and how that is established (by comparison to whom). The pay for <br />99 performance would tie back to that pay philosophy so that isn't included in the report <br />100 specifically at this time. The report discusses the task and methodology used (looking at <br />101 information on jobs provided by the city). The pay philosophy, again, will be the key. <br />102 Information is provided on other metropolitan cities, by size of cities and by cluster as <br />103 established by the League using information besides size. The city needs to decide <br />104 "who" and "how" in looking at the pay philosophy question. <br />105 <br />106 The report also reviewed job positions and descriptions and found that the city has done a <br />107 good job of keeping those up to date as jobs have changed. The city is required to <br />108 maintain a job evaluation system and does so utilizing the same point based system as the <br />109 state of Minnesota. <br />110 <br />111 In looking at the compensation system for the audit, the marketplace (other comparable <br />112 cities) were reviewed and the city appears to be within close proximity of the survey <br />113 averages. An intemal analysis, comparing positions within the organization for equity, is <br />114 also included in the report. <br />115 <br />116 The performance evaluation system was also reviewed. The current system used by the <br />117 city looks at essential jobs functions with a rating system attached. One thing that could <br />118 be upgraded is to expand the definitions included in the rating system. As well, the goal <br />119 setting system could be expanded so that goals are included by the employee and <br />120 supervisor. Additional performance factors could be added. Supervisor training on <br />121 conducting performance evaluations is another suggestion. The system used for <br />122 evaluation would be key in setting up any type of pay for performance element. <br />123 <br />124 A council member asked if there is another way to consider compensation other than <br />125 comparables, and Ms. Antonsen suggested that the city determine its compensation <br />126 philosophy. However, if the system isn't comparable, it can result in frequent loss of <br />127 trained employees to other organizations with the associated costs, etc. of filling <br />128 positions. <br />129 <br />130 TOWN CENTER UPDATE <br />131 <br />132 Finance Director Rolek noted that the council has been discussing options on the <br />133 improvement bonds issued for the Town Center Project. As explained in the information �. <br />3 <br />