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• <br />Human Resource Audit 2 <br />C. Performance Evaluation <br />System <br />D. Job Evaluation <br />certification and special training, if dictated by standards of practice and /or job <br />requirements, are included as minimum qualifications. The physical requirements <br />and working conditions will also be reviewed to determine if they are in <br />compliance with the Americans with Disabilities Act. <br />Sringsted will review and conduct an analysis of the City's current erformance <br />evaluation system to ensure that the system is a fair and objective evaluation <br />system. An objective system ensures that employees are evaluated consistently <br />and fairly. The current system will be reviewed to ensure that the evaluation of <br />individual employees is based on essential job duties and responsibilities, other <br />performance factions, and established goals. <br />In order to address the issue of comparable compensation, job evaluation is the <br />mechanism that ensures that internal relationships are equitable and in <br />compliance with the Minnesota Local Government Pay Equity Act. The City <br />must ensure that it is utilizing an equitable and consistent method of evaluating <br />jobs and relating positions to the compensation plan. The system facilitates <br />proper and equitable comparisons between and among positions, and minimizes <br />the appearance of favoritism in evaluating, rating and ranking jobs. Springsted <br />will review the current evaluation system and make recommendations, if <br />necessary for changes to the current system or recommend that a new system be <br />used by the City. <br />E. Employee Compensation A pay philosophy guides the design of a compensation system and answers key <br />questions regarding pay strategy. It generally takes a comprehensive, long term <br />focus and explains the compensation program's goals and how the program <br />supports the employer's long -range strategic goals. Without a pay philosophy, <br />compensation decisions tend to be viewed from a short-term tactical standpoint <br />apart from the organization's overall goals. <br />Market competitiveness and internal equity are among the most important <br />areas addressed in a pay philosophy. An organization's desired market <br />position involves defining the market and identifying where the organization <br />wants to be positioned within that market. Market position should balance <br />what it takes to attract new employees and to retain skilled employees (in other <br />words, eliminating higher pay as the reason employees leave the organization) <br />with the organization's financial resources. Internal equity expresses an <br />organization's desire to provide comparable pay to job classes with <br />comparable duties and responsibilities. <br />A pay philosophy should be developed that establishes a compensation <br />program based on individual employee performance as a key feature of the pay <br />philosophy. Therefore, we emphasize references to performance in the pay <br />philosophy discussion. As part of the Study, it is recommended that the City <br />consider these concepts in the adoption of a formal pay philosophy: <br />City of Lino Lakes, Minnesota. Proposal to Conduct a Human Resource Audit <br />