10/06/2008 Council Packet (2) - Laserfiche WebLink

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Findings and Recommendations 5 3. Findings and Recommendations Springsted Conducting a comprehensive human resource audit involves the analysis of substantial quantities of data collected from comparable employers and the City. We have evaluated the City's existing human resource programs based on our analysis of the study data and the survey results. Using this information, we have developed recommendations for modifications to the City of Lino Lakes compensation system. A. Evaluation of the Current Compensation Program Discussions with City personnel and a review of current compensation data indicates that compensation levels for most City positions are comparable to those other comparable organizations, some positions are compensated at a level below those in other organizations. Concepts to be considered by the City include: • Concern about the potential for future employee turnover because employees choose to leave the City to take higher paying jobs with other employers • Potential for difficulty hiring new personnel, especially for specialized positions such as technical, public safety and managerial • Positions with comparable responsibilities requiring comparable education and experience that are assigned to different pay ranges B. Pay Philosophy The most important concept for an organization to consider in developing and maintaining its compensation program is its pay philosophy. A pay philosophy guides the design of a compensation system and answers key questions regarding pay strategy. It generally takes a comprehensive, long term focus and explains the compensation program's goals and how the program supports the employer's long -range strategic goals. Without a pay philosophy, compensation decisions tend to be viewed from a short -term tactical standpoint apart from the organization's overall goals. Market competitiveness and internal equity are among the most important areas addressed in a pay philosophy. An organization's desired market position involves defining the market and identifying where the organization wants to be positioned within that market. Market position should balance what it takes to attract new employees and to retain skilled employees (in other words, eliminating higher pay as the reason employees leave the organization) with the organization's financial resources. Internal equity expresses an organization's desire to provide comparable pay to job classes with comparable duties and responsibilities. A pay philosophy should be developed that establishes a compensation program based on individual employee performance as a key feature of the pay philosophy. Lino Lakes, Minnesota. Human Resource Audit