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Findings and Recommendations 6 <br />Concepts to consider in the development and adoption of a formal pay <br />philosophy: <br />• Providing fair and equitable rates of pay to employees <br />• Defining the City's market area <br />• Establishing rates of pay that allow the City to compete successfully for new <br />employees within its market area <br />• Establishing a market position that is fiscally responsible with public <br />resources <br />• Ensuring that pay rates for employees are based on individual performance <br />that meets or exceeds expectations and reflects changing economic conditions <br />• Developing pay administration policies and procedures that ensure their <br />consistent application between departments <br />• Ensuring that the compensation program is understandable to employees, <br />managers, the City Council and the public <br />C. Evaluating Positions <br />All public employers in Minnesota are required to use a job evaluation system <br />to determine comparable work value of positions. In accordance with state <br />statute, this system must be maintained and updated. The State of Minnesota <br />legislated factors to be included in a job evaluation system are: <br />• Skill <br />• Effort <br />• Responsibility <br />• Working Conditions <br />There are many different job evaluation systems available, the City of Lino <br />Lakes utilizes the Hay Management system, which is the system used by the <br />State of Minnesota. The factors which are included in this system correspond <br />to those mandated by the state. These are: <br />• Know -How <br />• Problem Solving (mental effort) <br />• Accountability <br />• Working Conditions <br />The city has maintained this system, by reviewing positions as they are <br />developed and as they change. As a part of this Audit, all job descriptions <br />were reviewed and analyzed and Springsted made recommendations for <br />changes to job evaluation points for some positions <br />Job evaluation results are found in Appendix 11. <br />Springsted <br />Lino Lakes, Minnesota. Human Resource Audit <br />