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

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Findings and Recommendations 7 Springsted D. Review of the Compensation System The process of reviewing the compensation of levels within the organization includes a review of market data. This data is obtained by conducting a survey of other comparable employers within the City's defined market. Information was gathered utilizing the League of Minnesota Cities Salary and Benefits Survey. Minimum, maximum and actual salary rates of positions was gathered for City positions. Not all City positions are covered by the survey. Survey Results. The salary survey was conducted using data from comparable employers in the region. The survey data included 28 City positions for use in analyzing the salary data. A review of the salary ranges indicates that the salary ranges for the majority of City of Lino Lakes positions are consistent with those of comparable organizations. City of Lino Lakes minimum salaries are, on average -.76% of market, midpoint salaries are - 1.09% of market and the maximums of the salary ranges are .93% of average maximums reported by the survey participants. Six of the positions included in the market survey are below (more than 4 %) those in comparable organizations, one position included in the survey was above (6 %) the salary ranges of the survey participants. The remainder of the City's positions were comparable to the market (within approximately 4% above or below the market). A summary of the market survey results can be found in Appendix III. Internal Comparisons. In order to review the internal comparability of City positions, a salary curve is analyzed. The salary curve is developed utilizing the current maximum wages for the City's positions and the corresponding job evaluation points for each position. This data produced the salary curve shown Appendix IV. Any given point on the salary curve identifies where the current salary rate and the job evaluation points intersect. This salary curve is a regression analysis which reviews the current wages and job evaluation points and determines a predicted pay for each position, indicating what the maximum wage should be for each position in relation to each other. There are multiple positions for which inequities exist within the internal pay structure of the City. This information can be viewed in Appendix IV. Also incorporated in this analysis is a review of the internal comparisons of positions, along with the market survey information for those positions included in the market survey. As an additional review of the internal comparability of positions within the organization, Springsted conducted an analysis of the City's compensation system under the Local Government Pay Equity Act. Under this analysis, if the City were to file a report with the current compensation data, the City would be found out of compliance with an underpayment ratio of 78.3 %. This ratio must be 80 or above in order to be found in compliance. A copy of the pay equity report can be found in Appendix V. Lino Lakes, Minnesota. Human Resource Audit