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Maintenance 10 <br />5. Maintenance <br />Springsted <br />A. Administration <br />Once the City makes a decision regarding its pay philosophy, makes changes <br />to its compensation plan based on that philosophy and implements those <br />changes, the City will need to develop administration procedures that provide <br />for annual salary adjustments based on market and economic conditions and <br />adjustments that recognize individual performance. <br />Employee Adjustments. Employees will move through the wage schedule <br />based on years of service and performance factors. An employee hired at the <br />minimum wage rate who maintains satisfactory performance will move from <br />the minimum to the maximum wage rate in approximately 6 years. Those <br />with above satisfactory performance could move through the wage schedule <br />in a shorter time frame. <br />Base adjustments. In 2009 and subsequent years it will be necessary for the <br />City to adjust the salary schedules based on cost of living and other factors <br />such as recruitment and retention issues. The City can establish a guideline for <br />determining annual base adjustments. For example, the City could base it's <br />adjustment on the Consumer Price Index (CPI). The City could also contact <br />comparable jurisdictions to find out what percentage adjustment they are <br />making to their pay scales as a second level of verification of the pay range <br />adjustment. This would also ensure that the City maintains marketability <br />among comparable regional organizations. <br />If the CPI for example, is 3.0 a 3.0 percent increase would be applied to the pay <br />scale. In addition, employees would move to the next step of the wage schedule <br />on their anniversary date, based on satisfactory performance. By making this <br />base adjustment to all employee salaries, the City ensures that employees will <br />not again fall behind the market. <br />Lino Lakes, Minnesota. Human Resource Audit <br />