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<br />STAFF REPORT <br />DATE: November 6, 2024 <br /> <br />AGENDA ITEM: Compensation Plan Update and Implementation <br />TO: Mayor and Council <br />SUBMITTED BY: Karissa Goers, Administrative Services Director <br /> <br />BACKGROUND: <br />The administrative services director reviews the compensation plan annually and makes <br />recommendations based on best practices and city policy. In developing the 2025 proposed <br />changes I consulted the League of Minnesota Cities model policy and reviewed HR resources <br />from SHRM. <br /> <br />ISSUE BEFORE COMMISSION: <br />Should Council approve the proposed changes to the compensation plan effective 1/1/25? <br /> <br />PROPOSAL DETAILS/ANALYSIS: <br />Changes were made to condense language, making the plan more concise and easier to follow and <br />some changes were necessary to make it more transparent on how and when pay changes will be <br />made and under what circumstances. The intent of these changes is to lay a clear path of how the <br />City handles compensation. <br /> <br />Changes: <br />• Updated the title from compensation policy to plan. We have a compensation policy in our <br />personnel policy so calling this the plan differentiates the two. <br />• Plan updates – same information from the “actions taken to review, update and maintain <br />the plan” section in a more concise manner. <br />• Market analysis – indicates how compensation will be affected if there is a deviation after <br />completing a market analysist. <br />• New Hires – added language about compensation for new hires and probationary <br />employees. <br />• Annual Increases – added clarification about new hires in their probationary period <br />receiving the annual increase but not moving a step until their probationary period ends. <br />• Added language and definitions regarding promotions, demotions, and reclassifications <br />• Added language about career development increases – the City should continually be <br />looking to reward and retain current employees. This is an incentive plan for career <br />development. <br /> <br />This compensation plan includes the proposed 2025 position grades and salary range and steps. <br />The 2025 rates reflect and increase of 3.0% above the 2024 rates. The proposed rates allow the <br />City to remain competitive in the market. <br /> <br />FISCAL IMPACT: <br />January 1st increases have been provided in the 2025 budget. <br />