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The position grades and salary range and steps established by this plan must be annually confirmed by the City Council. III. COMPENSATION PLAN ELEMENTS: A. Objective The City intends to provide its employees equitable compensation and financial incentives, to the extent permitted by law, to promote the attainment of the highest levels of performance and organizational contribution. The City recognizes that the Compensation Plan is a key factor in the City’s ability to attract, retain, and motivate well-qualified individuals to participate in the achievement of its objectives. Therefore, the City of Lake Elmo’s Compensation Plan is based on the principles of internal and external pay equity. B. Job Classification Job Classification is the process of determining the rank/grade of position descriptions. The City shall utilize a point-factor job evaluation methodology. The City has adopted Baker-Tilly’s SAFE® system to classify job descriptions. C. Job Evaluation Through the City’s job evaluation process, the city ensures that appropriate relationships between classifications and jobs are established and maintained over time through the application of periodic job description review processes and reorganization studies, when appropriate. D. Salary Structure The Compensation Plan consists of fifteen (15) salary grades with a corresponding salary range for each grade. Salary ranges shall have a minimum and maximum step with eleven (11) steps in each grade. There is an increase of 34% from the minimum to the maximum step. For every position subject to this plan, compensation must be assigned using the salary range and grade classification. In determining or evaluating compensation levels, the Administrative Services Director must maintain a schedule of comparative compensation amounts for all positions covered under the plan. For non-union employees, the salary grade applicable to a job classification shall be determined by the grade assignment of the job evaluation profile. E. Market Comparison • The City Council will determine the appropriate market to be used in developing this plan and in supplemental compensation reviews. • The primary labor market is currently defined as ten to eighteen cities chosen based on: - Proximity of location - Similarity in the type of services being provided - Population size • From time-to-time the City may recommend that other comparators should be used, where information from the primary labor market is considered insufficient to attract/retain specific positions or classification groups. F. Market Analysis The City Administrator may approve a market analysis for a job classification as requested by a Department Director or initiated by the Administrative Services Director. When a market analysis for a specific job classification indicates that the assigned salary range mid-point deviates, positively or negatively, from the market by more than 10%, the job classification may be placed at an established