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03-03-26 City Council Meeting Packet
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03-03-26 City Council Meeting Packet
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Lake Elmo <br />PAGE 6 <br /> <br />OUR PHILOSOPHY FOR COMPENSATION <br />AND CLASSIFICATION STUDIES <br /> <br />Government is in the service delivery business, and quality service requires quality employees. An <br />effective compensation system will help you attract and keep talented employees. Likewise, an out-of- <br />date or ill-conceived compensation system will produce turnover and hamper efforts to recruit quality <br />replacements. <br /> <br />In the real world of limited resources, government is increasingly expected to do more with less. <br />Accordingly, a community’s pay philosophy must strike a reasonable balance between a desire to pay <br />your good employees well to retain their good services, while at the same time controlling costs to keep <br />faith with the taxpayers. Designing a pay system is not easy, every community is different, and a “one <br />size fits all” approach seldom produces a good result. <br /> <br />We approach compensation study work as a practical, common-sense process – not as some theoretical <br />or statistical exercise in regression analysis. We collect information, analyze it, and communicate our <br />findings in simple understandable ways. Our honest goal is to help you design a compensation system <br />that is technically solid, is one you actually understand, and one that works better than what you have <br />now. <br /> <br />As we work with you to build the best compensation system for your community, we keep four very <br />practical objectives in mind: <br /> DDA Human Resources believes your compensation and classifications systems should be based on: <br /> <br />1. Updated job descriptions <br />2. Market Competitiveness set by a decided pay philosophy <br />3. Pay Equity <br /> <br /> <br /> <br /> <br />Compensation <br />and Benefits <br />•Competitive to <br />hire, retain, and <br />motivate qualified <br />employees <br />Internal Equity <br />•Satisfy MN Pay <br />Equity <br />Requirements <br />Positive and <br />Transparent <br />•Be open and fair to <br />employees, <br />managers and <br />unions <br />Customized <br />•Establish a pay <br />philosophy based <br />on your <br />organization <br />•Assist in the attraction of the most qualified professionals available. <br />•Retain talented employees. <br />A compensation program is a structured pay plan that is used to: <br />•Job descriptions <br />•Pay equity of job descriptions (hierarchy of jobs) <br />•Market analysis of base pay <br />•Market definition influenced by industry, size, geographic location, and tax capacity <br />•Pay philosophy <br />A pay plan is developed through: <br />•Influenced by industry, size, geographic location and tax capacity <br />•Includes objectives and statement of where organization wants to be in relation to market <br />Compensation/pay philosophy is set by the Board:
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