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08/28/97 THU 09:53 FAX 6125461552 LABOR RELATIONS ASSOC. 1002 <br /> Attachment C <br /> LABOR RELATIONS ASSOCIATES, INC. <br /> 7501 Golden Valley Road <br /> SGolden Valley, Minnesota 55427 <br /> 612/546-1470 <br /> FAX:612/546.1552 <br /> DATE: August 28, 1997 <br /> TO: City of Mounds View City Council <br /> FROM: Ann Antonsen <br /> Consultant <br /> SUBJECT: Conducting a Market Study to Assist in the Development of a New <br /> Compensation Plan <br /> In developing a new compensation system for a political jurisdiction two factors need to <br /> be considered. These two factors are internal and external compensation levels. <br /> There are two ways to study external or "market" compensation levels. A political <br /> jurisdiction can use the DCA Stanton survey that is published on an annual basis or they <br /> can perform their own survey. <br /> Since the DCA Stanton survey is only published on an annual basis, the data shown may <br /> or may not be accurate as of the time a City needs the market survey data. Therefore, <br /> it is recommended that the City of Mounds View conduct a survey of comparable cities. <br /> To conduct a salary survey the City should consider the following: <br /> 1. The City should identify appropriate external market comparisons for selected <br /> benchmark jobs (jobs that are commonly found in cities) based on geographic <br /> area, population, similar organizational structure, job responsibilities, scope of <br /> authority,financial,socio-economic,and other relevant factors. It is recommended <br /> that a sample of approximately 10 cities is surveyed. <br /> 2. Upon completion of the market study internal and external compensation levels <br /> and structures should be analyzed and compared. The City then must make a <br /> determination as to what weight will be given to both the internal and external <br /> comparables. <br /> 3. Preliminary recommendations for a City salary structure are developed, reviewed, <br /> revised as necessary, and adopted by City officials. The salary structure must be <br /> developed to comply with the "equitable" and "reasonable" compensation <br /> relationship standards required by the State Local Government Pay Equity Act, <br /> other State and Federal legislation, and with generally accepted principles of <br /> compensation equity. <br />