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<br /> <br />Item 05 <br />May 3, 2010 Work Session <br />Page 2 <br /> <br />Discussion: <br /> <br />There are many deficiencies in Section 3.01 of the Personnel Policy. Currently, the <br />Personnel Manual states there are three phases of Compensation: <br /> <br /> Phase 1: The Five-Step Compensation Plan <br /> Phase 2: The Annual Compensation Adjustment; and <br /> Phase 3: Pay Equity Act <br /> <br /> <br />Phase 1: The Five Step Compensation Plan <br /> <br /> A. Use of Stanton Mean <br /> <br />The current policy uses DCA Stanton Group 6 as the first phase of the <br />compensation plan. Stanton has discontinued publishing the survey annually. <br />Defining the market is an important aspect of a Compensation Policy. What defines <br />a comparable market to Mounds View? It is not so much a question of identifying <br />cities that are similar to Mounds View in all characteristics, such as geographic <br />proximity, tax capacity, budget, number of employees, services provided, and where <br />the city is in its development / redevelopment stage. Rather, the objective is to <br />define labor market, in other words, understand what employees are being paid in <br />similar organizations so that the City of Mounds View can be proactive in attracting <br />and retaining employees. <br /> <br /> B. Progress through the Step Plan <br /> <br />Advancement from step one occurs at six months after the employee’s date of hire <br />and on the employee’s anniversary date thereafter until the employee reaches step <br />five. Advancement only occurs when a satisfactory performance rating has been <br />completed by the supervisor, and a step progression approval has been made by <br />the City Council. In the past, the City Council expressed an interest in adding <br />additional steps to an employee’s compensation. Are the current 5 steps <br />acceptable to the City Council or does the City Council desire to add additional <br />steps to the compensation schedule? <br /> <br /> C & D. Step 5 Annual Adjustment and Time Frame <br /> <br />According to present policy, the Stanton Mean for each position (step 5) will be <br />adjusted annually. The annual adjustment of step 5, not represented by a collective <br />bargaining unit, shall occur prior to the end of December and prior to the annual <br />compensation adjustment or any pay equity adjustment. Does the City Council <br />want to continue this policy of making annual market compensation adjustments? <br /> <br />