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<br />Compensation Study <br />April 7, 2008 <br />Page 3 <br /> <br />Conclusion <br /> <br />The Laumeyer report, the Stanton Group 6 data and the modified Stanton Group 6 report all <br />demonstrate that a majority of Mounds View non-union wages are less than where they <br />should be, and that a market adjustment would be appropriate for many positions. While the <br />Personnel Manual is quite clear as to how this should occur, the Council may consider <br />implementation alternatives, especially considering the potential monetary impact of such <br />market corrections. The following represents a range of responses to consider, including the <br />“do nothing” alternative: <br /> <br />1. Adjust wages in comparison to the Stanton Group 6 Mean <br />2. Adjust wages in comparison to the Laumeyer comparable cities <br />3. Adjust wages in comparison to the modified Stanton Group 6 average top step <br />4. Do nothing. ( ← Not recommended) <br /> <br />If option 2 or 3 is supported, the City would be advised to adopt corresponding amendments <br />to the Personnel Manual to reflect the change in policy. Naturally, if no action is taken to <br />correct for market discrepancies, the present gap between Mounds View wages and <br />comparable cities wages will only continue to increase while potentially eroding employee <br />morale and jeopardizing organizational stability. <br /> <br />Recommendation: <br /> <br />I strongly recommend that the Council authorize a new compensation study to be prepared <br />by a consultant utilizing Stanton Group 6 cities as a comparison, as specified in the <br />Personnel Manual, or as an alternative, utilizing the modified Stanton Group 6 cities as <br />illustrated on the previous page. Based on the anticipated results of the study and the <br />potential budgetary impacts, the Council may desire to phase in larger market rate <br />adjustments over time. <br /> <br />If you should have any questions about this report or the data provided herein, please do <br />not hesitate to call me at your convenience. <br /> <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />James Ericson <br />Clerk - Administrator <br /> <br /> <br />