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Home My WebLink About10.A.1. Authorize Hiring Stringsted for Compensation Study � l 1•�}�, �� , City of Shakopee MEMORANDUM I I TO: Mayor and City Council Mark McNeill, City Administrator ' � �, , � � FROM: Kris Wilson, Assistant City Administrator;ro, X,�°` �� SUBJECT: Authorization to Hire Springsted for Compensation Study I DATE: January 13, 2012 ', i I I Introduction 'n fr I ''n ofS rin sted Inc. to com lete a com ensatio stud o ked to authorize the hiri The Cit Council is as , p p Y Y g p g , the City. I � Background ,, , Durin the 2012 bud et rocess, the Council was presented with information regarding the need to � g g p complete a compensation study for the City in order to allow for greater flexibility in the organizational structure of the City and to maintain compliance with the State's Pay Equity Act. Staff has met with and received proposals from three consulting firms that are experienced in performing these types of studies , and is requesting Council authorization to hire Springsted, Inc. for the project. The proposal from Springsted is attached. I � I The City last completed a compensation study of this nature approximately ten years ago. A new study is needed at this time for several reasons: i 1. The consulting firm that created our existing classification and compensation system went ', out of business in early 2009 and is no longer available to provide ongoing reviews or updates as staff positions are shifted or changed. � 2. The City has recently had and is expecting additional retirements. This presents a prime � , opportunity to review the current organizational structure and make desired changes. However, any new or significantly modified positions that result from such restructuring I, '� must be formally evaluated and quantitatively placed on the pay plan in a manner that ' complies with the state's Pay Equity Law. With the previous consulting firm no longer ' available to provide this service, the City's options for restructuring are significantly limited. '�, 3. The City's next state-mandated Pay Equity Report must reflect wages for calendar year 2013. Therefore, if the stud is com leted in 2012, its results can be incorporated into work �� Y p on the 2013 budget and reflected in the City's 2013 pay plan. '� � , � � Budget Impact The total quoted price for the project is $12,905. Sufficient funding for this project was included in the professional services line item of the adopted 2012 budget for the Human Resources Division. Relationship to Goals This item relates to Goal E: Deliver effective and efficient public services by a staff of well-trained, caring and professional employees. Requested Action � I th i � f e Counc I concurs, it is asked to offer a motion to authorize the hiring of Sprin sted, Inc. to conduct a � compensation study as outlined in their August 9, 2011 proposal, at a total cost not to exceed $13,000. � I I � i I I I I � I I I � I I I I I i � I I I � I I I I I — -- . —_ – � Springstetl Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101-2887 ,�j � i I t�°1 C� � t�(� Tel: 651-223-3000 Fax; 651-223-3002 www.springsted.com August 9, 2011 Ms. Kris Lyndon Wilson Assistant City Administrator City of Shakopee 129 Holmes Street South I Shakopee, MN 55379 Dear Ms. Wilson: It was a pleasure meeting with you to discuss your desire to update the City's job evaluation system and related processes. Following is a proposed scope of wark for the development of up-to-date job ' descri tions a new 'ob evaluation s p , � ystem, traimng of City staff on the system for mamtenance of the City' job evaluation system. I am also including a proposal for conducting a market survey and development of recommendations for revisions/development of a new compensation plan. I I Process The scope of work for this process will include the following components for the review of job descriptions and the establishment of job evaluation points for all positions: � • Conducting training sessions for employees, supervisors and Department Heads on updating the City's current job descriptions and completing Position Analysis Questionnaire's for all positions ' for the purposes of establishing new job evaluation points for all positions utilizing Springsted's SAFE job evaluation system ' • Performing the job evaluation of City positions • Providing staff training on us of the SAFE system for evaluating new and revised positions � Springsted will conduct informational meetings for all employees, to introduce the project, explain procedures and answer any questions they may have about the process. If the City decides to also conduct the market survey and revision/development of a compensation plan the arientation sessions will also include information � on these processes. Employees, supervisors and department heads will be asked to review current job descriptions and provide , input on required changes, additions or deletions to the essential functions of positions, required education, licenses, certifications, training, etc. and the required knowledge, skills and abilities. Position Analysis Questionnaire's (PAQ's) shall also be distributed at this time. The questionnaire will provide information to assist the City in developing updated job descriptions for all City positions and provides information on the I various job factors that affect each position. The PAQ will also identify the specific physical requirements and working conditions of each position to assist in the review for compliance with the Americans with , Disabilities Act. Springsted will spend time at the meeting reviewing the PAQ and responding to questions. The information gathered from the PAQ's will provide the information to be used in developing revised position descriptions and for developing new job evaluation points for all City positions. Upon receipt of completed PAQ's and proposed job description revisions, Springsted will make I recommendations for revisions to current job descriptions. Upon completion of the revised job descriptions, Public Sector Advisors _ __ _ _ � City of Shakopee August 9, 2011 Page 2 proposed job descriptions shall be distributed to employees, supervisors and department heads for comment and any necessary revisions completed. ' Revised job descriptions and PAQ's shall be reviewed by Springsted and job evaluation points will be � developed for all positions in the City. Job evaluation is the mechanism that ensures that internal relationships are equitable and in compliance with the Minnesota Local Government Pay Equity Act. ' Springsted has developed and copyrighted a job evaluation system known as Systematic Analysis and Factor Evaluation (SAFE�) System. The SAFE system is a unique job evaluation method designed to i measure job factors which apply specifically to local government. This system has been successfully used for many years, both in Minnesota and throughout the Country and has been reviewed by the United States District Court, in conjunction with an Equal Employment Opportunity (EEO) suit, and found acceptable to the Court. I The systcm rates and ranks jobs based on various skill levels and work factors. The result is an equitablc � and consistent method of evaluating jobs and relating classes to the compensation plan. The system facilitates proper and equitable comparisons between and among positions, and minimizes the appearance of favoritism in evaluating, rating and ranking jobs. � The elements considered in determining the relative value of classifications are: �, • Training and Ability • Experience Required • Level of Work • Human Relations Skills I � • Physical Demands • Working Conditions/Hazards • Independence of Actions • Impact on End Results !, • Supervision Exercised This system can be maintained by the City. Springsted provides training to individuals assigned by the ' City to this task on utilizing the SAFE System to evaluate newly created positions or re-evaluate revised positions. As a part of this process the City staff will be responsible for the following areas: • Review of current job descriptions for revision • Completion of Positions Analysis Questionnaire's for all positions. The initial job evaluation will be the responsibility of Springsted to: • Eliminate any apparent conflict of interest , • Eliminate perception of manipulation of information and data to change the outcome • Staff and public perspective Cost for the orientation sessions, revision of job descriptions, job evaluation, stafftraining and support: $7,175.00. This includes 41 positions. If the City makes revision to the job descriptions instead of I Springsted, the fee would be $4,920.00. � I I City of Shakopee August 9, 2011 Page 3 I Wage and Benefit Survey and Analysis Springsted can conduct a comprehensive salary and benefits survey to compare City positions with analogous positions in other comparable public agencies in the area labar market. External market comparisons for positions will be based on similar organizational structure, population, geographic location, ' job responsibilities, scope of authority, financial, socio-economic, growth, and other relevant factors. The study team will consult with City management and designated staff in identifying the appropriate sources �', of survey data. Springsted will develop the salary survey in conjunction with the City. The analysis of wage, benefit and total compensation in comparison to the City shall be conducted for a not-to-exceed fee of $4,500.00 '� Development of Compensation System and Implementation Options I �i Based on the wage and benefits data analysis and the job evaluation points, Springsted will recommend I revisions to the current plan or develop a new compensation plan. Recommendations will be developed in accordance with information from the City regarding its pay philosophy, as well as goals and I, objectives established for its compensation program, which may include the option for a performance based component. Springsted will review options with the City on the spread of pay ranges, open range I vs. a step system, relationship between wages and benefits, etc. � ' Springsted will propose a plan(s) for implementation of the compensation plan that coincide with the �� financial and budgetary requirements of the City and the needs of employees. An estimate of the cost(s) � ' of implementation will be provided. These options may include phasing in of compensation levels over � �, time Springsted will ensure that the proposed plan is in compliance with the State of Minnesota Local , Government Pay Equity Act. �� Springsted will develop compensation and benefits recommendations and implementation options for a j not-to-exceed fee of $3,485.00. Springsted will work with the City based on funding availability which may include either completion or � � billin of the ro'ect over a two to three ear eriod. I , g P J Y P i Please let me know if you have any questions or require further information. j I Respectfully, I �/L/L �RtO/i�e/L i Ann Antonsen, Vice President � Consultant , i � � � ' I i ;