WORKSHOP ITEM Terry Dussault, Human Resources Director
Title
CLASSIFICATION AND COMPENSATION PLAN STUDY
Background
The City sent out a request for proposals for a new classification and compensation study in early May of this year and received nine responses. The current classification and compensation system has been in place for almost two decades. The administration staff has reviewed the proposals and recommends Gallagher Benefit Services, Inc.
Gallagher’s proposed classification and compensation study is designed to ensure that employees are properly compensated in relation to one another as well as looking at similar positions in comparable Minnesota Cities as well as published survey sources in the private sector.
The study will ensure that job descriptions are evaluated for accuracy and thoroughness as this is the whole basis to determine where a position is placed within a classification system. For this reason, Gallagher spends more time at the front end of the project to provide a more defined, sustainable, validated and defensible end product. Gallagher will evaluate, design and ensure the finalized position descriptions and classification and compensation system will meet the legal requirements of the Minnesota Pay Equity Act as well as Federal standards set through the Fair Labor Standards Act and the Americans with Disabilities Act. The overall design and development process is expected to take several months to complete.
Gallagher has committed to devoting three full-time consultants to Blaine’s project. It is the judgement of staff that the methodology of the process utilized by Gallagher is more thorough and sustainable over the long run thus potentially limiting the need for a formal overhaul in the overall system.
The proposal costs were as follows:
• Carlson Dettmann at $35,000
• Springsted at $24,650
• Gallagher Benefit Services at $36,000
Recommendation
Staff is recommending accepting the proposal from Gallagher Benefit Services in the amount of $36,000. There is $25,000 in the 2017 budget for the study and the remaining $11,000 would come from contingency.