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Pay Equity Compliance <br />The proposed scale has been tested in the Minnesota Pay Equity Compliance system and was found to be in compliance. The reports <br />generated from the test have been included as Appendix B of the report. In addition, Appendix C includes a publication from the State <br />of Minnesota which provides guidance on interpreting and understanding the Minnesota Pay Equity System. <br />Implementation <br />The next step in this process is to consider implementation of the Compensation System. Before moving to this step there are several <br />questions the Council will want to consider. <br />➢ Should the City adopt a new step and grade plan? <br />➢ What is the overall cost of implementation? <br />➢ Will the employee move to the new step and grade program and be placed at the step closest to their current salary? <br />➢ Will employees move to the new step and grade program and remain at the same step? <br />Each of these options provide a different implementation cost. <br />Implementation Option #1 - The employee moves to the new step and grade program and is placed at the step that is closest to their <br />current salary, without a decrease in salary. This option has an estimated $41,755.85 or 2.36% impact assuming that employees that <br />are currently being compensated above the proposed wage, would remain at their current rate of pay. The impact of Option #1 with a <br />2.75% COLA adjustment is $42,904.13 or 2.42%. <br />Implementation Option #2 - The employee moves to the new step and grade program and is placed their current step, without a <br />decrease in salary. This option has an estimated $86,104.63 or 4.86% impact assuming that employees that are currently being <br />compensated above the proposed wage, would remain at their current rate of pay. The impact of Option #2 with a 2.75% COLA <br />adjustment is $88,472.51 or 4.99%. <br />Should the City decide to move to the new step and grade plan, we recommend approval at a regular meeting of the City Council. <br />AEM Financial Solutions, LLC would like to thank the City of Orono for the opportunity to prepare and present this Compensation <br />Analysis. We would especially like to thank the leadership team for their assistance in providing the necessary data to conduct the <br />study. <br />People <br />+Process. <br />Goilig <br />Beyondm, <br />`webers <br />