10-26-2015 Council Work Session Packet

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MEMORANDUM TO: ORONO CITY COUNCIL FROM: JESSICA LOFTUS, CITY ADMINISTRATOR SUBJECT: COMPENSATION STUDY NEXT STEPS DATE: OCTOBER 26, 2015 In July the City Council received a compensation analysis from Abdo (AEN . A copy of the report (less appendices) is Attachment A. The goal of this study was to update the City's existing job classification system for pay equity, analyze the City's master salary plan to ensure continuing consistency with the market, and make recommendations for implementation. With the study complete the City Council might want to take this opportunity to discuss next steps. Job Classification System In brief summary, position points for all jobs have been updated for pay equity reporting and sample tests show compliance with state requirements. City staff will submit the official report in January. Job description requirements and duties were also updated and inserted into a standard format. 1. Next step: If acceptable, the job descriptions ought to be formally approved by the City Council at a regular meeting before the end of the year. External Market Analysis and Compensation Structure Review The market study provided important data points to determine how Orono fares in the competitive marketplace. During the July work session the Council requested benefit information. This is included in attachment B. Two implementation options were presented for your consideration: Option #1 aka The Phased Plan The employee would move to the new step and grade program and is placed at the step closest to their current salary. Assumption: employees that are currently being compensated above the proposed wage remain frozen at their current rate of pay.