02-22-1988 - Agenda Packet City Council - regular meeting

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21188.5 February 11, 1988 ,.ITY OF ORONO EMPLOYEE COMPENSATION PLAN Appendix A. Expected Performance Regression Line Graph B. Classification Point Ranges C. Current Year Wages INTR_ODUCTIO_N - The purpose of this plan is to formally establish the means for determination of wages and other benefits for employees of the City. DISCUSSION - Determinations of compensation are the result of the development of an internal equity analysis and external equity analysis together with the means by which the City chooses to .lend those to determine its compensation plan. Local governments in the State of Minnesota were mandated in 1984 to undertake the internal equity analysis study in order to determine reasonable relationships between jobs. The City of Orono in conjunction with 140 other municipalities through the Metropolitan Area Managers Associa p (MAMA) hired and developed what became known as the Control a Corporation "FOCAS" study (Flexible Occupational Analysis Sy ....m). This study broke down the occupation groups into six job types, providing 1,000 tasks per job ty; . It based the analysis on values assig- ad to those tasks together with the percentages of time spent by the -mployee on those tasks to determine the point hierarchy for ..gat position. The t-sks were rated on the basis of complexity, importance and undesireability. This study was subsequently sold to Personnel Decisions Inc. (PDI) who now operates the system for the MAMA organization. INTERNAL ANALYSIS Tile City, through the "FOCAS" study was able to establish points fr�r each of its positions, including jo! . common to many of the units of g-,verament using the system. A regression analysis was then done using the position poi -s and existing pay rates, including a 10% adjustment for "exempt" employees, and is reflected in Appendix A. (Exempt employees are generally technical and management people who are not eligible for overtime.) This hierarchy of poi.-,ts was then divided us ng a combination of numerical and natural groupings into classes ,ich are also reflect- d on Appenrli- The regression analysis is expected to be updated on an are oasis, adjusting the expected performance line for any infla together with changes in the regression that may result from changing relationships among jobs as they relate to both points and compensation. The syste does provide that when appropriate select positions can be re• issified following a review by completion of the task eval.uatio,. using the PDI system. These reviews should be done; a.) when there is a job change of a sigr if icant magnitude,