Laserfiche WebLink
I l .' U AL, . 1 /' <br />TO: '!ay-r Coup <br />FROM: hark Bernhardson, :.it•+• u'.ministrato-��+ � <br />DATE: \ovc::.ber 20, 1986 <br />SUBJECT: Comparable worth - Preliminary 1986 ;adjustments <br />Attachment: A. CDC Benchmark Jobs <br />B. 1925 int-rir.. Compensation Study Datod 9,114/35 <br />ISSUC - Implementation of initial Comparable Worth adjustments in <br />1986. <br />DISCUSSI017 <br />Background - As y,» may recall the 1985 Legislature mandated that <br />each of the local units of government, municipalities, school <br />districts and counties undertake a study for implementation of <br />comparable worth by August 1, 1987. Orono together with <br />appruxi:.ately 140 other municipalities in the state jointly <br />contracted with Control Data Systems Business Advisors branch to <br />comply with the legislation. All jobs were placed into 1 of 6 <br />catagories with between 800-1200 job tasks per catagory. Through <br />a series of meetings these tasks were evaluated on the mandated <br />criteria of complexity, importance and unfavorability. Based on <br />a weighted average a value was arrived at for each of the tasks. <br />These were then balanced across the 6 groups through the use of <br />key tasks and then based on time spent profiles of tasks filled <br />out by 10,000 job holders each job was given a unique number of <br />points. The points for the job on the preliminary analysis <br />ranged the jobs from approximately 48 to 124 points. <br />EMPLOYEE COMPENSATION - Compensation of employees generally <br />relies on the balance of two factors. The first factor is <br />internal equity which rates each of the jobs in the organization <br />based on selected "compensable factors". These are used to <br />develop an internal structure for the relative compensation for <br />positions. The other factor is external equity commonly known as <br />mar:.et. Tl,is factor weights compensation base:: on the available <br />supply of talent for a particular job when hiring that job. <br />Traditionally compensation in the municipal area has been heavily <br />weighted towards external equity with a few organizations having <br />a strong internal equity component. Comparable worth legislation <br />in the minds of many people was to totally base compensation on <br />internal equity and ignore the market. The expectation of these <br />people was that once the points were determine, that a dollar <br />value would be established per point and then people would then <br />he paid based strictly on their points. It was because of this <br />expectation that people were looking to see from comparable worth <br />people in dissimilar positions with currently dissimilar pay <br />who <br />pncle+l up with equal point values having equal pay once comparable <br />worth is implemented equal pay. Comparable worth legislation in <br />tlinnescta is not established that way and only requires the <br />