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21188.5(50) <br />Draft 2/11/R8 <br />Revised 2/24/88 <br />CITY OF ORONO <br />EMPLOYEE COMPENSATION PLAN <br />Appendix A. Expected Performance Regression Line Graph <br />B. Classification Point Ranges <br />C. Current Year Wages <br />INTRODUCTION - The purpose of this plan is to `ormally establish <br />the means for determination of wages and other benefits for <br />employees of the City. <br />DISCUSSION - Determ;nQtions of compensation are the result of the <br />development of an ia'--. rnal equity analysis and external equity <br />analysis together with the means by which the City chooses to <br />blend those to d�•termine its compensation plan. Local <br />governments in the State of Minnesota were mandated in 1984 to <br />undertake the internal equity analysis study in order to <br />determine reasonable relationships between jobs. The City of <br />Orono in conjunction with 140 other municipalities through the <br />Metropolitan Area Managers Association (MAMA) hired and developed <br />what became known as the Control Data Corporation "FOCAS" study <br />(Flexible Occupational Analysis System). This study broke down <br />the occupation groups into six job types, providing 1,000 tasks <br />per job type. It based the analysis on values assigned to those <br />tasks together with the percentages of time spent by the <br />employee on those tasks to determine the point hierarchy for <br />that position. The tasks were rated on the basis of complexity, <br />importance and undesireability. This study was subsequently sold <br />to Personnel Decisions Inc. (POI) who now operates the system for <br />the MAMA organization. <br />INTERNAL ANALYSIS <br />The City, through the "FOCAS" study was able to establish points <br />for each of its positions, including jobs common to many of the <br />units of government using the system. A regression analysis was <br />then done using the position points and existing pay rates, <br />including a 10% adjustment for "exempt" employees, and is <br />reflected in Appendix A. (Exempt employees are generally <br />technical and management people who are not eligible for <br />overtime.) This hierarchy of points was then divided using a <br />combination of numerical and natural groupings into classes which <br />are also reflected on Appendix A. The regression analysis is <br />expected to be updated on an annual basis, adjusting the expected <br />performance line for any inflation together with changes in the <br />regression that may result from changing relationships among jobs <br />as they relate to both points and compensation. <br />The system does provide that when appropriate select positions <br />can he reclassified fallowing a review by completion of the task <br />evaluation using the PDT system. These reviews should be done; <br />a.) when there is a job change of a significant <br />