HomeMy WebLinkAboutX-E-02 Approve Interim Wage Adjustments
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: City Administrator Dan Wietecha
Date: January 18, 2022
Item: Interim Adjustments to Wage Scales
Council Action Requested:
Approve adjustments to wage scales as outlined in this memo.
Background Information:
In a couple of recent hiring efforts and in several departing employee exit interviews, wages have been
cited as a below market. In a preliminary data review, it appears that several positions, across multiple
departments, may be below market. The City Council approved a Compensation & Classification Study
to ensure we are paying wages competitive with the market. The study would also help with recruiting
and retaining employees as well as maintaining internal consistency and ensuring pay equity compliance.
The Comp & Class Study is the primary goal, and it will be starting soon, with an anticipated completion
in early summer. In reviewing preliminary data from LMC wage surveys, it appears that 5 positions are
much further below market than other positions. They range from 7.9% to 14.8% below the preliminary
data. In comparison, other positions below the preliminary market data are spread between 0.5% to 6.5%
below market.
I recommend bringing these 5 outlier positions in line with the other positions such that none are more
than 7.0% below the preliminary data.
Position Current Step A Prelim Compare Difference Proposed Difference
Finance Mgr $ 132,282 $ 145,828 10.2% $ 136,282 7.0%
Parks Dir $ 132,282 $ 145,094 8.9% $ 134,682 7.0%
Comm Dev Dir $ 132,282 $ 142,759 7.9% $ 133,382 7.0%
Sr Acct $ 94,500 $ 108,472 14.8% $ 101,400 7.0%
IT Lead Support $ 83,795 $ 91,526 9.2% $ 85,545 7.0%
This recommendation is intended to balance the Comp & Class Study and the time and process for its
completion with mitigating the wage disparity for outlier positions. The Comp & Class Study is still the
primary goal, and any interim adjustments should be minimized in order to maintain a consistent process
and minimize inserting conflicting data. To this end, setting the threshold at 7% limits the number of
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positions affected; whereas, setting it at 6% would have meant 2 additional positions covering 20
employees. The 7% threshold both limits the amount of change inserted into the process and also
demonstrates that this brings the outliers in line with broader employee population. Additionally, setting
the threshold at 7% means an incremental wage increase pending completion of the study, allowing the
Comp & Class to determine the actual, final recommended wage comparison.
Financial Impact:
Retroactive to the first of the year, through June 30 (anticipated implementation of the Comp & Class
Study) these adjustments would total $8,075 plus FICA and PERA.
Committee Discussion:
Administration Committee (Lund*, Fox, and Leifeld) met Dec 1, 2021 and Jan 11, 2022 and supports
these adjustments.
Attachment:
Not applicable
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