HomeMy WebLinkAboutX-E-01 Comp & Class Study
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: City Administrator Dan Wietecha
Date: July 18, 2022
Item: Compensation & Classification Study
Council Action Requested:
Refer the review and discussion of the wage scale, overall compensation philosophy, and
implementation plan (including budgeting) to the Administration Committee of City Council with
a deadline for recommendations back to City Council by its August 15 meeting.
Background Information:
The City last conducted a comprehensive compensation and classification study of all positions in
1999-2000. With approval of Council, Abdo Solutions was contracted by the City of Hastings to
provide an independent position classification and compensation study. The study included:
• Job description review.
• Analysis of current comparable market wages.
• Review of Pay Equity Compliance requirements.
• Listing of benefit offerings.
The City has relied upon an internally-developed step and grade compensation model for each
position and has performed its own informal compensation analysis on a regular basis to remain
competitive and to ensure compliance with the Minnesota Pay Equity Act. Like many other
employers, the City has experienced a change in the workforce and challenges in finding skilled
workers. Market wage pressure and competitive recruiting has reinforced the need to ensure City
wages are aligned with the market.
The recommended, new compensation plan by Abdo is designed to meet the following goals:
• Ensure fair and equitable compensation relationships within the organization.
• Maintain pay equity compliance.
• Ensure competitiveness with the external market and retention within current employee
base.
• Enable reasonable maintenance of the resulting plan by City staff following
implementation.
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Leah Davis, Abdo Solutions Partner, will present a high-level overview of the outcomes of the
study and its recommendations for a new classification and wage system. I recommend referring
the topic to the Administration Committee (Lund*, Fox, and Leifeld) to discuss the wage scale,
overall compensation philosophy, and implementation plan (including budget) with
recommendations back to City Council by its August 15 meeting.
Financial Impact:
To be determined.
Advisory Commission Discussion:
N/A
Council Committee Discussion:
N/A
Attachments:
N/A
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