Classification and Compensation Study Services

The Vendor is required to provide to conduct a comprehensive classification and compensation study for its non-represented employee group including staff, management (approximately 45 employees), and elected officials which includes Mayor, Clerk, and Alderpersons (7).
- The primary objectives of the study are to:
• Evaluate the competitiveness of the city's compensation structure relative to comparable local municipalities and/or private sector firms.
• Assess internal pay equity and identify salary compression issues.
• Develop updated salary structures and pay ranges that support recruitment, retention, career progression, and organizational sustainability.
• Provide practical implementation options and cost projections that recognize budgetary constraints.
• Establish a framework for maintaining competitive compensation practices over time.
- Project initiation and data collection
• Conduct a kickoff meeting with city staff.
• Review organizational structure, compensation policies, collective bargaining agreements, job descriptions, and salary schedules.
• Collect compensation, tenure, demographic, and organizational data necessary to complete the study.
• Identify any additional information required to perform the analysis.
- Classification review & market compensation analysis
• Review all city classifications and organizational relationships.
• Evaluate the appropriateness of existing job classifications.
• Identify positions that may require reclassification, consolidation, or restructuring.
- Market compensation analysis
• Develop a recommended list of comparable municipalities and public-sector employers.
• Include communities comparable in population, service levels, organizational complexity, labor market competition, and geographic location.
• Benchmark compensation against state municipalities with emphasis on the region.
• Establish recommended criteria for identifying comparable communities and prepare a recommended list of comparable communities that meet those criteria.
• Compare salary ranges, actual compensation, and compensation practices.
• Evaluate competitiveness at minimum, midpoint, and maximum salary levels.
- Compensation structure evaluation
• Evaluate the city's existing pay plan and salary range structure.
• Assess grade relationships, range spreads, midpoint progression, and pay administration practices.
• Determine whether the current structure supports recruitment, retention, and advancement objectives.
• Identify structural weaknesses and opportunities for improvement.
- Salary compression analysis
• Employee-to-supervisor compression.
• Compression between newly hired and long-tenured employees.
• Compression resulting from collective bargaining adjustments.
• Compression between represented and non-represented positions.
• Compression caused by market adjustments and hiring practices.
- Benefits analysis
• Conduct a review of current benefits packages and compare them with those offered by comparable communities to evaluate competitiveness and identify potential areas for enhancement.
- Development of compensation recommendations
• Promote internal equity and external competitiveness.
• Address identified compression issues.
• Establish updated salary grades and ranges.
• Define appropriate placement of classifications within the proposed structure.
• Provide guidance regarding future salary administration.
- Recruitment and retention assessment
• Starting salary practices.
• Salary progression.
• Promotional compensation practices.
• Market-sensitive positions.
• Hard-to-fill classifications.
- Compensation program maintenance
• Ongoing market review processes.
• Salary range adjustment methodologies.
• Future compression monitoring.
• Recommended schedule for compensation reviews.
• Best practices for administration of the compensation program.