Item 2. Classification and Compensation StudyCity of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
TO: Mayor and City Council
FROM: Sabrina Hille, Assistant City Administrator/Human Resources
DATE: March 27, 2023
SUBJECT: Classification and Compensation Study
In January of 2023, City Council approved the posting of Request for Proposals (RFP) for a Classification and
Compensation Study. The City previously conducted a full study of this scope back in 2015. The City then
did another evaluation in 2020 of positions and a market study.
Request for Proposals
The City Otsego outlined the following items to be included in the study:
Review the existing job descriptions and physical requirements.
Review the existing job classifications within the existing system to determine job value for
each position with recommendations for necessary adjustments.
Review our current classification system for appropriate number of grades/steps based on our
current job classifications.
Review our current classification system and recommend solutions for addressing pay
compression.
Conduct an external market study using comparable cities (recommend comparable cities) and
provide recommendations for adjustments to the City’s pay plan along with a method/system
to ensure continuing consistency with the market.
Test recommendations to ensure compliance with the State of Minnesota’s State Equity
Compliance requirements.
Explore and research additional compensation benefits, that is compliant with Minnesota’s Pay
Equity.
Review
Proposals were due by January 19th at 5:00 PM, and the City received 5 proposals in total. City staff
reviewed the proposals and outlined 3 firms to meet with and further discuss services and any cost saving
measures.
Next Steps
City Council reviews recommendation from staff on how to move forward on the study. With options on
items presented.
Item 2.
2023 Classification and
Compensation Study
CITY COUNCIL -MARCH 27, 2023
Request for Proposals (RFP)
•Review the existing job descriptions and physical requirements
•Review the existing job classifications within the existing system to determine job
value for each position with recommendations for necessary adjustments.
•Review current classification system for appropriate number of grades/steps based
on current job classifications.
•Review current classification system and recommend solutions for addressing pay
compression.
•Conduct an external market study using comparable cities and provide
recommendations for adjustments to the City’s pay plan along with a method/system
to ensure continuing consistency with the market.
•Test recommendations to ensure compliance with the State of Minnesota’s State
Equity Compliance requirements.
•Explore and research additional compensation benefits, that is compliant with
Minnesota’s Pay Equity.
Request for Proposals
Review
5
•INTERVIEWED:
•Abdo
•Bakertilly (current system)
•Flaherty & Hood
•IMPORTANCE:
•Employee retention and recruitment
•Growth in staff and city services
•Many changes from 2015 study
•League of Minnesota Cities –No annual Salary Survey anymore
Review
Next Steps
7
•MOVE FORWARD WITH ABDO
•Reduce costs with internal staff Job Description Review
•Ability to reduce costs further by remote meetings & presentations
•Study completion before September Preliminary Levy
•$18,000(virtual presentations) or $19,500 (all in person)
Next Steps