HomeMy WebLinkAbout02/21/2017 GovHR USA Classification and Compensation Study 'Pill"Ag of'Monlit V"6prl
Item XI. A: Motion to authorize GovHR USA to perform a Classification and Compensation
Study in an amount not to exceed $31,350.
Department:Village Manager's Office
Information:.
A request of the Village Board's consideration to authorize the approval of a Classification and
Compensation Study for non-union positions to be performed by GovHR USA.
Staff is seeking to conduct a Classification and Compensation Study to determine if employee
pay is appropriate for current labor market, develop a non-union compensation structure and
conduct a review of job descriptions. This study will further improve the Village's ability to
competitively recruit and retain employees.
Human Resources requested proposals from the following companies based on
recommendations from colleagues in surrounding communities which had experience with these
firms.
Firm Cost Estimate
GovHR USA (Judy Schmittgens and $20,250 to
Joellen Earl) of Northbrook, Illinois $27,750
Arthur J. Gallagher& Company - $28 000 to
Compensation Consulting Division of $47:500;
Saint Paul, Minnesota
John Newton and Associates of $41,000 to
Downers Grove, Illinois $47,000;
Northern Illinois University (NIU) - Greg Declined
Kuhn, Research Associate
The Classification and Compensation Study for the Village of Mount Prospect will start with a
meeting with the designated representatives from the Village to review the scope of the Study,
discuss Study methods and any areas of concern, and to identify comparable communities,
benchmark classifications and the Village's pay philosophy with respect to compensation (i.e.,
50th percentile, 65th percentile, etc.). GovHR USA will then prepare a salary and benefits survey
to send out to the comparable communities. The purpose of this exercise is to obtain
information to assure external equity with the municipalities which impact the labor market for
Mount Prospect. GovHR USA will summarize the results of the salary survey and use the data to
recommend new salary schedules for the non-represented positions. GovHR USA will also
prepare an overview of how Mount Prospect's benefits compare to the comparable
communities.
Village Board Meeting-February 21,2017 Page 279 of 385
GovHR USA will conduct a thorough Job Analysis and there onsultamM
interview at least one (1) employee from each of the classifications covered by the Study in
order to fully understand current job duties, education and experience requirements, supervisory
roles, and other areas used to evaluate and rank all of the positions within the organization.
GovHR USA uses a formal evaluation system to compare the relative worth of each job and will
develop a new classification plan based upon the requirements of the job, rather than the
performance or qualifications of the incumbent.
GovHR USA will provide regular progress reports throughout the approximate four (4) month
process, and will prepare a draft report summarizing its findings and recommendations
approximately twelve (12)weeks into the Study. Following review by designated representatives
of Mount Prospect, GovHR U \911 pAepare a report for presentation to Village Management
as well as present the report to the Village Board.
Alternatives:
1. Authorize GovHR USA to perform the Classification and Compensation Study for the Non-
union Employee Groups.
2. Discretion of the Village Board.
Budget Impact:
The cost of performing the Classification and Compensation Study for the Non-Union Employee
Groups is $28,500 ($27,750 for professional fees and $750 for expenses).
Staff recommends including a 10% contingency in the Study award to allow for the creation of
new job descriptions or updates to existing job descriptions.
A 10% contingency added to GovHR Classification and Compensation Study would result in a
total of $31,350 (Study: $28,500 + Contingency: $2,850 = Total Proposal: $31,350)
Sufficient funds are available in the 2017 Budget.
Recommendation:
Staff recommends that the Village Board approve the Classification and Compensation Study to
be performed by GovHR USA.
SUPPORTS THE FOLLOWING STRATEGIC PLAN GOALS:
GOVERNANCE: Financially sound, providing exceptional service.
ATTACHMENTS:
Description Type Upload Date File Name
GovHR Contract Backup Material 2/15/2017 GovHR_USA_Contract.pdf
Class and Comp Mount Prospecct_-
Study Presentation Presentation 2/15/2017 _Class and Comp_Study_Overview_-
_2-21-17.pdf
Memo Backup Material 2/15/2017 Mount Prospect_-
_GovHR_Project_Methodology.pdf
- Mount Prospect r.A_:L_ n 14 c inn n-7 RU n-- -- n— at
Village Board Meeting-February 21,2017 Page 280 of 385