Classification, Compensation & Organizational Services

In establishing employee compensation, local governments must ensure they comply with the Minnesota Pay Equity Act. This requires local governments to use a systematic classification and compensation system to determine job requirements and responsibilities memorialized in job descriptions and the comparable value of work performed by each class of its employees, ensure there are equitable compensation relationships between comparable male and female jobs, and to report this information to the State. A classification and compensation study reviews and accomplishes each of these items.

To ensure that a local government is set up to provide high-quality, efficient and cost-effective services to their constituents, it needs to review the services it provides, the functions of city employees necessary to provide the services, its organization and reporting structures, its job classifications and the amount of staffing needed, the workplace environment, and how these items compare to comparable communities and any appropriate changes to make to its organization. An organizational study reviews each of these items.


Job Analysis

  • Review job classification systems
  • Conduct incumbent and supervisor interviews
  • Prepare and analyze job questionnaires
  • Observe jobs
  • Draft job descriptions

Job Evaluation

  • Prepare comparisons of jobs to determine the appropriate pay rate
  • Establish comparison of jobs using internal methods, such as point factor, factor comparison, job ranking or job classification
  • Establish comparison of jobs using external methods such as market data to determine a job’s worth


  • Draft a classification and compensation plan
  • Establish pay structures and total compensation packages
  • Analyze market data

Pay Equity

  • Review, analyze and recommend changes to classification and compensation system to ensure legal compliance
  • Prepare pay equity report to State
  • Advise and represent in any contested matter involving legal compliance


  • Direction and alignment of the city as a whole, individual departments, employees and services they provide
  • Work flow processes and organizational structure
  • Workforce staffing, productivity and retention
  • Workplace environment
  • Communication, innovation and collaboration

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