In establishing employee compensation, local governments must ensure they can recruit and retain a productive and reliable workforce while also complying with pay equity laws. This requires them 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 with the external market, promote a comprehensive total rewards package for employees, and to report certain information to the government. 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.