Discussion:
As part of the 2022 budget, staff budgeted for a compensation review of both our part-time (which includes temporary and seasonal positions) and full-time compensation plans. Over time, positions and their responsibilities as well as how they compare to similar positions in the market, may change. In order for Shakopee to remain competitive and an employer of choice - it is to our benefit to conduct periodic external reviews of compensation plans. The external vendor selected to complete this analysis is Keystone Compensation Group LLC. Keystone Compensation has assisted the city with other compensation studies including our last compensation and classification review of full-time positions, which was completed in 2018.
Staff is unable to find evidence that the part time pay plan has ever been reviewed externally, so that is part of the reason this group was selected to be reviewed first. As part of the project, staff reviewed all part-time, temporary and seasonal job descriptions as well as updated some of their titles to reflect the position more accurately. Using that information, Keystone Compensation gathered market data from various Minnesota municipalities with the same or similar positions. It is important to note that Minnesota recently increased the minimum wage on January 1, 2022 to $10.33 per hour. Our current part-time pay plan's starting rate is $10.906 which means we're only paying slightly above the minimum wage. In order for Shakopee to stay competitive with our part-time positions and pay similar to the market Keystone Compensation recommends the attached proposed pay plan for our part-time positions.
The proposed pay plan would transition from the existing nine pay grades to six, each with five steps. Employees move from one step to the next with each calendar year or returned season of service to the city. The current part-time pay plan is also attached for reference and comparison.
Staff is proposing to implement the proposed pay plan for part-time staff effective May 9, 2022. That date is the beginning of a pay period and also aligns with when many seasonal staff begin to return for summer seasonal work. Staff has had difficulty in recruiting and hiring for our part-time, temporary and seasonal positions as well as re-hiring former seasonal employees. An update to the part-time pay may significantly help to attract and retain the staff that we need to offer the many services we offer to our community.