Public Sector Compensation Management

Keystone Compensation Group guides the development of an overall compensation strategy which aligns with our clients’ business goals and objectives.

State laws require all public sector jurisdictions to eliminate gender-based compensation inequities. To comply with these laws, agencies are expected to use credible job evaluation systems, market analysis methodologies, and salary administration policies that demonstrate internal equity. In addition, tax payers and elected officials continue to press for changing the way tax dollars are spent and expect more services without increasing taxes.

This dynamic environment makes it necessary for leadership to evaluate their compensation programs for compliance while ensuring their ability to attract and retain qualified employees.

Keystone’s review process has earned a solid record of success for municipal Minnesota government agencies.

Our first step is to work with leaderships to discuss important questions to help formulate a compensation strategy. This strategy guides the various compensation analytics we use to calibrate or redesign the compensation programs. We then use our findings to create plans and tools to sustain the new program internally.

While each project may take a different path our process relies on the following core pillars to ensure successful program implementation:

  1. Collect input from key stakeholders to be used to establish a compensation program strategy and objectives.
    Ensure that job documentation is current and accurate to evaluate and benchmark jobs.
  2. Benchmark jobs and prepare the analytics to better understand the current state and generate ideas for the new compensation program
  3. Evaluate jobs to ensure internal equity based on job functions and requirements to qualify for the job.
  4. Redesign or calibrate pay ranges based on the established pay strategy, market pay practices, and internal job evaluation.
  5. Ensure compliance with the Minnesota Local Government Pay Equity Act. This involves preparing trend line analysis and design of the salary structure with an eye on pay equity compliance.
  6. Develop salary administration guidelines and communication tools. Train managers on pay program management.
  7. Communicate the new program to the governing board or council.

Public Sector Compensation Survey

This research project is sponsored primarily by the largest counties in Minnesota. The published report includes 170 jobs spanning entry-level, middle, and top management positions. In addition to the survey, we can provide custom cuts and competitive analytics from this survey for select organizations based on your parameters of choice. Results are published in the Fall each year. Results are published in the fall each year and are available only to participants.