Classification & Compensation Studies
Comprehensive Classification & Compensation Plans
Classification and compensation systems are vital functions within a local government’s human resource responsibilities. PAA has developed many classification/compensations plans that provide its municipal clients with:
Consistent Methodology
A consistent methodology for classifying work from an objective, organization-wide perspective.
Establish Pay Structures
Establish pay structures used to manage compensation appropriately and equitably for all their employees.
Tie Pay Structures to Performance
Provide employers a tool to tie pay structures to employee performance appraisal or review systems.
Specializing in Small to Medium Size Local Government
We specialize in the development of classification and compensation plans for small to mid-size local governments with 10-125 employees. We also offer the development of employee performance or development programs that can be readily linked to the local government’s compensation plan.
Our Process
When PAA conducts a Classification and Compensation Study, we begin by reviewing all existing job descriptions. Employees are asked to complete a detailed questionnaire outlining their general and specific responsibilities, qualifications, physical requirements, and the knowledge, skills, and abilities relevant to their roles. We then interview employees for each job title to ensure accuracy and develop a draft job description for each position, subject to approval by the administrator or governing body.
The second phase involves conducting a salary survey of comparable municipalities to determine market rates for similar positions. In some cases, reliable comparative salary data may already be available from external sources.
Next, we assign point values to each position based on key job factors such as authority, autonomy, scope of impact, working conditions, complexity, and required qualifications. This evaluation forms the basis of an internal classification system—for example, all positions assigned 300 points would fall within the same classification grade, ensuring equal pay opportunities for work of equal value (though individual pay within the grade may vary).
Finally, we integrate external market data with the internal classification structure to develop a comprehensive and equitable Classification and Compensation Plan. This updated plan includes revised salary grades aligned with both market standards and internal fairness.
Request a Free Consultation
Ready to get started? We’d love to hear from you. Request a free consultation today!