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CONTRACT K-1920-76: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND JOHANSON CONSULTING, INC., D/B/A JOHANSON GROUP, IN THE AMOUNT OF $69,200 TO CONDUCT A CLASSIFICATION AND COMPENSATION STUDY TO ENSURE INTERNAL EQUITY BETWEEN POSITIONS AND TO ACHIEVE A PAY RELATIONSHIP WITHIN THE MARKET TO MAINTAIN A QUALIFIED WORKFORCE FOR THE CITY OF NORMAN AND TO PROVIDE A COMPENSATION MANAGEMENT SOFTWARE SYSTEM TO STREAMLINE THE COMPENSATION PROCESS.
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BACKGROUND: A primary function of the Human Resources Department is to develop a consistent and competitive classification and compensation plan that allows for the attraction and retention of qualified employees.
DISCUSSION: During the fiscal year 2019-2020 (FYE20) budget process, City Council allocated $150,000 for the Human Resources Department to conduct a Classification and Compensation Study for the City of Norman (Consultant-Management/Research; account 010-3130-415.40-01). Retaining a qualified workforce is essential to the success of the City of Norman. It has been over twenty (20) years since the City implemented the compensation results of a comprehensive study. The City received three (3) proposals and upon review by the City Manager and the Management Team, the Johanson Group was selected to perform the classification and compensation study for the City of Norman.
The results of this study will help to ensure internal equity between positions; consistent titling of job classifications; and achieve equitable pay relationships within our local job market in order to maintain a qualified workforce for the City of Norman. The plan ensures positions performing similar work duties/tasks with essentially the same level of complexity, responsibility, knowledge, skills and abilities are classified together; recognizes the differences and similarities in positions irrespective of the division of department assignment; provides salaries commensurate with assigned duties; outlines promotional opportunities and provides recognizable compensation growth; provides justifiable pay differentials between individual job classifications; and continues to be current with changes in the relevant labor market. The information and data gathered will also assist in collective bargaining with employee unions.
RECOMMENDATION: Staff recommends approval of Contract K-1920-76 in the amount of $69,200 with Johanson Consulting Inc., doing business as the Johanson Group, for professional services to conduct a Classification and Compensation Study along with a compensation management software system which allows organizations to streamline compensation processes.