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<br />Artachment "A" <br /> <br /> <br />The Mercer GrOll, Inc. <br /> <br />Consul/ants /0 Management <br /> <br />3443 Highway 39 North <br />Louishurg, North Carolina 27549 <br />(919) 496-2080 <br />FAX (919) 496-7995 <br /> <br />August 24, 2006 <br /> <br />Mr. A. John Szerlag, City Manager <br />Government Center <br />18070 Collins Avenue <br />Sunny Isle Beach, FL 33160 <br /> <br />Dear Mr. Szerlag: <br /> <br />It was a pleasure rneeting with you last month; we greatly appreciated the opportunity to review <br />with you and your staff the scope of work performed in the 2004 Compensation/Market Study <br />and Reclassification Process Review. As we discussed, the 2004 Compensation/Market Study <br />and Reclassification Process Review was a market survey to evaluate the City's overall pay plan <br />in relation to the rnarket and to recommend a process for reclassifying positions and evaluating <br />new positions. During the 2004 study we strongly recommended that the City conduct a <br />comprehensive classification study to ensure internal equity and develop a classification system <br />that is more appropriate for and typically found in local governments. We are pleased that the <br />City is now considering pursuing that recommendation. We believe the City will benefit greatly <br />by having a full and flexible Compensation and Classification System that can grow and adapt <br />with the organization. <br /> <br />The following is a proposal to: <br /> <br />I) Conduct a cornprehensive compensation/classification study for all full-time employees <br />except for the positions under police pay plan. <br />2) Develop and implement a performance evaluation systern for all full-time employees. <br /> <br />Our experience has shown that good classification and compensation studies are a combination <br />of sound technical processes and an understanding of human nature. Our approach is sensitive to <br />this in several ways. For instance, our position evaluation system for classification purposes uses <br />a factor evaluation systern that is industry standard and is sufficiently straightforward <br />(transparent) so that how the process works and how factor scores and total scores for a position <br />are derived is easily explainable and easily understood by ernployees, supervisors, and City <br />Council. We provide orientation sessions for all employees so that they understand the <br />methodology of the study and how their positions will be evaluated, thus reducing anxiety. We <br /> <br />SIB <br />