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<br />you to tailor solutions that will help your organization work more effectively by organizing, <br />developing, and motivating people. <br />One of our core methodologies, the Hay Guide Chart-Profile Method of job evaluation, is a <br />method of job evaluation and is the most highly regarded, consistent and widely used method in <br />the world. It allows us to evaluate the relative value of jobs through apoint-factor system, <br />resulting in internal ranking of all evaluated jobs. The Hay points are also used to develop <br />grades, which form the bases for the development of salary ranges. The Hay Group method of <br />job evaluation values the know-how, problem-solving, and accountabilities of the job, and <br />allows us to account for the size, complexity and functional differences of the roles. The Hay <br />Guide Chart-Profile Methoa~' of job evaluation also provides specific tools to aid in meeting <br />the State of Minnesota Comparable Worth regulations regarding compensation. The <br />methodology has been successfully used in court proceedings, administrative hearings, and <br />labor arbitration cases to determine the extent of internal equity and as a basis for determining <br />minimum job qualification requirements. <br />Project Steps <br />Since we have worked with you in the past, and you are familiar with our approach, project <br />planning and actions will be largely handled by phone. Our recommended approach is <br />described in the following project steps below. <br />Data Acquisition: Hay Group consultants will work with Elk River designated <br />personnel to acquire all necessary documentation and information related to the project. <br />Hay Group will review existing organization charts and business descriptions to fully <br />understand the structure of the organization. Elk River will provide current job <br />descriptions, organizational charts, pay structure information, current position <br />evaluations and compensation policy documents. Additionally, detailed incumbent <br />information will be provided including job classification, pay grade assignment, date of <br />hire, gender, and pay levels. Hay Group will acquire the Comparable Worth Software <br />from the Minnesota Department of Finance and employee relations. Elk River will <br />provide detailed information including copies of submitted forms. <br />2. Evaluating Positions and Reporting Internal Equity: Hay Group will evaluate the 17 <br />positions, or validate those recently reviewed using the Hay Guide Chart-Profile <br />Method® of job evaluation. Utilizing the evaluations, an analysis of internal equity will <br />be performed and reviewed with the General Manager of Elk River Municipal Utilities. <br />Adjustments to evaluations may occur post review. <br />3. Market Analyses and Structure: Hay Group will prepare market analyses of base salary <br />and total cash. The analyses will compare the positions to positions of similar size and <br />scope in the general market and the utilities industry where data is available. From this <br />July 7, 2008 ~,., <br />