Consultant recommends 8-step pay plan to Corcoran council; implementation could begin in February

A consultant for Apto presented findings from a compensation classification study to the Corcoran City Council, recommending an eight-step salary structure designed to improve recruiting and retention and to align the city’s pay ranges with market benchmarks.

Michael (manager, Apto) told the council that the study used 2024 League of Minnesota Cities salary survey data and position scoring to compare Corcoran’s current 2024 pay plan to market municipalities. He said the city’s current minimums averaged 3.58% above comparable-market minimums while the current maximums averaged just over 3% below market maximums, producing narrower ranges than the market.

The consultant proposed a nonunion pay plan with eight steps per grade, a seven-year “years-to-max” progression from start to top step, a 7% increase between grades and a 4% increase between individual steps. Under that model Apto said the proposed plan would align Corcoran’s minimums on average about 2.61% above market minimums and maximums about 1.92% above market maximums.

Michael said the firm tested the proposed structure for Minnesota pay-equity reporting and that the plan should meet state reporting requirements if no major changes are made prior to the next required report.

On cost, the consultant described the estimate as an annualized expense to move incumbent full-time employees onto the new schedule and said the project remained below an implementation threshold discussed earlier with staff (“not to exceed $100,000”). He noted the dollar estimate is annualized and would be modestly lower if the city implements the plan with a mid-February effective date.

Council discussion covered operational questions. A council member asked if the city would provide an appeals process for employees who believe their job grade was assigned incorrectly; Michael said Apto can supply templates for an appeals process as an optional follow-on service. Councilors also asked why Apto selected an 8-step model; the consultant said longer step tables reduce step-size percentages and the eight-step, 4% step-schedule was chosen as a balance between market competitiveness and annual pay progression.

Next steps the presenter recommended included the council acknowledging receipt of the report and returning the item for a formal decision. City staff said the plan is scheduled to return to the council for a decision on Jan. 23; if approved, staff and the consultant would work toward implementing the new pay scale in the second pay period in February (Apto cited Feb. 15 as the likely payroll date).</p>

Ending: The council did not vote on adoption at the meeting. Staff and the consultant will provide position-level materials and implementation details to city leadership ahead of the Jan. 23 decision.