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City staff get roadmap for pay-for-performance plan; full implementation eyed for 2027
Summary
Consultants presented a compensation study recommending a consolidated pay structure, two-track approach for public safety, and a staged move toward pay-for-performance with an implementation target of 2027.
Minot city council heard a detailed compensation study on July 7 that recommended restructuring pay ranges, consolidating salary grades and preparing the organization for a phased move to pay-for-performance, with a targeted implementation start in 2027.
The study, prepared by outside consultants and presented during the city manager’s report, recommended reducing the current 62 salary grades to a smaller set aligned with market spreads, creating separate pay-structure treatments for public safety and non-public-safety roles, and preparing a performance-management system that could later support merit-based increases.
Consultants said Minot’s local labor market largely tracks national averages and compared favorably with similar North Dakota cities such as Bismarck and Fargo. They described two parallel workstreams: (1) redesigning salary ranges and job architecture so pay bands better mirror market midpoints, and (2) building the foundations for a pay-for-performance model that would need deliberate change management.
The presentation recommended keeping the current step-based pay structure for the current fiscal year while planning the structural changes and the performance pay approach over the next 18–24 months. The consultants proposed two structures: a traditional range-based system for most jobs and a step-based system for public safety positions, reflecting industry practice for police and fire.
City leaders and council members questioned how public safety employees would be treated relative to other staff and urged careful change management. One council member said public safety employees “need to be taken care of” and asked for guardrails so top performers are not lost during the transition. Consultants responded that the public safety track would be built to industry practice and remain compatible with a future phased performance program.
Next steps outlined in the study included additional work on communication materials, a compression analysis to avoid new hires out-earning incumbents, creation of job architecture and staffing assessment templates, and testing budget impacts. The consultants and staff said short, medium and long-term implementation plans and cost modeling would be needed before any pay changes were included in a budget.
Council members asked for additional financial detail and suggested the city take a slow, staged approach so employees have time to adjust and so the city can budget sustainably. The consultants said they expect more work to model the fiscal impacts and to develop manager toolkits and employee FAQs before any changes would be implemented.
The presentation closed with staff saying the intent is to present structural changes and to continue the conversation about a phased move to pay-for-performance rather than make immediate widespread changes.
