Transforming Pay Practices for Long-Term Success in Sandpoint

How the City of Sandpoint, Idaho, partnered with MGT to align pay with the market and support its workforce. 

The City of Sandpoint faced growing concerns that its compensation system was no longer equitable or competitive. Like many municipalities, their position grading lacked consistency, benchmarking against comparable municipalities was difficult, and leaders questioned whether salaries truly reflected the market. This uncertainty created anxiety among staff and made it harder to recruit and retain the skilled workforce needed to deliver critical services. 

City leaders set out to establish a compensation framework that was accurate, defensible, and sustainable. Their objectives were to ensure all positions were correctly classified, align salaries to current market benchmarks, and implement a transparent structure that could guide future compensation decisions. At its core, the project was about building confidence for employees who wanted fair recognition of their work and for leadership seeking a system that could stand the test of time. 

The MGT Experience 

MGT brought structure, expertise, and responsiveness to the project from the start. Using a comprehensive methodology—including employee job analysis questionnaires, interviews, and a market survey of peer municipalities—MGT delivered a solution tailored to Sandpoint’s unique needs. 

When a challenge arose during the interview phase, MGT’s Project Manager, Rachel Skaggs, quickly resolved it to ensure the study stayed on track. City leaders described MGT as professional, collaborative, and highly responsive qualities that instilled confidence throughout the process. 

“MGT was exceptional to work with. Professional and when there was a situation that came up, Rachel Skaggs immediately corrected the situation to ensure study stayed the course,” said Cheryl Hughes, Central Services Director. 

 

Results & Improvements 

The completed study delivered meaningful, lasting improvements for the city: 

  • Market Equity Restored: Nearly all positions received salary adjustments, bringing compensation in line with competitive benchmarks. 
  • Sustainable Framework: A living classification and compensation plan now provides clear guidance for future decisions. 
  • Policy Enhancements: Duty Phone pay was standardized across departments, and hazard pay was introduced for wastewater treatment employees until the new facility is complete. 
  • Transparent Structure: A defensible Salary Grade Chart now serves as a foundation for equity, consistency, and effective workforce planning. 

 

Organizational Impact 

While some staff initially expressed concern and expected immediate salary increases, Sandpoint addressed these expectations with transparency. In limited cases, scores were re-evaluated and adjusted, demonstrating fairness in the process. 

The result is an organization-wide framework that instills greater confidence and provides long-term value. Employees can see that compensation decisions are grounded in an objective process, while leaders now have the tools to maintain competitiveness and sustainability into the future.  

By partnering with MGT, the City of Sandpoint transformed its compensation system from uncertainty to clarity. Today, the city has a transparent, market-aligned structure that strengthens recruitment and retention, builds employee trust, and supports long-term workforce sustainability. 

If your organization is grappling with similar compensation challenges, MGT can help. Our proven approach delivers fairness, transparency, and confidence in your pay structure, ensuring you are positioned to recruit, retain, and thrive.

Contact Rachel Skaggs at 815-303- 2187 or rskaggs@mgt.us to learn how MGT can revolutionize your compensation strategy.