Minutes 03/19/1996 - Laserfiche WebLink

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March 19, 1996 Investment in employees is more than providing salary increases. Funding for training and professional development is recommended to more than double, recognizing that a continuously improving labor force is best positioned to make positive changes-in an organization. Included in this increase is $30,000 for employee tuition assistance. Staying current with industry standards and technological changes, and learning from the best practices of other cities and businesses are critical for improving the efficiency and effectiveness of operations. In a service industry, an organization is only as good as its people. To maintain and improve our employees' capabilities requires on-going :Lnvestment. Performance-based Pay With increasing employee commitment toward the organization's goals, a positive system of reward and recognition, based on performance, is important for reinforcing desired behavior. With this in mind, a system of performance-based pay (PBP) is currently under development. To develop a complete and equitable system will require a sustained effort for several years. As the PBP system is phased in over the next two years, an interim method is necessary for providing deserved salary increases to employees. Salary increases in FY98 for Deputy City Managers and Department Heads will be based on performance. Though performance accountability will begin at the top of the organization, there will be no greater reward for management than that available to the total employee population, Employee Compensation Two separate issues must be discussed when addressing employee compensation: salary increases and maintaining competitiveness within the job market. Salary Increases I am very pleased that this budget includes approximately $1.5 million for salary and benefit increases for city employees. For FY97, all employees within the salary range of their respective grade will receive a fixed dollar increase. The fixed dollar increase is computed as 3% of the middle of each grade range. This fixed dollar method provides an equitable increase within job classifications as an interim step while the city moves to performance-based pay. The FY98 budget includes a total of $900,800 toward salary increases. Maintaining Market Competitiveness In FY96 a market pay system was implemented to replace the previous longevity-based system. To continue to attract well-qualified new employees, the market ranges for salaries must remain competitive within the regional job market. The salary schedule is reviewed annually to determine the amount of adjustment required based on economic indicators and the city's hiring experience. Effective July 1, 1996, the salary ranges for each grade are proposed to increase by a 2.6% market adjustment.