5.a) Staff Report-Employee Pay Plan-Compensation � �
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SCANDIA
Staff Renort
Date of Meeting: July 9, 2013
To: City Council
From: Kristina Handt, Administrator
Re: Pay Plan
Agenda Item #: S.a)
Background:
At the March work session, the Council directed staffto begin preparing a grade and step pay plan.
The plan was to include many steps with smaller increases.
At the April work session the Council agreed that Columbus, Bayport, Rush City, Lindstrom,
Newport and Chisago City would be used as comparable cities for the purposes of establishing the
maximum market value for each job classification. Staff contacted those cities and used the
information to create the proposed Appendix A to the Compensation Plan.
Also at the April work session, staffprovided a listing of point assignments for each position based
upon the State Job Match Evaluation System. After contacting the comparable cities staff learned,
that they do not include the temporary, seasonal positions in their pay plans. Instead what is most
common is for the Council to establish a range for all seasonal workers (Chisago City for example is
$8-12/hr, DOQ) and then have the Council determine the amount within that range at the time of
hire. Therefore the seasonal positions were removed from the job classification and point system.
At the June work session the Council reviewed the proposed grade and step plan tied to
performance reviews and suggested the staff revisit merit pay plans.
Issue:
What compensation policy should the City adopt?
Proposal Details:
Included in your packet is the proposed City of Scandia Compensation Policy that was reviewed
at the June work session. It includes a brief introduction and notes the goals of the policy.
I contacted the League of Minnesota Cities for examples of inerit pay plans in other
communities. They provided the attached examples from Eden Prairie, Arden Hills, Minnetonka
and Maple Grove. At the League's suggestion I also contacted the City of Woodbury and
obtained a copy of their policy also attached. I've included a memo from HR staff at the League
regarding the pros and cons of a merit plan. League staff also suggested a legal review before
any policy is adopted. Once the Council determines which policy it would like to adopt I will
have the City Attorney review it before a final vote.
As you can see, all of these examples use merit pay in addition to a step increase or adjustments
to the base pay with the exception of Arden Hills which has a wage scale combined with a
performance review(similar to the example discussed in June). Arden Hills has language
describing in more detail what would happen if an employee did not have a satisfactory
performance review. The Council may want to consider adding this language to the proposal
discussed in June if it is advanced.
If the Council does not like any of the examples provided, they may also consider adopting a
simple policy that wage increases are tied to average increases in the Consumer Price Index, as is
done for determining Council pay. Last year CPI was 2.1%, in 2011 it was 3.2%, in 2010 it was
1.6% and in 2009 it was -0.4%.
Fiscal Impact:
If the proposal discussed in June were implemented as described, the impact to the 2013 budget
would be approximately $1,350. The impact to the 2014 budget would be approximately $7,500.
If the merit pay plans described in any of the other cities included with this report were adopted,
the impact to future budgets would be more than that stated above because the merit pay is in
addition to step increases or cost of living adjustments.
Options:
1) Direct staff to place a policy on the July 16`" Council meeting for adoption.
2) Amend a policy and then direct staff to place it on the July 16th Council meeting for
adoption or bring back to future work session.
3) Determine pay increases based upon CPI, as is the policy for the Council.
4) Do not move forward with adopting the policy at this time.
City of Scandia Compensation Policy:
The City of Scandia intends to establish, administer, maintain and regularly update an
internal job evaluation hierarchy that is consistent with the Local Government Pay Equity
Act. The city also intends to establish, administer, maintain and regularly update a pay
structure that is appropriate to the breadth and depth of services being offered to and
provided for the community being served and is also affardable within available
resources. Finally, the city intends to maintain supplemental benefits (insurance,
holiday/paid time off schedules, etc) that are competitive and also affordable within
available resources.
This policy establishes the guidelines for all city positions with the exception of elected
officials and temporary or seasonal positions. Compensation for seasonal and temporary
employees will be set by the City Council at the time of hire, or on an annual basis.
This policy is directed at three primary goals:
➢ To attract and retain qualified and responsible personnel for the positions covered
under this policy;
➢ To create and maintain internal equity between positions compliant with the
Minnesota Local Government Pay Equity Act and all other applicable local, State
and Federal laws and regulations; and
➢ To do so efficiently and effectively thereby being fiscally responsible to the
interests of the taxpayer.
Compensation Structure:
Compensation is based on wage/salary grades and steps within the salary grade. For any
position subject to this policy, compensation must be assigned using an eleven-step grid
within each salary grade, with an increase of 20% from the minimum to the maximum
step equally distributed among these steps. In determining or evaluating compensation
levels, the City Administrator must maintain a schedule of comparative compensation
amounts for all positions covered under the policy. The City Council will determine the
appropriate market to be used in developing this schedule and in supplemental
compensation reviews.
A new employee must be hired at the pay grade minimum whenever possible. The City
Administrator or appropriate department head may recommend the new employee be
hired at a rate up to and including Step 4 of the pay grade for his/her classification,
subject to approval by the City Council.
A probationary employee may advance to the next pay step after satisfactorily completing
six months of employment which meets performance expectations, subject to approval of
the City Council. Every year thereafter, subject to approval by the City Council, on the
employee's anniversary date, an employee may advance to the next pay step after
satisfactorily completing another year of employment which meets the performance
expectations until he or she reaches the grade maximum. Determination of satisfactory
performance must be recommended by the immediate supervisor on forms prescribed by
the City Administrator and subject to final approval of the City Council.
Actions Taken to Review, Update and Maintain the Plan:
Elements of the plan will be reviewed annually to determine the degree o which it remains
consistent with the city's total compensation philosophy. Actions to be taken may include:
1. Review, verification, and any required updating of job descriptions for all
positions covered by this policy.
2. Review, verification and any required updating of job evaluations on all positions
covered by this policy, following established reclassification policies and
procedures.
3. Review, verification and consideration of current market survey data collected
from the cities selected for comparison, ensuring that there are no questionable
data that may give an incorrect pattern of pay for one or more positions.
4. Review and consideration of appropriate changes to the established base pay
structure based on patterns of current market survey data, ensuring that there will
be continuing integrity in administration of the current or revised pay structure.
5. Review and consideration of changes to the city's supplemental benefits covering
paid time off.
6. Review and consideration of required andlor appropriate changes to the written
description of the plan.
The pay grades and rates established by this policy must be annually confirmed by the City
Council through adoption of the budget and resolution establishing the grades and steps for each
job classification.
General Provisions:
Nothing within this policy is a guarantee of employment and compensation, and nothing is to be
construed as a commitment to continue the City of Scandia Compensation Policy for more than
one calendar year at a time. All components of this policy are set forth as guidelines to assist in
establishing appropriate compensation. The provisions of this policy supersede all other
compensation considerations. Compensation schedules will be maintained and updated as
appendices to this policy in accordance with policy provisions.
�� EN HILLS
Arden Hills Employee Salary Compensation Policy
Progression through the wage scale for all City of Arden Hills full-
time employees will be based on years of service and satisfactory
performance. Employee performance will be evaluated on an annual basis.
Step increases shall occur on an employee's anniversary date and will be
dependent upon the employee's performance evaluation. Employees who
achieve a satisfactory or above satisfactory performance rating will move
to the next highest step on their respective wage scale. Employees who
receive a performance rating of below satisfactory will remain at their
existing step and be ineligible for any increase provided to the step
changes in the wage schedule. Employees who receive a below
satisfactory rating will be re-evaluated in six (6) months to see if their
performance reaches the satisfactory level, if so the employee will move to
the next step, however, the increase will not be retroactive.
ADOPTED by the Arden Hills City Council, August 26, 2002
ARTICLE 8
COMPENSATION PLAN
City of Maple Grove
Rec'd 7-1-2005
It shall be the responsibility of the Human Resources Director to develop and maintain a
Compensation Plan in accordance with state and federal laws for all applicable
positions within the City, subject to review and approval by the City Administrator and
City Council.
The Compensation Plan provides that employees will be assigned an appropriate pay
range which corresponds to their job classification. Pay ranges carry minimum and
maximum rates of pay. An employee shall not be paid less than the minimum rate nor
more than the maximum rate for their assigned job classification, except in certain
circumstances as may be referenced in this policy.
Administration of Compensation Plan
New Hire
1. New regular full-time and part-time employees will generally be hired at the
minimum rate of the appropriate pay range. The Human Resources Director
may recommend a starting salary up to and including mid range of the
appropriate salary level based on prior comparable experience and/or
changing market conditions. Any recommendation for a pay rate over the mid
range of the appropriate salary level requires approval by the City
Administrator.
2. The date for additional merit increases for an employee new to City
employment shall be at the successful completion of the probationary period
and, therefrom, at one year intervals until such time as the employee reaches
the maximum rate of pay for the assigned classification.
Promotion
1. When an employee is promoted they shall receive the minimum rate for the
new job classification. If said minimum is less than their former rate, the
employee shall be paid at the next increment step above their former rate.
Additionally, if by being promoted an employee would lose monetarily
because of a missed merit increase under their old salary level, the employee
will be paid 2 increment steps above their former rate, provided there are 2
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steps available in the range to move to as the employee cannot be paid more
than the maximum rate of the new pay range.
2. The date for additional merit increases for an employee promoted shall be 12
months from the effective date of the promotion and, therefrom, at one year
intervals until such time as the employee reaches the maximum rate of pay
for the assigned classification.
Upward Reclassification
1. If an employee is in a position which is reclassified upward, they shall receive
the minimum rate for the new classification. If said minimum is less than their
former rate, the employee shall be paid at the next increment step above their
former rate.
2. The date for additional merit increases for an upward reclassification shall be
12 months from the effective date of the reclassification and, therefrom, at
one year intervals until such time as the employee reaches the maximum rate
of pay for the assigned classification.
3. If however, by having their position reclassified upward, the employee would
lose monetarily because of a missed merit increase under their old position
level, the employee would be eligible for additional merit increases on their
scheduled anniversary date for their old position classification and, therefrom,
at one year intervals until such time as the employee reaches the maximum
rate of pay for the new assigned classification.
Downward Reclassification
1. If an employee is in a position which is reclassified downward and said
employee's salary is higher than the maximum rate of pay for the new
classification, that employee's salary shall be frozen and the employee will
not be eligible for future pay increases until the maximum of the salary range
for the new job classification is adjusted beyond the employee's current
salary.
2. If an employee's salary is lower than the maximum rate of pay for the new
classification, the employee would either be placed at an established step in
the new classification equal to the current rate of pay, and if there is no
equivalent established step, the employee would still continue to receive their
current rate of pay until such time they are eligible for additional merit
increases as indicated below. In this situation, the employee would be
eligible to move to the next established pay step above their current rate of
pay on the date they become eligible for a merit increase as indicated below.
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3. The date for additional merit increases if the employee is not yet at the
maximum of the new pay scale, shall be 12 months from the effective date of
the reclassification and, therefrom, at one year intervals until such time as the
employee reaches the maximum rate of pay for the assigned classification.
Transfers
1. If an employee is transferred to a new position with an equivalent pay scale,
the employee's current rate of pay shall remain unchanged.
2. The date for additional merit increases if the employee is not yet at the
maximum of the new pay scale, shall be 12 months from the effective date of
the transfer or on the date that they would have been scheduled for a merit
increase in the previous position, whichever occurs first, and, therefrom, at
one year intervals until such time as the employee reaches the maximum rate
of pay for the assigned classification.
Demotion
1. If an employee is demoted, and their salary is more than the maximum rate
established for the class of the new position, the employee's rate of pay shall
be reduced to the maximum rate or a lower step of the range of the class to
which the employee is demoted, such determination to be made by the
Human Resources Director in consultation with the City Administrator.
� 2. If the employee's rate of pay of the former class falls within the new range of
pay and is at an established step in the range of the new class, the
employee's rate of pay shall either remain the same or shall be adjusted to a
lower step, such determination to be made by the Human Resources Director
in consultation with the City Administrator.
3. If the employee's pay rate of the former class does not correspond to a step
in the new pay range but still falls within the new range of pay, the employee's
pay rate shall be adjusted to the closest established step which is lower than
the current rate of pay or shall remain the same, such determination to be
made by the Human Resources Director in consultation with the City
Administrator.
4. The date for additional merit increases if the employee is not yet at the
maximum of the new pay scale, shall be 12 months from the effective date of
the demotion and, therefrom, at one year intervals until such time as the
employee reaches the maximum rate of pay for the assigned classification.
Interim or Actinq Appointments
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1. Acting pay for an employee may be requested by the Department Director
whenever an employee is designated by their Department Director to perform
all of the duties and responsibilities of a non-union position in a higher
classification for a period exceeding two full consecutive pay periods and
continuing for a duration of less than 6 months, unless a longer duration is
approved by the City Administrator.
2. A higher classification is defined as a position which is 2 or more pay levels
above the employee's current pay classification.
3. The employee in the acting appointment shall be eligible for a temporary
increase of 5% of their current actual salary or placement at the minimum
step of the higher salary range, whichever is greater. If approved by the City
Administrator, the acting pay will be implemented retroactive to the first day of
the acting appointment and continuing for the duration of the assignment.
4. An employee classified as non-exempt who assumes an acting appointment
which is also non-exempt shall continue to be eligible for overtime
compensation. An employee classified as non-exempt who assumes an
acting appointment which is an exempt classification, shall not be eligible for
overtime compensation while perForming the duties of the acting appointment.
5. Any acting appointment assumed by an employee classified as exempt, will
generally also be an exempt classification, therefore the employee would be
ineligible for overtime compensation just as they are in their regular position.
6. In the event a merit increase or annual adjustment occurs during the time an
employee is working in an acting assignment, the acting pay would be
adjusted accordingly taking into account any pay increases the employee
would have received during the course of the acting assignment. When the
employee returns to their regular position, they would be compensated at
their old rate plus the amount of any merit increase or annual adjustment that
would have occurred while they were in the acting assignment.
7. In order for the employee to qualify for the acting pay outlined in this section
of the policy, the employee's Department Director must explain in writing the
duties the employee will be assuming and the expected duration of the
assignment. This explanation will be submitted to the Human Resources
Director for review, with final review and approval by the City Administrator
prior to becoming effective.
8. Any acting appointments to a Director level position, shall require a
recommendation by the City Administrator to the City Council for approval.
Frequencv of Pav Increases
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1. Increases in salary shall generally be considered on annual basis to
successive established steps in the assigned classification in accordance with
the rules established above for the administration of the City's Compensation
Plan.
2. Pay increases shall be made on the basis of performance and are dependent
upon a written recommendation by the Department Director, through the use
of the employee evaluation form as provided by the Human Resources
Department.
3. Pay increases may be granted by the City Administrator more frequently than
the schedule allows when an employee's exceptional qualifications and/or
performance and/or unusual employment conditions make such action
desirable. Consideration for additional pay increases shall require a written
recommendation by the Department Director, which has been discussed with
and is supported by the Human Resources Director. The amount of any
additional pay increase however, will be as indicated in the established
assigned pay range for the position and shall not exceed the maximum step
of the assigned pay range.
Exceptional Service Pay
1. An employee who is at the pay range maximum for his/her job classification
may be eligible to receive a lump sum payment at the time of his/her annual
review, provided they have demonstrated exceptional performance over the
past year as documented by their Department Director in a written evaluation.
2. Any recommendation for exceptional service pay must be provided in writing
by the Department Director to the City Administrator, with supporting
documentation of the exceptional performance demonstrated by the
employee over the past year. The City Administrator in consultation with the
Human Resources Director, shall review the documentation for final approval.
3. The actual amount of the lump sum payment shall be determined by the City
Administrator in consultation with the Human Resources Director, subject to
approval by the City Council, and will be calculated as a percentage of the
employee's annualized base salary. The percentage used in the calculation
shall not exceed what may be determined by City Council to be the annual
adjustment percentage applied to the appropriate pay ranges, but can be any
amount up to this established percentage limit.
Pav Schedu/es for Temporarv Emplovees
1. Temporary employees may be eligible for step increases if assigned to a
temporary classification which has a pay schedule which provides increases
based on the number of hours worked in the assignment.
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2. If eligible for step increases, all hours worked by a temporary employee in the
assigned classification shall be counted and applied towards the required
level to receive a step increase unless there is a break in the work schedule
of at least 6 months. A temporary employee's hours would revert back to
"zero" (start over) for pay step purposes if the person did not work for a period
of 6 months or more.
Performance Reviews
1. Supervisors shall review an employee's job perFormance through the use of
an employee evaluation form as provided by the Human Resources
Department, at times specified above, for any additional merit increases. The
completed evaluation form must be reviewed and signed by the Department
Director and submitted to the Human Resources Department prior to the
implementation of any recommended merit increase.
2. A copy of the completed evaluation shall be provided to the employee and
placed in the employee's personnel file.
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History of MERIT
The Minnesota Legislature adopted legislation in 1996 that reduced the amount
of financial (HACA) aid for cities, and created a new type of funding mechanism
called Local PerFormance Aid (LPA). To qualify for the new aid, cities and
counties had to demonstrate they were developing and implementing
performance measures. During this same time, the Minnetonka City Council was
asked to consider adding a perFormance pay component based on measurable
goals to the city's non-union employee compensation program.
As a result of the council's discussions on these issues, an employee committee
was formed representing a diagonal slice of the organization (non-union
employees only). The committee worked diligently for several months and
ultimately designed an integrated program that measured performance at three
levels: organization, department, and individual. This program was subsequently
renamed MERIT, and the committee was named the MERIT committee.
The primary goal of the MERIT program is to ensure that employees'
compensation reflects the standard of excellence shared in the City of
Minnetonka. MERIT is an acronym and is defined below.
M-E-R-I-T Defined
Market— One of the main objectives of the MERIT program is to enhance the
city's ability to recruit and retain valued employees. To do this, the program
ensures that the organization's pay structure remains competitive in the
marketplace.
Excellence Recognition — Excellence is highly valued in Minnetonka, and this
standard is recognized. Minnetonka employees consistently perform at the
highest levels, and the program rewards them accordingly. A three-tiered system
recognizes outstanding performance in the organization. The three tiers are
organizational, departmental and individual.
Integrated —The overall MERIT program is integrated so that the many pieces
effectively complement each other. Although each component is unique, they
work together to provide employees with a fair level of total compensation.
Teamwork—While each individual has unique needs that will be recognized, the
MERIT program reinforces the city's shared value that teamwork is essential to
our common success.
Schedule
The MERIT program timetable goal is to have one of the three components occur
on a quarterly basis as follows:
• First Quarter— Organizational component (finalized in April).
• Second Quarter— Departmental component (finalized in July).
• Third Quarter— Individual component - feedback finalized in October and
market finalized in December.
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Introduction
In April 1999, the Minnetonka City Council approved the implementation of the
organizational component of the MERIT program. The focus of the overall city
component is on performance related to achieving the city's strategic goals. In
this way, staff will be evaluated on how well they meet the values of the
community, as established by the city council. An annual survey completed by
the city council, advisory boards and appropriate agencies and groups, along
with the annual community survey, are tools to measure the organization's
success.
Measures
For each strategic goal, the city council rates staff's performance with a weight of
one-third of the grade for that goal. The remaining two-thirds of the grade
consists of a combination of items: feedback from the applicable advisory
board/commission, results from the community survey, and where appropriate,
objective measures.
Timeframe
More exact dates and the work plan for the organizational component are
provided in the annual MERIT events calendar. The following is a general
timeline for the more significant elements:
• January— review language in community survey and internal surveys.
• February —work with survey consultant and staff to finalize community
survey.
• March — send internal survey, perform community survey, and calculate
results.
• April — present information to the city council.
• April — present information to employees and celebrate success.
• May— community survey consultant presents survey results to city council.
Grading Methodology
The grades for each strategic goal and the quality of life measure will be added
and then divided by eight to obtain the final grade. The grading scale is included
below.
Letter Scoring
Grade Grade Ran e
A+ 4.00 4.00
A 4.0 3.835-4.00
A- 3.67 3.50-3.834
B+ 3.33 3.165- 3.49
B 3.0 2.835- 3.164
B- 2.67 2.50-2.834
C+ 2.33 2.165-2.49
C 2.0 1.835-2.164
Dependent upon the final grade, the maximum performance pay each employee
receives for the organizational component is based upon which employee group
they belong to. Current maximums are as follows:
Em lo ee Grou Maximum Amount
Non-Union $500
Police Ser eants $500
Police Officers $100
Public Safet Dis atchers $100
Public Service Workers $100
City Council Presentation
The director of administrative services compiles the survey and other relevant
data. The director prepares the council letter and presentation and places this
item on a council meeting agenda in mid to late April.
Organizational MERIT Pay
The maximum MERIT pay provided in the organizational component is $500 for
non-union employees and sergeants and $100 for police officers, public safety
dispatchers and public service workers. A grade point is calculated, and the
percentage is applied to $100 or $500 to determine the actual dollar amount for
that grade.
Eligibility
To qualify for organizational pay, an employee must be employed with the City
on March 31 of the plan year and have completed their probationary period. Pro-
rated amounts will be determined for part-time employees and employees with
less than 12 months tenure based on the percentage of full-time schedule and on
full months worked in previous year.
Organizational Celebration
The MERIT committee sponsors the annual organizational component
celebration. One citywide meeting is held, usually in late April, and refreshments
are served. The city manager reviews the city's "report card," explaining how the
organization scored in each performance measure. The organizational
component MERIT pay is included in the next payroll check for eligible
participants.
Document Retention
The director of administrative services retains a file with notes and miscellaneous
data for each of the plan years. The paper copy of the file is destroyed after three
years. The council letter and supporting materials will be kept as indicated by the
city's document retention schedule.
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Introduction
In April 2000, the city council approved the format recommended by the MERIT
committee for the departmental component of MERIT. The goal of the
departmental component is to provide a process whereby the accomplishment of
previously agreed upon department goals and objectives would be objectively
measured and appropriately rewarded. It is a tool to recognize performance that
exceeds expectations, not merely reward departments for doing business as
usual. The performance of the entire team (department) impacts the success of
the outcomes.
The department component document is a planning tool for departments to help
them focus resources on "what's important." Preparing the document provides an
opportunity on an annual basis to reflect on what has been accomplished and
what goals should be developed for the year ahead.
Setting Goals (Developing Indicators)
• Programs and Services. The design of the departmental component begins
with each department identifying the programs and services they provide to
the customers they serve both within the organization and the community.
• Program Purpose. For each of the programs and services identified, a
program purpose statement is written. The program purpose statement
identifies the outcome desired for each program/service.
• Indicators. Indicators are specific, measurable, time-bound tasks relating to
the program statements. Department members agree they will accomplish
these indicators within a 12-month period (June 1 through May 31). The
number of indicators will vary by department depending upon the range of
services provided. If indicators are directly related to the city's strategic
goals, this is noted below the indicator.
Identifying Appropriate Indicators
The following points are considered when departments develop new indicators:
• Is the indicator specific and relevant to the program purpose statement?
• Is the indicator measurable and time bound?
• Is the indicator understandable?
• Does the indicator duplicate or overlap another?
• Is the indicator a stretch, yet obtainable?
Customer Service Surveys
The city believes it is important to ask customers what they think. Customer
service surveys are an important element in the department component as they
help to determine the success of the programs and services provided. Once the
survey results are known, information is available to determine benchmarks for
future indicators. Surveys are used for many indicators as a method of providing
a baseline in which to measure progress in the future.
Administration/Employee Development
Similar indicators are included for each department involving administration and
employee development. These indicators could include: holding regular
department meetings, encouraging employee training, looking for work/life
balance opportunities, participating in safety initiatives, living the shared values,
etc.
Shared Indicators
The leadership team discusses and agrees to include specific indicators that
reflect a citywide effort regarding a particular issue or topic.
Calibration
Indicators need to be specific and relevant to the program purpose; measurable
and time bound; understandable and a stretch, yet obtainable. In order that the
process is fair across departments, each department director meets with the city
manager annually to review their department's draft indicators for the upcoming
year. These meetings are normally held in conjunction with the annual
department budget meetings.
After the city manager's review of the draft report, departments finalize their
indicator document and submit an electronic copy to the personnel services
administrator.
Outcome Reporting
At the end of the reporting period, departments prepare an outcome report
explaining the progress made in accomplishing the indicators they identified the
previous year.
• Outcomes describe the significance of the indicator and clearly explain the
role staff played in reaching the goals of the program.
• Outcomes are specific. Instead of, "Agendas are posted on the web site at
regular intervals," it states, "Agendas are posted on the web site each
Friday prior to a council meeting."
• Departments advise the IT division if an indicator involves technology
including the city's web site and the intranet.
• Professional jargon is avoided so that the information can be more easily
understood.
• Departments report outcomes in a uniform manner and format.
The outcome reports are compiled into one document that is provided to the city
council by the city manager each year.
Timeframe
More exact dates and work plan for the departmental component are provided in
the annual MERIT events calendar (attached). The program year runs from June
1 through May 31. The following is a general timeline for the more significant
elements:
Indicator Preaaration:
June — Departments prepare and submit draft indicators to personnel services.
July— Departments meet with the city manager to review draft indicators.
Outcome Preaaration:
April — Departments advised of internal and community survey results.
June — Departments prepare and submit outcome reports to personnel.
June — City manager reviews outcome reports; final scores determined.
July — City manager sends final outcome report to the city council.
July — Departmental MERIT pay is distributed.
August— Departments celebrate.
Grading Methodology
Departments will self-score each of their indicators. The scoring system is
described below:
0 = Little or no progress has been made to date in achieving the desired
outcome.
1 = Significant progress has been made in achieving desired outcome.
2 = Desired outcome has been achieved.
The number of indicators varies by department depending on the range of
services provided. If a department has 20 indicators, the maximum score
possible for that department would be 40. Achievement of results is expressed in
percentages. For example, if a department with 20 indicators achieves a score of
36, they have a 90% achievement percentage.
Extra Credit
Departments have the opportunity to submit "extra credit" if, for reasons beyond
their control, achievement of some of the original indicators was not possible.
Extra credit may also be used in the event unforeseen achievements occur
during the previous 12-month period. Departments can earn up to ten percent of
their total indicators as extra credit. For example:
• If there are 30 indicators, the department can have three extra credit
indicators. Since each indicator is worth a maximum of finro points, the
department can earn a total of six extra credit points.
• If a department has 60 indicators, they can have six extra credit indicators
worth 12 points.
Eligibility
To qualify for departmental MERIT pay, an employee must be employed with the
city between June 1 and May 31, completed probation, and still employed as of
May 31 of the plan year. Pro-rated amounts will be determined for part-time
employees and employees with less than 12 months tenure based on percentage
of full-time schedule and on full months worked.
Departmental MERIT Pay
The maximum percentage for departmental component MERIT pay is shown in
the table below. The percentage of the maximum each member of a department
will receive is the same as the department's achievement percentage.
Participating Employee Pa Group Maximum Percenta e of Base
Non-union 2.5%
Police officers 1.5%
Ser eants 2.5%
Public Safety Dispatchers 1.5%
Public Service Workers 0.5%
For example: Jane Smith's annual salary is $35,000. Jane is in the Local 49 pay
group, and has worked the entire past year. Her department achievement
percentage is 98%. The maximum percentage of base for the Local 49 pay group
is .5%; .5% of$35,000 is $175; 98% of $175 is $171.50. Jane's departmental
component MERIT pay is $171.50.
Department MERIT pay is included in a July payroll check for eligible
participants.
City Council Distribution
All of the individual department outcome reports are compiled into one large
report with an introductory chapter added. The city manager e-mails the compiled
report (in PDF format) to the city council.
A copy of the outcome report is also sent to the MERIT Committee and the
leadership team and posted on the intranet.
Department Celebrations
Departments celebrate their success. However, restrictions apply regarding the
use of city funds for these celebrations. Refer to the relevant section of the City's
purchasing policy regarding these restrictions. Each department decides how
and when to celebrate.
Document Retention
The city clerk will be responsible for archiving the annual departmental
component outcome report. The compiled report will be imaged and indexed
after its distribution to the city council.
�wol�v�olu.a� Cov�.powewt - �eeolbac�,
Introduction
Everyone needs to know how he or she is doing at work. They need the
recognition of a job well done and need to know what opportunities there are that
would help them do the job better. Providing feedback to a coworker, supervisor,
direct report, or department director provides information they need to
continuously learn and grow in their professional lives.
The individual component of the MERIT program is a tool to provide meaningful,
honest feedback about the performance of employees in the non-union pay
group. The individual component provides a 360-degree system that involves
feedback from an employee's supervisor, co-workers and direct reports, if
applicable. An employee who is not a member of the non-union group may be
asked to participate in the program by providing feedback for someone they work
with on a day-to day-basis.
In October 1999, the city council approved the implementation of the individual
component of the MERIT Program. This component was implemented in
December 1999, and eligible employees received up to $500 based on the
results of the evaluation process. Based on employee feedback, pay is no longer
linked to the individual component of MERIT.
The elements included in Feedback are: the organization's shared values, the
individual's performance goals, the supervisor's role, and the opportunity to
provide additional comments.
Shared Values
A number of year's ago, the organization developed a set of shared values. It
was agreed these values would serve as a guide in developing and maintaining
relationships with customers and co-workers. These values are included in the
feedback program. A brief definition of the shared values is included below, and
a more detailed description can be found in the attached shared values
document.
Authentic Communication
We believe in:
• Meaningful finro-way communication
■ Being "in the know"
■ Open-minded responses to feedback
■ Healthy disagreements
■ Being direct in a respectful way
Contaaious Enthusiasm
■ We have a positive attitude toward our work, each other, and our
customers.
■ Humor and fun occur frequently, but never at the expense of others.
■ We don't take ourselves too seriously.
Shared Success
■ We freely celebrate our successes in our workplace.
■ Each of us feels our job is important and that our opinions count.
■ We are frequently recognized and praised for doing good work.
Outcome Focused Teamwork
■ We clearly understand what outcomes are expected of us.
■ Our work reflects our focus on excellence and on providing exceptional
customer service.
■ Teamwork and cooperation are the norm.
Adaptable Learnina and Innovation
■ We support on-going learning, recognizing and growing from our mistakes.
■ Work processes and systems are examined and improved to create service
enhancements.
■ Every day we have an opportunity to use our individual talents to do good
work.
Healthy Human Relationshi�s
■ We take responsibility for our actions.
■ We do what we say we are going to do.
■ We are fair and reasonable.
■ We support work/life balance.
■ We strive to maintain a healthy and safe working environment.
Preparing Performance Goals
On an annual basis, employees and supervisors meet to develop goals for the
upcoming year. A year later, during Feedback, employees receive comments
about the accomplishment of these goals.
When preparing perFormance goals for the coming year, employees identify the
most important duties of their position and develop goals, action steps or tasks
relating to these duties. There might be a new program or project to develop, or
an existing program or project to finish. The focus of the goals may be the
implementation of a different, more efficient way to perform a duty or
responsibility. The goals relate to the purpose of the position as noted in the job
description. Additional guidelines for preparing performance goals are noted
below.
• During the feedback report review meeting, the employee and supervisor
identify three to six goals, expectations, objectives, action steps or tasks to
accomplish in the upcoming year.
• The employee and supervisor talk about any special expectations to work
on in the upcoming year. This could be one of any number of topics such as
participating in a course of learning, working on changing a particular
behavior, or improving a work-related relationship. Only the supervisor
provides feedback on this special expectation.
• The computerized goals form has room for up to six goals. An employee
needs to list a minimum of three. Room is available to add an "extra credit"
goal toward the end of the year.
Supervisor's Role and Employee Goals
During the preparation of the perFormance goals phase of Feedback, the
employee and supervisor determine what the supervisor's role will be in helping
the employee be successful in achieving their goals. The employee is the only
person rating their supervisor on this item during Feedback.
Computerized Feedback Form
A computer software package was developed to enable employees to complete
feedback electronically. Annual training is provided to help employees with the
software.
The software calculates a weighted average for each person's compiled
feedback. The following is the weighting formula on the feedback form:
Supervisors
Immediate supervisor and their supervisor (if appropriate) 50%
Direct Reports 30%
Co-workers 20%
Non-supervisors
Immediate supervisor and their supervisor (if appropriate) 60%
Co-workers 40%
Feedback Begins
The following are the key steps in the Feedback process. Personnel Services will
send out "Tip Sheets" during this time period describing the process and
reminding employees about deadlines.
• Employees and supervisors have an initial meeting before the beginning of
the finro-week feedback period. They discuss the previous year's goals. This
is the opportunity to add a task, goal, action step that occurred during the
year that wasn't identified during the feedback report review meeting the
previous fall. This is similar to the extra credit process used in the
departmental component.
• Employee and supervisor identify five feedback providers. Feedback
providers are rotated in and out each year. A new one is added to the list,
and a previous provider deleted. At least one of the feedback providers is
the employee's supervisor, and at least one of the feedback providers is
from another department.
• Supervisors receive feedback from all of their direct reports. If a supervisor
supervises more than five people, names are rotated yearly.
• A position is safety sensitive if the duties performed expose the employee to
potential illness or injury. Employee and supervisor decide whether or not
the employee's position is "safety sensitive" and note this on the form.
Providing Feedback
Feedback weeks consists of a finro-week period each fall when feedback
providers receive e-mails requesting them to complete electronic feedback forms
for their co-workers, supervisors or direct reports.
• The first step in completing the electronic form is to identify the correct
relationship befinreen the person providing feedback and the person
receiving feedback. As the information varies depending on this relationship
(supervisor, co-worker, direct report), it is important to identify the
relationship correctly.
• Feedback is anonymous and initials or names identifying the feedback
providers are not used. The exception is the feedback receiver's supervisor;
the supervisor's initials are automatically inserted.
• In the shared values section, feedback providers rate each of the six values.
There is only one comment box for all six values. Comments about how the
employee lives the values (either individual values or in general) are placed
in this comment box.
• In most categories on the feedback form, the feedback provider must
include written comments along with a numeric value. Written comments are
significantly more helpful than raw numbers. Feedback providers provide
honest, helpful comments and suggestions.
• If the feedback provider is unfamiliar with how an employee is doing in a
particular area described in the feedback form, they will indicate "N/A.
• In addition to the shared values, feedback providers rate the recipient's
accomplishment of the goals they identified last year. When reviewing each
goal, the following is considered: quality of work (presentation, content,
accuracy, thoroughness), productivity (quantity of work), timeliness in
meeting deadlines, and written, oral communication skills.
• In the "additional comments" section, examples of how the person makes a
positive difference in the organization are noted. Suggestions are given
about what the employee could do differently that would be of benefit to
themselves and the organization. There is also an additional comments
section.
• A quiet secluded area will be set up for employees who would like to
complete the feedback forms in a quiet location.
Effective Co-worker Feedback
The following are comments about providing productive feedback:
• Comments support ratings.
• Comments are not accusatory, hurtful, or personal. They address behaviors
and the impact these behaviors have on co-workers, the project, etc.
Comments do not address personalities or motives.
• Positive as well as problematic behaviors are noted. The purpose of
Feedback is to provide feedback on things a person does well (to
encourage continuing these behaviors) and on areas that need
improvement (to provide suggestions for improvement).
• Comments are specific and generalities are avoided. Examples of behaviors
are provided. A person who receives a vague comment may have no idea
what they are doing that is causing the perception, nor will they know what
to do to change.
• A possible solution is suggested when a problem is pointed out.
• Comments are as factual as possible without blame. Thought is given as to
how the person receiving the comments will feel when they read them.
• To the extent possible, comments summarize issues already discussed with
the person during the past year.
Providing Feedback to a Supervisor
Employees provide feedback to their supervisor by rating and commenting on
these seven supervisory competencies.
• Freely shares information I need to make decisions and do my job.
• Actively involves me in the decision-making process.
• Helps me to acquire the materials and equipment I need to do my job.
• Communicates goals and objectives so that I know what is expected of ine.
• Encourages me to develop my talents and participate in training
opportunities.
• Supports the organization's value of work/life balance.
• Recognizes my accomplishments in a timely manner.
In addition, employees rate their supervisor on how well they provide assistance
in the successful completion of the employee's goals.
Effective Supervisor to Employee Feedback
The following are comments about providing effective feedback to direct reports:
• Feedback is direct and honest. Comments are specific and examples given
about the employee's actions that support the points being made. The
employee is also provided specifics on what they need to do to improve
perFormance.
• A supervisor doesn't assume they have enough information to accurately
assess those who work for them. Supervisors solicit input from colleagues,
customers and other managers.
• The same criteria or objectives are not automatically used for all employees.
Employees aren't compared to one another.
• The feedback review meeting is important. It is not postponed or canceled.
Adequate time is scheduled and interruptions are not allowed. The meeting
is scheduled in advance so the employee has time to prepare what they
want to say.
• Plenty of two-way communications occurs during the feedback meeting. The
supervisor listens when the employee disagrees.
• Employees are involved in the setting of goals for the upcoming year.
• The feedback process is not treated as the one chance to discuss
perFormance with an employee. Issues are addressed as they arise.
Supervisor Review of Employee Feedback Reports
After the feedback weeks end, personnel services prints a copy of each
employee's compiled feedback report. The copies are given to department
directors. Department directors and supervisors read each feedback report for
their direct reports carefully. If they see any of the following issues, they contact
Personnel Services:
• Comments that are inappropriate (hurtful, obscene, accusatory, etc.).
• No comments included or feedback provider writes a one-word comment or
uses N/A too frequently.
• Comments that cannot be understood (missing words, misspellings, etc.).
• Any comments that make the supervisor feel uneasy.
Personnel Services will discuss the issues with the feedback provider and/or
make changes if appropriate.
Mid-Year Goals Check-in
Employees are encouraged to review their goals on a regular basis, and at least
once a month.
Personnel Services e-mails a reminder with the software link to employees in
early April. By mid-April, employees go into the feedback software and retrieve
their current year's goals. They schedule a meeting with their supervisor to share
information about the progress of each goal.
The employee needs to be logged into the network to update their goals. When
an update has occurred, both the employee and the supervisor receive an e-
mailed copy of the revised goals document.
Timeframe
More exact dates and work plan for the individual component is provided in the
annual MERIT events calendar (attached). The following is a general timeline for
the more significant elements:
A ril Mid- ear review of oals document
August-September • Annual training
• Em lo ee-su ervisor meetin to add
new oal and select feedback roviders
September Feedback weeks (2)
September Pizza lunch
October • Employee-supervisor meeting to review
final feedback report
• Set oals for the u comin ear
November • Signed paper copies of feedback report
and goals document submitted to
personnel services
• Follow-up surve distributed
Eligibility
It will be decided on a case-by-case basis when a new employee should be
included in the feedback process. Generally, employees with less than five
months tenure are not asked to provide feedback to others.
Supervisors evaluate new employees at three and six month intervals using
paper feedback forms.
Pizza Lunch
Administrative services sponsors a pizza lunch following the two-week's of
feedback for everyone who participates in the feedback process.
Document Retention
The employee, supervisor and department director will sign one copy of the
feedback report. The feedback report, along with the next year's goals
document, will be forwarded to personnel services. The assistant city manager
will also sign the feedback report. The report is filed in the employee's personnel
file and kept as provided in the city's document retention schedule.
Participant Survey
Following the conclusion of Feedback, human resources will distribute a
participant survey asking for comments and suggestions. Survey results may be
reviewed with the MERIT Committee and suggestions adopted during the next
year's Feedback.
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Adopted: 11-9-OS Number: CD-ADMIN-1.1
����� Revised: 12-10-08
.. �•
���� �� Mayor: City Administrator:
ry
GOL�NGIL DIREGTI�E For: Non-Represented Employees
Subject: Compensation Plan Policy
PLAN
The City of Woodbury compensation program shall include the following components:
• Classification Plan utilizing an Evaluation System
• Broadband Compensation Plan
• Performance Pay System
PARTICIPATION
Eligible employees shall include non-union exempt and non-exempt full-time and regular part-time
employees.
CLASSIFICATION PLAN
Woodbury City Code Sec. 2-195 requires the establishment and maintenance of a Classification Plan.
Minnesota Statutes 471.991-.999 requires compliance with the Minnesota Pay Equity Act. All positions
have been evaluated and assigned a score based on the following factors:
• formal preparation and experience,
• decision making (impact),
• thinking challenges and problem solving,
• interactions and communications, and
• work environment.
The City shall review the classifications every three years as a part of the Pay Equity Act reporting
requirements and more often, if needed, in response to changes to services,processes and related job
duties. Positions may be reclassified either upward (higher band/salary range) or downward (lower
band/salary range). If the affected employee's current salary is below the new salary range minimum,
his/her salary is increased to the range minimum. Reclassification downward generally results in no
immediate change to the employee's salary. If the employee's salary is above the salary range maximum
for the new classification, his/her salary will be frozen until such time as the salary is within the new
salary range. When the employee's salary is within the new salary range, the employee may be eligible for
an increase based upon the decision of the City Administrator.
Woodbury CD-ADMIN-1 I Compensation Plan
City Council Directive
CD-ADMIN-1.1
Compensation Plan Policy
Page 2 of 5
BROADBAND COMPENSATION PLAN AND PERFORMANCE PAY SYSTEM
The Compensation Plan is a modified broad band system with 13 bands of pay for similarly classified
positions. The wage range has been segmented reflecting three stages of employee development within
each band: Development Stage, Full Performer Stage and Excelled Performer Stage. Each band will have
a minimum compensation rate and a maximum compensation rate. The top wage rate in the Full-
Performer Stage will be considered the maximum wage rate. The pay band width shall be 45%.
1. Current employees will move into the program at the January 1, 2006 rate (2005 rate plus the 2006
annual adjustment if eligible). This will put employees into one of the following three stages of the 2006
Compensation Plan. Subsequent new employee placements will be determined on a case-by-case basis.
Stage General Description
Development Sta�e Beginning, developmental phase
Examples of Development Stage Skill Set (This is not an exhaustive list).
• Has met or will meet the minimum requirements of the position within a specified period of time.
• Successful completion of required physical and psychological examinations including drug testing.
• Ability to read, understand and follow written and oral instruction pertaining to their position.
• Ability to meet demands of the job.
• Ability to communicate as a member of a team.
• Demonstrates understanding of city processes.
• Demonstrates understanding and compliance with City policies, rules and procedures.
• Meets standards and above rating on annual performance appraisal and annual We HELP
performance appraisal rating.
Full Performer Sta�e (Maximum rate) High performance, Meets Position Expectations
Examples of Full Performer Stage Skill Set (This is not an exhaustive list).
• Successful completion of the development stage.
• Demonstrates complete knowledge, skills, and abilities to accomplish the essential duties and
responsibilities of the position.
• Contributes information to colleagues and supervisor.
• Looks for and completes additional tasks either as directed or on own when direction is not
available.
• Shows the ability to work with limited supervision.
• Identifies problems and demonstrates the initiative to perform necessary corrections.
• Meets standards and above rating on annual performance appraisal and annual We HELP
performance appraisal rating.
Excelled Performer Stage Exceptional performance,skill, knowledge
Examples of Excelled Performer Stage Skill Set (This is not an exhaustive list).
• Demonstrates all skills listed under Full Performer Stage Skill Set.
• Exceeds standards and above rating on annual performance appraisal and annual We HELP
performance appraisal rating.
• Independently and successfully performs appropriate work without direction from the supervisor.
Woodbury CD-ADMIN-1 1 Compensation Plan
City Council Directive
CD-ADMIN-1.1
Compensation Plan Policy
Page 3 of 5
• Seeks out and accomplishes additional training and skill enhancement.
• Demonstrates the initiative to develop new methods to accomplish division operations.
• Promotes city policies and is an example of the We HELP philosophy of the City.
• Demonstrates excellent attitude and interpersonal skills, loyalty, dedication and vision to the
organization.
There may be special circumstances, such as classification changes, where a position incumbent needs to
be in an employment stage that is different from their actual circumstances. This placement would need
to occur because of past classification, pay and transition into the new broadband system.
2. Starting on January 1, 2006, on each anniversary date, employees will progress through the wage
band based upon performance, skills, personal commitment,training and education.
The supervisor will perform an annual performance review of the employee utilizing the designated
performance review program and forms.
If the employee is eligible for a wage increase under the Performance Pay Program, the supervisor will
complete an application for the Performance Pay Program and submit the form to the Department Head for
approval. The form will then be submitted to the Administration Department for approval. Administration
will review and evaluate the application within the guidelines of the program and overall departmental use.
The Administration Services Director shall serve as the final signing authority except as outlined below.
The Administration Department shall have the ability to recommend changes to the application back to the
department head and supervisor. If accepted, the changed application is finalized. If the changes are not
accepted, both recommendations will proceed forward to the City Administrator for a final decision and
signature.
Notification to the employee will occur once a final determination has been made on the wage application.
3. The maximum amount of increase for each stage is as follows:
Development Stage Up to 9% Performance Pay increase to the base pay rate
Full Performer Stage Up to 6% Performance Pay increase to the base pay rate_provided
overall performance evaluation of ineets expectations.
Excelled Performer Stage Up to 3% Performance Pay increase to the base pay rate
Provided overall performance evaluation of ineets expectations plus
in year one, and exceeds expectations in year 2 and beyond.
For example, if an employee is within the Development Stage Pay Range, he/she will have the opportunity
on his/her anniversary date to increase their base wage from 0%to 9%. The increase shall be determined
by the supervisory and human resources analysis of performance, skills, personal commitment, training
and education as outlined on the performance pay applications.
Woodbury CD-ADMIN-1 1 Compensation Plan
City Council Directive
CD-ADMIN-1.1
Compensation Plan Policy
Page 4 of 5
Managers of City enterprises shall not be eligible for a pay increase in the Excelled Performer Stage
unless the enterprise's total revenues exceed the total expenditures.
4. Employees shall have the opportunity for the stage percentage increase until their base pay rate has
moved into the next stage. The opportunity for performance pay increase shall be based on the
performance pay percentage increase assigned to that stage.
5. The top wage rate in the Full Performer Stage is considered the maximum wage rate for the
position classification. This rate is based upon a pay philosophy of 100%of the average maximum wage
rate of Stanton V cities with a population of 35,000 and above. This placement is considered to be the
standard or expected step for all employees. All employees need to acquire the qualifications necessary to
meet the requirements of the top wage rate of the Full Performer Stage within a reasonable period of time
as determined by the City Administrator. This achievement is substantial and employees reaching this
goal shall be recognized as highly skilled and talented. The City recognizes the achievement by changing
the pay philosophy as mentioned above so that employees reaching this milestone are compensated
equitably among their metropolitan area peers.
6. If an employee reaches the maximum Full Performer Stage wage rate, the employee is eligible to
receive additional performance pay increases in the Excelled Performer Stage. The Excelled Performer
Stage has been created to recognize those employees whose performance is above average and who wish
to continue to advance in their field. On each anniversary, the employee will be eligible for up to a 3%
base pay increase based upon performance, skill, personal commitment, training and education. There is a
maximum wage rate for the excelled performer stage wage rate at which the employee can no longer
receive performance pay increases.
There is no limit on the number of employees who may progress to a higher step and earn the highest
wage rate available. However,the evaluation performance pay award shall be commensurately more
challenging.
7. Market/annual adjustments to the Pay Plan will be reviewed annually. When the City Council
appropriates funds for a market adjustment, employees will receive the annual market adjustment at or
about the beginning of the year absent extenuating circumstances. Performance must be at least a"meet
expectations" overall rating of performance to receive the adjustment. The city may withhold the market
adjustment based upon performance deficiencies.
When a market analysis for a specific job class indicates the assigned salary range deviates, positively or
negatively, from the market by more than 10%, the job class may be placed at an established salary band
that most closely corresponds to the applicable market rate.
8. The beginning rate for a new employee normally will be in the development stage established for
his/her classification. In unusual situations, a pay rate above the minimum rate may be authorized to meet
difficult recruiting problems,to obtain a person with marked superior qualifications, to correct salary
inequities or give credit for prior service. Employee placement in the full performer stage requires the
approval of the city administrator.
Woodbury CD-ADMIN-1 1 Compensation Plan
City Council Directive
CD-ADMIN-1.1
Compensation Plan Policy
Page 5 of 5
9. Pay increases shall be made effective at the anniversary date.
10. Maximum wages of all bands in the Compensation Plan shall not exceed 90% of the beginning of
the year wage of the City Administrator.
1 l. Subject to economic conditions, budgetary allocation for the Excelled Performer area may be
unallocated if necessary.
12. Police Sergeant appointments shall start at 2% above the top pay rate of a police officer paramedic.
13. The City Administrator may approve anniversary wage adjustments above the level designated for
each plan.
List of Resolutions Pertaining to the Comnensation Plan Policy
Resolution No. OS-268; Resolution No. 06-230; Resolution No. 07-262, Resolution No. 08-227;
Resolution No. 09-245
Woodbury CD-ADMIN-1 1 Compensation Plan
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The City of Eden Prairie has seven pay plans:
• Step Pay Plan for Non-Exempt Staff
• Performance Pay Plan for Exempt Staff
• Police Pay Plan
• Dispatch Pay Plan
• IUOE Local 49 Pay Plan
• Part-time, Temporary or Seasonal (PTS) Pay Plan
Each of these pay plans has been designed to meet the City's compensation strategy
as outlined in a separate document. The Compensation Guidelines cover each pay
plan's basic structure and provide guidance on plan administration. These guidelines
are a supplement to information contained the City's Employee Handbook. In general
the guidelines will serve to:
• Provide information on the salary range structure/design for each plan,
• Cover general administrative guidelines for typical issues, such as hiring rates,
promotions, transfers and demotions,
• Provide more detailed information on pay, benefits or other terms of
employment that apply to members of the pay plan that differ from the general
provisions outlined in the employee handbook, and
• Document the schedule and pay periods for members of a pay plan when
different from the provisions outlined in the employee handbook.
Human Resources is responsible for working with City leaders to implement and
update the guidelines. The guidelines are not absolute rules and the City Manager, or
his/her designee, has the authority to modify or make exceptions to the guidelines
when sufficient evidence exists that this decision will better further the City's
compensation strategy. Each year, Human Resources will work with the management
team to update or modify the guidelines based on the City's current operating
environment.
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Salary Range Structure
Each salary range in the Step Plan has the following structure:
Exceptional Pay
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Minimu�� 2 Step 3 Step 4 Step 5 Step 6 Step 7/ Target Maximum
Rate
Range Minimum: The lowest pay established for positions assigned to the range.
Pay Steps: Increases after a specific length of service in order to move
individual's salary towards the target rate.
Target Rate: The target pay for a fully competent individual in the position. In
this pay plan the target rate is the top step for the position.
Target rate is generally considered to be the market competitive
rate for the position
Range Maximum: The highest rate established for positions assigned to the range
Exceptional Pay: The portion of the range between the target rate and the range
maximum may be used for exceptional pay, as outlined below.
Performance Review
Managers are required to complete a performance review for non-exempt staff prior
to their anniversary date. This evaluation plays an important role in determining the
employee's eligibility for a step increase or exceptional pay.
Salary Increases
Base Pay Adjustment: By January 1 of each year, salary ranges will be reviewed
against market conditions and adjusted as necessary. If the ranges and steps are
adjusted, employees will have the amount of the range adjustment applied to their
base so that they maintain their place within the range. Employees are eligible for
base pay adjustments up to the range maximum only.
Step Increases: On each non-exempt employee's anniversary date, he or she will be
eligible for a step increase until his or her salary reaches the target rate. In addition,
an employee may be eligible for step increase after their six month anniversary
depending on the terms of their offer agreement. To receive a step increase, the
employee must demonstrate positive performance in their position.
Exceptional Pay/Performance: Exceptional performance for employees in the Step
Plan is acknowledged on January 1st. Exceptional performance can be recognized in
one of three ways:
• A lump sum cash award,
• A lump sum personal leave award of up to 24 hours, or
• An increase to the employee's base salary. This option is only available for
employees at or above target rate.
The City Manager and Department Heads will meet during the month of December to
make decisions regarding this award. They will base their decisions on performance
data, market placement, and the annual compensation budget.
All employees are expected to excel in their positions. Exceptional performance
awards are intended to acknowledge an ��exceptional" year and outstanding
performance. The award should not be given in repetitive years for ongoing positive
performance. Exceptional performance could occur in one or more of the following
circumstances:
➢ Employee assumes responsibility for activities or projects outside of the
position profile and/or normally assigned to a higher paid position. This could
be due to the absence of another employee.
➢ Employee assumed leadership responsibility for a special project that required
extensive planning and/or coordination with other
divisions/departments/outside organizations.
➢ Employee has developed a specialized skill or knowledge outside of those
normally required of his or her position. The specialized skill or knowledge has
a direct impact on organization operations.
Other Salary Actions
Hiring Rate: In general, employees will be hired between the range minimum and
step four, depending on their qualifications. Employees can be hired as high as the
target rate in unusual circumstances.
Promotions: An employee promoted to a position with a higher salary range
assignment will typically receive the higher of the following:
➢ The minimum of the salary range, or
➢ The step closest to five percent above the employee's current salary.
In the event that an employee is receiving a salary that exceeds the target rate of
the new position, the employee will receive no increase in base compensation. The
employee's review date will not change; on the next review date, performance in all
positions occupied since the last review date will be taken into consideration in
determining eligibility for a step increase.
Transfers: A lateral transfer occurs when an individual is transferred to a position
with the same grade as the former position. Lateral transfers will not generally result
in a change in salary. The employee's review date will not change; on the next
review date, performance in all positions occupied since the last review date will be
taken into consideration in determining eligibility for a step increase.
Demotion: A demotion occurs when an individual is permanently reassigned to a
position with a salary grade which is lower than the grade of the former position. If
the demotion occurred because 1) the employee was unable to perform satisfactorily
in the position, 2) the result of disciplinary action, or 3) at the employee's request,
the employee's salary will typically decrease to the maximum of the new salary
range. If the maximum of the new range is higher than the employee's current
salary, his or her pay will remain the same. In no case, will the employee's salary
increase as a result of the demotion.
Position Reassignment: Positions maybe reassigned to a different salary ranges as a
result of changes in position responsibilities. If an employee holds a position that is
reassigned to a higher salary range, his or her salary will be placed with the new
range at higher of the following:
➢ The minimum of the new salary range, or
➢ The next highest step in the new salary range.
An employee who is reassigned to a lower salary range may retain their previous
rate of pay up to the maximum of the new salary range. In some cases, the
employee's pay may be frozen until their pay falls within the new range.
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Salary Range Structure
Each salary range in the Performance Plan has the following structure:
Minimum Midpoint arget Rate Maximum
Range Minimum: The lowest pay established for positions assigned to the range.
Range Midpoint: The half way point between the minimum and maximum of the
range.
Target Rate: Pay for a fully competent individual in the position. In most cases,
the target rate will be the midpoint of the range. Target rate is
generally considered to be the market competitive rate for the
position. However, in a few cases, a different target rate within the
range may be established based on prevailing market conditions
for individual positions.
Range Maximum: The highest rate established for positions assigned to the range.
Performance Review
Managers are required to complete a performance review for exempt staff prior by
December 1st of each year. This evaluation plays an important role in determining
the employee's eligibility for a performance increase.
Performance Increases
The City Manager and Department Heads will meet during the month of December to
allocate performance increases to recognize employee performance for the current
calendar year. Individual performance increase amounts depend on:
➢ Annual performance results compared to expectations.
➢ Current salary compared to the position target rate (typically the range
midpoint).
➢ Annual budget established for performance increases based on the City's
financial position and the current labor market.
Employees who are beyond their position target rate will, in general, be eligible for
smaller performance increase amounts. Lump sum or personal leave (up to 24
hours) performance awards may be granted in lieu of all or part of a base salary
increase. Performance increases are effective )anuary lst of the following year.
Performance increases for employees who have less than one year of service on
January 1 will be prorated accordingly.
Other Salary Actions
Hiring Rate: In general, employees will be hired below the midpoint at a salary that
considers their qualifications and other internal relationships.
Promotions: An employee promoted to a position with a higher salary range
assignment will receive an appropriate increase at the time of promotion based on
his or her qualifications and other internal salary relationships. At a minimum, the
increase will place the employee at the range minimum. In the event that an
employee is receiving a salary that exceeds the target rate for the new position, the
employee will receive no increase in base compensation.
Transfers: A lateral transfer occurs when an individual is transferred to a position
with the same grade as the former position. Lateral transfers do not generally result
in a change in salary. The employee's review date will not change; on the next
review date, performance in all positions occupied since the last review date will be
taken into consideration.
Demotion: A demotion occurs when an individual is permanently reassigned to a
position with a salary grade which is lower than the grade of the former position. If
the demotion occurred because 1) the employee was unable to performance
satisfactorily in the position, 2) the result of disciplinary action, or 3) at the
employee's request, the employee's salary will typically decrease to the maximum of
the new salary range. If the maximum of the new range is higher than the
employee's current salary, his or her pay will remain the same. In no case, will the
employee's salary increase as a result of the demotion.
Position Reassignment: Positions maybe reassigned to a different salary ranges as a
result of changes in position responsibilities. If an employee holds a position that is
reassigned to a higher salary range, he or she will maintain his or her current salary
or be moved the minimum of the new salary range, whichever is higher. An
employee who is reassigned to a lower salary range may retain their previous rate of
pay up to the maximum of the new salary range. In some cases, the employee's pay
may be frozen until their pay falls within the new range
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Salary Range Structure
The Police Pay Plan covers the sworn positions of Police Officer, Sergeant and
Lieutenant. The salary range for Police Officer has five steps. The salary structure for
Police Officer is illustrated below.
Step 1 Step 2 Step 3 Step 4 Step 5/Target
Rate
ange inimum: e owes pay es a is e or posi ions assigne o e range.
Pay Steps: Increases after a specific length of service in order to move
individual's salary towards the target rate.
Target Rate: The target pay for a fully competent individual in the position. In
this pay plan the target rate is the top step for the position. Target
rate is generally considered to be the market competitive rate for
the position.
Range Maximum: The highest rate established for positions assigned to the range
Sergeants have a single rate of pay. Lieutenants have a two step pay system. The
first step is the entry rate. Lieutenants move to the second step after twelve months
of positive performance. The top step is considered to be the target rate
Performance Review
Managers are required to complete a performance review for sworn police staff prior
to December 1st of each year. This evaluation plays an important role in determining
the employee's eligibility for a performance increase.
Salary Increases
Base Pay Adjustment: By January 1 of each year, salary ranges will be reviewed
against market conditions and adjusted as necessary. If the ranges and steps are
adjusted, employees will have the amount of the range adjustment applied to their
base so that they maintain their place within the range. Employees are eligible for
base pay adjustments up to the range maximum only.
Step Increases: On each non-exempt employee's anniversary date, he or she will be
eligible for a step increase until his or her salary reaches the top step. To receive a
step increase, the employee must demonstrate positive performance in their
position.
Other Salary Actions
Hiring Rate: Candidates with limited direct experience as a Police Officer will
generally start at the range minimum (Step 1). Candidates with direct experience
generally are placed according to the candidate's previous experience and
qualifications as outlined in the table below.
2 2-3 ears sworn ex erience. General officer ex erience.
3 3-5 years sworn experience with background in special
assignments and development of one or more special
skills.
4 6 or more years of sworn experience. Requires broad
ex erience with s ecial skills in multi le areas.
Promotions: If promoted to Sergeant, employees move to the Sergeant step on the
effect date of the promotion. If promoted to Lieutenant, employees move to the
minimum Lieutenant step on the effective date of the promotion.
Transfers: Transfers generally do not exist within the Police Pay Plan. Employees in
officer, sergeant or lieutenant positions can be assigned to a wide variety of
assignments as a part of their job duties.
Demotions: A demotion occurs when an individual is permanently reassigned to a
position with a salary grade which is lower than the grade of the former position. If
the demotion occurred because 1) the employee was unable to performance
satisfactorily in the position, 2) the result of disciplinary action, or 3) at the
employee's request, the employees salary will be decreased to no more than the
maximum of the new salary range.
Incentive Pay
Incentive pay is given in recognition of positive performance and in place of shift
differentials each calendar year to all sworn police officers. Incentive pay for Police
Officers is 200 straight time hours each calendar year; incentive pay for Sergeants is
160 straight time hours each calendar year. Since these positions are non-exempt,
this amount is prorated and added to each individual's hourly rate. This ensures that
overtime calculations reflect incentive pay, in addition to base pay, as required by
the Fair Labor Standards Act.
Lieutenant incentive pay is 160 hours each calendar year and is paid semi-annually
in a lump sum; half in January (for January - June) and half in July for (July -
December). When an individual obtains the position of lieutenant, incentive pay for
the six-month period in which the promotion occurs will be pro-rated on a monthly
basis. (For example, if an employee moves to lieutenant in February he/she will
receive 5/6 of the incentive pay for that six month period).
Standard Work Schedule
Some assignments within the Police department follow a standard schedule of five
days on/two days off. Employees in these assignments work 8 hour days. Hours
worked in excess of 40 hours per week or eight hours each day are paid at time and
a half or credited to comp time. These employees participate in City holiday schedule
and most City policies apply as outlined in the employee handbook.
Rotating Work Schedules
Most assignments within the Police Department follow a rotating work schedule.
These schedules are summarized in the following table:
Assignment Rotation Hours Shifts each Annual Hours
each Shift Year on Assignment
avera e estimated
Officer One part rotation: 8.75 229 2003.75
5 da s on/3 da s off
K-9 Three part rotation: 9 184 1656
5/4 5/4 6/4
Mall Officer Two part rotation: 9 231 2080
6/2 3/3
Investigator Two part rotation: 9 231 2080
4/3 5/2
Officer Rotation: Officers do not participate in the City holiday schedule and therefore
work an average of 2000 hours per year versus 2080. If the employee's scheduled
shifts fall short of 2000 hours, additional training hours are scheduled to complete
the annual 2080 hour requirement.
K-9 Rotation: K-9 officers work an estimated 1656 hours during the year and do not
participate in the holiday schedule. K-9 officers are also paid 30 minutes at straight
time each day to compensation for canine care. This activity accounts for 182.5
additional scheduled hours. Additional training hours are scheduled to complete the
annual 2080 hour requirement.
Mall Officer and Investigator Rotations: Mall officers and investigators work an
estimated 2080 hours during the year and do participate in the City's holiday
schedule. If the employee's scheduled shifts fall short of 2080 hours, additional
training hours are scheduled to complete the annual 2080 hour requirement.
Overtime: All officers on rotating schedules qualify for overtime in following
situations:
• Actual hours worked on a City designated holiday. Overtime resulting from
work on a holiday may not be converted to comp time. Officers who work any
part of the holiday are eligible for holiday overtime. However, Officers can
only receive holiday overtime for one shift each holiday.
• Shifts that are not part of the employee's regular work schedule.
• Shifts that extended beyond the normal work day
Officers and Sergeants who work on New Years Day, July 4th, Thanksgiving Day or
Christmas will receive double time. This section does not apply to Lieutenants.
Other Police Pay Plan Information
Uniforms: All sworn Police Officers receive a police allowance for $800. Newly hired
Police Officers are issued uniforms and begin utilizing the Uniform Allowance in the
next calendar year after date of hire. New Police Officers who begin between July 1 -
December 31 receive $400 in the next calendar year.
On Call Pay: Officers will receive three hours of on call pay for each scheduled day
off the Officer is required to be on call for court. Officers assigned to the investigative
��on call" rotation will receive 21 hours per week (3 hours per day) at straight time
when assigned to that duty. On call pay cannot be converted to compensatory time.
On call pay does not replace overtime pay for actual hours worked during scheduled
time off.
Time Not Worked: Sick leave and personal leave used to replace scheduled work
time must be taken in equal shifts (ie: 4.0 hours for 4.0 hours). No exchange of
shifts, either formally or informally, will be allowed if it results in additional cost to
the City.
Field Training Officer (FTO): Officers receive one additional hour of pay per shift at
straight time while performing FTO duties.
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Salary Range Structure
The Dispatch salary range structure is the same as the salary range structure for
positions covered by the Step Pay Plan
Performance Review
The Dispatch Supervisor is required to complete a performance review for
dispatchers prior to their anniversary date. This evaluation plays an important role in
determining the employee's eligibility for a step increase.
Salary Increases
Base Pay Adjustment: By January 1 of each year, salary ranges will be reviewed
against market conditions and adjusted as necessary. If the ranges and steps are
adjusted, employees will have the amount of the range adjustment applied to their
base so that they maintain their place within the range. Employees are eligible for
base pay adjustments up to the range maximum only.
Step Increases: On each non-exempt employee's anniversary date, he or she will be
eligible for a step increase until his or her salary reaches the target rate. To receive a
step increase, the employee must demonstrate positive performance in their
position.
Other Salary Actions
Hiring rates, promotions, transfers, demotions are handled under the guidelines
established for Step Pay Plan.
Overtime
Dispatchers qualify for overtime (or compensatory time, if applicable) as defined on
the employee handbook. In addition, full time Dispatchers qualify for overtime in
following situations:
• Actual hours worked on a City designated holiday. Dispatchers who work any
part of the holiday are eligible for holiday overtime. However, Dispatchers can
only receive holiday overtime for one shift each holiday.
• Shifts that are not part of the employee's regular work schedule.
• Shifts that are extended beyond the normal work day.
Dispatchers who work on New Years Day, July 4th, Thanksgiving Day or Christmas
will receive double time.
In general, the intent is for Dispatchers to have the same access and limits to
compensatory time as the other employees. Dispatchers will follow the same
procedures for cashing out compensatory time in December of each year. However,
some exceptions to the compensatory policy will be made for the month of
December. Dispatchers will be allowed to accrue and use comp time in December as
necessary to allow them to maintain 40 hours of pay each week. In addition,
Dispatchers may be allowed to carry forward a limited number of hours to the month
December if necessary for them to maintain 40 hours of pay each week during that
month. These exceptions only apply if necessary to maintain a full week of pay.
Additional compensatory time can not be used or accrued during the month.
Work Schedule
Dispatchers work 8.75 shifts on a rotating schedule of 5 days on / 3 days off. On this
rotating schedule, bi-weekly hours scheduled fluctuate from 70 to 87.5 hours. Total
hours scheduled in a year is approximately 2000. In addition, Dispatchers receive 80
hours of holiday pay each year for a total of approximately 2080 hours. Work weeks
start at 12:OOam Saturday and end at 11:59pm on Friday.
Holiday Pay
Regular full-time Dispatchers will receive 80 holiday hours at the beginning of each
calendar year. Dispatchers hired after the start of the year will receive a prorated
amount of holiday hours based on their month of hire. Holiday hours will be held in a
special bank to be used to supplement Dispatchers' pay during periods when their
scheduled hours are less than 80. Holiday hours are paid at straight time only.
Holiday hours must be used by the end of the calendar year. Any holiday hours
remaining at the end of the calendar year will be forfeited. Any employee moving
from full-time to part-time will forfeit their holiday hours. Holiday hours will not be
paid out upon termination of employment. Since all holiday hours are made available
at the start of the year, employees may be required to reimburse the City for hours
used but not technically earned at the time of their termination. This amount will be
prorated based on months served prior to termination. For example, an employee
who uses 20 holiday hours and te�minates in February will have technically earned
13.3 hours (80 hours/12 months times two months for service in January and
February). This employee would owe the City 6.7 hours.
Regular part-time Dispatchers do not receive holiday hours at the start of the year.
Regular part-time Dispatchers will receive pro-rated holiday hours or pay during the
pay period the holiday occurred, in accordance with the employee handbook.
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Salary Range Structure
The IUOE Local 49 Pay Plan covers employees in the Parks, Utilities, and Streets and
Fleet divisions who are covered under the IUOE Local 49 union contract. Consult the
union contract to determine which components of this pay plan are subject to
collective bargaining. The salary range structure is comprised of eight steps: Steps A
through E, Merit AA, Merit BB and Merit CC.
Each job series has a different minimum and maximum step:
Maintenance Worker MW Ste A Ste E
MW - S ecialt Lead Merit AA
MW - Seasonal Lead Merit BB
MW - Re ular Lead Merit BB
Mechanic Ste C Ste BB
Mechanic Lead Ste CC
Water Plant O erator/Mechanic Ste C Merit BB
Water Plant Lead Merit CC
Performance Review
Managers are required to complete a performance review for union staff prior to their
anniversary date. This evaluation plays an important role in determining the
employee's eligibility for a step increase.
Salary Increases
Base Pay Adjustment: Base pay adjustments are determined through the collective
bargaining process. Typically base pay adjustments are made January 1 of each
year. If the ranges and steps are adjusted, employees will have the amount of the
range adjustment applied to their base so that they maintain their place within the
range. Employees are eligible for base pay adjustments up to the range maximum
only.
Step increases for Maintenance Worker series: Employees will be eligible to move
through Step C providing that an evaluation of their qualifications meets the
established step criteria and standards. Assignments to Steps D and E will be based
solely on qualifying job evaluation results and organization need as determined by
management.
Step increases for Mechanic series: All Mechanics will be eligible to move to the Merit
BB step providing that an evaluation of their qualifications meets the established
step criteria and standards.
Step Increases for the Plant Operator/Plant Mechanic series: All Plant
Operators/Mechanics will be eligible to move to the Merit BB step providing that an
evaluation of their qualifications meets the established step criteria and standards.
Other Salary Actions
Hiring Rate: In general, employees will be hired between the range minimum and
step C, depending on their qualifications. Employees can be hired as high as the
target rate in unusual circumstances.
Promotions: An employee promoted to a position with a higher step will move to the
step on the effective date of the promotion. In the event that an employee is
receiving a salary that exceeds the maximum rate of the new position, the employee
will receive no increase in base compensation. The employee's review date will not
change; on the next review date, performance in all positions occupied since the last
review date will be taken into consideration in determining eligibility for a step
increase.
Transfers: A lateral transfer occurs when an individual is transferred to a position
with the same grade as the former position. Lateral transfers will not generally result
in a change in salary. The employee's review date will not change as a result of the
transfer; on the next review date, performance in all positions occupied since the last
review date will be taken into consideration in determining eligibility for a step
increase.
Demotion: A demotion occurs when an individual is permanently reassigned to a
position with a salary grade which is lower than the grade of the former position. If
the demotion occurred because 1) the employee was unable to perform satisfactorily
in the position, 2) the result of disciplinary action, or 3) at the employee's request,
the employees salary will be decreased to no more than the maximum of the new
salary range. The employee's review date will not change; on the next review date,
performance in all positions occupied since the last review date will be taken into
consideration in determining eligibility for a step increase.
Other IUOE Local 49 Pay Plan Information
Members of Local 49 may also qualify for on-call and seasonal disruption pay. Refer
to the union contract for additional information.
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Salary Range Structure
Salary ranges for the PTS Pay Plan are based on broad band pay. Each salary range
is broad and covers several different PTS positions. Within the range, separate
targets or��mini ranges" are established for individual positions.
Range Minimum: The lowest pay established for positions assigned to the range.
Target Range: A target range or"mini-range" is established for each position
within the range. This target range usually includes its own
minimum rate, maximum rate and steps. The target range is
generally considered to be the market competitive rate for the
position
Range Maximum: The highest rate established for positions assigned to the range.
Performance Reviews
Managers are required to complete a performance review for PTS staff prior to their
anniversary date or at that end of the season. Some divisions may conduct reviews
more frequently. This evaluation plays an important role in determining the
employee's eligibility for a step increase or rehire.
Salary Increases
Base Pay Adjustment: Salary ranges will be reviewed each )anuary relative to
market conditions and adjusted as necessary. PTS ranges are not adjusted every
year. If employees are below the minimum of the range, they will be moved to the
minimum rate on the effective date of the range change. Target ranges for individual
positions will also be reviewed each January. Adjustments to individual pay will be
made as deemed necessary by Human Resources and the hiring manager or division.
Step Increases: Human resources will meet with each hiring manager or division to
determine target ranges for individual positions. During this meeting, the parties will
also determine any steps associated with the target range and eligibility criteria for
those steps.
Salary Actions
Salary rates for new hires, promotions or transfers will be decided by Human
Resources and the hiring manager or division. Some position within the PTS pay plan
may be eligible for additional pay for licenses or certifications held by the incumbent.