Title
Compensation and Performance Management Policies (B)
This item sets forth policies to manage compensation and performance management for non-represented employees.
Explanation
In the fall of 2006, the City Commission adopted a new pay plan for managers, administrative and professional employees (MAPS) based on a market mid-point pay structure. This type of structure sets the market at the mid-point of the pay range. In a market mid-point system, the goal is to have the average salary of the work force generally equal to the market.
Upon adoption of the new pay plan, the City Commission directed staff to develop policies to support this new market mid-point system. Staff has been working with the Charter Officers to develop a series of compensation related policies to best manage this market mid-point system. Proposed Policy C-1 Compensation Philosophy and Policy replaces the current City Commission approved Compensation Philosophy. It establishes reporting requirements, defines administrative responsibilities for the compensation system and provides policy for management of compensation. Proposed Policy C-2 Performance-Based Merit Awards defines awards paid based upon City Commission approved pay increase dollars allocated to each Charter Officer through the budget process in the form of annual merit awards and special merit awards, and provides for payment as one-time, non-recurring lump sum and/or increases to base pay. Proposed Policy C-3 Changes in Employee Status Affecting Compensation establishes protocol for determining and authorizing employee pay for new hires, promotions, lateral and demotional appointments, acting/interim appointments and special assignments. This proposed policy also addresses outstanding audit recommendations from an audit of Personnel Policy 4, Audit # 149, Issues 13, 14 & 15 conducted in 1990. Proposed Policy C-5 Performance Management Policy ties it all together and links compensation to performance. It establishes administrative responsibilities, supports the market mid-point pay structure and defines equitable distribution of City Commission approved pay increase dollars. Proposed Policy C-4 Other Forms of Compensation will be introduced at a later date.
Fiscal Note
These policies will manage compensation based on the level of pay increase dollars, if any, approved by the City Commission each year during the budget process.
Recommendation
The City Commission 1) approve the Compensation Philosophy and Policy (C-1), Performance Based Merit Awards (C-2), Changes in Employee Status Affecting Compensation (C-3), Performance Management Policy (C-5), and 2) sunset Personnel Policy 3 Occupational Index and Personnel Change, Personnel Policy 4 Pay Plan Regulations, and Personnel Policy 7 Salary Review.