Ongoing Pay Adjustments
Most employees achieving a satisfactory (or better) performance
rating are eligible for ongoing pay adjustments. Pay increases for city employees
(except fire
and police personnel in step plans) consist
of two components:
- Market Adjustment
- Performance Increase
Market Adjustment
The market adjustment portion of your compensation is based
on your salary and its relationship to the market
target rate of pay for
your job. The purpose
behind this type of increase is to accelerate your movement up to the market
target rate of pay for your job to assure that you are being paid a competitive
rate of pay. Please also note that the market target rate of pay for your
job represents an approximate 5 percent premium adjustment above the average market
target. Although the percentages will be reviewed annually,
the table below illustrates how this pay component works.
| Relation to Market Target | Percentage Increase |
|---|---|
| 100% or above | 0.0% |
| 90-99% | 0.0% up to 1% |
| 80-89% | 2% |
| Less than 80% | Greater of % required to bring up to 80% or 3% |
Consider the example of an employee whose current monthly salary is $2,800, with a market target rate of $3,285. The employee's "relation to market target" is 85.2 percent, calculated by dividing the current salary by the market target rate ($2,800/$3,285). Since this employee's rate of pay is 80 percent to 89 percent of the market rate, he or she is eligible to receive a market adjustment increase of 2 percent. For example, a 2 percent increase would provide a $56 per month increase. This increase is in addition to any performance increase adjustment.
Performance Increase
The city's pay-for-performance philosophy is designed to award performance
increases based on a 3-rating system. Let's review each rating and
the description statements that explain each rating.
| Rating | Description |
|---|---|
| Exceptional Performer | Consistently performs beyond expectations and has demonstrated outstanding skill, knowledge and initiative in the job. This rating recognizes truly outstanding contributions to the organization, within the scope of the position. Accomplishments have made a significant impact on the mission of the department and consistently exceed those of other employees in the same job family or work group |
| Performs Well | Consistently performs the duties of the position; meets and occasionally exceeds all expected criteria for quality, quantity, and timeliness of work. Consistently meets goals and objectives. |
| Improvement Required | Performance marginally meets requirements of the position and periodically falls below them |
Working under the guidelines of the three rating descriptions, an employee’s performance will be evaluated against the organization’s values as well as job-related factors. An employee will receive an overall rating in both areas and a combined score of those evaluations will determine a percentage of performance increase. Although the percentages will be reviewed annually, the 2008 Performance Increase Matrix below illustrates how this pay component works.
| Organizational Values | Exceptional Performer | 0.0%-2.0% | 4.25%-4.75% |
5.25%-5.75% |
| Performs Well | 0.0% | 3.25%-3.75% |
4.25%-4.75% |
|
| Improvement Required | 0.0% | 0.0% | 0.0%-2.0% | |
| Improvement Required | Performs Well | Exceptional Performer | ||
| Job Related Factors | ||||
most employees are "performing well."
For example, if an employee receives a rating of "Performs Well" for organizational values and a "Performs Well" for job related factors, then the employee is eligible for a 3.25 percent to 3.75 percent performance increase.
Lump-Sum Increase
An employee's salary cannot exceed the market target by more than
20 percent. If an employee's salary reaches this level of pay, no further
increase can be made to the base salary. An employee whose current salary
is close to, or at 20 percent above their market target rate, is eligible to
receive a one-time, lump-sum payment, which is not added to the base
salary in that year, or a combination of performance increase and lump
sum award.
To be eligible for this lump-sum payment, an employee must:
- Be close to, or at 20 percent above their market target rate, and
- Receive a performance rating of either "Performs Well" or "Exceptional Performer", and
- Be approved for the one-time, lump-sum payment by their department director.
Timing of Pay Adjustments
Performance reviews are conducted on an annual basis.
Awarded salary increases begin on or about the beginning pay
period for April 1.
For example, the first pay period for April 2008 is March 30, 2008, making this date the effective date for all market adjustments and performance increases for 2008. Other pay adjustments can occur throughout the year, as discussed in the "Glossary of Compensation Terms."