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ITEM 10.1B Compensation Planlip TY Ot�ce F o MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Administration Lori Johnson, City Administrator March 14, 2016 PRESENTER(s): REVIEWED BY: ITEM #: Lori Johnson, City Administrator 10.1E AGENDA ITEM DETAILS RECOMMENDATION: Recommend putting in place a set of guidelines under which the recently adopted classification system and compensation plan will be administered. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The City Council recently approved a new classification system and compensation plan for employees. There are several items yet to be completed before this project is complete including updating position descriptions and completing SAFE training. Another is adoption of guidelines for administration of the classification system and compensation plan. The attached Classification and Compensation Plan Administration document provides the guidelines for ongoing administration. The document addresses when and how position classifications are reviewed and amended. It states when the pay plan will be adjusted and when pay increases will be granted. Further, it states that the City has the discretion to deviate from the guidelines based on "budgetary or other circumstances" and clearly states that this is not a contract or guarantee of future Council action. The Administrative Subcommittee reviewed the draft Classification and Compensation Plan Administration document, made no changes, and recommends adoption. SUPPORTING DOCUMENTS: Xo ATTACHED ❑ NONE • Classification and Compensation Plan Administration POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to approve the Classification and Compensation Plan Administration guidelines dated March 14, 2016, as presented. BUDGET INFORMATION FUNDING: BUDGETED: X o YES o NO ET01111 To] 01 Ilk fil rN =1 k I, I o APPROVED AS REQUESTED o DENIED EiTABLED o OTHER (List changes) COMMENTS: TY OF 06eoso MINNESOTA ;5'� Classification and Compensation Plan Administration Adopted March 14, 2016 The purpose of this document is to provide guidelines for the administration of the Classification System and Compensation (Pay) Plan adopted by the City Council in January 2016. CLASSIFICATION SYSTEM The City has and will in the future use the SAFE system for evaluation of all regular positions. Regular positions include full time and part time positions that have a set schedule and work a set number of hours each week on a regular basis throughout the year. Temporary, seasonal, and sporadic positions need not be rated under this system depending upon the position. 2016 Classification Study: Position points for all positions were adopted by the City Council on January 13, 2016. An appeal process was initiated to allow employees to challenge their position's point value. All appeals that resulted in a change in point value require Council approval. New Positions: All new positions will be rated using the SAFE system and the corresponding pay grade must be included on the position description approved by the City Council. Existing Position Review: On occasion, a position may change to meet the needs of the City. For example, duties and responsibilities may be added or subtracted and education and experience requirements may change. If an employee or supervisor feels a position warrants review, the following procedure shall be followed: 1. If the review is employee initiated, the employee must submit a written request for review to his/her supervisor and the City Administrator a. The request must include a detailed description and documentation of changes in the position compared to the approved position description. b. The request must be dated and signed by the employee if initiated by the employee or the supervisor if initiated by the supervisor. 2. The supervisor shall review the request and determine if the position merits review. a. Has the position changed because of the City's needs (may merit review) or the employee's (does not merit review)? b. Is the request based on additional duties (may merit review) or heavier workload (does not merit review)? c. Is the change substantial? d. Is the position change temporary (does not merit review) or long-term (may merit review)? e. Other factors must be considered depending upon the position. 3. The supervisor shall submit a written review of the request to the City Administrator indicating whether the supervisor recommends review. 4. If a review request is initiated by the supervisor, a written request must be submitted to the City Administrator. a. The request must include a detailed description and documentation of changes in the position compared to the approved position description. b. The request must be dated and signed by the supervisor 5. The City Administrator, in consultation with the supervisor and human resources staff, will determine if the position will be reviewed. 6. A written finding shall be provided to the employee with a ruling of no review warranted or that a review was completed along with the revised point value. 7. If the position's point value changes because of a review, a revised position description must be approved by the City Council reflecting the new pay grade in order for it to become effective. PAY PLAN All positions evaluated under the SAFE system will be placed on the Pay Plan in the pay range that corresponds with the position point value. Temporary, seasonal, and sporadic employees will be paid outside of the Pay Plan. The City Council will review the Pay Plan annually during budget review to determine what, if any, adjustment in the Pay Plan will be made for the next year. Pay Plan adjustments may be made at any time at the discretion of the City Council. Employees who are not at the top step of their pay range in the Pay Plan are eligible for a step increase annually. Steps do not equate to years of service. Steps are not automatically granted; employees must meet eligibility requirements to receive a step increase. 1. Step Increase Administration: a. Eligibility Requirements i. Employees are eligible for step increases until they reach the top step of their pay range in the Pay Plan. ©M ii. To be eligible an employee must be performing at a fully competent, satisfactory level or above for his/her position as determined by the most recent performance review and supervisory input. iii. An employee working under a development plan or placed on probation is not eligible for step increases until performance consistently meets ii. above. iv. An employee who has been reprimanded or disciplined during that year is not eligible for a step increase until the matter has been resolved as determined by his/her supervisor and the City Administrator. b. Timing of Step Increases i. Employees hired in 2015 or after will receive step increases on their anniversary date upon meeting the Eligibility Requirements above. ii. Employees hired before 2015 will receive step increases on January 1 of each year upon meeting the Eligibility Requirements above. c. City Discretion The City, for budgetary or other unusual circumstances, may determine that it is unable to grant step increases and at the City Council's discretion may suspend step increases. This document does not and these guidelines do not in any way constitute a contract or agreement to make or guarantee pay or classification adjustments. The City Council retains sole authority to set pay rates and to administer a classification system that meets state and federal legal requirements. 3 1 P a g e