PERSONNEL COMMITTEE. Committee Meeting - Thursday, March 17, :00 p.m. Municipal Court Room Branson City Hall 110 W.
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1 NOTICE OF MEETING CITY OF BRANSON PERSONNEL COMMITTEE Committee Meeting - Thursday, March 17, :00 p.m. Municipal Court Room Branson City Hall 110 W. Maddux 1) Call to Order. 2) Roll Call. AGENDA 3) Acknowledgment of February 17, 2011 minutes. 4) Presentation of Wellness Package by Cameron Black, Wellness Director with Ollis & Co. 5) Presentation on Merit based pay system by Lynda Higbee. 6) Discussion of 11 Minutes of Thought motivation video. 7) Discussion of employee turnover. 8) Personnel Officer s Report. 9) Acknowledgement of Sandra Williams service on committee. 10) Adjourn. Posted: February 15, 2011 By: At: Page 1 of 1 For more information please visit or contact: Lisa Westfall, City Clerk, Jerry Adams, Public Information Director,
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7 City of Branson EXAMPLES Lynda Higbee President Higbee Associates All rights reserved
8 Where are we going? Pay Plan 2014 Recommendations Police & Fire Positions of Firefighter, Fire Engineer, Fire Captain, Police Sergeant, Police Lieutenant, Police Officer, Police Captain, and Dispatcher will remain on the step system Increases in pay will be based on step to step movement Market adjustments, if necessary, will be made in January of each year Step ranges will be adjusted periodically as needed (Our recommendation is every 3-5 years) 2
9 Pay Plan-2014 continued positions Steps may be revised to meet market movement. For example initial steps may be a higher percentage than final steps or the number of steps may be increased or decreased to match market conditions Performance rating of 3 and above required to receive annual step increase Based on current market practices, Police & Fire leadership and administration will transition to the merit pay system Police positions on the merit system will include, Police Chief, Asst. Police Chief, Office Specialist, Office Assistant II, Parking Control Officer and Communications Supervisor Fire positions on the merit system will include, Fire Chief, Division Chief Operations, Division Chief Tech Services, Fire Prevention Officer, Battalion Chief Training, Office Assistant II and Office Assistant III 3
10 Pay Plan 2014 cont. All other positions are on Merit Pay System Salary range with minimum, midpoint, maximum Midpoint will reflect the market rate for a fully experienced person in that job. Market adjustments, if necessary, will be made in January of each year Employees generally reach midpoint in 4-7 years based on performance for most positions Salary ranges will be adjusted periodically as needed (Our recommendation is every 3-5 years) Increases will be based on performance rating and position in the range (See matrix on slide 6) 4
11 Pay Plan 2014 cont All Employees Eligible for lump sum merits when current pay is at range maximum and City budget permits Will receive annual performance reviews Increases will be given only when performance is rated 3 and above on the six point scale Promotional increases will be 2% per grade moved upward (Step plan participants will move back 1 step for every grade moved up) Promotional increases will reset the review date Market adjustments when needed will apply to all employees 5
12 Merit Increase Example 2014 MERIT MATRIX Rating Above Midpoint Below Midpoint 5% 3% 1% 0% 6% 4% 2% 0% Note: Employees at midpoint will be treated as below midpoint for merit increases. Employees above midpoint, regardless of how little above will be considered above midpoint 6
13 Increase Calculation Applies to Merit Plan Participants Only Rating: 4 Position in Range: Below Midpoint Increase: 4% Next increase date: 12 months from last increase ( Review or Promotion) Adjustments made as required by market 7
14 Transition 2012 We recommend a multi-year implementation to achieve Branson s Merit Based Pay objectives. Highlights of the multi-year plan are as follows: 1. Merit Based Pay Implementation will begin in City Administrator, Directors, Assistant Directors and certain supervisors will move from steps to ranges in 2012 EXAMPLE 1 Current Grade: 39C Anniversary Date: April Step 10: Midpoint Steps 1 20 Hourly $ $ Annual $61, $92, Conversion to Range 39C Min Mid Max Hourly Annual $61, $75, $92,
15 Transition 2012 (cont) 3. For the year 2012, the above group will receive an across the board increase equal to the COLA for the STEP system at the first of the year. EXAMPLE Current Grade: 39C Anniversary Date: April Current Step: 10 OLD SYSTEM January 2012 COLA NEW SYSTEM January 2012 Market Adjustment Next increase date: April 2012 for merit 9
16 Transition 2012 (cont) 4. In addition, they will be eligible for a merit using a matrix based on performance EXAMPLE 3 April Performance Rating 4 Position in the Range: Below Midpoint Merit increase eligible Rating Above Midpoint 3% 2% 1% 0% Below Midpoint 4% 3% 2% 0% 3% Merit Next increase date: 12 months from April
17 Transition 2012 (cont) 5. During 2012 merit increases will occur on the individual employees review date and across the board adjustments, if any, will occur at the first of the year. (Merits are available to positions converting from steps to ranges. Directors, assistant directors, and certain supervisors in 2012) 11
18 Transition 2012 (Merit Plan cont) 6. Employees promoted during the year who receive a promotional increase will be eligible for their next increase one year from the date of the promotion. In effect changing the review date to 12 months from the date of promotion. The next performance evaluation is due at that time, not on the hire date. Promotional increases will be 2% for each grade or the minimum of the new range, whichever is greater. (Applies to all employees) EXAMPLE 4 PROMOTION November 2012: Promoted to xxxxx Grade 42C Current Pay $77, ( ) Promotional Increase 6% (3 grade move) New Rate: $77, $ (6%) = $82, ( ) Next Merit Review Date: November 2013 Next Potential Increase Date: January 2013 = COLA/Market Adjustment 12
19 Transition 2012 (Merit Plan cont) 7. For those converted to ranges, the matrix for increases each year will be a function of market movement (determined by the Comparator group data) and merit based on the City s budget. 13
20 Transition 2013 Highlights of the 2013 implementation plan are as follows: 1. Merit Based Pay Implementation will continue with an additional group added to merit pay in The list of 2013 participant positions is being finalized and will be announced during 2012 and they will move from steps to ranges in 2013 EXAMPLE 1 Current Grade: 39C Anniversary Date: April Step 10: Midpoint Steps 1 20 Hourly $ $ Annual $61, $92, Conversion to Range 39C Min Mid Max Hourly Annual $61, $75, $92,
21 Transition 2013 (cont) 3. For the year 2013, the newly converted group (and the 2012 conversion group) will receive a market adjustment equal to the COLA for the STEP system at the first of the year. EXAMPLE Current Grade: 39C Anniversary Date: April Current Step: 10 OLD SYSTEM January 2013 COLA NEW SYSTEM January 2013 Market Adjustment Next increase date: April 2013 for merit 15
22 Transition 2013 (cont) 4. In addition, they will be eligible for a merit using a matrix based on performance EXAMPLE 3 April Performance Rating 4 Position in the Range: Below Midpoint Merit increase eligible Rating Above Midpoint 3% 2% 1% 0% Below Midpoint 4% 3% 2% 0% 3% Merit Next increase date: 12 months from April
23 Transition 2013 (cont) 5. During 2013 merit increases will occur on the individual employees review date and across the board adjustments, if any, will occur at the first of the year. (Merits are available to positions converting from steps to ranges in 2013 and those that converted in 2012). 17
24 Transition 2013 (Merit Plan cont) 6. Employees promoted during the year who receive a promotional increase will be eligible for their next increase one year from the date of the promotion. In effect changing the review date to 12 months from the date of promotion. The next performance evaluation is due at that time, not on the hire date. Promotional increases will be 2% for each grade or the minimum of the new range, whichever is greater. (Applies to all employees) EXAMPLE 4 PROMOTION November 2013: Promoted to xxxxx Grade 42C Current Pay $77, ( ) Promotional Increase 6% (3 grade move) New Rate: $77, $ (6%) = $82, ( ) Next Merit Review Date: November 2014 Next Potential Increase Date: January 2014 = Market Adjustment 18
25 Transition 2013 (Merit Plan cont) 7. For those converted to ranges, the matrix for increases each year will be a function of market movement (determined by the Comparator group data) and merit based on the City s budget. 19
26 Transition Continued 2014 All non-sworn positions move to ranges 2014 Pay Plan Guidelines apply Market adjustments when needed 20
27 Key Terms and Definitions Across the Board Raise- An increase given to all employees that is either the same percentage or the same flat rate. Anniversary Date- Hire Date Cost of Living Adjustment (COLA) - An annual adjustment in wages to offset a change in purchasing power, as measured by the Consumer Price Index. The Consumer Price Index is used rather than the Producer Price Index because the purpose is to offset inflation as experienced by the consumer, not the producer. Exempt Employees - Employees who meet one of the FLSA exemption tests and who are paid on a fixed salary basis and not entitled to overtime. Lump Sum Merit - A onetime payment, given when City budget permits, that recognizes performance when an employee reaches the maximum of the salary range Market The value of a position in a defined group of comparators. Market Minimum-The starting (hire) rate for a specific position typically based on comparison with a group of comparators Market Maximum-The maximum rate of pay for a specific position typically based on comparison with a group of comparators 21
28 Terms (cont) Midpoint_ The middle of a salary range and the rate typically paid to a fully experienced person in a specific position. Merit Increase - Increase in wages based on an employee s performance. Merit Based Pay- A system of rewarding individual performance that differentiates increases based on varying levels of performance Nonexempt Employee - An employee who does not meet any of the Fair Labor Standards Act exemption tests and is paid on an hourly basis and covered by wage and hour laws regarding hours worked, overtime pay, etc. Pay Adjustment - Any change made to the pay rate of an employee, such as an increase or decrease to the rate of pay. Market Adjustment- An increase given to an employee because the market value of the position they hold has increased. 22
29 Terms (cont) Pay Grade - A method used to group jobs together that have approximately the same relative internal and or external worth. Pay Structure - A structure of job grades and pay ranges established within an organization. Review Date: Date an employee receives a performance evaluation and is eligible for an increase to base pay. Salary Grade - A compensation level expressed as a salary range, which has been established for each position within the organization Salary Range - A range of pay rates, from minimum to maximum, set for a specific pay grade. 23
30 Terms (cont) Step Plan progression through a salary range based on predetermined fixed increases. Progression can either be a flat dollar or a percentage between steps. For example: $10.00 $10.10 $10.20 $10.30 $10.40 $10.50 $
31 Terms (cont) Merit Matrix-system of movement through a salary range based on performance ratings and position in the range where higher performers receive a greater increase. For example: Rating Above Midpoint 2% 1% 0% 0% Below Midpoint 3% 2% 1% 0% 25
32 Terms (cont) Total Compensation - The complete pay package awarded employees on an annual basis, including all forms of money, benefits, services and in-kind payments. 26
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