Agenda - 10-13-1998 - 1 - Laserfiche WebLink

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2 Proficient category, there would be employees doing a good job as well as employees doing a good job and, on occasion, doing an exceptional job - such as in customer service, achievement of a specific objective, accomplishment of a particularly heavy workload or the like - which could be documented. The gradation of the latter group within the Proficient category would be higher and the department head could take this into account in allocating in -range increases within the department. The COLA/Market Based Pay and Service Based Pay options would not provide pay recognition for any gradations of performance within the Proficient category. 5. Handling Pay - Related Appeals Some of the pay options provide for additional decision - making on the part of the department head. A concern is this may lead to more pay related appeals. Commissioner Gordon asked how this could be addressed in a way that would not discourage supervisors and department heads from pay decision - making. In general, whether the appeal is pay related or other performance related issue, the Personnel Department and the Manager have reached a successful outcome in addressing the appeal. Regardless of which pay plan options the Board chooses to pursue, appeals will be addressed and successfully resolved. We note, as with other appeals, the strength and quality of our response depends on the preparation and good judgment exercised by supervisors and department heads. As noted in the Pay and Benefits Report, training is an important component of this. 6. Cost Neutral Pay Options Commissioner Gordon asked if the pay options could be addressed in a cost neutral way or what would be a cost neutral approach. Below is additional information related to this. ❑ A cost neutral approach has to be a relative one rather than based on a specific dollar amount. Factors that influence the required funding for pay and benefits include growth in the work force/addition-of positions, changes in the cost of living, changes in the cost for benefits, and the like. These do not represent any change in the value of the pay or benefit. For example, a large part of the difference between the 1997 -98 and 1998 -99 amount budgeted for pay and benefits results from the addition of positions during the fiscal year. ❑ The cost for salary increases becomes a part of base pay and continues in future years. Lump sums do not become a part of base pay. The lump sum dollars are available to be awarded again the next year rather than appropriating new funding. Thus, giving dollars in fixed salary increases results in more cost over time than the same dollars as lump sums that do not become a part of base pay. The undesirable alternative is to reduce each year the number or amount of salary increases awarded to offset the continuing cost of the salary increases already granted. ❑ Strategically, it is important that pay plans respond to and reflect the economic times. A cost neutral pay plan, while it might retain the same relative compensation in terms of cost