Agenda - 11-03-1997 - 10b - Laserfiche WebLink

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Employee Compensation - Continued The recommended changes to the Career Growth and Performance Awards are as follows: Career Growth Recognition Award To address salary compression, maintain competitive employee salaries, and recognize the needs of lower salaried employees: • Provide for a relatively faster rate of progression in the salary range for employees in the lower 3/4 of the range than employees in the top 1/4. • For employees in the lower 3/4 of the range whose performance is "Proficient" or "Exemplary," increase the Career Growth amount from 1.25 percent to 2.5 percent. Per Award To address the Board's concern as to the relative number of employees receiving highly effective Performance Awards and variability by department in the proportion of highly effective awards as well as to give department heads more flexibility in recognizing employee accomplishments: • Establish a funding limit for Performance Awards for each department. • Set the funding limit as the equivalent of the dollar amount required to grant 60 percent of employees with one year of service an award of $400 or 1 percent, whichever is larger. (This would replace the amount expended in the past for highly effective and outstanding achievement performance awards.) • Subject to the funding limit, provide that a Performance Award may be any amount not to exceed a maximum of $800 or two percent of salary, whichever is larger. (This is the equivalent of the previous pay plan's outstanding achievement award). • Provide that an employee is eligible for a Performance Award if the employee receives a Work Planning and Performance Review (WPPR) rating of"Proficient" or "Exemplary." • In support of the Performance Award related changes, replace the existing five performance rating levels (Outstanding, Highly Effective, Effective, Needs Improvement and Unsatisfactory) with four levels (Exemplary, Proficient, Needs Improvement, Unsatisfactory). Current Pay Plan For comparison, the table below shows the current pay plan components and the projected cost if these continue in fiscal year 1997-98 as presently constituted. Projected FY Component Amount Effective 97-98 Cost* Cost of Living 2.5% 7-14-97 $527,000 Career Growth 1.25% salary increase if performance effective or higher With perfor- $144,500 Recognition Award mance review Performance Award Lump sum of$400 or 1%, if highly effective, $800 or 2%, if With perfor- $217,000 outstanding mance review *Includes about$200,000 in continuation funds for Performance Awards from FY 96-97 Appendix A - 2 29