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Employee Compensation - Continued <br /> Given the continuation of the present tight labor market and the rate of salary progression (1.25 <br /> percent) provided by the current pay plan, this situation will continue to worsen. The chart below <br /> shows the time required for a current employee to progress to higher steps in the salary range. <br /> Progression in the Salary Range <br /> Years Total Percentage <br /> From Step 1 To Required* Change in Salary <br /> Step 2D 4 5% <br /> Step 3D 8 10% <br /> Step 5D(End of Hiring Range) 16 22% <br /> Step 7A(Middle of Salary Range) 21 29% <br /> Step I IB(End of Salary Range) 38 59% <br /> *If performance is effective or higher <br /> • As to Performance Awards, in 1995-96, about 63 percent or about 390 employees received the <br /> highly effective performance award and about six percent or about 38 received the outstanding <br /> achievement award. Because fiscal year 1996-97 still is in progress, the data for 1996-97 is not <br /> available at this time and will be available in the budget work sessions. Based on the 1995-96 data, <br /> the proposed 60 percent limit for Performance Awards (including those for outstanding) reduces the <br /> overall availability for Performance Awards. <br /> • An additional impact of the application of the funding limit for Performance Awards by department <br /> is that it gives each department, on a proportional basis, the same relative level of funding. The <br /> impact on the department will vary depending on the department's history in granting highly <br /> effective or outstanding awards. <br /> • As an additional note, the recommended budget also provides for elimination of the lowest salary <br /> grade for permanent employees (salary grade 56) and reassignment of the eight Solid Waste Center <br /> Operator positions affected to salary grade 57. <br /> Appendix A - 4 <br /> 31 <br />