10/06/2008 Council Packet (2) - Laserfiche WebLink

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Performance Evaluation System 9 Springsted There should also be a section for overall comments by the supervisor. Once the final form is developed supervisory employees should be given periodic training on why and how to evaluate the performance of their staff. An established performance evaluation includes ongoing training of the system ensuring that supervisors in all departments consistently apply performance standards. When compensation is based on performance, employees look for assurance that managers will honestly evaluate performance and not inflate ratings in order to obtain a higher salary for particular employees. Generally, such systems provide for a review by the City Administrator's Office to provide a mechanism that helps supervisors apply performance standards consistently for all employees. When pay is based on performance, the evaluation system often provides for reviews at six or 12 month intervals, so employees know how supervisors view their performance and have the opportunity to improve performance and their prospect for a pay increase. Employees who have satisfactory or better performance evaluations should expect annual wage increases. Pay for Performance. The City expressed interest in developing a pay for performance component to its compensation program. In order to establish this type of system the City will need to develop and implement the following: • Pay philosophy • Well developed performance evaluation system and supervisory training Once these systems are in place, the City will need to make the determination of what type of performance pay system to implement Systems to consider include: • Performance as a tool for individual employee movement through the wage schedule • Monies added to base wage for annual wage adjustments • Additional compensation above the annual adjustment (not added to base Lino Lakes, Minnesota. Human Resource Audit