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FROM :HAY MGMT CONSLT 512 333 2009 1997.04-28 12:39 #588 P.17/30 <br /> • Mr. Richard Salvati <br /> February 25, 1993 <br /> Page 4 <br /> to slow or freeze current salaries until recommended salary range maximums <br /> "catch up" through regular annual range increases. This approach frees <br /> resources for use in helping to offset necessary range maximum increases for <br /> other employees. On the other hand, an employer may decide to take other <br /> steps, such as: provide lump sum payouts in lieu of salary increases to those <br /> over maximum; set more aggressive, liberal salary range maximums; or take <br /> no special action (and leave them above maximum). The Council and <br /> Commission should thoughtfully review the implications and cost of each of <br /> these alternatives. <br /> Every year, the Council and Commission should monitor average salary <br /> increases, increases to salary range maximum, and the total cost of the pay <br /> program. However, the nature of the salary program design will largely <br /> determine what needs monitoring. Although the Council and the Commission <br /> have not yet decided on the final salary program design, Hay has worked <br /> 411 with City Management to identify the salary program it prefers. Hay outlined <br /> this approach in the November 4, 1992 letter. <br /> • The approach agreed to includes the administration of separate pay programs <br /> for the City and the Utility. Within the City and Utility, jobs were further <br /> divided into lower level supervisory, technical and clerical support jobs, and <br /> higher level management and professional jobs. Under this approach lower <br /> level City and Utility jobs have salary range maximums linked to specified <br /> external markets. Attached to this letter, Hay provides a salary range table <br /> for Utility Supervisory, Technical and Clerical Support jobs and another for <br /> City Clerical and Technical Support jobs. A step salary range is shown for <br /> each job's range. There are four steps in each range. The intention of these <br /> tables is to provide a guideline for action at the collective bargaining table. <br /> Hay's letter of November 4th addressed higher level management and <br /> professional City and Utility jobs. Under the approach favored by City <br /> Management, these jobs are administered using salary minimums, midpoints <br /> and maximums. The salary range midpoint would be a control point linked <br /> to specified external markets. "Attachment A" to the November 4th letter <br /> shows a chart indicating the determination of salary increases for individuals <br /> • under this salary program. The chart suggests salary increases based on <br /> position in the range. Those lower in the range receive greater increases than <br /> those higher in the range. <br /> If the Council and Commission choose to adopt the approaches preferred by <br /> City Management; they should consider monitoring the following: <br /> YT !r <br />