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42 <br /> <br />This Section of the Personnel Manual establishes policies governing compensation. The <br />objectives of this Section are as follows: <br /> <br />1. To develop and maintain a Comprehensive Policy which will attract and retain <br />competent personnel. <br /> <br />2. To provide an environment in which employees will be encouraged to develop <br />their abilities and effectiveness in performing assigned duties. <br /> <br />3. To recognize the quality of job performance demonstrated by each employee. <br /> <br />4. To provide compensation levels which are competitive with those provided by <br />comparable communities. <br /> <br />There are three Phases of the Compensation Policy: <br /> <br />Phase I. Five-Step Compensation Plan <br />Phase II. Annual Compensation Adjustment; and <br />Phase III. Pay Equity Compliance <br /> <br /> <br />PHASE I. FIVE-STEP COMPENSATION PLAN <br /> <br />The City shall use a five step compensation plan for regular, full-time and part-time <br />employees not represented by a collective bargaining unit. The five step plan is the first <br />phase of the overall compensation policy and shall consist of five increments with the <br />highest step, Step 5, representing 100% of the position’s maximum compensation rate. <br />The steps shall descend from Step 5 (100%) in increments of 5%, as shown below. <br /> <br />STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 <br />80% 85% 90% 95% 100% <br /> <br />Progress through the Steps <br /> <br />Generally, new employees will begin at Step 1 of the five step plan. However, the City <br />Council may authorize a new employee to start at a subsequent step in consideration of <br />experience and qualifications. Assuming an employee begins employment at Step 1, <br />advancement to Step 2 would occur at six months after employee's date of hire. <br />Subsequent advancements through the steps would occur on the employee’s anniversary <br />date thereafter until the employee reaches Step 5. Advancement to each subsequent step <br />necessitates (1) a performance evaluation rated satisfactory or better by the employee's <br />supervisor, (2) approval by the Department Head and City Administrator, and (3) approval <br />by the City Council. <br /> <br /> <br /> <br />PHASE II. ANNUAL COMPENSATION ADJUSTMENT <br />POLICY: COMPENSATION SECTION 3.01