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<br /> <br />Section Three: Compensation and Benefits <br /> <br /> <br />POLICY: COMPENSATION SECTION: 3.01 <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 their <br />abilities and effectiveness in performing their assigned duties. <br /> <br />3. To recognize the quality of job performance demonstrated by each employee. <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 uses a five step compensation plan for regular, full-time and part-time employees <br />not represented by a collective bargaining unit. The five step plan is the first phase of the <br />overall compensation policy and shall consist of five increments with the highest step, Step <br />5, representing 100% of the position’s maximum compensation rate. The steps shall <br />descend from Step 5 (100%) in increments of 5%, as shown below. <br /> <br />STEP 1 STEP 1.5 STEP 2 STEP 3 STEP 4 STEP 5 <br />80% 82.5% 85% 90% 95% 100% <br /> <br /> <br />Progress through the Steps <br /> <br />Generally, new employees will begin at Step 1 of the five step plan. (The City Council may <br />however authorize a new employee to start at a step other than Step 1 in consideration of <br />experience and qualifications.) Employees hired to start at Step 1 will be eligible for a half- <br />step increase at six months of service equivalent to 82.5% of the Step 5 wage. Advancement <br />to subsequent steps would occur on the employee’s anniversary date until the employee <br />reaches Step 5. Advancement to a subsequent step necessitates (1) a performance <br />evaluation rated satisfactory or better by the employee's supervisor, (2) approval by the <br />Department Head and City Administrator, and (3) approval by the City Council. The <br />progression from Step 1 to Step 5 represents a span of four years. <br /> <br />