HomeMy WebLinkAbout_Workshop on Performance Evaluation / Pay for PerformanceCITY NAU
216 Clturch Aventae
Y.O. Rox 1130
Oshkosh, Wisconsin
5A903 -1130 City of Oshkosh
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Memorandum
Date: April 18, 2013
To: Mark Rohloff, City Manager
From: John Fitzpatrick, Assistant City Manager / Director of Administrative Services
Re: Performance Evaluation (PE) / Pay For Perfor ►Hance (PFP) Group Product
I am very pleased to share with you for your consideration the report and recommendations from
the Performance Evaluation (PE) / Pay for Performance (PFP) Focus Group.
Enclosed is the report as well as the proposed evaluation documents.
The group's efforts address the expectations set forth by the adoption of our new pay structures,
your annual goals and those set forth in our strategic plan,
I am very proud to have had the opportunity to assist them in their efforts and hope that the work
product will be acceptable for you, our Council and our employees.
Please let me know if you or any of the Council Members have any questions regarding this
information and thank you for your support and assistance throughout this process.
cc: Brian Chapman, organizational Development Specialist
Sue Brinkman, Human Resources Manager
encl: PE / PFP Report and Recommendations
Performance Evaluation Template
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City of Oshkosh
Performance Evaluation
Pay for Performance Focus Group
Report and Recommendations
Team Members
Tom Bauer, Parks
Todd Burns, Public Works
Jeff Gilderson — Duwe, Library
Kevin Konrad, Police
Jeff Nau, Community Development
Melinda Rothe, Transit
Kathy Snell, Senior Services
Staff Liaisons
Brian Chapman, Administrative Services
John Fitzpatrick, Administrative Services
Respectfully submitted for consideration
April 18, 2013
Background
The passage of Wisconsin Acts 10 and 32 in 2011 were watershed moments in the
relations between public employees and the Wisconsin governmental entities that employ them,
including the City of Oshkosh. In the midst of the budgetary and labor relations uncertainties
occasioned by actions taking place at the state level, the Oshkosh City Manager and the Oshkosh
Common Council chose to lead; to move forward with a num66Xt of efforts aimed at improving
the operation of city government and its service to all
undertook a comprehensive analysis of emp
pay plan that provides for compensation i
h4 hveyork and play in the city. They
tasks and compensation, adopted a new
I upon performan >; nd embraced a new
strategic plan with one of its goals being the
government.
" within city
Even before evegps 'the state level;'gained such espread'attention, the City of
Oshkosh had already stated planntg to study th e conpensafion`of its employees. The changes
in municipal labor relations set in 6 Ti.on by the state in 2011 made it seem likely that many
more of the City of Oshkosh's employees would not Iie represented by labor unions than had
AV l�
been the case in the past Even though thte status of labor unions had not, in 2013, been finally
decided by the cotir..ls, it seemed prudent in 2011 to extend the study of work tasks and
compensation to all of the_ city's employees. The new pay plan for non - represented city
_ x
employees, developed by consultant Charles Carlson and adopted by the City Council in early
2012, provided for future employee compensation increases to be available based upon work
performance. Because work performance is one of the major routes to compensation increase in
the new pay plan, the city's performance evaluation process needed to be brought into line with
that requirement and extended to employees to whom it had not applied in the past.
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It also became necessary to devise a method for translating performance into compensation
increases that would be easily understandable and widely perceived as fair.
City officials not only reacted to the changing landscape for local government in
Wisconsin, but worked, in 2012, to form a plan for proactively addressing the future. This effort
culminated in September 2012 with the adoption of a three -year, city strategic plan, which has
two major internal goals -- improving employee engagement and developing a performance
culture.
This group, the Performance Evalua
has as its purpose to contribute toward the
strategic plan:
• I.A.
• II.D.
in p
Is by
the employee popu
network access did
update by City Manager
�n /Pay for Performance Focl}s Group (PEIPFP),
staff liaisons included webpage
t `doQurnenting progress, providing the opportunity for commentary by
introduction of electronic kiosks in areas of the organization where
yexist to provide access to the webpage, and a virtual meeting
to encourage participation and communication.
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Process
Although some research indicates that the idea of using an employee work team to
develop new performance evaluation and pay for performance processes is uncommon, if not
audacious, the City of Oshkosh committed itself to this approach to emphasize and benefit from
employee involvement. While the product of such a team holds the promise of being more
acceptable to front -line employees, there is the risk that the work of the group may not result in a
r.,.
functionally acceptable or credible product.
These risks have been balanced, in the curienteffort, by provding the PE / PFP Focus
Group with support from the city's Adminis
Organizational Development Specialist, has
support including coordination of the prpec
online workspace. John Fitzpatrick, Assts
Services Departmcnt Brian Chapman,
ed the team ith facilitation and logistical
ine, m.' 6ting agendas, and setting up a shared
Mana _eet / Director of Administrative
Services gave the
compensation theory &
application and corresponding accepted human resources practices. While both have
in the deliberations of the team, and
have offered observations &'ideas at tees, they have worked hard at mainly providing guidance
and facilitatioi 'and at emoowedriR the te to make its own decisions.
After general rjcntation, to the task and some of the major concepts, the team first
addressed design of a new perrmance evaluation form for the city and then a method for
linking the results of using that form to decisions about awarding compensation increases based
upon performance.
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For each of these two major areas of concern, the work process has been as follows:
• Orientation from Administrative Services professionals
• Pursuit of topical research as individuals, and sharing results via the shared online
workspace or via email
• Discussion of different possible approaches, leading to
• Proposal of a draft, followed by
• Several cycles of discussion and revision, until
• Consensus was reached.
The list above gives the appearance of a very clean
very fluid. For example, an issue of wording on
during the discussion of the pay for performancf
uncomfortable about it, researched a better solut
consensus for an improvement to the form. This
members have dedicated to the
team in regard to how performance evaludi "' pay
'process, where it actually was
because a
it to the
ion form was re- opened
�Qcmber remained
team „creating a new
the commitment team
and aft* understanding gained by the
performance
management are
The' team's iecommende pei formance evak [ion form is attached to this report. After
determining that an initial employee review followed up by a supervisor review and manager
sign off was the best format for' our organization in order to encourage our employees to engage
in meaningful thought regarding performance as well as shared dialogue, major decision points
were considered by the PEIPEP Focus Group. These points are as follows:
Competencies versus Work Tasks:
Two major considerations regarding performance evaluation are: 1) The competencies
(i.e., knowledge, skills and abilities) needed to do a job and assessment of the employee's level
of mastery at that competency; and
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2) The essential duties or functions for each position which are the specific work tasks required
for each employee's job and an assessment of how well they perform each task. The PE/PFP
Focus Group discussed both approaches and believed that emphasizing the more concrete work
tasks would be the methodology that would be better understood and accepted by City of
Oshkosh employees. The work task approach has the advantages of; 1) Building off of position
descriptions, which include the knowledge, skills and abrlrtres required for each position 2) Can
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be updated with information from the recent classrficaton andonpensation surveys (i.e., the
Job Description Questionnaires or JDQs) and 3) As an ongoing ine rp to promote dialogue and
ensure accuracy, the existing position descriptiors,can also modified 1 updated each cycle by
supervisors and employees as responsibilities change
The team accented the idea that
adopted 2012 -- 201
the evaluation process in orl
principkes such as bem re
evaluate them. A "YES- /-/ NO"
fated in the recently
Plan by the Oshkosh Cfy Council, should be an important part of
to reinforce goal congruency throughout the organization. These
iMtive, transparent, mnovative and exhibiting a "can do" spirit --
atior'edicated to excellence. The team agreed that employee
ndiples ou I g t to be subject to evaluation, but debated how to
hpp'roach was initially considered but abandoned for evaluation
on a five -point scale, which ` ; ` he approach rising to the top for the evaluation of work tasks as
well. The team felt strongly that employees ought to be given an opportunity on the form to
describe the ways in which they demonstrate the guiding principles in the performance of their
jobs. An important point of discussion involved the new human resources platform that the city
will use to manage performance developed by "NEOGOV."
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Supervisors and employees will be able to use this electronic system to record specific instances
of behavior that reflect upon the guiding principles and upon work task performance as they
happen throughout the year and not only at performance review time. Upon completion, this
information will be available in a format that can be easily retrieved for research and reporting
purposes as well as planning activities related to employee development.
Ratings %
Issues that needed to be settled in connection with the ratings included how many areas
of analysis there should be and how they should ,be
have enough gradations to be able to recognize a
team settled pretty quickly upon a fiye, -point rating
f
it
discussion to determine the descriptions .of the ratiz
thorough descriptions of each, rating
give the employee
for the ratings was to
spectrum of achievement on a task. The
r, it took a good deal of
the final consensus including
�omt he
ad' vantages of the final descriptions are that they
f
ing of expeetation and performance and provide the
E
g his or hey perception of employee work task
expectations
,tations
is as follows:
2 Does not consistently meet expectations, needs improvement
1 Consistently unable to meet expectations, work is unacceptable
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supervisor strong
Developing a Performance Culture
There was agreement that activities employees engage in that help to promote a
performance culture in the City of Oshkosh should also be recognized in the performance
evaluation process and encouraged by the pay for performance system. For these reasons, the
recommended performance evaluation form includes sections for the following activities;
1) Specific, measurable performance metrics connected to the fo'6 (Fortr Section D) and,
2) Participation in continuous process improvement activities afn'ted at increasing efficiency and
effectiveness of city operations and / or arttcr anon in team -based activities, the performance of
Y p p p ,
which is better treasured at the group level than at the individual level (Foam Section E). These
sections support the city's commitment to exploring new w4ysto improve, and torrieasuring
those improvements by employees worktngindjvidually and tp groups.
examples, stories, and explakations`of t complexity of their work. Having that kind of detail
makes the eventual assignment o£a num�er'— a performance rating -- seem less likely to be
arbitrary; and can tie the rating to e closely to the day -to -day reality of doing the job. More
importantly it promotes dialogue; which is fundamental in fueling pride of ownership and mutual
understanding of desired outcomes.
VA
Personal Developmental Goals
There was widespread agreement on the team that the performance evaluation conference
between a supervisor and an employee should not be only about the assignment of ratings to
work performance. It should also be an opportunity to have a conversation about the future
development of the employee's knowledge and skills, and how those qualities may be applied to
make the city operation even better. These goals seemed be set outside of the framework of
i f
performance that was being rated and which might bear on compensation increases. For that
reason, Section I on the proposed evaluation
place to record developmental goals rather
Although the performance
allows ample opportunity for,, examples aiid
number must be derived in order for. it to be
after the: "sienature section. It is a
work
being ' prposed by the PE/PFP Focus Group
an overall rating
performance -based
in Section A. Guiding Principles and
more available to some,emp
sification ought to dominate the overall rating as every
Section C. Strategic Plan and /or Project Goals may be
others, based upon the focus of the strategic plan and the
degree to which special pro"iectywork may be available in the course of their work.
Opportunities to participate in activities that can be evaluated in the "Metrics, Continuous
Improvement and Team Activity" sections of the evaluation form are not equally available to all
employees.
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However, the team believed that high achievement on measurable classification specific
performance metrics (Section D) and continuous improvement activity or team -based activity
(Section E) should be recognized on the evaluation. It is precisely a willingness to participate in
these sorts of activities that will nurture a performance culture at the City of Oshkosh, and doing
so at a high level should be recognized in the performance -based compensation system.
Therefore, the team proposes incorporating an average of the rattr'gs in Sections D. and E., and
assigning them a weight of 2.5% each, for a total of 5 %�tovvard tie derivation of an overall
rating. The following chart illustrates the team recommendations for''the sections that comprise
the evaluation and the corresponding weighted *v ages in total will rpPrIesent an overall
rating for the evaluation:
and [' Teem Based Activity 1 2.5%
It is the recorrinepdatton of this team that annual performance evaluations be completed
in the spring and early summer of each year, with a deadline date of July 15
Doing so will allow calculation of performance ratings and determination of
compensation increases in time for these amounts to be included in the budget proposal to the
City Council for funding and award on January Vt of the following year.
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Pay For Performance
The team was cognizant of the fact that performance -based compensation increases are
only one part of the overall city compensation philosophy and structure. Other City
compensation components ensure that the organization has the ability to recruit and retain the
best available employees to serve the needs of the citizens. These include across the board
adjustments to the entire pay plan matrix so as to maintain rte market accuracy and proper
spacing between supervisors and employees regardless.ofeprentation status, as well as step
movement to facilitate gradual advancement of
the proper attention to and respect for all
portant topic,of delib *r qn was the issue of what level of performance -based
compensation tivill be motivational in the seise that it is perceived by employees as meaningful.
A number of approacle§ were s,llggested but in the end the team arrived at a figure of $1,000 as a
meaningful award to the highest'performing employees {those scoring a final weighted average
score of four (4) and above). After much discussion, the team also recommends that the group of
above average performing employees (those scoring a final weighted average score of three and
a half (3.5) up to four) also be eligible for a pay for performance award. The standard for this
group was set at $500.
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The rationale behind the two tiered system was developed as a result of our desire to recognize
those highest performers while not de- motivating those employees who are clearly performing at
an above average level.
Award Options
The PE /PI~P Focus Group is also recommending that the city, as part of its performance-
based compensation system, offer a variety of options to the eriplbyee who is eligible to receive
an increase so as to maximize the motivational impact �These'Qntions are;
• A lump sum salary adjustment
• Equivalent value of salary adjustme
• Equivalent value of salary adjustme
insurance or other benefit programs
administratively feasible* (
• A base - building salary adjushnent*
whose pay is at market or tgmcte the kk �
award, not to exceed the maximum
�iY_]
n iri "paid time off
ift' contributions toward" cWs of health
to the.,extenl that it can be legal and
h regarding thtsoption is currently rt progress)
(This optidwjs only open to those employees
pay for per f4 . ance band at the time of the
1 ":
of the espective range)
become part of an employee's base wage,
increase will be calculated.
to the employee and magnifies the effect
base- building salary adjustments be made available only to
step scale (at market rate) or already inside the
performance band of the payplan. Making base - building increases available to employees who
are still rising through the step scale would be in conflict with the step process by causing
employees to potentially accelerate to the market rate through a single award or earn at levels
that fell between the steps, essentially eliminating the graduated philosophy of bringing
employees to the market rate over time through the steps.
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Those individuals who are earning salaries that are greater than 20% above the market
average for their salary grade are designated as "red circled." Although the "red circled"
employees are eligible for the program just as all other regular full time and part time employees
are, they are waiting for adjustments to the market rate through across the board adjustments to
the entire salary matrix in order to place them under the maximum earning rate in the pay plan in
order to make them eligible for base pay increases again up to th''maximum of the respective
range,
When a new system is put in place fog dry organization, it is not uncommon to include as
part of the planning process transitional components The Qity'€ f Oshkosh is na different in
regard to the journey it has undertake q cultuiein,order to successfully transition to
an organization that is performance based Although the team recd mends implementation of
r
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the plan proposed immediately upon adoption ofthexeport and ri esponding Employee
Handbook updates, in recognition gfthis fact the study team strongly believes that the following
l
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measures need 'to be adopted as part of the plan J ►odder to transition from its existing state to one
in whic# the,recommendahgs in this report can be implemented successfully. These five
components are;
• Em to ees must be em to y ed for at least one year b Jul 15' of each evaluation cycle
p Y � p� Y Y Y Y
for a valid performance evaluation to exist in order to facilitate pay for performance
analysis for the following year.
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• Classification Specific Metrics (Section D) and Continuous Improvement and 1 or Team
Based Activity (Section E) will become active beginning with the 2014 evaluation cycle
in order to facilitate employee understanding, team and metric development and
opportunity for participation in 2013.
• Due to the unavailability of Sections D & E, for the 2013 evaluation cycle only, the 5%
allocated to these components will be placed with Seeton'B as this component is
classification specific and provides the best place to launei the program from considering
the familiarity with the essential duties oft' ch'position that both the employee and their
supervisor hold.,
• Performance evaluations completed in 2013 prior to tk'e'implemcntation of the new
program will be used for step movement However, a new evaluation must be completed
in order to transfer, goal initiate irtegratron mto the new process and facilitate potential
eligibility for' 42014
• Pay for performance away ds potentially i'r"pacting base pay, will be applied in a sequence
after all` other.basc pay ad3u tments have;been applied, in order to accurately consider
pay for perk"' nce eligibility.
Timeline
April 23, 2013 Presentatw to the City Council in Workshop Format
May 14, 2013 Council, >Adoption of the Plan and Updates to the Employee Handbook
May 14- June 14 Training for Supervisors and Employees on the New System
June 14 —July 15 Evaluations Complete
July 15 — Aug 15 Program Cost Establishment and Inclusion with Budget Submittal
January 1, 2014 Pay for Performance Awarded
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Conclusion
The Performance Evaluation / Pay for Performance Team wishes to thank the City
Manager and City Council for the opportunity to work on this important project.
We fully understand the importance of this assignment in regard to the future success of our
organization as well as other public sector organizations as we have received numerous inquiries
about our progress not only from our own employees but from`sother public sector organizations
across the State of Wisconsin.
As we have come to know from our study of tliis�disciplme, tr is not the end, but just
the beginning of our journey. It is our hope, t'hat`ttis product will help ark eryone involved in
follo�N
on which`ve can travel to
"EYce
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.f Haf H City of Oshkosh Performance Evaluation
ON 111E WATER
Employee Review
Employee being evaluated Organizational Development Specialist
Evaluator rating employee SAMPLE
A. Organizational Values
Rating Scale
5 = Consistently exceeds expectations
4 = Meets and often exceeds expectations
3 = Consistently meets expectations
2 = Does not consistently meet expectations, needs improvement
1= Consistently unable to meet expectations, work is unacceptable
Value Examples of how you demonstrate this value
Rating
Can Do Spirit- Serves the customer with
a confident can do sprit
Accountable — Holds self to the highest
standards with a dedication to
preserving the publics trust
Transparent — Provides customer with
information on actions and decisions
Engaging —Actively pursues customer
involvement throughout the decision
making process when possible
Economical — acts in a fiscally
responsible manner on behalf of our
customers
Responsive — Responds to customers
requests equitably and fairly in a timely,
informative and through manner
Innovative — Takes a prudent and
creative approach to problem solving
Equitable — Strives to achieve equity in
the allocation of community resources
when possible
B. Work Tasks Based on Classification
Rating Scale
5 = Consistently exceeds expectations
4 = Meets and often exceeds expectations
3 = Consistently meets expectations
2 = Does not consistently meet expectations, needs improvement
1 = Consistently unable to meet expectations, work is unacceptable
Essential Duties and Responsibilities
SAMPLE
Rating
Recommend, develop, and evaluate the impact of new processes, strategies, tools, and training that
help align staff development with City goals and objectives, and facilitate continuous improvement.
Comments:
Consult with managers, teams, and individuals on an as- needed basis to facilitate and assist in
identifying needs and achieving targeted results. Design and conduct and appropriate supporting
strategies.
Comments:
Design, implement, and evaluate the impact of strategies, tools, and training that promote and
support a culture of engagement, innovation and continuous improvement.
Comments:
Develop and facilitate team- building activities /events that create opportunities to strengthen team
cohesiveness.
Comments:
Work with Human Resources staff and City supervisors to resolve personnel issues and perform other
employee relations functions and human resource activities.
Comments:
Coordinate new employee orientation by guiding all new employees through an orientation program
for all full time, part - time, and seasonal employees; including referral for Benefit & Payroll counseling
personnel information, department specific information, and a City tour.
Comments:
Conduct exit interviews
Comments:
Design and perform training and development needs assessment and analysis utilizing a variety of
approaches and methods, such as conducting surveys and focus groups, and soliciting management
and staff input. Recommend, design, develop, and implement appropriate strategies to achieve
targeted results.
Comments:
Develop and coordinate the publication of the City Staff Newsletter. Coordinate annual employee
recognition and Take Your Child to Work Day programs.
Comments:
Plan, coordinate, schedule and facilitate all Health Care and Wellness Committee activities on a
regular basis. Monitor budget, facilitate programming and assess progress. Communicate with all
employees regarding committee and programming opportunities, initiatives and progress.
Comments:
Manage Employee Assistance Program and develop programs based on utilization reports to promote
positive organizational development through employee education
Comments:
Participate in hiring and selection processes including the design and implementation of simulation
assessments as needed.
Comments:
Update organizational chart when classification and staffing changes warrant
Comments:
Participate in promoting training & development activities
Comments:
Maintain accurate records of training & development activities
Comments:
Assist in developing and administering training & development plans and budgets.
Comments:
Interface with other Administrative Services staff to facilitate organizational development activities.
Comments:
Participate in interviews as necessary.
Comments:
Backup to Safety and Risk Management Officer position.
Comments:
C. Strategic Plan and /or Project Goals Status Log SAMPLE
Rating Scale
5 = Consistently exceeds expectations
4 = Meets and often exceeds expectations
3 = Consistently meets expectations
2 = Does not consistently meet expectations, needs improvement
1 = Consistently unable to meet expectations, work is unacceptable
Goal Rating
Improve Employee Engagement, Increase Opportunities for Involvement
Establish Employee Focus Groups (PE /PFP, Continuous Improvement, Wellness, Intranet, Employee
Recognition /TYCTWD)
Develop a Performance Culture
Develop KPI's and Dashboards
Develop a Performance Culture
Develop ROI capability and methodology
Develop a Performance Culture
Assist in developing PE /PFP
Develop a Performance Culture
Build leader and employee skills to manage performance metrics
Develop a Performance Culture
Create City Lean initiative
Develop a Performance Culture
Increase public awareness of city services and value
Assist in establishing and deploying new SharePoint based intranet
D. Metrics Based on Classification (if available and approved)
Metric Target Actual Rating Scale
E. Continuous Improvement Activity/ Team Activity
Project Name Project Purpose Results
ATM
F. Employee Comments on specific aspects of performance
G. Supervisor Comments on specific aspects of performance
H. Has the position description for this employee been reviewed and /or updated? If so, please send to
Human Resources.
a. Position description has been reviewed ❑
b. Position description has been updated ❑
Signature of employee being evaluated bate
Signature of evaluator bate
Signature of Manager Date
I. Development Goals / Status Log (Optional)
Goal
Status