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HomeMy WebLinkAbout30. 13-248 MAY 14, 2013 13-248 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) AS AMENDED PURPOSE: APPROVAL OF PERFORMANCE EVALUATION / PAY FOR PERFORMANCE FOCUS GROUP REPORT, RECOMMENDATIONS, AND CORRESPONDING PERFORMANCE EVALUATION TEMPLATE FOR ALL REGULAR NON REPRESENTED EMPLOYEES INITIATED BY: CITY ADMINISTRATION BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached Performance Evaluation / Pay for Performance Focus Group Report, Recommendations and corresponding Performance Evaluation Template, is hereby approved and the proper City officials are hereby authorized and directed to take those steps necessary to implement the Performance Evaluation / Pay for Performance Focus Group Report Recommendations and corresponding Performance Evaluation Template for all Regular Non Represented Employees and to incorporate performance evaluation and pay for performance into the City's existing pay plan for all non represented employees. BE IT FURTHER RESOLVED by the Common Council that the proper City officials are hereby authorized and directed to take those steps necessary to seek opportunities to apply the Performance Evaluation / Pay for Performance Focus Group Report, Recommendations and corresponding Performance Evaluation Template to all Regular Represented Employees. SEE ATTACHMENT FOR AMENDMENT • CITY HALL 215 Church Avenue P.O. Box 1130 City Oshkosh, 5 90 - 130 City of Oshkosh — OlHKOlH Date: May 7, 2013 rZ J Y g To: Mark Rohloff, City er From: John Fitzpatrick, Assistant City Manager / Director of Administrative Services Re: Performance Evaluation 1 Pay for Performance Group Report and Recommendations I am very pleased to share with you for your consideration and Council adoption the report and recommendations from the Performance Evaluation Pay for Performance 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. It is my intention to seek the application of the Performance Evaluation 1 Pay for Performance Group Report, Evaluation and Recommendations to our represented employees through negotiation, upon approval from the Council. 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 1 PFP Report and Recommendations Performance Evaluation Template 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 May 7, 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 number of efforts aimed at improving the operation of city government and its service to all who live, work and play in the city. They undertook a comprehensive analysis of employee work tasks and compensation, adopted a new pay plan that provides for compensation increases based upon performance, and embraced a new strategic plan with one of its goals being the development of a "performance culture" within city government. Even before events at the state level gained such widespread attention, the City of Oshkosh had already started planning to study the compensation of its employees. The changes in municipal labor relations set in motion by the state in 2011 made it seem likely that many more of the City of Oshkosh's employees would not be represented by labor unions than had been the case in the past. Even though the status of labor unions had not, in 2013, been finally decided by the courts, 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 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. 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 Evaluation / Pay for Performance Focus Group (PE/PFP), has as its purpose to contribute toward the accomplishment of two sub -goals of the current city strategic plan: • I.A. Increase opportunities for employee involvement, and • II.D. Develop and put in place a pay for performance system for all non- represented employees. Additional efforts applied to these goals by the team and staff liaisons included webpage development / deployment documenting progress, providing the opportunity for commentary by the employee population, introduction of electronic kiosks in areas of the organization where network access did not previously exist to provide access to the webpage, and a virtual meeting update by City Manager Rohloff to encourage participation and communication. 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 functionally acceptable or credible product. These risks have been balanced, in the current effort, by providing the PE / PFP Focus Group with support from the city's Administrative Services Department. Brian Chapman, Organizational Development Specialist, has provided the team with facilitation and logistical support including coordination of the project timeline, meeting agendas, and setting up a shared online workspace. John Fitzpatrick, Assistant City Manager / Director of Administrative Services gave the team guidance on the broader context of city goals, compensation theory & application and corresponding accepted human resources practices. While both have performance management knowledge, have participated in the deliberations of the team, and have offered observations & ideas at times, they have worked hard at mainly providing guidance and facilitation, and at empowering the team to make its own decisions. After general orientation to the task and some of the major concepts, the team first addressed design of a new performance 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. 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 step -by -step process, where it actually was very fluid. For example, an issue of wording on the performance evaluation form was re- opened during the discussion of the pay for performance system because a team member remained uncomfortable about it, researched a better solution, and brought it to the team, creating a new consensus for an improvement to the form. This adjustment illustrates the commitment team members have dedicated to the success of this project and also the understanding gained by the team in regard to how performance evaluation, pay for performance and performance management are intertwined. Performance Evaluation The team's recommended performance evaluation 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 PE/PFP 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 :l 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 abilities required for each position 2) Can be updated with information from the recent classification and compensation surveys (i.e., the Job Description Questionnaires or JDQs) and 3) As an ongoing measure to promote dialogue and ensure accuracy, the existing position descriptions can also modified / updated each cycle by supervisors and employees as responsibilities change. Incorporating the "Guiding Principles" The team accepted the idea that the "Guiding Principles" as articulated in the recently adopted 2012 — 2014 Strategic Plan by the Oshkosh City Council, should be an important part of the evaluation process in order to reinforce goal congruency throughout the organization. These principles — such as being responsive, transparent, innovative and exhibiting a "can do" spirit -- embody the spirit of an organization dedicated to excellence. The team agreed that employee behaviors manifesting these principles ought to be subject to evaluation, but debated how to evaluate them. A "YES / NO" approach was initially considered but abandoned for evaluation on a five -point scale, which was the 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." 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 described. The goal for the ratings was to have enough gradations to be able to recognize a wide spectrum of achievement on a task. The team settled pretty quickly upon a five point rating scale. However, it took a good deal of discussion to determine the descriptions of the rating points, with the final consensus including thorough descriptions of each rating point. The advantages of the final descriptions are that they give the employee a clear understanding of expectation and performance and provide the supervisor strong guidance in assigning his or her perception of employee work task performance to a rating. The rating system agreed upon is as follows: Consistently exceeds expectations 4 Meets and often exceeds expectations Consistently meets expectations 2 Does not consistently meet expectations, needs improvement Consistently unable to meet expectations, work is unacceptable 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 job (Form Section D) and, 2) Participation in continuous process improvement activities aimed at increasing efficiency and effectiveness of city operations and / or participation in team -based activities, the performance of which is better measured at the group level than at the individual level (Form Section E). These sections support the city's commitment to exploring new ways to improve, and to measuring those improvements by employees working individually and in groups. Opportunities to Comment As work on the performance evaluation form progressed, the team, again and again, insisted that opportunities for written comments be included. The team wanted supervisors and employees to have plenty of chances to elaborate upon the performance of their work with examples, stories, and explanations of the complexity of their work. Having that kind of detail makes the eventual assignment of a number — a performance rating — seem less likely to be arbitrary; and can tie the rating more 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. 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 best set outside of the framework of performance that was being rated and which might bear on compensation increases. For that reason, Section I on the proposed evaluation form is placed after the signature section. It is a place to record developmental goals rather than to evaluate work - related behaviors. Deriving an Overall Rating / Weighting the Section Ratings Although the performance evaluation form being proposed by the PE/PFP Focus Group allows ample opportunity for examples and textual elaboration of performance, an overall rating number must be derived in order for it to be useful later for determining performance -based compensation increases. The team believed strongly that the average ratings in Section A. Guiding Principles and Section B. Work Tasks Based on Classification ought to dominate the overall rating as every employee will be rated in these areas. Section C. Strategic Plan and /or Project Goals may be more available to some employees than others, based upon the focus of the strategic plan and the degree to which special project work may be available in the course of their work. Because our performance culture is still evolving, opportunities to participate in activities that can be evaluated in the "Metrics, Continuous Improvement and Team Activity" sections of the evaluation form are not available to all employees in the same way at this time. 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 ratings in Sections D. and E., and assigning them a weight of 2.5% each, for a total of 5% toward the derivation of an overall rating. The following chart illustrates the team recommendations for the sections that comprise the evaluation and the corresponding weighted averages that in total will represent an overall rating for the evaluation: Section A: Guiding Principles 25% Section B: Work Tasks Based on Classification 60% Section C: Strategic Plan and /or Project Goals 10% Section D: Classification Specific Metrics 2.5% Section E: Continuous Improvement and / or Team Based Activity 2.5% Yearly Schedule for Performance Evaluation It is the recommendation 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 1 st of the following year. 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 its market accuracy and proper spacing between supervisors and employees regardless of representation status, as well as step movement to facilitate gradual advancement of employee pay up to the market level. Without the proper attention to and respect for all these facets of the city's compensation philosophy, structure and intended purposes, pay for performance cannot be successful over time. With this perspective, and the understanding that this evaluation process / pay for performance program will be required of and available to all regular full time and part time employees, the decisions points for linking performance ratings in the City of Oshkosh to pay for performance increases are discussed below: " Meaningful" Performance Recognition An important topic of deliberation was the issue of what level of performance -based compensation will be motivational in the sense that it is perceived by employees as meaningful. A number of approaches were suggested 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. 10 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/PFP Focus Group is also recommending that the city, as part of its performance- based compensation system, offer a variety of options to the employee who is eligible to receive an increase so as to maximize the motivational impact. The employee will have the opportunity to choose one of the following options: • A lump sum non -base building salary adjustment • Equivalent value of salary adjustment in paid time off • Equivalent value of salary adjustment in contributions toward costs of health insurance or other benefit programs, to the extent that it can be legal and administratively feasible* (Research regarding this option is currently in progress) • A base - building salary adjustment* (This option is only open to those employees in pay for performance band systems whose pay is at market or inside the pay for performance band at the time of the award, not to exceed the maximum of the respective range) Base - building versus Non -base building Increases Base - building salary increases are those that become part of an employee's base wage, thereby increasing the base upon which any future percentage -based increase will be calculated. A base - building increase provides an immediate boost to the employee and magnifies the effect of future increases. The team recommends that base - building salary adjustments be made available only to employees in pay for performance band systems who are at the top of their step scale (at market rate) or already inside the performance band of the pay plan. Bold & Italics Indicates Amendment 11 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. 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 the maximum of the respective range. Transitional Performance Culture / Performance Evaluation / Pay for Performance Issues When a new system is put in place for any organization, it is not uncommon to include as part of the planning process transitional components. The City of Oshkosh is no different in regard to the journey it has undertaken to modify its culture in order to successfully transition to an organization that is performance based. Although the team recommends implementation of the plan proposed immediately upon adoption of the report and corresponding Employee Handbook updates, in recognition of this fact the study team strongly believes that the following measures need to be adopted as part of the plan in order to transition from its existing state to one in which the recommendations in this report can be implemented successfully. These five components are; 12 Employees must be employed for at least one year by July 15 of each evaluation cycle for a valid performance evaluation to exist in order to facilitate pay for performance analysis for the following year. • Classification Specific Metrics (Section D) and Continuous Improvement and / 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 Section B as this component is classification specific and provides the best place to launch the program from considering the familiarity with the essential duties of each position that both the employee and their supervisor hold. • Performance evaluations completed in 2013 prior to the implementation of the new program will be used for step movement. However, a new evaluation must be completed in order to transfer goals, initiate integration into the new process and facilitate potential eligibility for a 2014 award. • Pay for performance awards potentially impacting base pay, will be applied in a sequence after all other base pay adjustments have been applied, in order to accurately consider proper pay for performance eligibility. 13 Timeline April 23, 2013 May 14, 2013 May 14- June 14 June 14 — July 15 July 15 — Aug 15 January 1, 2014 Conclusion Presentation to the City Council in Workshop Format Council Adoption of the Plan and Updates to the Employee Handbook Training for Supervisors and Employees on the New System Evaluations Complete Program Cost Establishment and Inclusion with Budget Submittal Pay for Performance Awarded 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 other public sector organizations across the State of Wisconsin. As we have come to know from our study of this discipline, this is not the end, but just the beginning of our journey. It is our hope, that this product will help aid everyone involved in following our roadmap to the future, by providing a sound foundation on which we can travel to "Excellence in Oshkosh ". 14 Employee Review .l'HIH City of Oshkosh Performance Evaluation ON TUE WAYEA 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 R01 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 ATARAl 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 Date Signature of evaluator Signature of Manager I. Development Goals / Status Log (Optional) Goal Date Date Status