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HomeMy WebLinkAbout31. 13-249MAY 14, 2013 13 -249 RESOLUTION (CARRIED 6 -0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE EMPLOYEE HANDBOOK UPDATES INITIATED BY: HUMAN RESOURCES DIVISION BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached updates for the Employee Handbook Section 109 (1), & (7) subsections a, f and k for City of Oshkosh are hereby approved retroactively, effective 1/1/2012 and the proper City officials are hereby authorized to execute and deliver the handbook updates in substantially the same form as attached hereto, any changes in the execution copy being deemed approved by their respective signatures, and said City officials are authorized and directed to take those steps necessary to implement the terms and conditions of the handbook updates. BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh that this Employee Handbook update to Section 109 (1), & (7) subsections a, f and k for City of Oshkosh supersedes all previous versions of these sections of the Employee Handbook. MAY 14, 2013 13 -249 RESOLUTION (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE EMPLOYEE HANDBOOK UPDATES INITIATED BY: HUMAN RESOURCES DIVISION BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached updates for the Employee Handbook Section 109 (1), & (7) subsections a, f and k for City of Oshkosh are hereby approved retroactively, effective 1/1/2012 and the proper City officials are hereby authorized to execute and deliver the handbook updates in substantially the same form as attached hereto, any changes in the execution copy being deemed approved by their respective signatures, and said City officials are authorized and directed to take those steps necessary to implement the terms and conditions of the handbook updates. BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh that this Employee Handbook update to Section 109 (1), & (7) subsections a, f and k for City of Oshkosh supersedes all previous versions of these sections of the Employee Handbook. CITY HALL 215 Church Avenue P.O. Box 1130 Oshkosh, Wisconsin 54903 -1130 City of Oshkosh — QlHK(J1H Date: May 7, 2013 if— To: Mark Rohloff, City Manager From: John Fitzpatrick, Assistant City Manager / Director of Administrative Services Re: Employee Handbook Updates: Salary Administration In anticipation of the adoption of the Performance Evaluation / Pay for Performance Group report and recommendations, it is necessary to incorporate several new concepts into the Salary Administration section of our Employee Handbook. This handbook update includes a clarification of our compression definition and a clarification of how the pay of a compressed position is temporarily adjusted. These areas are also described in the Salary Administration section of the Employee Handbook. Specifically, the revisions to the language are primarily focused on; 1) the concept that employees who have received an above average level or higher evaluation of their performance are eligible for pay for performance award consideration, 2) that the top paid classification, not the position, directly supervised, will be considered when evaluating whether or not a supervisor's pay is compressed, and 3) when a supervisor who is temporarily adjusted from, or is returning to, his or her original pay range as a result of a compression issue, they will not be subject to rules designed to not exceed the highest paid employee in their respective classification, so as to not reintroduce compression. The portions that are being modified and / or augmented in this update are: Section 109, (1), & (7) Subsections a, f and k. I have provided the revised sections of the handbook for your information and am asking that the effective date of these language changes be made retroactive to 1/1/12 as some compression issues have been under consideration since the adoption of the new pay plan. I hope this information will be helpful for everyone in the consideration of this update. Please review these materials and let me know if you or any of the Council Members may have any additional questions in regard to this subject. Thank you. Attachment: Updated Employee Handbook Section 109 (1), & (7) Subsections a, f and k 109 SALARY ADMINISTRATION 1. Pay P lan - City pay plans include the schedule of pay ranges consisting of a minimum and maximum rate of pay for all classes of positions contained in each respective plan as The objective of each pay plan is to provide an appropriate salary structure to recruit and retain the required number of City employees. 7. Salary Adjustment a. General - The salary schedule shall be reviewed annually to consider overall changes of salaries inside the organization, the labor market and economic conditions. If a general adjustment is given, it may be made either on a straight percentage basis, a flat dollar amount, or a combination of the two. Such adjustments shall normally be effective January 1. If the City utilizes a step based pay system, movement from one step to the next will occur on the employee's anniversary date of hire into their current classification and only after receiving an acceptable review of their performance from their supervisor up to the final step When an employee's salary exceeds their existing pay range maximum the employee's pay is defined as "red circled ". A red circled employee will not be eligible for further base - accumulating pay increases until his/her salary is within the salary range for their existing position. f. Reallocation/Reclassification - When an allocation of a position has been changed as a result of changes in the duties assigned to the position, the organizational structure of a department or logical and. gradual changes in the duties and responsibilities of the position, such change in grade will be considered to be a reallocation or reclassification. When employees are reallocated or reclassified the following provisions apply: i. Employees who are reallocated or reclassified to a higher pay grade will be granted a salary increase of 5% or the pay step of the new range that provides an increase of at least 5 %, or the minimum of the higher range, whichever is greater. In the event of the reclassification of two or more salary grades, the increase will be at least 8 %, or the pay step of the new range that provides an increase of at least 8 %, but not to exceed 10 %, and then movement to the next closest step that provides an increase, or the minimum of the higher range, whichever is greater. Witli the exception of compression: ad�ustmert related actions, employees who are reallocated /reclassified to a higher pay grade will not exceed the pay rate of the highest paid employee in their new classification, unless that rate is less than or equal to their former rate. ii. If a position is reallocated or reclassified to a classification in a lower salary range and the salary of the employee exceeds the maximum of the new range, the employee will be placed in the new range, the employee will be placed in the new class and will retain his/her current salary. However, with the exception bf comres5on adjustment related actions, employees who are reallocated or reclassified to a lower pay grade will not exceed the pay rate of the highest paid employee in their new classification. As long as an employee's salary exceeds the new range maximum the employee will not be eligible for further base - accumulating pay increases until his/her salary is again within the salary range for the new position. k. Compression Adjustment — Wage compression exists when there is an unacceptable differential in wages or salary between a supervisor and direct subordinate. In rare circumstances, compression can also exist within grades when more experienced employees within the same or similar classifications are earning less than, or nearly the same as, less experienced employees. Compression can exist under a base pay comparison, under a total gross earnings comparison, or both. In determining whether compression is an issue that must be resolved through a pay increase, the City will look at the differences in total compensation (i.e., direct pay and benefits) between the supervisor and subordinate positions. Unless the benefit package of the supervisor is determined to compensate for wage compression, the City will provide an acceptable base pay differential between an exempt supervisory position and the average gross earning of the top paid pee classification directly supervised. Compression adjustment should not, in most cases require a pay grade change in order to use a rate within the assigned grade that provides the recommended differential. In situations where the compression analysis requires a higher base rate than would normally be utilized under the compensation plan, at the City's discretion, one of two actions will be available: i. Adjust the employee's pay upward into the range, or ii. Move the position up one pay grade temporarily and only while compression conditions are still causing the problem. The City will utilize the first option whenever possible, as long as the current pay grade and range allows for sufficient earnings growth consistent with the intent and spirit of the compensation plan. However, when the City utilizes the second option and the position will be placed in a higher grade, all documents and communications are retained to reflect the temporary assignment of these positions. The earnings differential situation should be checked every year, and if conditions change such that the actual pay grade provides an adequate differential and opportunity for sufficient earnings growth, these positions will move back into their correct grade. The City recognizes that the allowance of compression adjustments does disrupt some of the internal equity in its compensation plan, because there are jobs that are of higher internal value that may be paid less than a job of lower internal value. This is why the City intends to utilize compression adjustments sparingly. All compression adjustments must be recommended by the department head and receive approval by the Director of Administrative Services and the City Manager. In the event that a position under a compression adjustment is later reclassified downward to the correct internal pay grade, the policy for Salary upon Reclassification of Position will apply in regard to compensation for the affected employee "Not to exceed ";language does riot apply to thrs`actrori.