HomeMy WebLinkAbout820828.tiff RESOLUTION
RE: APPROVAL OF PAY-FOR-PERFORMANCE PLAN.
WHEREAS, the Board of County Commissioners of Weld County, Colorado,
pursuant to Colorado Statute and the Weld County Home Rule Charter, is vested
with the authority of administering the affairs of Weld County, Colorado, and
WHEREAS, the present compensation and appraisal system has been in use
for approximately five years, and
WHEREAS, a study of various compensation and appraisal systems has been
completed and the Board believes it is the appropriate time to update and
improve Weld County's current compensation system, and
WHEREAS, the attached plan referred to as Exhibit "A" and incorporated
herein by reference, has been reviewed by the Board who believes the plan, as
presented, will benefit Weld County and its employees by moving to a
pay-for-performance concept.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County that the attached Pay-for-Performance Plan be approved with
implementation on January 1, 1983.
The above and foregoing resolution was, on motion duly made and seconded,
adopted by the following vote on the 22nd day of September , A.D. , 1982.
--}}-- BOARD OF COUNTY COMMISSIONERS
ATTEST etee etara WE OUNTY, COLORADO
Weld County Clerk and Recorder
and Clerk to the Board n T. Martin, Ch irman
EXCUSED
Chuck Carlson, Pro Tem
lYEputy County erk
Approved as to form: Norman Carlson
• Q ` W. it y
County Attorney
K. Stei rk
1N
820828
DATE PRESENTED: September 22, 1982
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PAY FOR PERFORMANCE PLAN
PURPOSE
In 1982, the Board authorized a study to explore various compensation
plans.
The purpose of the study was to improve our current compensation system by
incorporating a pay for performance concept.
OBJECTIVES
The objectives identified by Weld County for any pay for performance system
are as follows:
-- Equity - Equate compensation directly with employee contribution
to the County by compensating employees based on performance.
-- Productivity - Motivate increased performance and productivity by
integrating compensation with performance evaluation results as a
positive incentive.
-- Competitive Compensation - Attract and maintain good employees
through a competitive performance-based compensation plan.
-- Management Resource - Give value to the performance evaluation
process as a positive management tool for human resource
management and program planning.
INTERVIEW PROCESS
The initial phase of the study included interviews with public and private
employers to obtain information on various pay for performance approaches
used in the Weld County area.
Meetings were then held with all elected officials and department heads as
well as approximately 100 County employees and supervisors to receive their
input on the present compensation plan and recommendations for changes.
RECOMMENDED PLAN
In selecting an approach most appropriate for implementation in Weld
County, the advantages and disadvantages of each compensation plan were
evaluated in relationship to the objectives of the County in developing a
pay for performance plan, the concerns expressed by County employees during
the survey, and the administrative issues outlined in the policy/procedure
issue worksheet.
Based on the information obtained, and established County objectives, a
step/bonus approach- was recommended. It was recognized as the most
feasible approach based on ease of transition both from the standpoint of
administration and employee understanding and support.
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This system incorporates two approaches to compensation which operate
relatively independently. Each, however, complements the other within the
overall concept of pay for performance. The performance step approach is
recommended as the base compensation portion of the system and the bonus
portion is added to augment the performance incentive limitations under the
step base.
KEY ELEMENTS
Key elements of the step/bonus approach include:
-- Four performance levels for employees (entry, qualified,
proficient, and highly proficient) and, three performance levels
for supervisory positions (qualified, proficient, and highly
proficient).
-- Two five percent bonuses to be awarded yearly based on
performance.
-- Appraisals to be completed every six months.
-- The elimination of pay for longevity.
MECHANICS OF THE SYSTEM
The pattern of movement of non-supervisory employees through the step plan
is as follows:
An employee hired at the entry/training step is compensated at a rate which
equals 95% of the job rate for proficient employees in that position/class.
Upon completion of a six month probationary period, the employee's
performance is evaluated. If the employee meets the performance standards
of a qualified employee for that position/class, the employee is moved to
the qualified step and is compensated at 97'1X of the job rate (21%
increase)
After performing job responsibilities as a qualified employee for six
months, the employee's performance is evaluated. If the employee meets the
performance standards of a proficient employee for that position/class, the
employee is moved to the proficient step and is compensated at 100% of the
job rate (2'i% increase) .
Employees at the job rate are those employees who are fully proficient at
the job skills and responsibilities of their positions. The are
compensated at a job rate which represents the competitive rate of like
positions in the market.
Having performed job responsibilities as a proficient employee for one
year, the employee is eligible for movement to the highly proficient step
if his/her performance meets the performance standards of the highly
proficient step for that position/class. Movement to highly proficient is
restricted to 50% of employees within each department unless additional
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funds are approved by the County Commissioners during the annual budget
process.
Employees approved for movement to the highly proficient step are
compensated at 105% of the job rate (5% increase) .
Proficient employees who do not move to the highly proficient step
continued to be compensated at the job rate. However, the job rate is
adjusted annually by a market survey to reflect the competitive wage for
that position/class.
All employees at the proficient step and highly proficient step must
continue to meet the performance standards appropriate to their specific
steps. If performance drops below the standards expected, employees are
moved downward to the step which more accurately reflects their performance
and compensation is adjusted downward accordingly.
To determine compensation under the step plan, a formal performance
appraisal is conducted for each employee at least annually, if not more
often. Additionally, informal communication between supervisor and
employee regarding performance is an ongoing process inherent in good
management practice.
GRANDFATHERING
A basic assumption throughout this project is that no County employees
would receive a decrease in pay due to conversion to the recommended
system. Therefore, upon conversion, any employee whose base salary was
above the job rate would be allowed to retain that base salary upon
conversion.
In moving to the new pay system, we found that approximately 66% of
employees would fall into the new system with little or no transition
problems. That 34% of the employees, due to the longevity portion of the
old system, would exceed the pay for the proficient step and therefore must
be grandfathered into the new pay system, i.e. , not receive pay increases
until their current pay does in fact fit with the pay for performance
system. It is estimated that it will take a total of approximately three
years to bring everyone into the new system. We must be careful that no
employee loses pay during the grandfathering process. We propose to give
all employees a 2'%'jpay increase for 1983 and those not grandfathered also
adjust their pay to the salary survey.
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IMPLEMENTATION SCHEDULE
4
June 1982 - December 1982
Review and update all County classifications with various department
staff.
Develop classification and position specific standards for each
position in the County.
Testing of new appraisal form and performance standards.
Training on new compensation plan and appraisal form.
Meetings with employees to be grandfathered.
January 1983 - June 1983
All employees evaluated with new appraisal form against established
performance standards and placed in appropriate step.
January 1984 - First 5% bonus awarded.
July 1984 - Second 5% bonus awarded. Full implementation
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CHART V
• RECOMMENDED STEP PORTION
NON-SUPERVISORY STEP PLAN
SALARY RANGE
Maximum
Base v
105% Satisfactory //' Highly
Proficient
Performance = Step
Job Rate
100% Proficient
Step
97-1/2%
Qualified
Step Unsatisfactory
Minimum Performance =
Base Entry/
95% Training
Step V
I{
6 Mo. 6 Mo. I 1 Year
CHART VI
RECOMMENDED STEP PORTION
SUPERVISORY STEP PLAN
SALARY RANGE
Satisfactory
Performance =
Maximum
Base Highly
105% Proficient
Step
Job Rate
100%
Proficient
Step
Minimum
Base Unsatisfactory
97-1/2% - Qualified Performance =
Step -
6 Mo. 1 Year
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