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HomeMy WebLinkAboutSummary of Changes to Employee Handbook related to change in City of Rexburg Compensation SystemSummary of Changes to Employee Handbook related to change in City of Rexburg Compensation System City of Rexburg Compensation System Proposed Changes Effective 9/5/2020 *City Council Will Need to Motion to Accept Changes to Compensation System and Handbook* Grade/Step System The Grade/Step System is used to ensure that we are wise and fair stewards of public monies. Each full time employee that works for the City of Rexburg is assigned to a position, which position is assigned to a grade. The base compensation of an employee is determined by the grade. The base of a grade is typically from step 1 to step 41 (each step represents 1%). Performance Evaluations Performance evaluations are an integral part of determining the compensation, and should be performed at least annually by the supervisor of the employee. Employees are typically evaluated for merit raises as follows:  After their introductory period (typically 6 months after being hired).  1 year later.  Every two years thereafter until reaching the ceiling of their base pay (step 41). Employees reviewed for merit increases can receive between 0 to 4%. Once an employee reaches the ceiling (step 41) of their position, they will not be eligible for merit raises. Salary Study Salary study is normally performed every 5 years. We compare positions, not employees. We seek to be as objective as possible, which creates fairness and a structured system. Ensures that positions are competitive to the market (Market refers to whom we compete with for employees). We compare salary ranges, not actual wages. If the study suggests a change in the grade of a position, it does not affect the current wages of the employee in that respective position; it does affect the longtime earning power for that position. Examples of How a Salary Study can affect the Grade/Step of a Position-Employee wage would not change, but their Grade and step assigned could change. Current New Example Grade/Step Grade/Step Notes______________________________________ Grade goes up from 17 to 18 17/37 18/33 Next review would be for a potential step merit raise up to 37 Grade goes down from 6 to 5 6/17 5/21 Next review would be for a potential step merit raise up to 25 Grade goes down-currently topped out 8/41 7/45* No longer eligible for potential step merit raises *This is the only situation where we would allow an individual to be paid above step 41 in their base pay. Someone else in that same position that was not topped out at the time the salary study was adopted would have a maximum base salary of step 41. Cost of Living Adjustment (COLA) A COLA maintains the integrity of the wage range for positions between study years. Annual COLA’s are determined from the percent change by year on the Consumer Price Index for Jan that is released March. There is no guarantee that a COLA will be received each year, this is something that must be approved by City Council on an annual basis through the budgeting process. If a COLA is adopted, each step on the grade step chart is increased by that respective COLA amount. Disclaimer: ***** The City makes no promise as to what your future earnings might be when you are hired***** It is important that employees understand the City of Rexburg Compensation System, if you have further questions, please contact a representative of the HR Department.  Changes reviewed by Human Resources, Department Heads, and Employee Committee and recommended as shown above to City Council.  Seeking Motion from City Council to adopt changes to City of Rexburg Compensation System effective on or before 9/5/2020 o Motion to include honoring offer letters  Once adopted and effective, staff will update the max step on employee profiles to step 41 from step 37  Will also provide a one-time pro-rated lump sum to topped out employees (base 37 or higher) and move their base pay to new max step going forward and they will no longer be eligible for merit lump sums in the future