Agenda - Council - 08/11/1998 - Laserfiche WebLink

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DRAFT MEMO TO COUNCIL Background On September 9, 1996, the City Council agreed fo give exempt personnel of the City a 3% across the board salary increase, effective January 1, 1997, and to set aside 2% of exempt payroll to be distributed in 1997 on the basis of performance. Exempt employees were directed to develop a pay for performance plan for consideration. Exempt employees have met several times to discuss performance based pay and review plans from other cities. As a result of the meetings, the group has identified a number of concerns relating to the necessity and feasibility of implementing performance based pay. Who is championing performance based pay? Exempt employees who were present at salary discussions of the Personnel Committee in 1996 know that one Councilmember, who is no longer on the Council, was very vocal in his desire to see performance based pay implemented for exempt employees in the City. The exempt group is curious about whether it is responding to something that is important to all, or at least a majority, of the Council or if it is responding to the opinions of one influential person who is no longer on the Council. What is the rationale for performance based pay? The rationale offered in support of performance based pay is that we need to be able to "hold people accountable." In discussions to date, "holding people accountable" equates to punishing them. There is seldom mention of rewarding outstanding performers. The exempt group believes that there are already a number of ways its members are held accountable. .F. ishbowl nature of public service; Activities of most exempt employees are very visible to the public. If work is not getting done or if it's not done adequately, public feedback will make that obvious, whether it's through telephone complaints to the City Administrator or elected officials, critical letters, or appearances at Council hearings and other meetings. Internal reporting requirements; Most exempt employees submit periodic activity reports to a Council committee or the full City Council. If reports aren't adequate to provide a way to measure accountability, their format can be changed. I I I I I I I I I I I I I I I I