HomeMy WebLinkAboutVIII (1) Merit Pay Policy Review Agenda 4-02-2002
Item VIII A
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
Ocoee S.SCOTT VANDERGRIFT
°\ O CITY OF OCOEE
�' � COMMISSIONERS
r'r d 150 N.LAKESHORE DRE DANNY HOWELL
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p SCOTT ANDERSON
�, OCOEE,FLORIDA 34761-2258 RUSTY JOHNSON
'yj, ^% ,I (407)905-3100 NANCY J.PARKER
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CITY MANAGER
JIM GLEASON
To: Mayor and Commissioners
From: Jim Gleason, City Manager
Date: March 27, 2002
Subject: Memo Concerning Merit Policy Review
Background:
The current City Budget for the fiscal year 02-03 proposed a merit pay system based on the out
come of the employee performance review. The approved increase ranged from 0 to 2.5%of
the employee's base salary. This merit proposal was presented to the commission with the
belief supervisors, managers and directors had been properly trained in objective evaluation
technics.
Discussion:
The elected officials per the request of Commissioner Rusty Johnson asked for a report
documenting the range of the merit increases by department for the first quarter of the fiscal
year. This report indicated a significant variance in the average increase comparing departments.
Upon further investigation it was found the majority of employees in a supervisory position had
received very little training concerning performance reviews. This lack of proper training and
coaching has caused an inequity in the current merit system. The city has a new Human
Resources Director and has initiated performance review training and is in the process preparing
merit proposals for commission discussion for the budget year 02-03. With continued training,
coaching and a defined scoring system we should be able to minimize the department variances.
Policy Proposal:
Staff requests the Mayor and Commission consider modification to the current merit pay policy.
The proposed modifications are, convert the current merit range 0 to 2.5%to 0 or 2.5 % for
employees receiving above operational on their review dated April 1, 2002 through September
30, 2002. The second, any employee whose review was dated October 1, 2001 through March
30, 2002 and received an above operational review would receive a total merit increase of 2.5%.
The difference in the percent earned and the 2.5% would be adjusted retroactive for all reviews
from October 1, 2001 through March 30, 2002. The full amount of the 2.5%merit was budgeted
and is not included in the $704,000 on hold per the estimated state sales tax revenue reduction.
Due to the lack of past training, these proposed changes can equalize the department variances
and send a positive message to employees who were adversely affected.
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Prot€ct OCGCB`E W2W PESIJSCOS
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE"
Ocoee MAYOR•COMMISSIONER
0 r:41\
aCITY OF OCOEE S.SCOTT VANDERGRIFT
D150 N.LAKESHORE DRIVECOMMISSIONERS
:�• DANNY HOWELL
r, OCOEE,FLORIDA 34761-2258
�4). �' (407)905-3100-OFFICE SCOTT ANDERSON
E*�� G00��` (407)656-6885-FAX RUSTY JOHNSON
NANCY J.PARKER
CITY MANAGER
March 13, 2002 JIM GLEASON
To: Mayor and Commissioners
From: Jim Gleason, City Manager
Subject: Merit Pay 2001-2002
Due to a discrepancy in the administration of the city merit program, I would ask the Mayor and
Commission to consider for the current budget year only(2001-2002), granting all employees
who scored operational or above on their evaluation the full 2.5 %merit increase. The city staff
did budget for all employees at the 2.5%, as you cannot predict the merit range. We did not
consider any of this amount in our current $704,000 on hold pending state sales tax revenue. This
will not have a negative effect on the current budget. I was not aware of the past lack of training
and coaching for supervisors, managers and directors concerning proper evaluation procedures.
The HR Department is conducting "Evaluation Training" for staff and will also do follow up
training and coaching to ensure a more objective evaluation process. Our new Human
Resources Director is also evaluating merit programs for consideration for the 2002-2003-budget
year. I am aware that the discrepancies between department evaluations have caused some
concern for employees, which can have a negative effect on moral. The budget year for 2002-
2003 is also projected to be financially tight due to the economy and reduction in sales tax, so the
combination of merit and cola will be very conservative. I believe the overall morale of the
employees can be positively effected by granting the full 2.5%merit during this current budget. I
also feel with the new training and revised merit plan for 2002-2003, we should be able to offer a
more objective evaluation process that encourages and rewards improved performance. I ask for
your input and or, guidance concerning this request. If the elected board is inclined to support
this policy suggestion, I can have it placed on an up coming commission agenda. If you have any
questions or need any additional information please let me know. I thank you for your
consideration of this request and look forward to your reply.
Sincerely,
Jim Gleason
Ocoee City Manager
PoW
Protect Ocoee's Water Resources