Grass Valley enacts changes to second level employees’ salary based on performance |

Grass Valley enacts changes to second level employees’ salary based on performance

Eligible Grass Valley city employees who have excelled in their lines of duty from July 1, 2014 to June 30, 2016 will be awarded with an adjustment to their salary or a bonus, as a result of an ordinance passed by the Grass Valley City Council during a city council meeting Sept. 22.

The Outstanding Performance Pay Program allows second level management employees who “consistently put forth extraordinary efforts and/or produce outstanding results,” to either get a one-time bonus which ranges from 1 to 5 percent of their base salary, or to obtain an adjustment of their salary that could equal 1 to 5 percent of their base pay, said City Manager Bob Richardson.

“People performing exceptional work should be rewarded for their efforts,” said Richardson. “We want to encourage people who want to take the extra step for our community.”

Employee compensation currently makes up 64 percent of the city’s $10,765,000 General Fund, Richardson said. The city estimates that the cost of a 5 percent increase for one employee is $6,000, but Richardson said it’s hard to gauge the direct impact to the city budget at this point because the award for every employee will be issued on a case-by-case basis.

“The potential ramification for this program is extremely small, especially in comparison to the upside of excellent performance. I don’t know what will be submitted to me in the future, but that $6,000 number is put forth for the general impact per employee,” said Richardson.

The change affects Unit 1 employees, such as police lieutenants, battalion chiefs, engineers, senior accountants and deputy directors. Eleven people currently fit this category.

Eligible department directors will also get a 7 percent adjustment over their maximum salary range.

Richardson said in order for any employee to be considered for the program, department directors have to submit a report to him detailing the eligibility of the worker.

Some criteria to be considered are: the employee’s work history, the employee’s accomplishment and how this accomplishment is different from the employee’s expected responsibilities.

Richardson warned that the adjustment does not mean a salary change.

“It doesn’t give anybody any money automatically, it just gives me the latitude to get adjustment for anyone’s salary if I needed to,” Richardson said.

Unit 1 city employees initiated the adjustment in 2014. Then during “labor negotiations” in November of last year, employees and the city decided to submit a “pay for performance” plan for the city council to approve.

Richardson said he expects to extend the program beyond 2016.

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