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HomeMy WebLinkAboutAgenda - 12-04-2000-8f ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ~!BSTRACT Meeting Date: December 4, 2000 Action Agenda Item No. ~~ SUBJECT: Personnel Ordinance Amendment -Equity/Retention Salary Adjustment DEPARTMENT: Personnel PUBLIC HEARING; (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Draft Personnel Ordinance Amendment - Elaine Holmes, Personnel Director, Equity/Retention Salary Adjustment Extension 2550 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel HIII 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider an amendment to the Orange County Personnel Ordinance section covering Equity/Retention Salary Adjustment to give the Manager authority to approve temporary amendments to the classification and pay plan to address retention needs. BACKGROUND: ,During 1998-99, the Board of Commissioners completed a comprehensive review of the employee pay and benefits plan. As a result of its review, one element the Board approved adding to the pay plan was the establishment of an "Equity/Retention Fund." Under this policy as set out in the Orange County Personnel Ordinance, the Manager may approve an equity or retention salary adjustment to establish equitable salary relationships among employees in a work unit or in related work units or to address retention needs, within the availability of funds. For 1999-00 and 2000-01, the Board approved a fund of $25,000 annually for the Manager's use to address such issues. During 1999-00, the Manager used the fund successfully to address equitable salary relationship issues in specific work situations. As reported earlier, the Manager approved 24 salary adjustments under this fund in 1999-00. However, in terms of addressing retention needs, the Manager and Personnel have identified the need far the capability to address retention needs when the employee is at or near the salary range maximum. Under the present Ordinance (Item 20.4), no employee may receive an adjustment that results in the employee's salary being above the maximum of the salary range. This means -even when a retention issue exists -that the Manager may not authorize a salary adjustment to address it. It is recommended that the Ordinance be amended to give the Manager the authority to address a retention need when the employee is at or near the salary range maximum for the assigned salary grade. As provided in the attached draft Personnel Ordinance amendment, the Manager would be authorized to approve a temporary amendment to the classification and ,pay plan to change the salary grade for the assigned classification when a retention need exists as defined in the Ordinance. Any such action would be temporary pending a future classification and pay study of the position such as in the recommended County-wide classification and pay study. This proposal is being brought forward now rather that as a part of the November 30 work session because it is an item staff recommends be addressed on a current fiscal year basis. The purpose of the work session is to address pay and benefit directions as to future years (2001-02 and 2002-03). FINANCIAL IMPACT: Any retention salary adjustment would be subject to the availability of funds in the Equity/Retention Fund for the fiscal year. For 2000-01, the budgeted amount for the fund is $25,000. RECOMMENDATION(S): The Manager recommends that the Board ,approve the attached Personnel Ordinance Amendment to Article V, Pay Plan, Section 20, "Equity/Retention Salary Adjustment." 3 Attachment Draft Personnel Ordinance Amendment Article V, Section 20, Equity/Retention Salary Adjustment (Changes Shown in Sold Type) 20.0 Equity/Retention Salary Adjustment 20.1. Purpose Within the availability of funds, the County provides for equity/retention salary adjustments to establish or re-establish equitable salary relationships among employees in a work unit ar in related work units or to address retention needs, as approved by the County Manager. 20.2 Criteria For Granting Through the Equity/Retention process in Section 20.5, Equity/Retentian Salary Adjustments may be granted to address: Ecauitable Salary Relationships -This includes the following types of situations: ^ Salaries differ significantly and qualifications are substantially equal These are situations in which the salaries of employees performing the same type and level of work in the same ar related work units differ by more than 10 percent when relevant individual characteristics (related education, skills, work experience, length of service, work performance) are substantially equal. ^ Salaries are substantially equal and qualifications differ significantly These are situations in which employees performing the same type and level of work have the same or substantially equal salaries and one of the employees has substantially greater qualifications (related education, skills, work experience, past work performance). Either of the above situations may include inequities resulting from salary limitations an past promotional increases. Retention Needs -This includes the following types of situations: ^ Labor market The need to reduce or prevent turnover due to critical market conditions that may affect retention when / The position's duties are key to the accomplishment of essential County operations/functions and 4 Attachment / The position's required knowledge, skills, and abilities are acknowledged and documented as being difficult to recruit or having a critical labor market shortage according to market salary data and recruitment data. p Retention To retain a critical employee who has received a job offer with a similar level of responsibility and a higher level of compensation outside the County. 20.3 2o.a Eli~,ible Employees A full-time permanent or part-time permanent employee with proficient or higher work performance. Equity/Retention Increase Amount The salary adjustment amount may not exceed a two step increase (about 10 percent) i~s~se within the fiscal year and is subject to the availability of funding. No employee may receive an adjustment that results in the employee's salary being above the maximum of the current salary range. Special Circumstance: When necessitated by retention needs as defined in the "Retention Needs" section of this Ordinance and when a Retention Salary Adjustment would cause the employee's salary to exceed the salary range maximum, the Manager may approve a temporary amendment to the classification and pay plan to change the salary grade for the assigned classification. In this case the employee's salary is set as provided in this Ordinance for a reclassification. Any such amendment is temporary pending a future classification and pay study of the position that will assign a permanent classification and salary grade. 20.5 Review and Anoroval Process Any Equity/Retention Adjustment requires the Manager's advance written approval. The department head submits a recommendation for any equity/retention adjustment including documentation of the specific circumstances warranting the request and supporting data to the Personnel Director. The Personnel Department organizes and administers the process for department submission of any equity%retention adjustment recommendation, including 5 - Attachment working with department heads to identify priority needs. Personnel also consults with departments and provides guidance on the use of this process. Once received, Personnel evaluates the equity/retention adjustment recommendation including analysis of relevant factors such as education, skill, work experience, past work performance and past salary history of the individual recommended and comparators involved and provides this information to the Manager. Among other things, Personnel assures the employee possesses the relevant education and experience commensurate with the requested salary increase and that no salary adjustment will create a salary inequity (10 percent or more differential) with another similarly situated employee. In considering the recommended increase amount, Personnel may take account of previous, recent, or pending salary increases (promotions, in-range increases, COLA).