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<br />Attachment B <br /> <br />Policy: Merit Pay Plan Administration <br /> <br />Reference #: 2.20 <br /> <br />Scope: All City Staff in the exempt and non-exempt pay plans <br /> <br />Authorizing Authority <br /> <br />Effective Date: 12/1/05 Draft <br /> <br />Revision Dates: <br /> <br />Page 1 of2 <br /> <br />Eligibility: <br /> <br />Regular employees who are not represented by a bargaining unit and whom have either reached the final step <br />of their salary range in their pay grade or achieved an outstanding accomplishment may be eligible for <br />consideration of merit pay. <br /> <br />Policy Objective: <br /> <br />The primary objective of the MERIT program is to ensure that employees' compensation reflects the quality <br />of the work they produce. The following system is integral to the city's overall compensation program and is <br />a component of pay called MERIT. <br /> <br />Market - One of the main objectives of the program is to improve the city's ability to both recruit and retain <br />qualified and productive employees. Toward that end, the program ensures the pay structure remains <br />competitive in the market. The competitive market for the City ofRoseville consists primarily of Group Five <br />cities included in the Twin Cities Metropolitan Area Compensation Survey published mmually by Stanton <br />Group. <br /> <br />Excellence Recognition - Excellence is highly valued in Roseville, and this standard is recognized and <br />rewarded through the merit pay system. City employees who consistently perfOlm at the highest levels may <br />enter into this merit system and the program rewards them accordingly. A two tiered system recognizes <br />perfonnance at all levels in the organization in two possible ways which include a one time merit payment or <br />longer teml in an hourly wage merit payment. <br /> <br />Integrated - The overall system is integrated so the many pieces effectively complement each other. Although <br />each component is unique, they work together to provide employees with a fair level of total compensation. <br /> <br />Teamwork. - While each individual has unique needs and skills that must be recognized, the program <br />reinforces the city's shared value that teamwork is essential to our common success. <br /> <br />Policy Guidelines: <br /> <br />Employee's who receive standard on-going hourly wage merit pay are expected to continue perfonning at an <br />exceptional level and may have their wages reduced if their perfonnance decreases. This reduction would <br />come through a fonnal written perfonnance improvement plan that was not met that indicated that the <br />employee's perfOlmance had faltered and expectations for improvement with at least a 90 day window for <br />improvement prior to a salary decrease to the top step of their cunent pay grade. <br /> <br />Dona Bacon <br /> <br />Page 1 <br /> <br />10120/2005 <br />