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stage of employment within that position. If a delay occurs, reviews will be repeated as indicated in writing in the review paperwork with a performance improvement plan and provided to the employee until performance meets expectations or further employment action results. Failure to progress within the set timeframe could result in actions affecting continued employment. At the end of their fifth year in a job, employees should be at the target rate of pay (assuming all steps were granted when the employee became eligible and dependent on step level at hire). The maximum rate is based on a line of best fit that matches closely 97% of the Group 5 pay pattern. Thus, as an organization, Roseville will be paying three-year employees at the market rate or average pay for a three-year employee and maximum rate or top pay to a five year employee at the proposed 97% of the Stanto� 5 group. This progression is designed to encourage retention of employees by limiting the time when their rates of pay make them more exposed to competitive recruiting. It is also expected that employees in most jobs will be reaching full performance at or around the three-year period, depending on a number of variables including individual aptitude and j ob complexity. More than one job classification can be assigned to each salary range. Each range consists of seven steps and each step represents a percentage of the maximum rate for the position. Staff moves through the range based on their time in the position if satisfactory performance is being achieved. It ta��es five years to progress from the bottom step to the top of the range. After reaching the target rate at presumably five years, the passlfail standard of performance changes to a more performance oriented merit approach. Merit Performance of up to 15% may be achieved in addition to the top step. This difference between target and a merit maximum is available for recognition of above noi-�nal, enhanced performance. Over time, above average performers should reach approximately 105% of target and outstanding performers should eventually be able to reach 115% of target. Guidelines will be provided to supervisors regarding the percent of additional increase through the achievement of goals which are set annually with attached merit percentages if achieved. Once pay progresses into the merit portion of the range, continued performance at a high level will be required if the incumbent is to be paid in the merit portion of the range and at the level associated with previous performance ratings. Failure to continue to perform at the higher level will result in the withholding of all or a portion of the annual adjustment. This 115% is narrower than the 100% to 120% upper portion of a range that is typically used in pure merit systems. The narrower merit band reflects a conservative use of inerit that is appropriate for use in a public sector employment environment. Since there is discretion involved in the administration of this portion of the range, it is important to have goals and guidelines as well as checks and balances in place to ensure consistency of application. Promotions When promoted to a j ob that has a higher grade, the employee will be paid at the step that is closest to their current rate of pay that results in an increase. After six months in the new j ob the probationary employee will be eligible for a review and will receive an increase as warranted by performance and as set by the pay grade administrative guidelines. Proposed �'av Plan Chances: The proposed compensation system incorporates changes to simplify the plan design by assigning a unifonn step system with a performance based merit addition for strong achievers, as well as recommending range adjustments for specific positions. Proposed changes would include: Dona Bacon �,•��• 6of9 9/1512005