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Policy: Merit Pay Plan Administration Scope: All City Staff in the exempt and non-exempt pay plans Authorizing Authority Effective Date: 12/1/OS Draft Revision Dates: Eligibility: Reference #: 2.20 Page 1 of 2 Regular employees who are not represented by a bargaining unit and whom have either reached the fmal step of their salary range in their pay grade or achieved an outstanding accomplishment may be eligible for consideration of inerit pay. Policy Objective: The primary objective of the MERIT program is to ensure that employees' compensation reflects the quality of the work they produce. The following system is integral to the city's overall compensation program and is a component of pay called MERIT. �T.�ik�� - One of the main objectives of the program is to improve the city's ability to both recruit and retain qualified and productive employees. Toward that end, the program ensures the pay structure remains competitive in the market. The competitive market for the City of Roseville consists primarily of Group Five cities included in the Twin Cities Metropolitan Area Compensation Survey published annually by Stanton Group. Excellence R�co�ition - Excellence is highly valued in Roseville, and this standard is recognized and rewarded through the merit pay system. City employees who consistently perform at the highest levels may enter into this merit system and the program rewards them accordingly. A two tiered system recognizes performance at all levels in the organization in two possible ways which include a one time merit payment or longer term in an hourly wage merit payment. rnte�ratet� - The overall system is integrated so the many pieces effectively complement each other. Although each component is unique, they work together to provide employees with a fair level of total compensation. Teamwork. - While each individual has unique needs and skills that must be recognized, the program reinforces the city's shared value that teamwork is essential to our common success. Policy Guidelines: Employee's who receive standard on-going hourly wage merit pay are expected to continue performing at an exceptional level and may have their wages reduced if their performance decreases. This reduction would come through a formal written performance improvement plan that was not met that indicated that the eni�loyee's performance had faltered and expectations for improvement with at least a 90 day window for improvement prior to a salary decrease to the top step of their current pay grade. Dona Bacon Page 3 1011312005