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HomeMy WebLinkAbout3.02.022_Equity Pay AdjustmentsCITY OF ROHNERT PARK CITY MANAGER ADMINISTRATIVE POLICY SUBJECT/TITLE: POLICY NO: APPROVAL DATE: EQUITY PAY ADJUSTMENTS 3.02.022 8.29.2018 Page 1 of 2 1. PURPOSE This policy establishes the process for requesting a salary equity review, assures procedures and criteria for awarding equity pay adjustments are applied consistently for all City employees, and allows the City Manager to approve equity pay adjustments where necessary to remedy internal and external salary inequities and address critical retention issues. 2. SCOPE This policy applies to all regular represented and non-represented full time and part time employees. 3. BACKGROUND Pursuant to the City Manager’s Administrative Policy No. 1: Personnel Rules and Regulations, the City Manager is designated as the Personnel Officer, unless s/he designates this authority. The Personnel Officer is charged with establishing equitable and uniform procedures for dealing with personnel matters; attracting and retaining the best and most competent persons available; assuring that appointment and promotion of persons will be based on merit and fitness; and providing a reasonable degree of security for qualified employees. It is the City’s practice to award salary increases through the regular annual step increase process. As with all practices, however, some flexibility is needed to respond to exceptional circumstances. The goal of this policy is to provide guidance on critical and/or unusual pay administration issues that are not addressed in the Personnel Rules and Regulations. A compelling argument must be made to justify additional adjustments to an employee’s base salary. Reasons for equity pay adjustments outside of the normal salary programs may include issues such as internal salary compaction, external market inequity, compliance with state and federal laws to ensure pay equality, and/or retention considerations. In these instances, equity adjustments may be approved by the City Manager to remedy salary inequities. Equity adjustments are not granted to reward an employee’s performance. In addition, current labor agreements do not specifically address equity adjustments. Equity adjustments for represented staff should be carefully considered ensuring they do not conflict with the bargaining process. Notice to bargaining unit representatives is required prior to the City Manager approving and implementing equity adjustments for represented staff. 4. PROVISIONS A. Criteria To be eligible for an equity adjustment, an employee must be actively working (i.e., not on leave). Requests will be evaluated considering the following criteria: 1. When internal salary inequity, defined as a significant disparity between employees in the same job title, or between new hires and current employees in the same job title, exists. 2. When external market inequity, as evidenced by valid market data showing that our competition pays higher salaries for similar work, recruitment difficulties, and sharp increases in turnover, exists. CITY OF ROHNERT PARK CITY MANAGER ADMINISTRATIVE POLICY SUBJECT/TITLE: POLICY NO: APPROVAL DATE: EQUITY PAY ADJUSTMENTS 3.02.022 8.29.2018 Page 2 of 2 3. To comply with state and federal laws to ensure equal pay for equal work. 4. To address immediate retention concerns, such as an external job offer made to an employee for the same or similar job. B. Process 1. To ensure consistency in the application of this policy, all equity adjustment requests will be reviewed by the Human Resources Director. Following review of the request and justification, the Human Resources Director will make a recommendation to the City Manager. (Note: If the request is for an employee who is currently “non-exclusively represented,” the request can be reviewed and approved by the City Manager.) 2. A formal written request shall be submitted to the Human Resources Director by the incumbent’s supervisor or the department head. The request should include the following information: a. The reason for the request (e.g., retention, remedy internal salary inequity, etc.); b. An outline of the employment and salary history of the incumbent for whom the request is made; c. The dollar amount and percentage of adjustment recommended by the supervisor or department head; d. Justification, including specific outside salary offers in cases of retention, or a specific analysis of salary relationships in cases of correcting salary inequities. 3. If approved, the effective date of the equity adjustment will typically be the start of the next pay period following the date the request was approved. If another effective date is requested, that request and reason(s) for a different effective date are to be included in the formal request. The City Manager, at his/her discretion, may make any equity adjustment retroactive to the extent necessary to remedy the salary inequity. REVISION HISTORY: