Pay Steps/Ranges – Pay steps/ranges are established within the pay grades. The Fond du Lac City Council has chosen to match the market.
- Match the market – set pay levels relative to those in the existing marketplace. By matching the pay rates of its competitors, the organization ensures its compensation structure remains competitive, therefore improving its ability to attract and retain top talent. Although this approach allows employers to better manage labor costs, it also has the potential of placing the employer in a position of having to play catch-up, requiring larger adjustments to the compensation structure during tight labor markets.
- Pay range widths are established with a minimum, midpoint, and maximum based on goals for compensation within the organization
- Compa-ratio – measures the relationship between the salary of an employee and the midpoint of the pay range for that employee
- A Compa-ratio of 1.00 or 100% means that the employee is paid exactly what the industry average pays and is at the midpoint for the salary range
- Market ratio – measures the relationship between the salary of an employee and the value of their position in the market
- Analysis is completed as it relates to span of control and compression within the employees currently in the grade, and into the step appropriately aligned to the experience, education, and certifications obtained in prior employment positions as well as within the division to assign the proper step placement.
- Employees progress through the steps based upon City Council annual approval of the budget.
- Steps allow for growth over the years
- Steps allow for differentiation of skills and performance
- Promotional opportunities may be available based upon a succession plan.
Salary Adjustment – The salary schedule will be reviewed annually to consider overall changes of salaries inside the organization, the labor market, and economic conditions. If a general adjustment is given, it may be made either on a straight percentage basis, a flat dollar amount, or a combination of the two. Such adjustment will normally be effective with Payroll 1.
Pay System – Pay periods are bi-weekly. Hours worked during a pay period are ordinarily paid the following Friday of the subsequent pay period.
Step Increases – Step increases may be authorized by the City Council as part of the annual budget process. Such increases will be effective with Payroll 1 until an employee has reached the final step in the series progression. Other authorized step increases will be based upon successful completion of a probationary review.
Red – Circle – When an employee’s salary exceeds the existing pay range maximum, the employee’s pay is defined as “red-circled”. A red-circled employee will not be eligible for further base-accumulating pay increases until his/her salary is within the salary range for the existing position.
Promotions – The City recognizes that career advancement through promotion is an important aspect of most employees’ working life. This makes promotion an important recruitment and retention tool for the City. A promotion occurs when an existing employee is competitively selected as the most qualified candidate for an existing vacant position; or as a means to reward an employee who has mastered all elements of the current job and meets the requirement of a higher-level job. When circumstances warrant, the City reserves the right to fill positions by offering promotions to current employees. The City further reserves the right to determine what the appropriate level of compensation and benefits an employee will receive if he/she chooses to accept the promotion. Most employees may anticipate at least a 2.5% increase in pay when accepting a promotion. All promotions will include an orientation period set by the City. If the employee is unable to satisfactorily complete the orientation period in the new position, the City may offer the employee the opportunity to return to his/her previous position if it is still available.
Clerk Cashier–Grade 3, Step 6, making $18.62 an hour, is promoted to Administrative Assistant on Grade 4. The employee would be placed no lower than Grade 4, Step 3, making $19.35 an hour because that is closest step that provides at least a 2.5% increase. However, the City may also place the employee on Grade 4 at a higher step if circumstances warrant a larger increase.
Transfers –Occasionally, the City may require an employee to change jobs in order to better meet the needs of City operations and/or the public. In those cases, the City may seek volunteers to transfer to the position. If there are no volunteers or the City determines that the volunteers do not meet the minimum qualifications, the City may choose an employee for an involuntary transfer. Employees may also request to transfer to a vacant position. The City reserves the right to determine the appropriate compensation level for any transfer to a new position.
Demotions –Unfortunately, there may be occasions when an employee is demoted due to performance issues, work-related misconduct, or changes in the composition of the workforce. In such cases the City will determine in its sole discretion the appropriate placement of the employee for wage and benefit levels.
Further, employees may voluntarily request a demotion for a variety of reasons such as job satisfaction or personal needs. In those cases the City will work with employees to help with the transition and to ensure that the position is meeting the employees’ and the City’s needs. As with other demotions, the City reserves the right to determine the employees’ level of compensation and benefits in their new positions.
Reclassifications – Reclassifications can occur for a variety of reasons including but not limited to changes in job duties or reorganizations of City departments or divisions. A reclassification is used is when there is a substantive change to the duties and responsibilities of a job that may occur due to changes in organization, type of work, staffing requirements, technology; or when the classification (title, grade, or status) assigned to the job is incorrect based on the actual job duties. The City periodically reviews all position descriptions and the overall compensation plan to ensure that employees are classified correctly. When the City determines that a reclassification is necessary, it will review the position’s compensation to determine if it is appropriate. The City reserves the sole discretion to determine the appropriate classification and compensation level for each position. Generally, employees in positions that are reclassified will not receive a minimum salary increase. They will be placed on the step in their new grade that is closest to their current wage without being a decrease.
Clerk Cashier–Grade 3, Step 6, making $18.62 an hour, is reclassified to Grade 4. The employee would be placed on Grade 4, Step 2, making $18.82 an hour because it is the closest step to the employee’s current wage rate on Grade 4 that does not result in a decrease.
Temporary Appointments –From time to time, employees may be temporarily appointed to positions of a higher classification by their supervisor or department head. In those cases, the City reserves the right to offer an incentive such as increased pay to employees that take on the additional responsibilities. Not all temporary appointments will qualify for increased pay. The City reserves the right to determine which temporary appointments will qualify for temporary appointment incentives, and will convey that to the employees prior to making the appointment.
Seasonal Employment – Seasonal employees shall be compensated at a rate established by the annual City budget process.