HomeMy Public PortalAbout808.22 - Human Resources - Personnel Management - Performance Appraisal and Merit Increase Program (3)Human Resources Department
Personnel Management Section 808.22
Policies and Procedures Manual Page 1
808.22: Performance Appraisal and Merit
Increase
Objective:
Provide a performance appraisal and merit program based on performance
that meets or exceeds standards. All positions are governed by this policy
except Elected Officials, Appointed Officials, Civil Service Management,
temporary, and where specifically excluded by collective bargaining
agreements.
Authority:
This policy amended by City Council January 8, 2024, Item A-01.
Direction:
Human Resources Division Director, as an appointed official, serves at the
pleasure of the Mayor, and receives direction through the Chief
Administrative Officer (CAO) or designee.
Functions:
1. Definitions
The following words or phrases, for the purpose of this procedure are
defined as follows:
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a. Annual Review Period – from August 1st to July 31st.
b. Merit Increase – an annual increase in salary based on meeting
or exceeding performance standards. Increases will be based
on a percentage of the midpoint of the employee’s assigned
pay grade.
c. Performance Bonus Award – A performance-related award
processed as a lump sum payment, not to become part of the
employee’s base pay and is not included as pensionable
income.
d. Performance Factor – A key job responsibility – linked to the
City’s mission statement.
e. Performance Goal – A projected result – measured in terms of
quality, quantity, and timeliness.
f. Performance Increase Program – Provides recognition and
reward for performance that consistently exceeds standards in
the form of a salary adjustment to an employee’s base pay.
g. Probationary Employee – An employee assigned to a
permanent position (full-time, part-time and contract) who has
not completed an approved probationary period of employment
with the City in that particular position. This period is six (6)
months unless extended (see 3.e.ii., Extended Probationary
Ratings).
h. Rater – An employee having direct authority over the employee
rated, herein referred to as "Rater" or "Supervisor." The rater is
designated by a Division Manager, Department Director,
Executive/Administrative Official, the Chief Administrative
Officer, or the Mayor.
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i. Regular Employee – An employee who has successfully
completed the probationary period in the permanent position
(full-time, part-time and contract).
j. Reviewer – A Division Manager, Department Director, or
Executive/Administrative Official, or designee, responsible for
the actions of the rater.
2. Policy
a. Employees’ performance is formally evaluated in February
(interim) and August (final) of each year.
b. Employees who have completed six (6) months' service as of
September 30th will be eligible to receive the approved merit
increase. Employees with less than six (6) months' service as of
September 30th (those employees hired on or before the last
working day prior to September 30th) are eligible to receive a
merit increase after completing six (6) months’ service.
c. Eligible employees who have been
promoted/transferred/demoted and are in a probationary status
as of September 30th may receive a merit increase upon
completion of their probationary period. Note that if these
employees' pay falls below the minimum of their assigned pay
grade, their salary will be adjusted to the minimum of the grade,
when, and if, salary ranges are adjusted (normally the
beginning of the pay period closest to October 1st of each
year). However, upon completion of their probationary period, if
a merit increase is to be awarded, the employee will receive the
difference between recommended merit amount and the range
adjustment amount received.
d. Employees hired on or after October 1st are not eligible to
receive a merit increase for the current rating period.
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e. Employees covered by this policy may be eligible to receive a
salary increase, based on continuous performance that
exceeds standards, through the Performance Increase
Program.
f. Employees covered by this policy may be eligible to receive a
Performance Bonus Award. This award is a lump sum payment
not to become part of the employee's base pay, and is for
timely recognition of significant contributions over and above
normal job requirements. Awards may be given at any time
throughout the review cycle.
3. Description of Performance Appraisal System
All employees covered by this policy are evaluated by comparing
performance with established performance factors and defined
performance levels.
a. Performance Factors
Employees in both exempt and non-exempt positions are
evaluated on the basis of standardized performance factors
designed to measure significant dimensions of their positions.
There are five (5) performance factors applicable to all
positions:
Innovation
Responsiveness
Knowledge
Courtesy
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Professionalism
There are three (3) additional performance factors for
supervisory positions:
Leadership
Planning & Controlling
Team Work
All performance factors are defined on the Performance
Appraisal Form 808.22.1.
b. Establishing Performance Goals
It is recommended that goals be established for employees in
exempt and non-exempt positions. Employees develop their
performance goals and discuss them with their supervisor to
ensure conformity with unit objectives and the City's mission
statement. Mutually agreed upon goals are submitted to
reviewer to ensure consistency with office/division and
departmental objectives. For probationary employees,
supervisors develop goals.
c. Rating Employee’s Performance
An employee's performance is rated on the degree to which
employee demonstrates behaviors described within each pre-
established performance factor and, where applicable, on the
basis of attainment of performance goals. For each
performance factor, the rater selects the level which most
closely describes the employee's performance. The four (4)
levels of performance used in ratings are:
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i. Exceeds Standards – Performance consistently exceeds
job requirements and Manager’s expectations for the
position; demonstrates exceptional productivity,
efficiency, effectiveness and competency.
ii. Meets Standards – Performance consistently meets job
requirements, demonstrates productivity, effectiveness,
and competency.
iii. Needs Improvements – Performance does not
consistently meet all job requirements; improvement is
necessary to attain expected level of performance.
iv. Below Standards – Performance is consistently below job
requirements; does not demonstrate necessary skills and
abilities.
d. Establishing Overall Ratings
The rating for each factor is typically the rating most frequently
given (the modal value). However, if all factors are of equal
importance and if there are two modal values (a tie), the overall
rating is at the lower level.
In determining the overall rating, the rater considers:
i. The rating most frequently given;
ii. Any unforeseen conditions affecting the achievement of
goals.
iii. The relative importance of each factor.
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If, however, one factor is considered significantly more
important than the other, this must be – identified on the form
and can be taken into consideration when establishing overall
ratings.
e. Frequency Of Ratings
An employee’s performance is formally evaluated at the end of
the Annual Review Period with the following exceptions.
i. Probationary Ratings – A probationary employee's
performance is evaluated prior to the completion of the
approved probationary period.
Probationary ratings are to be submitted to the
Compensation Section no later than fifteen (15) calendar
days prior to the close of the employee’s probationary
period.
Should an employee's performance improve or
deteriorate significantly any time prior to the close of a
probationary period, the preliminary performance
evaluation may be modified.
ii. Extended Probationary Ratings – Should a probationary
employee's overall performance be less than Meets
Standards and the employee is not terminated, the
reviewer may request, to Compensation, in writing, that
the employee's probationary period be extended not to
exceed ninety (90) additional days. The employee's
performance should be evaluated and submitted to
Compensation prior to the completion of this extended
probationary period.
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If the employee is scheduled, and eligible for a Merit
Increase and their probationary period is extended, the
employee will receive fifty percent (50%) of the Merit
Increase upon successful completion of probation (overall
score is Meets or Exceeds Standards).
iii. Transfer/Termination of Rater – A performance evaluation
is submitted on an employee at the time of transfer,
promotion, or termination of the rater for reasons other
than termination for cause, provided an employee
performance evaluation has not been completed within
ninety (90) days. This process facilitates the new
supervisor’s ability to rate the employee’s entire
evaluation period.
iv. Diminished Performance – If at any time during the review
period an employee's performance diminishes and
becomes overall Below Standards, the employee should
be counseled to determine the cause and develop a
specific Performance Improvement Plan (PIP). Refer to
Policies and Procedures 808.53 for process. If
improvement is not achieved within 30 days, the
employee's performance should be evaluated and the
employee placed on probation, not to exceed 90 days. If
the employee's performance has not reached at least a
Needs Improvement overall rating, the employee will be
terminated. Documentation to support this action must be
attached. The employee may be terminated at any time
during the probationary period. Refer to Policies &
Procedures 808.20.
Reviewers are responsible for ensuring all documents are
forwarded to the Compensation Section according to the
time requirements outlined in this policy.
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f. Appeals
An employee may appeal a “Below Standards” or “Needs
Improvement” evaluation rating in writing to the Office
Head/Division Manager through the immediate supervisor
within three (3) working days from the date the employee is
advised of his/her evaluation rating.
The Office Head/Division Manager will hold a meeting with the
immediate supervisor and the employee within five (5) working
days from the date the appeal was received for the purpose of
settling differences in the simplest and most direct manner. The
Office Head/Division Manager will make a decision and
communicate it to the employee, in writing, within five (5)
working days from the date the meeting was held.
If the complaint is not resolved to the employee's satisfaction by
the Office Head/Division Manager, the employee may forward
the written complaint to the appropriate Director within three (3)
working days of the date of notification from the Office
Head/Division Manager.
The Director will hold a meeting with the employee, immediate
supervisor, and/or Office Head/Division Manager within five (5)
working days from the date the appeal was received. The
Director will make a decision and communicate it to the
employee, in writing, within five (5) working days from the date
the meeting was held.
4. Administration
a. Performance Appraisal
At the beginning of the Annual Review Period the Human
Resources Division, Compensation Section will distribute
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performance appraisal forms for Departments unable to access
them from their networks.
b. Establishing Standards, Goals and Objectives
Employees will review the standardized performance factors
established for their positions. Supervisors (raters) meet with
employees to review the performance appraisal system,
discuss job requirements and standards that are applicable to
the position, and, if feasible, jointly establish goals and
objectives for the coming year.
Employees and reviewers sign the performance appraisal form
to signify this process was accomplished.
c. Monitoring Performance
To measure progress toward the accomplishment of
established performance goals and the performance of job
requirements, supervisors should maintain accurate and
specific documentation of employee performance.
Supervision should provide feedback to their employees on a
regular basis regarding performance. However, supervisors
must conduct at least one interim (mid-year) review to ensure
that activities are proceeding according to expectati ons, identify
areas needing improvement, initiate corrective actions, and
identify any changes in job assignments that may require
adjustments to expectations or goals. Supervisors are required
to document this midyear review which remains in the
department (not to be forwarded to Human Resources).
d. Rating Employee Performance
Interim Review
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During the interim (mid-year) review, Supervisors complete the
Performance Appraisal Form using the modal decision making
process and meet with the reviewer to obtain concurrence.
Supervisors meet with the employee to discuss performance
ratings. Completed appraisals are to be signed by the
employee, rater and reviewer.
Annual Review
At the end of the Annual Review Period, supervisors complete
the performance appraisal form using the modal decision
making process and meet with the reviewer to obtain
concurrence. Supervisors meet with employee to discuss
performance ratings. Completed appraisals are to be signed by
the employee, rater and reviewer and forwarded to Human
Resources.
Overall Below Standards Rating
When an employee receives an overall Below Standards rating
and is not terminated, demoted or transferred, the employee's
performance must be reassessed within three (3) months, with
specific attention directed to corrective action on the identified
poor performance rating. If the employee's performance has not
reached at least a Needs Improvement overall rating, the
employee will be terminated. Documentation to support this
action must be attached.
Overall Needs Improvement
When an employee receives an overall Needs Improvement
rating no increase will be awarded. However, after the extended
probation period (maximum 90 days) the employee will be re-
evaluated. If the rating improves to overall Meets Standards an
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increase of 50% of the designated percentage of midpoint
increase or the adjustment to the minimum of the salary range,
whichever is greater, may be given.
e. Processing Merit Increases
Before the end of the Annual Review Period, the Compensation
Section distributes the computer printouts, and any other
information and documents to facilitate the processing of merit
increases.
Department duplicate and provide a copy of the Performance
Appraisal Form to the employee/recipient, maintain a copy for
their files, and send the originals and computer printouts to the
Compensation Section on or before September 1st. The final
page of the computer printout must be signed by an appointed
official to signify approval.
The Compensation Section reviews all documents for
compliance with policy, and processes the appropriate
increases.
Increases are effective the beginning of the pay period closest
to October 1st. If the merit increase causes the employee’s
base rate to exceed their assigned salary range, the hourly
amount awarded above the maximum is annualized and paid
as a one time lump sum and included as pensionable income.
f. Processing of Performance Increase Program Adjustments
This program will be used to reward performance that
consistently exceeds standards. Managers will have the ability
to award an increase in pay that is applied to an employee's
base salary. A percent of payroll will be determined each year
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by CAO and set aside in a separate departmental fund for the
Performance Increase Program (PIP).
Salary increases for performance that consistently exceeds
standards can be awarded at any time throughout the review
period (fiscal year). An employee may receive up to two (2)
increases through this Program during the review period (fiscal
year). However, the maximum percent increase allowed
through this program in any one fiscal year is 6%. If an
employee receives two (2) increases for performance that
consistently exceeds standards, the cumulative total may not
exceed 6%. If the PIP increase causes the employee’s base
rate to exceed the maximum of their assigned salary range, the
hourly amount awarded above the maximum is annualized and
paid as a one-time lump sum and is included as pensionable
income.
Department Directors/Office Heads are responsible for
monitoring funds and employee eligibility.
Each Department Director/Office Head will determine how
funds will be allocated within their respective department/office,
which recommendations justify recognition, the appropriate
bonus amount, and will ensure consistent and equitable
consideration of all recommendations and awards.
An Employee Award Form must be completed for each
increase, giving details of major accomplishments. Forms must
be signed by the Department Director/Office Head, and
forwarded to Human Resources Compensation Section, for
review and processing.
Performance increases will be processed effective the
beginning of the pay period following review by Compensation.
Any awards submitted for review must be to Personnel
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Management no later than 5:00 p.m., Tuesday, the week prior
to payday.
g. Processing of Performance Bonus Awards
This program is designed to provide timely recognition and
reward for significant contributions, above and beyond normal
job requirements, to the overall accomplishments of the
department and/or City. Therefore, bonuses may be awarded at
any time within the fiscal year. This program will operate as
follows:
Management, Budget and Accounting will set up special
accounts for each department/office and will determine the
dollar amount given annually by calculating a percent of
salaries of eligible employees within each department/office.
This percentage will be determined annually by the Chief
Administrative Officer.
Each Department Director/Office Head will determine how
funds will be allocated within their respective department/office,
which recommendations justify recognition, the appropriate
bonus amount, and will ensure consistent and equitable
consideration of all recommendations and awards.
The minimum bonus award amount is $100; the maximum
amount is $1,250 per award.
There is no limit set on the number of times an employee can
receive a bonus. However, an employee may not receive
bonuses in excess of $2,500 during any fiscal year.
The bonus award amounts will not be added to base salary and
are not pensionable.
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Department Directors/Office Heads are responsible for
monitoring funds and employee eligibility.
An Employee Award Form (808.22.2) must be completed for
each bonus award, giving details of major accomplishments.
Forms must be signed by the Department Director/Office Head,
and forwarded to Human Resources, Classification and Pay
Section, for review and processing.
Checks will be issued on normal paydays. Completed
Employee Award Forms must be submitted to Human
Resources no later than - Tuesday, by 5 p.m., of the week prior
to payday.
5. General Instructions
The following should be kept in mind by all raters and reviewers:
a. Complete the Performance Evaluation form without the
employee being present.
b. Consider each factor separately, taking into account the only
that particular factor which is being rated. Do not be influence d
by your general opinion of the employee’s overall performance.
c. Be objective in evaluating the employee's performance so that
each factor's rating accurately describes the level of
performance in the particular area being considered. The
usefulness of any performance review depends almost entirely
upon the understanding, impartiality, and objectivity with which
ratings are made. The care and skill used by supervisors in
rating employee's performance are measures of supervisory
ability to direct the work of subordinates.
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d. Do not be influenced by one or two unusual incidents, but rate
in terms to the employee’s regular day-to-day performance
during the entire period being considered.
e. Consider the evaluation in terms of the employee’s present
duties, not in terms of the duties of a different, higher, or lower
classification.
f. Do not consider potential value or personal abilities of the
employee, except as they are actually revealed in and used on
present work assignments. Ratings should reveal what the
employee actually does in the present position.
g. In rating individual factors, remember that it is entirely possible
for the ratings to differ between factors. An employee's
performance in certain factors may be better than it is in other
factors.
h. Ratings should reveal the rater's observations of the
employee's work performance. The opinion of others should not
influence the ratings, except when the rater has sought out
such opinion from others for whom the employee performs
work.
i. Raters always include written comments for ratings other than
Meets Standards. Raters are encouraged to provide comments
for all ratings as well as suggestions for development on the
form. Concrete and relevant comments should be provided to
document and justify the rated level of performance.
Supervisors are encouraged to use additional paper, as
necessary, to describe more fully the employee's ratings, to
outline a plan of action to improve or maintain performance, to
commend exceptional work efforts, etc.
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j. It must be remembered that the evaluation of an employee's
performance is a continuing process of day-to-day observance
and not merely an extra activity when ratings are made.
Supervisors are urged to keep a notebook or log for the
purpose of documenting each subordinate's performance, thus
maintaining accurate records to be used in the evaluation
process.
k. Supervisors should not expect an employee to meet
performance requirements unless the employee was made
aware of all job requirements. Likewise, an employee cannot be
held responsible for work assignments unless they have
received understandable instructions from the supervisor. The
supervisor has the direct responsibility to develop the employee
with respect to total job performance. If the employee is not
performing at an acceptable level, they should be told how and
in what respect they are failing. and how to improve
performance. This is one of the supervisor's most fundamental
responsibilities.
l. It is mandatory that the rater discuss the evaluation thoroughly
and completely with the employee after the reviewer has made
comments. The evaluation interview provides the supervisor the
opportunity to again review the position requirements with the
employee and advise on the methods, procedures, techniques,
and practices which must be applied in order to bring
performance up to an acceptable level. This is the supervisor's
opportunity also to praise the employee for good work. After the
evaluation report has been discussed, the employee signs the
form to indicate that the ratings have been discussed and
reviewed, not to signify employee’s concurrence with the
ratings.
m. A performance evaluation is a personal matter and should
never be discussed with the rated employee’s fellow workers.
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Forms:
Performance Appraisal Form, 808.22.1
Employee Award Form, 808.22.2
Committee Responsibilities:
None.
Reference:
City Council Minutes July 10, 1972, Item 28; amended November 13, 1972,
Item 42; amended July 16, 1973, Item 26; amended December 16, 1974,
Item 27; amended July 6, 1976, Item 18. Re-numbered from 708.22 and
amended September 19, 1983, Item 6A-8; amended September 8, 1986,
Item 28A-22; amended May 16, 1988, Item 19A-5; amended April 1, 1991,
Item 3/43; amended June 21, 1993, Item 2-P; amended September 27,
1993, Item NN; amended July 10, 1995, Item UU; amended October 21,
1996, Item 8-YY; amended October 25, 1999, Item 3-A; amended April 2,
2001, Item B6; amended June 3, 2002, Item B24; amended September 15,
2003; re-formatted only April 2004; amended July 25, 2005, Item A11;
amended May 10, 2010, Item A-2; amended June 20, 2022, Item A-1;
amended January 8, 2024, Item A-01.
Date:
This policy effective January 8, 2024.