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2003-034 Amends Personnel Rules on Pay for Performance Program• RESOLUTION N0.34-2003 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AMENDING SECTION 12, PAY FOR PERFORMANCE PROGRAM AND GUIDELINES FOR ITS ADMINISTRATION, OF THE PERSONNEL RULES AND REGULATIONS OF THE VILLAGE, WHICH AMENDMENT IS ATTACHED AS EXHIBIT "A" AND MADE PART HEREOF; AND, PROVIDING FOR AN EFFECTIVE DATE. BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA: Section 1. The Village Council of the Village of North Palm Beach, Florida, does hereby amend Section 12, Pay for Performance Program and Guidelines for its Administration, of the Personnel Rules and Regulations of the Village, which amendment is attached as Exhibit "A" and made part hereof. Section 2. These amendments are not applicable to bargaining unit members until notice has been provided in accordance with the collective bargaining agreements. Section3. This resolution shall take effect immediately upon its adoption. 2003. A resolution\Section-l2-Amend • 12.01 POLICY STATEMENT • 12.01.01. PURPOSE: To define the various components of the Personnel Rules & Regulations Pay For Performance Program and to provide guidelines for its administration. 12.01.02. POLICY: The Village of North Palm Beach recognizes that some employees perform above and beyond the call of duty, or consistently maintain a level of performance that distinguishes them from their co-workers. It is the policy of the Village to measure, as objectively as possible, how an employee's job responsibilities are performed. The Pay for Performance Program is designed to acknowledge employees who have made special efforts in a project, program, or in rendering service or have consistently maintained an outstanding level of performance, or exceeded expectations. The Village will measure employees based on stated, well defined goals and objectives to the greatest extent possible. These goals and objectives will be reduced to writing and made a part of the Village's budget and other policies. 12.01.03. OBJECTIVES: The objectives of the Pay for Performance Program are as follows: a. To encourage and enhance communication between the supervisor and the employee. b. To identify, recognize and reward employees whose job performance warrants the same. c. To improve job performance by identifying areas where acceptable performance is lacking and by developing an action plan for improvement. d. To provide a review of job performance. e. To document employees with the capacity for assuming greater responsibility and leadership. 12.01.04. ELIGIBILITY: The evaluation period shall begin on June 1 of the previous year and end on May 31 of the current year. All regular full-time employees as of the end of the evaluation period (from here forward referred to as "employees") shall participate in the Pay for Performance Program (referred to as "program"). All full-time employees who have completed at least 90 days of service prior to the end of the evaluation period shall also participate in the Program. For purposes of the Program, base salary is defined as the basic salary earned by the employee, excluding overtime and fringe benefits, as described in the Village's annual budget or Departmental Orders, or Village Codes, Ordinances and Personnel Rules and Regulations and Village policies. • ,,. 12.01.05. GUIDELINES: • The Village places a high value on: caring, helpful service to the public; creative, workable solutions to problems; dedication and hard work; self-improvement; and enhancing the Village's positive image. On-going performance that is consistent with these values is recognized through the performance evaluation and a pay for performance program to the extent that there remains room to advance within a salary range. The Village recognizes the advantages of rewarding the consistently high performer through the Program. a. Pay for Performance Increases: A pay for performance increase, as budgeted by the Village Council, may be granted to an employee based on an annual evaluation of his or her performance. b. In all respects, where a pay for performance increase would cause an employee to exceed the maximum of that employee's pay range, the distribution of the pay for performance increase will be such that the employee will be topped out at the maximum of the range and will not receive a base salary increase beyond the maximum of the range. In recognition of the e.~ctraordinary service of an employee, a bonus incentive (not added to base salary) will be afforded to those employees who have attained the maximum of their pay range. Said bonus incentive will be based on the annual evaluation and applicable to those employees who receive an evaluation rating of "Exceptional" or "Successful". The bonus incentive amount shall equal the designated rate increase for the rating attained. • 2 ;`~ • 12.02 PERFORMANCE EVALUATION POLICY 12.02.01 PURPOSE: To establish guidelines for the completion and submission of performance evaluations and recommendations for pay for performance increases. 12.02.02 POLICY: All employees shall be reviewed annually. Pay for Performance increases shall be based on performance in accordance with the Village's annual budget, Collective Bargaining Agreements, Departmental Orders, or Village Codes, Ordinances and Personnel Rules and Regulations, and other Village Policies. All proposed Pay for Performance increases will require a performance evaluation. 12.02.03 RESPONSIBILITY FOR CONDUCTING PERFORMANCE EVALUATIONS: Under the direction of the Village iVfanager, the Department Head and supervisors shall be responsible for conducting performance evaluations of employees under their direct supervision. a. Evaluation process. 1). Performance evaluations for eligible employees shall be prepared and conducted by the immediate supervisor. The supervisor and the employee shall both independently prepare in writing an evaluation prior to the review. The supervisor is responsible for completing the evaluation form, and the employee is responsible for completing the self-evaluation form. 2). Prior to the evaluating supervisor's review meeting with the employee, the evaluating supervisor must review the completed evaluation form with the next level supervisor. If the two levels of supervision disagree on the performance evaluation for an employee, the Department Head will review the form and make a determination on the areas of disagreement before the form is reviewed with the employee. 3). After the supervisor has completed the evaluation, the performance evaluation form shall be discussed with the employee. The review meeting provides the supervisor the opportunity to review the position requirements with the employee and to discuss the employee's overall performance, covering both strong points and areas for improvements. The employee may include written • comments on the evaluation form. The employee self-evaluation should also be discussed during the review meeting. 3 ;., • 4). It is possible that during the evaluation interview, based on additional information and insights from the employee on hislher performance, the supervisor may determine the need to modify a rating on a specific performance criterion. Any changes must be shown on the evaluation form and must be initialed by the evaluating supervisor. 5). After the evaluation has been discussed, and any modifications made, the employee and supervisor shall sign and date the performance evaluation Form. After the employee and supervisor have signed the evaluation Form, the form shall be reviewed and signed by the Department Head. The Department Head may include additional written comments. ~. Once the evaluation form has been completed and signed by the employee, supervisor, and Department Head, the original copy of the evaluation form, and the employee's self-evaluation shall be forwarded to the Village Manager's Oftice. The Village Manager or his designee will be responsible for tracking, analyzing and controlling the distribution of funds in accordance with the pay for performance policy. A copy of the evaluation form will be distributed to the employee. The original copy of the evaluation form will be placed in the employee's personnel file. b. Evaluation period and due dates: I). The Evaluation Period for employee performance shall be from June 1 of the previous year through May 31 of the current year. 2). Completion and timely submission of performance evaluations are the responsibility of all supervisors and the Department Head. All evaluations shall be submitted to the Village Manager no later than June 30 of each year. 3). Evaluations for all eligible employees shall be completed every twelve (12) months, but may be completed more frequently if performance warrants. C J 4 12.02.04 SCALES: • For each category a scale of 0-3 is used when evaluating an employee. The evaluator should use the following definitions: SCALE Below Standards Development Required Successful Exceptional a. Exceptional -Performance consistently exceeds job requirements. This rating is reserved for employees whose performance is truly outstanding. b. Successful -Performance fully meets job requirements. This rating applies to employees whose performance fully meets job requirements on a regular basis. c. Development Required -Performance meets only minimum job requirements. This rating applies to employees whose performance meets minimum job requirements, but requires improvement to fully meet job requirements on a regular basis. d. Below Standards Performance is unacceptable and below minimum job requirements. This rating applies to employees whose performance is inadequate and requires substantial improvement to successfully meet job requirements. (Individuals with an overall performance score at this level sho~Uld either move up in performance level or out of the position in a short period®Ib time). It is imperative that each employee understand the relationship between job performance and rate of pay and the relationship between the attainment of job standards and the level of performance. There must remain a consistency between performance evaluations and the employee's rate of pay. 12.02.05. PRIORITY WEIGHTS: Each of the dimensions set forth in the evaluation form has been assigned a priority weight, which is a measure of its importance to the organization. The dimensions considered to be important have higher priority weights than those dimensions considered to be less important. The priority for each dimension is set on a scale of one to nine (1-9). Although the priority weights are constant in terms of definition, their applicability to a particular dimension of measurement will vary from year to year. That variance is predicated on the importance of that dimension as it relates to the organization's needs, goals and objectives for a given year. The scale is an arithmetic progression in which a priority of five (5) is five (S~ times • more important than a priority of one (1). For scoring purposes, the weights act as multipliers. • The priority weights are defined as follows: Priority Weight 1: Of minor importance to the position and to goat attainment. Priority Weight 2: Of lesser importance to the position and to goal attainment. Priority Weight 3: Important to the position and to goal attainment. Priority Weight 4: Very important to the position and to goal attainment. Priority Weight 5: Critical to the position and to the goal attainment. Priority Weight 6,7 ,8,9: Special weight granted for obtaining key certifications and management responsibilities for supervisors, division chiefs, or department heads. C J 6 I. 12.03 DISTRIBUTION OF FUNDS POLICY 12.03.01 PURPOSE: To define the methodology of distributing funds and maintaining cost control on distribution of funds for the Program For employees. 12.03.02. POLICY: The Village of North Palm Beach, in an effort to maintain control on the cost of distribution of funds for the Program, recognizes the need to distribute funds equitably and fairly. Furthermore, it is the policy of the Village to not allow the Program to be circumvented by inappropriate application of the evaluation process. 12.03.03. OBJECTIVES: The objectives of the distribution policy are as follows: a. Pay for performance increases are to reflect an equitable and fair response to performance evaluations as described in the Policy Statement and Performance Evaluation Policy. b. To avoid top-loading of funds available for pay for performance to one category of evaluation, thereby circumventing the intent of the program. c. To maintain flexible criteria on an annual basis that will be in response to the amount of funds available. d. To effectively manage the evaluators by including their objectivity and efficiency in evaluating as part of their evaluation. 12.03.04. GUIDELINES: The Village Council will determine the distribution of funds through the budget process with the Village staff. a. In all cases, the Village will withhold 10% of the total departmental distribution amount as a set aside to be used for adjustments by the Village Manager to round out mathematical fractions and correct any inequities in the program. b. Performance evaluations and fund distributions will not be subject to appeal or the • grievance process. 7 • c. Evaluations will be completed during June of each year. Pay for performance increases will be distributed based on the employee's annual performance evaluation score as budgeted by the Village Council. The Village Manager or his designee will be responsible for reviewing the distribution of evaluation ratings within Departments and across Departments. The Village Manager may require supplemental evaluations as needed to correct inequities in the program. u 8