Page | 45 COMPENSATION PROGRAM 501 The City of Hutchinson’s total compensation program is designed to successfully attract, develop, retain and reward employees for their knowledge and contributions. Total compensation program reflects anything that is a benefit to employees and includes base pay, variable pay, health and welfare plans, paid leave benefits, professional/career development programs and retirement plans. The City Base Pay Plan is an essential part of the city’s total compensation package. To recruit and retain exceptional employees, the City has adopted a market-pricing system to develop its base pay compensation structure. This system is responsive and adaptable to changes in labor market conditions and works in conjunction with the City’s employee performance appraisal program to establish the framework for pay increases that are performance-based, responsive to labor market conditions, and within available budget. The Human Resources Department is responsible for managing and maintaining the City’s Base Pay Plan and conducts periodic labor market analysis to ensure pay structures are competitive with target markets. Adjustments to the pay range structures are normally considered by the City Manager and governing body as part of the annual budgetary process. Midyear re-evaluation and adjustments may also be made outside of the annual budgetary process when there is demonstrated difficulty with recruitment and retention of employees due to inadequate pay levels, when a job classification is created, or when an existing job classification is significantly modified due to unforeseen changes in operational need. BASE PAY ADMINISTRATION 502 The City strives to compensate all employees in a fair and non-discriminatory manner. The following guidelines have been developed to equitably administer the City’s base pay program: Starting Rates of Pay – Department directors are expected to exercise sound discretion and judgement in considering the starting rates of pay for newly hired employees. Such factors should include internal equity, the supply of qualified applicants and budget implications. The following placement guidelines should be used in recommending starting rates of pay: • Applicants who meet, but do not significantly exceed, the minimum job-related education and experience requirements should be placed at or near the minimum of the pay range. • Applicants who significantly exceed the minimum job-related experience and/or education requirements, and who are expected to fully perform the duties and responsibilities of the job with very little or no training, may be placed at or near the mid-point. • Highly experienced applicants who possess skills, competencies and capabilities well beyond those minimally required for the job, may be placed at a pay rate between the mid-point and maximum. Recommendations to offer a starting salary above the mid-point of a pay range must be submitted by the department director to the Director of Human Resources for review and submission to the City Manager for approval. Lateral Job Changes – A lateral transfer occurs when an employee changes from one position to another within the same pay grade. Typically, there is no pay adjustment related to a lateral transfer. An employee who experiences a lateral job change (e.g., is neither a promotion or demotion, and does not affect the employee’s anniversary date) will receive a mid-year formal performance rating at the time of the change, provided he/she was in the prior job assignment for a minimum of three (3) months. The performance ratings from the employee’s job assignments will be weighted proportionally based on the duration in each job assignment during the rating period to determine an overall weighted average score.
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