Subject: APPROVAL OF REVISIONS TO THE CITY OF SAN JOSE PAY PLAN FOR EXECUTIVE
STAFF EMPLOYEES
1.
Adoption of a resolution to amend the City of San Jose Pay
Plan to provide general increases for Executive Staff employees in the amounts
of 3% effective June 23, 2002 and 3% effective June 22, 2003.
2.
Authorize Appointing Authorities to grant no general increase
to any Executive Staff employee who receives an overall performance evaluation
rating that is below "Satisfactory."
BACKGROUND
On June 26, 2001, Council approved a resolution providing
general increases for non-Senior Staff employees designated as Executive
Management (Unit 99), in the amounts of 5% effective June 23, 2002 and also in
June 22, 2003. This action was
recommended primarily to provide the same levels of general salary increase as
was approved for the other groups in the non-sworn workforce.
ANALYSIS
Executive Staff consists of 65 employees who serve as either
Assistant or Deputy Directors in various City departments. The pay range for Deputy Directors is
approximately $88,743 – $134,338 per year and for Assistant Directors,
approximately $95,468 – $144,590 per year.
Both of these pay ranges will be adjusted by 5% effective June 23, 2002
to retain internal pay relationships with other City jobs.
Along with increasing the pay ranges, the Council action in
June 2001 also authorized the individual Executive Staff employees to receive
the 5% general pay increases this June and in June of 2003. In contrast, "Senior Staff"
employees (Department Heads and the City Manager's staff) are not authorized to
receive general increases, so that their pay is fully performance-based.
Ideally, employees at the Executive Staff level should also
be compensated in accordance with their individual job performance. By receiving 5% general increases as
scheduled, there will not be the means to use job performance as a significant
determinant of pay, or to distinguish employees who achieve outstanding
performance from those whose performance is viewed as satisfactory, or less.
In order to provide a meaningful level of pay for
performance, it is recommended that a 3% general increase be implemented for
Executive Staff instead of the previously established 5%, for each of the next
two years. The 2% difference will then
be available to use to recognize levels of performance that exceed
expectations, where appropriate, for Executive Staff employees. The 3% general increase, instead of no
general increase, acknowledges that this group is potentially affected by pay
compaction with the lower level employees they supervise and manage, who will
receive the 5% general increases.
The second recommendation pertains to the relationship
between general increases and performance pay.
All Senior and Executive Staff members will receive annual performance
reviews at the end of the fiscal year.
Since the Senior Staff group is compensated based on a full performance
pay model, employees whose performance is rated as “satisfactory,” will receive
a pay increase that is minimal and less than that for those rated as
“commendable” or higher. Those rated
less than “satisfactory” will not receive any pay increase.
In contrast, the Executive Staff employees, because they
will receive a general increase, will still receive a 3% pay increase,
regardless of the results of their performance review. To establish a higher link between
performance and pay for this group, it is recommended that Executive Staff
employees, whose overall performance rating is below the level of
"satisfactory," not be entitled to the general increase.
PUBLIC OUTREACH
Not applicable.
COORDINATION
This resolution was coordinated with the City Attorney,
Office of Employee Relations, the Budget Office, and the affected employees.
Kay Winer
Acting Director, Human Resources