HomeMy WebLinkAbout2006-08-29 - Agendas - Final Aldermen
Ward 1 Position 1 - Robert Reynolds
Mayor Dan Coady Ward I Position 2 - Brenda Thiel
Ward 2 Position 1 - Kyle B. Cook
City Attorney Kit Williams Ward 2 Position 2 - Vacant
Ward 3 Position 1 - Robert K. Rhoads
City Clerk Sondra Smith T.. ayve evii Ward 3 Position 2 — Robert Ferrell
ARKANSAS Ward 4 Position I - Shirley Lucas
Ward 4 Position 2 - Lioneld Jordan
Final Agenda
Special City Council Meeting
August 29, 2006
A Special meeting of the Fayetteville City Council will be held on August 29, 2006 at 6:00 PM
in Room 219 of the City Administration Building located at 113 West Mountain Street,
Fayetteville, Arkansas.
Call to Order
Roll Call
Pledge of Allegiance
A. New Business:
1 . Compensation Philosophy Adoption: A resolution to adopt the City' s Compensation
Philosophy for city employees.
PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 138-06.
Meeting adjourned at 7:00 p.m.
113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax)
accessfayettevi I le.org
U R,
Special City Council Meeting AugustZ9, 2006 'I' O �
Subject: Roll
Motion To:
Motion By:
Seconded:
Thiel XX
Cook XX
Rhoads XX
Ferrell XX
Lucas XX
Jordan XX
Reynolds XX
Mayor Coody XX
Subject: Compensation Philosophy Adoption
Not less than the Rhoads suggested that this amendment be changed to state
Motion To: Average Market competitive & strives to be above average. The amendment
was changed as Alderman Rhoads suggested.
Motion By: Thiel
Seconded: Cook
Thiel XX
Cook XX
Rhoads XX
Ferrell NO
Lucas XX
Jordan XX
Reynolds XX
Mayor Coody
6-1
Special City Council Meeting Augusol, 2006 •
Subject: Compensation Philosophy Adoption
Motion To: Approve the
Resolution
Motion By:
Seconded:
Thiel XX
Cook XX
Rhoads XX
Ferrell NO
Lucas XX
Jordan XX
Reynolds XX
Mayor Coody
138-0�
6-1
Subject:
Motion To:
Motion By:
Seconded:
Thiel
Cook
Rhoads
Ferrell
Lucas
Jordan
Reynolds
Mayor Coody
Arkansas Democrat V05azette
Northwest Arkansas Times
Benton County Daily Record
P. O. BOX 1607
FAYETTEVILLE, AR 72702
PHONE : 479-571 -6415
AFFIDAVIT OF PUBLICATION
I , Elizabeth Wax, do solemnly swear that I am Legal Clerk of the Arkansas
Democrat Gazette newspaper. Printed and published in Benton County
Arkansas, (Lowell) and that from my own personal knowledge and
reference to the files of said publication , the advertisement of:
FINAL AGENDA
Was inserted in the Regular Editions:
August 28, 2006
Publication Charge : $61 . 32
Subscribed and worn to before me
Thioday of e , 2006 .
Notary Public 10 vLz
FINAL AGENDA
My Commission Expires: SPECIAL CITY COUNCIL
MEETING
Taye
a
�. le
AUGUST 2992008 Sharlene D. Williams A Special meeting of the Fayetteville City ARKANSAS
Nota Public Council will be held on August 29, 2006 at
Notary 6:00 PM in Room 219 of the City
State of Arkansas Administration Building located at 113 West Mountain Street, Fayetteville. Arkansas.
My Commission Expires call to Order
October 18, 2014 Holl Call
Pledge of Allegiance
A. New Business:
1. Compensation Philosophy Adoptiom A resolution to adopt the City's
Compensation Philosophy for city employees.
RECEIVED
SEP 01 200.1
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
i .
WE APPRECIATE YOUR BUSINESS
Arkansas ,,Deittocrat -Gazette , NW Ed .
212 N . East Avenue
Fayetteville , AR 72701
479 - 442 - 1700
VISA PURCHASE
CARD # * * * * * * * * * * * * 1969 *
EXPIRATION DATE : * * * * *
DATE 08 - 30 -2006 # 017215 A
TIME 10 : 21 : 10
SALE 61 . 32
APPROVED 003320
AVS : YES
CLERK :
MERCH ORDER#
ITEM DESC :
X
* * * PLEASE IMPRINT CARD* * *
- - - - - - - - - - THANK YOU - - - - - - - -
RECEIVED
SEP 01 2006
CITY OF FAYETTEVILLE
CITY CLERK'S OFFICE
FAYETTEVILE
THE CITY OF FAYETTEVILLE, ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT
U4
TO: Dan Coody, Mayor
THRU: Sondra Smith, City Clerk
FROM: Kit Williams, City Attorney
DATE: August 30, 2006
RE: Passed Resolution from Special City Council meeting
of August 29, 2006
1, Compensation Philosophy: Resolution adopting City' s Compensation
Philosophy for city employees.
Aldermen
Ward 1 Position I - Robert Reynolds
Mayor Dan Coody Ward 1 Position 2 - Brenda Thiel
City Attorney Kit Williams
e
;1� 11e
Ward Position 1 - Kyle rt Cook
Ward 2 Position 2 - VacantWard 3 Position 1 - Aobert K. Rhoads
City Clerk SondraSmithTayveWard 3 Position 2 — Robert Ferrell
ARKANSAS Ward 4 Position 1 - Shirley Lucas
Ward 4 Position 2 - Lioneld Jordan
Final Agenda
Special City Council Meeting
August 29, 2006
A Special meeting of the Fayetteville City Council will be held on August 29, 2006 at 6:00 PM
in Room 219 of the City Administration Building located at 113 West Mountain Street,
Fayetteville, Arkansas.
Call to Order
Roll Call
Pledge of Allegiance
A. New Business:
1 . Compensation Philosophy Adoption: A resolution to adopt the City's Compensation
Philosophy for city employees.
113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax)
accessfayetteville.org
• City of Fayetteville •
Staff Review Form
City Council Agenda Items
or
Contracts
Special Meeting 8/29/2006
City Council Meeting Date
Michele Bechhold Human Resources Operations
Submitted By Division Department
Action Required:
Staff recommends adoption of a Compensation Philosophy for the City of Fayetteville.
Cost of this request Category / Project Budget Program Category / Project Name
Account Number Funds Used to Date Program / Project Category Name
Project Number Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
Previous Ordinance or Resolution #
Oepa ent D rector � '- ---- Date Original Contract Date:
p- Original Contract Number:
N 0 • 2�-0 (
City Attorney Date
p p Received n Ciel k's Office
n
`T CUA a . W,0,c
Finance and Internal Service Director Date
Received in Mayor's Office ao �0
C762
Mayor Date
Comments:
Taye evl le
ARKANSAS
Special City Council Meeting August 29, 2006
CITY COUNCIL AGENDA MEMO
TO: Mayor Dan Coody and the City Council
THRU: Gary Dumas, Operations Director / q//
FROM: Michele Bechhold, Human Resources
DATE: August 23, 2006
SUBJECT: Compensation Philosophy — Discussion and Approval
Recommendation
Staff recommends the adoption of a compensation philosophy for the City of Fayetteville.
Discussion
After questions arose in 2005 about implementing the results of a salary survey performed by
Condrey & Associates, the City made a decision to formalize its pay strategy and define a
compensation philosophy. The City, like many other public sector organizations, spends about
80% of its operating budget on components of employee compensation. Based on the amount
of fiscal resources dedicated to employee compensation and benefit programs, it is a natural
progression to desire to align compensation strategies with a defined goal that supports the
overall mission of the organization.
Compensation philosophies generally focus on recruitment, internal and external equity, and
retention. The statement should support the operational needs and strategic plans of the City.
It should function as a communication tool to inform employees and applicants how the
organization intends to pay.
A sound compensation philosophy allows the Council to provide understandable, consistent
direction to senior management staff on compensation issues
On August 15, 2006, the Council Compensation Committee invited all City Council members to
attend a meeting with Alan Johnson, Vice President of Management Advisory Group, Inc. The
goals of this meeting were to provide information about compensation philosophies and to solicit
input from the Council to determine the direction of the compensation philosophy for the City.
All Council members were provided worksheets which they could return to MAG anonymously.
The draft compensation philosophy is scheduled to be delivered to the City on August 24, 2006.
Staff will distribute this to all Council members and employees for review. Carolyn Long, CEO
of Management Advisory Group, Inc., will be on-site to facilitate discussion of the compensation
philosophy for this Special City Council meeting.
Staff is available to answer any questions you may have.
r
RESOLUTION NO.
A RESOLUTION TO ADOPT THE CITY' S COMPENSATION
PHILOSOPHY FOR CITY EMPLOYEES
WHEREAS, the City Council has studied and debated what type of
compensation philosophy should be adopted in setting the City of Fayetteville employee
compensation; and
WHEREAS, the City Council has retained the Management Advisory Group,
Inc. to assist in drafting this compensation philosophy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby
adopts the City of Fayetteville Employee Compensation Philosophy attached as Exhibit
A.
PASSED and APPROVED this 29th day of August, 2006.
APPROVED:
By:
DAN COODY, Mayor
ATTEST:
By:
SONDRA SMITH, City Clerk
THE CITY OF FAYETTEVILLE ' S COMPENSATION
PHILOSOPHY
Background
The City Council is committed to ensuring that Fayetteville remains a highly
desirable City in which to live and work. . In order to accomplish the goals set forth in the
City Council's Strategic Plan, the workforce must possess key attributes associated with
excellence. The following key characteristics for all employees are desired:
Key Characteristics of City Employees
■ highly skilled;
■ customer service oriented ;
■ possess personal integrity and exhibit ethical behavior;
■ highly productive and focused on quality results;
■ team players;
■ seek opportunities to improve services;
■ understand technology;
■ value diversity; and ,
■ committed to the City's welfare.
The City recognizes the need to put new systems in place to enable the
organization to be effective, efficient, and responsive in a rapidly changing environment.
One such system is an effective compensation plan. This plan should be based on a
clear compensation policy that is aligned with the City's strategic goals. The economic
resources of the City must be considered in the implementation of a compensation
philosophy, as the City Council is responsible for maintaining a sound financial program
for the City. The objectives of a sound compensation policy include the following:
Objectives of a Sound Compensation Policy
• identify the appropriate labor market for comparing city jobs;
■ determine an appropriate relationship to the labor market;
■ establish a stated market position so that both current and
prospective employees know what to expect;
t `
� , �
5lianagement /7Cvisory Group, Inc. 1
The City of Fayetteville's Compensation Philosophy
■ identify a solid set of benchmark positions and conduct a market
review every year and a comprehensive market survey every four
years to ensure the City retains a competitive posture;
■ adopt a policy that allows the City to offer more competitive salaries
to highly qualified candidates based on their qualifications and
experience; and
■ adopt a policy and process that rewards employees based on
performance and achievements while remaining sensitive to
economic factors.
In a competitive labor market, the City's pay and classification plan should be structured
to provide the flexibility necessary to meet changing economic and employment
conditions. The City Council has already committed to adopting a competitive pay
system that will address the current needs of the City and meet the challenges of the
future.
City Council 's Direction for Compensation Plan
A. Results of City Council Survey
To establish the framework of the City's pay philosophy, MAG surveyed City
Council members to determine their views. Questions focused on critical issues
underlying the compensation philosophy.
An analysis of the results of the survey revealed that there is support for
competitive salaries to recruit and retain highly qualified City employees.
The City Council survey results indicated that they recognized the City 3s need to
recruit professional positions on a regional basis, while other positions can be recruited
on a more local basis.
In the information gathered from City Council, there was support that performance
criteria should play a role in the determination of salary increases. The use of
performance criteria should particularly apply to management positions. Finally, in
l '
� . Wanagement ,4dvisory Group, Inc. 2
The City of Fayetteville's Compensation Philosophy
addition to the aforementioned factors, there was agreement that the City has and
should retain a competitive position in its benefits package.
Budgetary constraints were viewed as a limiting factor in the implementation of
any compensation philosophy.
B. Incorporating City Council's Goals into the Compensation Plan
The City Council's current (2003-2008) strategic plan includes the conduct of a
classification and compensation study. This was point number 60 in the list of 71 goals
and objectives.
In order to meet the overall goal of placing the City of Fayetteville in a competitive
position relative to its markets, it is proposed that the overall pay line be set at the market
average. This is accomplished by aligning the mid-point pay for all job classes to the
average mid-point pay for the labor market. The adoption of this structure will address
several key issues identified by the City's leadership. These issues include:
■ structuring its compensation plan to enable the City to be competitive in its
labor market;
■ attracting highly qualified new employees; and
■ establishing a proactive compensation plan that will enable the City to
maintain a competitive position in future years.
4 '
_ I Yanagement fgdvisor Group, Inc. 3
The City of Fayetteville's Compensation Philosophy
Benefits of Adopting the Proposed Compensation Philosophy
The City Council, citizens, and employees of the City of Fayetteville can benefit
from the adoption of the proposed compensation philosophy in the following ways:
■ Citizens of the City of Fayetteville can have confidence that the pay
philosophy of the City fosters the excellence in the City workforce
embodied in the City Council's vision, strategic goals, core values
and desired characteristics of City employees.
■ The City will become an "employer of choice," by positioning itself
competitively relative to other employers.
■ Current employees will know and understand what the City's pay
philosophy will be. This will provide employees with a better sense of
economic security and stability.
■ Prospective employees will know and understand the City's
compensation philosophy, which will enable them to make an
informed decision with respect to accepting a position with the City
of Fayetteville.
■ The decisions with respect to employee compensation will be made
using clearly identified standards for all employees.
■ By setting the pay line at the market average, the City will ensure
that the City's compensation structure does not degrade relative to
the marketplace. This will confirm that the City Council's strategic
goal of an excellent workforce is translated into a meaningful and
competitive position relative to the labor market.
This philosophy will serve as the guiding force for the upcoming development
of the City's new compensation plan and related administrative policies.
( '
wanagementawisory Group, Inc. 4
The City of Fayetteville's Compensation Philosophy
Proposed Compensation Philosophy
The City's proposed Compensation Philosophy is as follows: The City of
Fayetteville is committed to recruiting, retaining and motivating an excellent
workforce by providing a high quality of work life to City employees through a
competitive compensation structure, competitive benefits program, and a
challenging and enriched work environment.
In order to deliver high quality municipal services, the City's workforce must possess key
attributes associated with excellence. Therefore, the following key characteristics for all
employees are desired:
■ highly skilled;
■ customer service oriented;
■ possess personal integrity and exhibit ethical behavior;
■ highly productive and focused on quality results;
■ team players;
■ seek opportunities to improve services;
■ understand technology;
■ value diversity; and,
■ committed to the City's welfare.
The City will achieve this pay philosophy by implementing the following initiatives:
Hiring
■ provide a base compensation structure that is competitive with the
average market salaries as incorporated into the City's compensation and
classification plan.
■ provide for flexibility in both hiring rates and providing compensation for
existing employees that is both flexible and internally equitable.
■ provide an appropriate set of benchmark positions which establish the
foundation for the City's pay line and provide a consistent means for the
City to review the market every year and conduct a comprehensive
market survey every four years.
,, >• ,. � ,ManagementAwisory Group, Inc. 5
The City of Fayetteville's Compensation Philosophy
Retaining
■ provide for a meaningful way for employees to move through the
compensation plan based on both experience and achievement so that
employees can anticipate rewards based on contributions, experience
and performance.
■ provide that the annual review of the market and adjustments to the City's
overall compensation plan of not less than the cost of living increase
become a part of the budgeting process through periodic surveys and the
incorporation of the results into the City's proposed budget for personnel
costs.
■ adopt a policy of regularly reviewing the City's benefits and rewards
programs to maintain competitiveness with the City's market.
Motivating
■ provide for a performance and experience recognition program that
incorporates the following:
° the ability to review and rate performance for all employees and to
provide adjustments to employees based on their consistent level
of achievement and successful experience on the job;
• a bonus program to provide one-time, on-the-spot rewards for
meritorious service; and,
° a compensation program that recognizes incentives based on job
related professional or academic achievements.
The proposed compensation philosophy would result in consistently positioning
the City's pay line at the market average. Additionally, the City would adopt a policy of
regularly evaluating its benefits and performance rewards program to ensure that the
City's position relative to the market did not erode.
( '
,Management f7wisory Group, Inc. 6
City of Fayetteville •
Staff Review Form
City Council Agenda Items
or
Contracts
Special Meeting 8129/2006
City Council Meeting Date
Michele Bechhold Human Resources Operations
Submitted -By Division Department
Action Required:
Staff recommends adoption of a Compensation Philosophy for the City of Fayetteville.
Cost of this request Category / Project Budget Program Category / Project Name
Account Number Funds Used to Date Program 1 Project Category Name
Project Number Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
, AI�— Previous Ordinance or Resolution #
\� _ � G
Uepaartrtvdinttt D(rector Date Original Contract Date:
L Original Contract Number:
City Attorney Date
` nj� pQ Receive n Ci-ktv OWN k's Office
TOt�ll a • U - �4 - OG ��tflj�tJ
Finance and Internal Service Director Date
tc ye in r 3 f lice � 0
Mayor Date
Comments:
Tayeevi le
ARKANSAS
Special City Council Meeting August 29, 2006
CITY COUNCIL AGENDA MEMO
TO: Mayor Dan Coody and the City Council
THRU: Gary Dumas, Operations Directoy
FROM: Michele Bechhold, Human Resources
DATE: August 23, 2006
SUBJECT: Compensation Philosophy — Discussion and Approval
Recommendation
Staff recommends the adoption of a compensation philosophy for the City of Fayetteville.
Discussion
After questions arose in 2005 about implementing the results of a salary survey performed by
Condrey & Associates, the City made a decision to formalize its pay strategy and define a
compensation philosophy. The City, like many other public sector organizations, spends about
80% of its operating budget on components of employee compensation. Based on the amount
of fiscal resources dedicated to employee compensation and benefit programs, it is a natural
progression to desire to align compensation strategies with a defined goal that supports the
overall mission of the organization.
Compensation philosophies generally focus on recruitment, internal and external equity, and
retention. The statement should support the operational needs and strategic plans of the City.
It should function as a communication tool to inform employees and applicants how the
organization intends to pay.
A sound compensation philosophy allows the Council to provide understandable, consistent
direction to senior management staff on compensation issues
On August 15, 2006, the Council Compensation Committee invited all City Council members to
attend a meeting with Alan Johnson, Vice President of Management Advisory Group, Inc. The
goals of this meeting were to provide information about compensation philosophies and to solicit
input from the Council to determine the direction of the compensation philosophy for the City.
All Council members were provided worksheets which they could return to MAG anonymously.
The draft compensation philosophy is scheduled to be delivered to the City on August 24, 2006.
Staff will distribute this to all Council members and employees for review. Carolyn Long, CEO
of Management Advisory Group, Inc., will be on-site to facilitate discussion of the compensation
philosophy for this Special City Council meeting.
Staff is available to answer any questions you may have.
RESOLUTION NO.
A RESOLUTION TO ADOPT THE CITY'S COMPENSATION
PHILOSOPHY FOR CITY EMPLOYEES
WHEREAS, the City Council has studied and debated what type of '
compensation philosophy should be adopted in setting the City of Fayetteville employee
compensation; and
WHEREAS, the City Council has retained the Management Advisory Group,
Inc. to assist in drafting this compensation philosophy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby
adopts the City of Fayetteville Employee Compensation Philosophy attached as Exhibit
A.
PASSED and APPROVED this 291hday of August, 2006.
APPROVED:
By:
DAN COODY, Mayor
ATTEST:
By:
SONDRA SMITH, City Clerk
Clarice Pearman - Updated Com ensation
AM[osopny statement Page 1
From: Michele Bechhold
To: Smith, Sondra
Date: 8.28.06 8:52PM
Subject: Updated Compensation philosophy statement
Sondra,
At the compensation committee meeting a change was made to the draft philosophy. I have attached the
updated document. Please forward to the Council and appropriate parties.
Thanks for your help.
Michele
0 0
THE CITY OF FAYETTEVILLE'S COMPENSATION
PHILOSOPHY
Background
The City Council is committed to ensuring that Fayetteville remains a highly
desirable City in which to live and work. In order to accomplish the goals set forth in the
City Council's Strategic Plan, the workforce must possess key attributes associated with
excellence. The following key characteristics for all employees are desired:
Key Characteristics of City Employees
■ highly skilled;
■ customer service oriented;
■ possess personal integrity and exhibit ethical behavior;
■ highly productive and focused on quality results;
■ team players;
■ seek opportunities to improve services;
■ understand technology;
■ value diversity; and,
■ committed to the City's welfare.
The City recognizes the need to put new systems in place to enable the
organization to be effective, efficient, and responsive in a rapidly changing environment.
One such system is an effective compensation plan. This plan should be based on a
clear compensation policy that is aligned with the City's strategic goals. The economic
resources of the City must be considered in the implementation of a compensation
philosophy, as the City Council is responsible for maintaining a sound financial program
for the City. The objectives of a sound compensation policy include the following:
Objectives of a Sound Compensation Policy
■ identify the appropriate labor market for comparing city jobs;
■ determine an appropriate relationship to the labor market; ,
■ establish a stated market position so that both current and
prospective employees know what to expect;
Ar ,
94fanagementAdvisory ('Group, Inc. I
The City of Fayetteville's Compensation Philosophy
■ identify a solid set of benchmark positions and conduct a market
review every year and a comprehensive market survey every four
years to ensure the City retains a competitive posture;
■ adopt a policy that allows the City to offer more competitive salaries
to highly qualified candidates based on their qualifications and
experience; and
■ adopt a policy and process that rewards employees based on
performance and achievements while remaining sensitive to
economic factors.
In a competitive labor market, the City's pay and classification plan should be structured
to provide the flexibility necessary to meet changing economic and employment
conditions. The City Council has already committed to adopting a competitive pay
system that will address the current needs of the City and meet the challenges of the
future.
City Council 's Direction for Compensation Plan
A. Results of City Council Survey
To establish the framework of the City's pay philosophy, MAG surveyed City
Council members to determine their views. Questions focused on critical issues
underlying the compensation philosophy.
An analysis of the results of the survey revealed that there is support for
competitive salaries to recruit and retain highly qualified City employees.
The City Council survey results indicated that they recognized the City's need to
recruit professional positions on a regional basis, while other positions can be recruited
on a more local basis.
In the information gathered from City Council, there was support that performance
criteria should play a role in the determination of salary increases. The use of
performance criteria should particularly apply to management positions. Finally, in
� ManagewntAdvirory Group, iw.. 2
The City of Fayetteville's Compensation Philosophy
addition to the aforementioned factors, there was agreement that the City has and
should retain a competitive position in its benefits package.
Budgetary constraints were viewed as a limiting factor in the implementation of
any compensation philosophy.
B. Incorporating City Council's Goals into the Compensation Plan
The City Council's current (2003-2008) strategic plan includes the conduct of a
classification and compensation study. This was point number 60 in the list of 71 goals
and objectives.
In order to meet the overall goal of placing the City of Fayetteville in a competitive
position relative to its markets, it is proposed that the overall pay line be set at the market
average. This is accomplished by aligning the mid-point pay for all job classes to the
average mid-point pay for the labor market. The adoption of this structure will address
several key issues identified by the City's leadership. These issues include:
■ structuring its compensation plan to enable the City to be competitive in its
labor market;
■ attracting highly qualified new employees; and
■ establishing a proactive compensation plan that will enable the City to
maintain a competitive position in future years.
WanagewntAdvisory group, Inc. 3
The City of Fayetteville's Compensation Philosophy
Benefits of Adopting the Proposed Compensation Philosophy
The City Council, citizens, and employees of the City of Fayetteville can benefit
from the adoption of the proposed compensation philosophy in the following ways:
■ Citizens of the City of Fayetteville can have confidence that the pay
philosophy of the City fosters the excellence in the City workforce
embodied in the City Council's vision, strategic goals, core values
and desired characteristics of City employees.
■ The City will become an "employer of choice," by positioning itself
competitively relative to other employers.
■ Current employees will know and understand what the City's pay
philosophy will be. This will provide employees with a better sense of
economic security and stability.
■ Prospective employees will know and understand the City's
compensation philosophy, which will enable them to make an
informed decision with respect to accepting a position with the City
of Fayetteville.
■ The decisions with respect to employee compensation will be made
using clearly identified standards for all employees.
■ By setting the pay line at the market average, the City will ensure
that the City's compensation structure does not degrade relative to
the marketplace. This will confirm that the City Council's strategic
goal of an excellent workforce is translated into a meaningful and
competitive position relative to the labor market.
This philosophy will serve as the guiding force for the upcoming development
of the City's new compensation plan and related administrative policies.
� ManagewntAdvisory group, Inc.
4
0
The City of Fayetteville's Compensation Philosophy
Proposed Compensation Philosophy
The City's proposed Compensation Philosophy is as follows: The City of
Fayetteville is committed to recruiting, retaining and motivating an excellent
workforce by providing a high quality of work life to City employees through a
competitive compensation structure, competitive benefits program, and a
challenging and enriched work environment.
In order to deliver high quality municipal services, the City's workforce must possess key
attributes associated with excellence. Therefore, the following key characteristics for all
employees are desired:
■ highly skilled;
■ customer service oriented;
■ possess personal integrity and exhibit ethical behavior;
■ highly productive and focused on quality results;
■ team players;
■ seek opportunities to improve services;
■ understand technology;
■ value diversity; and,
■ committed to the City's welfare.
The City will achieve this pay philosophy by implementing the following initiatives:
Hiring
■ provide a base compensation structure that is competitive with the
average market salaries as incorporated into the City's compensation and
classification plan.
■ provide for flexibility in both hiring rates and providing compensation for
existing employees that is both flexible and internally equitable.
■ provide an appropriate set of benchmark positions which establish the
foundation for the City's pay line and provide a consistent means for the
City to review the market every year and conduct a comprehensive
market survey every four years.
OW %anagementAdvisory Group, Inc. 5
The City of Fayetteville's Compensation Philosophy
Retaining
■ provide for a meaningful way for employees to move through the
compensation plan based on both experience and achievement so that
employees can anticipate rewards based on contributions, experience
and performance.
■ provide that the annual review of the market and adjustments to the City's
overall compensation plan of not less than the cost of living increase
become a part of the budgeting process through periodic surveys and the
incorporation of the results into the City's proposed budget for personnel
costs.
■ adopt a policy of regularly reviewing the City's benefits and rewards
programs to maintain competitiveness with the City's market.
Motivating
■ provide for a performance and experience recognition program that
incorporates the following:
° the ability to review and rate performance for all employees and to
provide adjustments to employees based on their consistent level
of achievement and successful experience on the job;
° a bonus program to provide one-time, on-the-spot rewards for
meritorious service; and,
° a compensation program that recognizes incentives based on job
related professional or academic achievements.
The proposed compensation philosophy would result in consistently positioning
the City's pay line at the market average. Additionally, the City would adopt a policy of
regularly evaluating its benefits and performance rewards program to ensure that the
City's position relative to the market did not erode.
ManagementAdvisory Croup, Inc. 6