Policy: Performance Reviews Section: 3-1 Effective Date: 8/20/2015 Policy We at the League believe in providing compensation that rewards excellent performance and retains talented staff. Our Executive Director has the authority to make compensation decisions that accomplish this mission. Pay Philosophy The League’s pay philosophy supports the hiring and retention of talented, dedicated workers who are passionate about city government and committed to helping Minnesota cities succeed. Therefore, we seek to hire employees who have the skills required for the job or the potential to acquire the needed skills over time. Our pay plan is designed to pay employees who are successfully performing their job responsibilities at or above the second quartile of their salary range (which represents the average market rate for the position) within three to five years of hire. We do not guarantee this level of compensation for all employees, but we continually strive toward this goal. We will determine the market rate for each position by hiring an outside compensation consultant to conduct a market study every two to three years unless budget or workload conditions do not allow for it. Executive Director Authority Within budget constraints, the Executive Director has authority to make compensation decisions including, but not limited to: (a) Hiring a new employee above the starting point for each salary grade. (b) Moving employees within the salary grade for reasons associated with performance, tenure, or retention. (c) Reclassification of employees into higher or lower salary grades based on changes in duties. The Executive Director may approve an exception to these guidelines if such an exception is within the overall intent and purpose of this policy and the League’s interest. Compensation Plan and The Personnel Committee of the Board of Directors will review the basic components of the compensation plan for each coming fiscal year, as presented by League of Minnesota Cities Employee Handbook Performance Reviews Page 1 Performance Pay Allocation the HR Director and Executive Director. The Committee will provide a recommendation on the performance pay allocation for that fiscal year to the full Board for approval. The League Board will review the performance pay allocation recommended by the Personnel Committee for the coming fiscal year, in conjunction with adoption of the budget. As an employee, your own pay increases are granted upon the recommendation of your supervisor, with the concurrence of the department head, and subject to the final approval of the Executive Director. If approved by the Board, the HR and Finance Departments will implement salary increases based upon the allocation as quickly as possible and with the Board’s Direction. Most years, this occurs within a month or two after the beginning of the new fiscal year. Performance Criteria/Results -- LEAPP Since 2011, League staff have operated in a results-focused work environment called League Empowerment and Performance Program, or LEAPP. The basic guiding principles of this environment are: All League employees work together with their supervisors to develop a set of performance expectations, or results, for their jobs. Once your own results are established and agreed upon, you are generally able to work when and where you wish, including evenings, weekends, and off-site or at home, as long as you are meeting the agreed-upon results. The League also has organization-wide results, and all employees are accountable to contribute to progress toward those results, to the extent appropriate for their jobs. These results encourage teamwork, cross-departmental cooperation, a strong customer service culture, and a professional, accountable approach to job duties. You will receive a performance rating each year based upon progress you have made in meeting your results and based upon your contribution to the organization-wide results. The performance rating will help determine the amount of any performance pay/salary increase you will receive. Performance Evaluation Process Performance Reviews Page 2 If you are a full-time or part-time employee, your supervisor will conduct an evaluation of your performance at least once per year, generally prior to Sept. 1. The performance evaluation provides you and your supervisor an opportunity to discuss your job performance, results, and professional development for the upcoming year. Performance evaluations become part of your personnel file. Your performance evaluation will be a factor in determining your pay in accordance with the classification and compensation plan adopted by the League Board of Directors. If you take a leave of absence from work for an extended period of time, it may delay the implementation of a pay increase. Interim “Acting Pay” Compensation Acting pay for an employee may be requested by the department director whenever an employee is designated by his or her department director to perform all of the duties and responsibilities of a position in a higher classification for a period exceeding two full consecutive pay periods and continuing for a duration of less than 12 months, unless a longer duration is approved by the Executive Director. In order for the employee to qualify for the acting pay outlined in this section of the policy, the employee’s department director must explain in writing the duties the employee will be assuming and the expected duration of the assignment. This explanation will be submitted to the Human Resources Director for review, with final review and approval by the Executive Director prior to becoming effective. The Executive Director has the sole discretion to approve or deny requests for interim compensation. The Executive Director will make a determination as to whether the responsibility and authority associated with the temporary position is distinctly different from the responsibility and authority of the employee’s usual position. Performance Reviews Page 3