RESPONSIBLE CITY AGENCY: Management Services
KEYWORDS: Award, reward, cash, incentives, payments, suggestions, improvements, savings.
1. General
1.1 Cash incentive payments to eligible employees or members of work teams in recognition of proven cost-saving suggestions are appropriate expenditures of public funds.
1.2 Department management is responsible for encouraging suggestions for cost savings, evaluating their practicality, and recommending appropriate incentive payments.
1.3 Incentive awards are based on 10% of the realized first-year savings. Awards will be at least $100 but not more than $5,000.
1.4 The City will make cash incentive payments from a central account (awards bank) administered by the City-Wide Quality Steering Committee. The benefiting department or appropriation will reimburse the central account from the savings realized as a result of the suggestion.
1.5 Definitions:
A. “Eligible suggestion”: A written proposal to improve City service delivery by:
1. Reducing costs in a measurable way while maintaining or improving service and/or quality;
2. Increasing productivity;
3. Improving safety;
4. Simplifying procedures;
5. Improving program effectiveness; or,
6. Increasing customer satisfaction.
B. “Award”: Monetary compensation over and above regular or overtime pay made to the author(s) of an eligible suggestion. Such awards are discretionary by the City.
2. Suggestions
2.1 Suggestions that result from chartered process improvement teams, problem action teams, or other formal project assignments are not eligible for incentive award consideration because participation in such efforts is a work assignment and makes the subject matter content part of regular job duties.
2.2 Department management will define procedures and documentation requirements for submitting suggestions under this policy. The documentation will make use of the Plan-Do-Check-Act (PDCA) cycle, including:
P: Defining the problem/opportunity and determining the goals, targets, and methods for implementing the suggestion;
D: Implementing the suggestion;
C: Examining the results; and,
A: Taking necessary follow-up action.
2.3 After department management has implemented a suggestion and realized the expected cost savings, management may recommend that the author(s) of the suggestion receive an incentive award. Team members will receive a share of any award given for a team-authored suggestion.
2.4 Suggestions which relate to the terms and conditions of employment or other matters established by Human Resource Management policy or labor agreements are not eligible for consideration.
3. Disputes
3.1 If questions arise relating to any aspect of this policy, the questioner will present the case to department management for resolution.
3.2 If department management cannot resolve the matter, or the questioner is not satisfied with the departmental resolution, the questioner may appeal the decision to the City-Wide Quality Steering Committee for a final decision.
CURRENT REFERENCES: Expenditure of Public Funds Policy
PRE-1995 REFERENCES:
EFFECTIVE DATE: October 1, 1995
DATE APPROVED BY CABINET: September 6, 1995