RESPONSIBLE CITY AGENCY: Division of Human Resource Management
KEYWORDS: Bonus, authority, procedure, employee
1. General
1.1 Salt Lake City citizens benefit daily from the dedication and capabilities of the City’s workforce. Year in and year out, numerous employees take that extra step to make a special contribution towards serving the public. Where such contributions occur regularly over a long period of time, the City should evaluate that employee’s base pay in relation to the value of the employee’s service. Where a contribution occurs without a history of regular exceptional service, or where such contribution is extraordinary and singular, it may be appropriate to provide a cash award for such service, beyond the customary non-cash commendation.
1.2 Additionally, the City competes in the market place for talented, experienced, and committed employees. From time to time, it is appropriate for the Mayor to approve recruiting and retention incentives consistent with good business practices.
1.3 These guidelines frame the City’s bonus program; to advance a fair and consistent City-wide administration.
2. Relationship of Bonuses to Salary
2.1 Open Range Plans. An appropriate means to compensate long-serving, valued professional/management employees is for department directors/chiefs to recommend, and for the City to approve, in-range pay adjustments. In addition to in-range pay adjustments, department directors/chiefs may recommend bonuses (special supplemental pay) for City approval. Bonuses for these employees should be infrequent, after appropriate salary adjustments.
2.2 Stepped Plans. For employees in a step compensation system, department directors/chiefs may request bonus payments based on one-time, extraordinary City service.
3. Authority to Award
3.1 The City’s compensation plans, combined with Compensation Policy/Procedures and the Recruiting/Retention Incentive Pay Guidelines, provide the authority to give lump sum supplemental payments (bonuses) to employees.
3.2 Enabling language from the 2008/2009 Fiscal Year Compensation Plan for Elected Officials and Appointed Employees:
The foregoing (base salary provisions) shall not restrict the Mayor or the City Council from distributing appropriated moneys to employees of the City in the form of discretionary lump sum supplemental performance-based or special supplemental payments to employees within per annum pay limitations. The Mayor or the City Council may also grant a discretionary retention incentive benefit, if one is necessary to meet employment market conditions or where it would be in the City’s best interests to do so.
3.3 Similar language is presented in the Fiscal Year 2008/2009 Compensation Plan for 600 and 300 Series Employees, as well as the compensation plans for supervisory police and fire employees. These plans, however, do not provide for “performance-based supplemental payments” – which are reserved for appointed employees.
4. Procedure
4.1 Bonus recommendations are forwarded by department directors/chiefs and are subject to the approval of the Mayor or the Mayor’s designee (Management Services Director) or the City Council in the case of a bonus for a Council employee. This applies to regular discretionary payments, as well as recruiting/retention incentives.
4.2 Request for Special (Discretionary) Supplemental Payment
4.2.1 Department directors/chiefs may determine that an employee merits a cash award under special circumstances, including but is not limited to: extraordinary service during an emergency; assumption of additional duties; employee involvement in significant cost savings or revenue generation; or accomplishment of a high-priority project.
4.2.2 The director/chief forwards a request of a special supplement payment, along with basis for approval, to the Management Services Director with a copy to HR Director and the requesting department’s HR Consultant.
4.2.3 The Management Services Director consults with the HR Director regarding the merits of the request and/or additional information needed.
4.2.4 After reaching a conclusion in Step 3, the Management Services Director responds to the department director/chief and copies HR Director and requesting department HR Consultant with approval or denial.
4.2.5 If the requested special supplemental payment exceeds the Management Services Director’s delegated authority (see below) or the Management Services Director recommends against approval of the request, the Management Services Director shall forward the request to the Mayor.
4.3 Request for Hiring/Retention Incentives. The procedure for payment of a recruiting/retention bonus is essentially the same as above, except:
4.3.1 All such payments are approved by the Mayor, upon recommendation of the Management Services Director.
4.3.2 The recipient must sign a payback agreement in the event he/she leaves the qualifying position or project prematurely.
4.3.3 A Salt Lake City employee who has received an employment offer from another employer must show a bona fide offer of employment letter before a retention bonus will be paid.
4.4 Frequency/Caps.
4.4.1 The Management Services Director has the authority to approve special supplemental pay up to 2% of a City employee’s base salary during any fiscal year. The Mayor may approve special supplemental pay for an individual employee above this limit.
4.4.2 The Mayor approves all recruiting/retention pay. Such approval is based on market factors and after a recommendation from the Management Services Director.
EFFECTIVE DATE: November 18, 2008