A promotion is a move up in pay grade through job bid, appointment, or career ladder step. (It does not include a pay grade increase resulting from position review or audit finding, except under exception cases approved by the Mayor or Mayor’s designee, Procedure 3 below.) A promotional increase is a base pay addition given as a result of such movement.
Plans with Steps, and Seasonal/Hourly Jobs
The promotional increase may not be more than 10.0 percent, unless one of the following applies:
· more than a 10 percent promotional increase is needed to bring the new salary rate up to the new grade minimum or the next step in the career ladder.
· the step that comes closest to a 10 percent promotional increase is over 10 percent by less than 3/10ths of one percent. The manager must give the Compensation Program Administrator a written explanation of the business or equity reason for not electing the next lower step.
· the promotion is within the seasonal or hourly job group, and the rate after the promotional increase is less than $15 per hour.
· The Mayor or Mayor’s designee has granted an exception under Procedure 3 in the APPENDIX.
Note: For pay plans with steps, a salary increase will typically be necessary in the event of a pay grade increase, whatever the reason. However, if the reason is not related to job bid, appointment, or career ladder step up, such salary increase will be as called for by the minimum step that does not cause a pay decrease. In all cases involving pay grade increases, a salary increase of five percent or more requires assignment of a new anniversary date.
Plans with Ranges
Except in the case of an adjustment to reach the new range entry point, promotional increases in plans with ranges must not exceed 10 percent of salary without the approval of the Mayor or the Mayor’s designee. See Procedure 3 in the APPENDIX.
Actually, there will often be times when no promotional increase should be given. This may happen when the employee’s pre-promotion salary is already well within the range of the new grade. Reasoning:
· Professional employees (other than police and fire supervisory) and appointed employees are paid under plans with an open range structure. The alignment of pay ranges reflects both internal equity and market considerations. The aim is to set range midpoints at market average, then allow position in range to drive pay decisions. Ultimately, this approach causes salaries to concentrate closer to the market “guide rate” (range middle), thereby reducing the frequency of too-high and too-low rates.
· Thus, an employee who occupies a range position at or near the midpoint is being paid fairly, according to the market. The model is based on the fundamental concept that similar work being performed at comparable levels of proficiency—by persons with similar qualifications and years of experience—should be compensated accordingly.
· This concept is carried through in the case of promotional increase.
· If the individual’s pre-promotion salary is properly positioned in the new range, there may be no justification for a promotional increase.
Of course, movement to a higher grade may significantly improve one’s range position, which in turn could favorably impact the annual pay raise. Also, except in cases involving grant-funded positions, if current salary is less than the new range minimum, an adjustment is necessary.
Otherwise, additional pay adjustment should be considered when it serves objectives of pay equity and business purpose—and does not create imbalances with the pay of other incumbents already occupying the new grade.
As stated in Policy 3.01.03, guidelines for promotional increases in range plans are:
1. If the pre-promotion salary is below the new range minimum, an adjustment will be given in the amount necessary to bring salary to entry point. (Exception: Such adjustment is at the hiring authority’s discretion in the case of a grant-funded position.) Any additional adjustment should depend on the considerations listed in 2. below.
2. If the pre-promotion salary is between the new range minimum and the midpoint, any adjustment must reflect consideration of:
a. The promoted person’s qualifications, experience and time in position.
b. Similarity of the work to that performed by others similarly or identically classified.
c. The “others” qualifications, experience and time in position.
3. If the pre-promotion salary exceeds the new range midpoint, there is normally less cause to consider an adjustment. The decision should depend on the considerations listed in 2. above.
For further guidance, see the chart in the APPENDIX entitled ILLUSTRATION – PROMOTIONAL INCREASE CASES:
Note: If the salary is already over the new midpoint by more than five percent, managers should be reluctant to grant an increase. If one is granted, it should be limited to an amount that keeps the employee within 110 percent of midpoint. Follow Procedure 3 in the APPENDIX.
Pay Decisions within Grade
Plans with Steps
When fiscally able, the City usually advances eligible employees within their respective pay grades on their anniversary dates. This is routine. Unless the employee’s performance does not meet standards (which must be documented in writing), or the employee is topped out, a “merit” step is granted according to collective bargaining agreement or compensation plan.
In-grade advancement is limited to one step per fiscal year, unless otherwise called for by collective bargaining agreement, or the Mayor or Mayor’s designee approves more than one step under Procedure 3 in the APPENDIX.
Note: When no promotion to a higher grade or routine step within grade is involved, any base pay adjustment, by itself or when added to another pay adjustment of any kind within the same fiscal year, shall not exceed 10 percent in such fiscal year without the written approval of the Mayor or the Mayor’s designee. See Procedure 3 in the APPENDIX.
Plans with Ranges
The rate at which a new employee develops skills that meet marketplace standards will depend on individual progress and job complexity. In most cases, the City can expect that a new employee will need time on the job to bring his or her proficiency to a level that justifies the “going pay rate.” A lesser rate of pay is appropriate until then.
By the same token, a skilled, well trained employee who is paid less than the going rate is subject to lure by other employers, especially in a tight labor market. Accordingly, the City aims to pay its skilled professional and appointed employees within a “competitive zone,” defined as 95 to 105 percent of market average (i.e., plus or minus 5 percent of range midpoint.)
· While the aim is to move employees to this zone, funding limitations and midpoint movement in response to market trends will generally cause the trip to be more gradual that sudden. Absent extraordinary circumstances, the City cannot afford to advance everyone at once.
· When the City gives professional employees a general increase at fiscal-year beginning, the procedure used is designed to accelerate those individuals whose rates are below the competitive zone. This is routine.
Occasionally, an additional adjustment is warranted when the routine, in-grade pay progress of an employee with mission-critical skills is too slow. What qualifies as “too slow” will depend on market demand for the particular skill the City wishes to retain. There must be support to reason that in all likelihood it will be necessary to pay at or above the range midpoint to replace the employee’s skills.
With approval of the Mayor or Mayor’s designee, a non-routine increase may be given in this case. A non-routine increase may also be given when the employee is at or above the range midpoint, if justified by the City’s need to retain the employee’s mission-critical skills. In either case, the manager must use Procedure 3 in the APPENDIX to request the approval of the Mayor or the Mayor’s designee.
Notes:
· If the employee’s pay is already at or above the range midpoint, a lump sum payment not added to base salary is preferred over an addition to base salary.
· When no promotion to a higher grade is involved, any base pay adjustment, by itself or when added to another pay adjustment of any kind within the same fiscal year, shall not exceed 10 percent in such fiscal year without the written approval of the Mayor or the Mayor’s designee.
· The timing and amount of appointed employee base salary increases within pay grade are at the discretion of the Mayor or the City Council, subject to range and per annum pay limitations.