CITY OF SHAWNEE

POLICY STATEMENT

SUBJECT: POLICY EFFECTIVE REVISED CODE NO. DATE DATE PAGE Total Compensation Policy PS-67 10/28/2013 1 of 3

PURPOSE This policy statement is intended to provide a general framework to guide decisions and provide understanding about the City’s compensation program.

POLICY It is the policy of the Governing Body to establish a positive and productive work environment that generates high quality services. As an organization whose primary function is to provide service to the citizens, the program is designed to reflect the importance of the public employees in this endeavor, and of planning for, budgeting and allocating the dollars dedicated to providing this service in a manner that will allow the City to best achieve the goal of high quality service.

The City’s compensation program should ensure that the City has the ability to attract, retain and motivate qualified individuals. The program recognizes that our strongest competitive advantages will not be the highest pay, but rather a combination of competitive compensation, good benefits, fiscal stability, training opportunities, an empowered and positive work environment, career growth potential and high morale based on our core values and ethical principles. The program is designed to encourage outstanding performance, continual enhancement of skills, and ongoing professional development, with enough flexibility to respond to organizational needs.

Additionally, the program recognizes that the City places great value on fiscal responsibility and consequently is staffed adequately, but leanly. The program acknowledges that staff may have more diverse responsibilities than comparable positions in both the public and private sectors, and the expectation that employees are constantly working to provide the highest quality of service with the least resources possible.

The compensation program will be established in a manner that is consistent with the City’s financial condition and capacity. Staffing, pay and benefits will be kept at sustainable levels within fiscally prudent projections of revenue capacity and adequate operating contingency reserves, acknowledging that quantity and types of services are directly related to the revenue available.

PROVISIONS The City strives to maintain a well-trained, focused and healthy workforce, and values the contributions each employee makes every day toward the success of the workplace. To this end, the City sees the importance of offering a compensation program that provides both pay and benefits, or Total Compensation.

Total Compensation includes:  Direct pay, which is comprised of wages, salaries, bonuses  Benefits, including but not limited to, health/dental/life insurance, pension plans/retirement plans and paid leave

Competitive in the Market CITY OF SHAWNEE

POLICY STATEMENT

SUBJECT: POLICY EFFECTIVE REVISED CODE NO. DATE DATE PAGE Total Compensation Policy PS-67 10/28/2013 2 of 3

In order to attract and retain high quality individuals, it is the City’s policy that Total Compensation for all positions is competitive.

Positions will be placed in pay ranges based on market rates of pay in private companies and in other public agencies. Comparisons will be made in comparable geographic economies, with relevant types of industry, similar sized organizations and with the most significant local government peers.

On an annual basis, Human Resources staff will review the pay structures based on changing economic and competitive factors indicated by market data. It is the City's goal to remain competitive with the market in years between complete market studies.

Complete market studies will be conducted every three to five years. Each position will be individually compared based on its own unique responsibilities, experience, educational and skill requirements. The complete market survey will include a direct pay comparison and an analysis of benefits for public and private sector employers and with significant local government peers. When combined, the survey will yield a Total Compensation comparison.

The City strives to be at the median of each position’s market in Total Compensation. Median pay is the point at which half of the employers pay more and half of the employers pay less.

Pay for Performance The compensation program is designed so that direct pay is earned in a manner that supports the City’s mission of providing high quality service to the community. Consequently, the compensation program should include salary increases that are based on an employee’s performance.

Career Development The compensation program includes recognition for career development for positions, which lend themselves to long term careers with the City. Career development supports the City’s commitment to career growth through training, education, professional development and developing leadership skills.

Equity The compensation program should take into account not only market value of a position, but internal equity aspects including scope of responsibility and supervision as compared to other similar positions in the City.

Compliance The compensation program shall comply with all state and federal regulations and shall not discriminate against employees based on race, color, religion, gender, age, national origin, disability or veteran status.

IMPLEMENTATION CITY OF SHAWNEE

POLICY STATEMENT

SUBJECT: POLICY EFFECTIVE REVISED CODE NO. DATE DATE PAGE Total Compensation Policy PS-67 10/28/2013 3 of 3

The City Manager will work within the provisions set out in this policy statement to establish a pay plan. In addition, the City Manager will review, modify and manage benefits including: leave time, retirement programs, and health and dental renewals for the City. The City Manager will also incorporate costs associated with Total Compensation into the budget and renewal discussions with the Governing Body each year.

The City will update its pay plan annually and review Total Compensation every three to five years to ensure that it continues to fall within the policy adopted by the Governing Body.

APPROVAL AND REVISION DATES

OTHER REFERENCE

Jeff Meyers, Mayor Keith D. Campbell , City Clerk