Council Receives Update on Employee Compensation
Published:
<< Back to NewsMon 11/1/21
As part of the Fiscal Year 2022 budget, Council approved funds equal to a 4% increase for employee compensation, which includes both merit pay and market adjustments. The City Council has adopted an employee compensation philosophy in budgeting for employee compensation that states:
The purpose of the merit and market pay plan is threefold:
- To encourage excellence in service by tying salary increases to job performance.
- To reward employees for their efforts and job performance.
- To remain competitive with other metroplex cities in regards to the Town’s compensation program by paying employees better than the average of our comparison cities. Council defined "better than average" as 1% better than the average pay of the Town's comparison cities.
At the October 22 meeting, the City Manager shared with Council that staff had completed a compensation survey of the Town's comparison cities. On average, these cities were awarding market adjustments of 1.17% for general employees and 1.33% for public safety employees. Based on that information and using savings generated through employee retirements, he was able to award employees merit increases and market adjustments that average 4.25% without exceeding the pool of funds that were budgeted.
