DATE: June 1, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Shirley Gower, Director of Human Resources
Chris Clausi, Assistant Director of Human Resources
SUBJECT:
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Consideration of Resolution 2016-34, A Resolution to Amend the City of Franklin Human Resources Manual Requirement Related to Minimum Increases for Promotions
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the establishment of a minimum pay increase of five (5) percent for promoted employees.
Background
Currently, the City of Franklin Human Resources Manual does not define a minimum salary increase for employees who are promoted. This change in policy would ensure that all newly promoted employees would receive a noticeable increase in salary for the additional duties. The current process has the potential to cause promoted employees to receive more responsibility while providing little to no pay increase. This occurs when an employee has been serving in a specific pay grade for many years. If the employee received pay increases during that time they may end up making more in their lower pay grade than the entry level range of the higher pay grade. While this is rare, it has caused difficulty in determining initial rates of pay for some promoted employees.
Financial Impact
The financial impact should be minimal. In most cases, the new pay for promoted employees meets or exceeds the five percent threshold. Since the adoption of the current compensation plan in August of 2013, there have been 167 promotions of City employees of which 25 received pay increases below the five percent threshold. Should this policy be adopted, pay adjustments would be made for these 25 employees totaling $24,658.01. Pay adjustments would be made effective the beginning of the next pay period following the Board’s adoption, prior to the general pay increase effective July 1, 2016.
Recommendation
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Staff recommends the approval of this resolution to establish a more equitable compensation.