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Flagler County staff outline merit-pay plan, board agrees to proceed with one-time FY26 payment
Summary
County HR presented a merit-pay program aimed at creating a performance-driven culture, proposing eligibility rules, a $100,000 merit cap (COLA still applies), and budgeted funding for a one-time FY26 payout; the board agreed to proceed and asked staff to return with policy language for FY27 implementation.
Flagler County staff presented a proposed merit-pay program at the May 4 workshop, describing eligibility rules, scoring brackets, timing and budget assumptions and recommending a one-time payment for fiscal-year 2026 followed by a structured annual program beginning in 2027.
HR and administration described the plan’s intent as creating a performance-driven culture by aligning pay with documented performance. “So the purpose of MeriPay is to develop and maintain a performance driven culture,” the presenter said, emphasizing the need for consistent, well-documented evaluations and supervisor training before a merit system is applied broadly.
Key features discussed included a minimum eligibility period (staff recommended six months of employment by the end of the performance period), exclusion of union and certain state-covered employees, and disqualification for employees with a corrective action or an active performance-improvement plan within the prior six months. Staff proposed a $100,000 salary cap for calculating merit amounts but said the cost-of-living adjustment (COLA) would still apply in full to employees above that threshold.
Timing and administration: staff recommended moving to a single annual evaluation period (January–February) with merit administered on the first payroll in April or May to allow review and payroll processing. For FY26 specifically, staff proposed a one-time payment tied to the current evaluation cycle and a matrix for FY27 to be implemented through payroll. A staff member indicated the county had set aside funds for the program: “We have sufficient funding identified for the merit this year,” a finance staff member said, referencing the $500,000 that had been reserved.
The board discussed ways to limit rating inflation and control budget impacts, including caps or departmental limits on the number of top ratings and a forced-distribution or ranking requirement for multiple top-rated employees. HR confirmed supervisors had received training and that NeoGov guidance and documentation would support more consistent evaluations; HR manager Lauren Cumber said the training included Flagler County standards and external best practices.
Next steps: the board agreed to proceed with the one-time FY26 payment and asked staff to return with edited policy language and implementation details for the FY27 merit-pay matrix, including measures to limit the number of top ratings per department and clear documentation requirements for supervisors.
