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Council debates merit-based pay versus flat increases as staff proposes up-to-4% adjustment
Summary
Council members questioned whether to emphasize merit or flat percentage raises as staff proposed a conservative up-to-4% total compensation adjustment (about 2.7% COLA and 1.3% merit) and recommended midyear hiring reviews; members warned staff transparency is needed to prevent negative perception among employees.
City staff outlined a conservative compensation plan that would provide up to a 4% total increase composed of an approximate 2.7% cost-of-living adjustment and 1.3% merit portion. Presenter (S3) described the structure: "We've added an up to 4% adjustment to individual wages to keep wages competitive. 2.7% will be allotted through a COLA, 1.3% through merit." Council members pressed for clarity on past merit awards and how the merit pool is administered.
Councilors (S6, S5, S7) raised concerns that a merit-heavy approach can create perception problems among employees if not communicated clearly. Committee member (S6) said staff and managers must monitor the merit system for fairness: "I just hope that... it's not breeding mistrust or favorites... If the merit's not working, then get rid of it." Members asked staff to provide detailed merit distributions before final adoption so the council can judge whether the incentive is meeting its goals.
