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Request for Action <br />To Item Number <br />Ma Tor and CinT Council 10.3 <br />Agenda Section Meeting Date Prepared by <br />Work Session March 20, 2023 Cal Pormer, Cit�T Administrator <br />Item Description Reviewed by <br />ERPD Wage Incentive Program Update Lauren Wi er, Human Resources Mana er <br />Reviewed by <br />Action Requested <br />Revie`v and discuss updates to the ERPD Wage Incentive Program. <br />Background/Discussion <br />Public sector compensation schedules typically are designed �vith a series of annual `vage step increases for a <br />predeteYmined amount of time. The pYemise is that the middle step is the maYket aveYage foY that paYticulaY wage <br />grade. Presumably, a new employee begins 1-3 steps below market average and based upon satisfactory <br />performance, the employee advances one step each yTear until ma�ng out at the top step, which is typically a <br />predeteYmined peYcentage above aveYage. <br />The nonunion cit�r compensation plan has five steps. Police officers, generallyT, have fewer steps to account for their <br />longer and more involved Field Training Program impacts and earlier market competitiveness. As a result of the <br />collective bargaining process, which includes interest arbitration, unions frequentlyT have gained additional steps in <br />the form of Longevity Steps that reward officers for continuing employment. <br />In the early 1990s, Elk River's Police Union requested LongevityT Steps. The cityT leadership at that time <br />implemented a Wage Incentive Program which provides for steps similar to LongevityT, however, officers were <br />required to complete an annual skills test, physical fitness test, participate in education, wellness, and communityT <br />service activities in order to gain the annual wage incentive. Participation in the program varies each yTear. <br />Challenges in police/employTee recruitment, retention, `vellness, and mental health initiatives have created ne`v <br />opportunities for this program. Staff has `vorked with representatives from the police unions to modify the <br />program to account for physical challenges and update the "whole health" concept to incentivize participation. <br />Financial Impact <br />N/A <br />Mission/Policy/Goal <br />Elk River Mission <br />Attachments <br />• Draft WIP Program <br />• 1993 WIP PYogYam <br />The Elk River Vision <br />A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional <br />se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty. <br />rowEREo ar <br />�I'1 ���� <br />Up�iited.• August 2020 <br />