Page 117 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Personnel Summary Processes

Exempt Positions
Exempt (salaried) positions are not eligible for overtime compensation. Salary amounts are not calculated or based
on the number of hours worked. Exempt positions include managers and directors, and classifications are
determined by Department of Labor guidelines.

Pay Increases
Salary adjustments will be made in order to remain competitive, retain talent, and reward outstanding
performance. Pay increases may occur due to market adjustments, or through performance pay. All forms of
compensation are subject to Town Manager approval and available funding appropriated on an annual basis by the
Town Council.

Market Adjustments
In order to maintain accurate position classifications, the Town of Westlake will conduct a position analysis of 1/3
(one-third) of the organization’s positions each year, ensuring that all positions are reviewed on a rolling three-year
basis. Depending on the results of the market study, and if funds are available, all or some of the salary bands will be
proposed to the Town Council for adjustment based upon the results of the annual market salary study. Proposed
adjustments to any pay band will not be proposed unless the market study indicates bands have increased by 2.5%
or more. Employee salaries may receive a market adjustment if their current salary has shifted to become less than
97.5% of the market average. If any market adjustment is approved, all pay ranges and steps will be adjusted
accordingly on the first day of the fiscal year. This does not include the Town Manager, whose compensation is
determined by the Town Council.

Performance Pay
On-going performance pay may be awarded to individuals or teams who, as determined in their performance
evaluation, have clearly gone “above and beyond” their traditional roles, job duties, and assignments over the
evaluation period. Performance pay is awarded through the review process and the established criteria outlined by
the HR Department.

One-time performance pay may be offered to employees or teams who, based on performance evaluation, have
been determined to have gone “above and beyond” expectations. One-time performance pay is a lump-sum, one-
time payment, and will not impact the base pay of the employee and will not move their pay within their position’s
assigned band. All performance pay, whether on-going or one-time adjustments, is dependent upon the availability
of financial resources.

Compensation Plan and Salary Survey
The Town of Westlake believes that market-based salary, in combination with employee competence and their
overall contribution to the Town’s success, should largely determine their compensation and career
advancement opportunities. The ultimate goal of the compensation plan is to attract and retain top talent and
utilize best practices in all systems and processes supporting the plan.

The philosophy and objectives of this pay policy are as follows:
• First, the Town’s pay system should be internally equitable. It must ensure that pay ranges of each
position within our organization reflects the value of comparable positions within our organization. In
order to achieve this, we must pay employees fairly compared to their coworkers, and employees must
also perceive that they are paid fairly compared to their coworkers.

105