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II. COMPENSATION <br />MARKET EQUITY and SALARY SETTING <br />The comparable labor market will include those cities that provide full-service, are in the <br />Bay Area job pool, recognized as excellent organizations, and have comparable service <br />outputs. These cities include Alameda, Berkeley, Hayward, Mt. View, Palo Alto, San <br />Leandro, San Mateo, South San Francisco, and Sunnyvale. The market study shall be <br />based on total compensation, including such factors as salary, benefits, and other <br />employer payments typically considered when determining total compensation. <br />Upon Council direction the City Manager shall request external labor market comparisons <br />for all classifications in the Executive Management Group. Upon review of the labor <br />market comparison and the City's financial condition the City Council may approve <br />implementation of new salary ranges for the Executive Management Group. <br />Individual Executive Management salaries for Department Heads are reviewed by the City <br />Manager on an annual basis and are set anywhere within the established range based on <br />performance. Individual Executive Management salaries for Division Managers are <br />reviewed by the Department Head and recommended to the City Manager on an annual <br />basis and are set anywhere within the established range based on performance. <br />INTERNAL ALIGNMENT <br />All Executive Management classifications shall maintain a minimum differential of 10% <br />above subordinate classifications. The comparative analysis shall include the top of the <br />range of the executive classification and the top of the range (or top step) of the <br />subordinate classification. Premium pay received by the subordinate classification will be <br />included in the comparison if such pay is received on a regular and continuous basis, and <br />the supervising classification is not similarly eligible for such pay. Adjustments in salary <br />ranges to maintain the differential will be effective the same date the subordinate class <br />received the adjustment. <br />The classifications of Police Captain, Deputy Police Chief, and Police Chief shall be exempt <br />from the internal alignment standard through June 30, 2021. Salary adjustments for <br />these classifications shall be granted annually, with the intent of achieving the ten percent <br />(10%) internal alignment standard overtime. <br />Adjustments to salary ranges due to compaction may be approved by the City Manager <br />for immediate effect, and such changes shall be submitted for Council approval as soon <br />as practical. <br />2 <br />