The City Council has adopted the following compensation philosophy that serves as direction to the City Manager in budgeting for employee compensation:
“The purpose of the merit and market pay plan is threefold:
- To encourage excellence in service by tying salary increases to job performance;
- To reward employees for their efforts and job performance; and
- To remain competitive with other metroplex cities in regards to the Town’s compensation program by paying employees better than the average of our comparison cities.
We support an open range system in compliance with our compensation philosophy. We will annually budget for market and merit adjustments for compensation that are fair and sustainable.”
Regarding employee pay, the Council has defined “better than average” as 1% better than the average of the pay of the Town’s comparison cities. Through Council action, the following 13 cities were selected as the Town’s comparison cities:
- Allen
- Carrollton
- Coppell
- Farmers Branch
- Frisco
- Grapevine
- Flower Mound
- Irving
- Lewisville
- McKinney
- Plano
- Richardson
- University Park
As part of the proposed budget for Fiscal Year 2022, City Manager Wes Pierson included funds equal to a 4% increase in the amount of employee compensation.
At the Town’s Budget Workshop on August 4, 2021 the City Council asked how the 4% compensation pool would be used to address potential changes in compensation for Addison employees relative to their counterparts in Addison’s 13 comparison cities.
Mr. Pierson committed to the City Council that Town staff would survey the Town’s comparison cities to find out what each city would be including in their respective Fiscal Year 2022 budget for market and merit adjustments and, based on that information, decide how to apply the resources approved by the City Council for Fiscal Year 2022 for employee market and merit adjustments.
Staff will share an overview of the survey results and the City Manager’s decision regarding employee market and merit adjustments within the funding amount approved by the City Council for Fiscal Year 2022 |