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Will Monrovia Move to Merit-Based Pay System for Employees?

Monrovia needs to switch to a merit-based, rather than seniority-based, compensation system for its employees, according to a report to the City Council by Mark Alvarado, Director of Administrative Services.

He writes:

The focus must also be on restructuring the current compensation model so that the City pays only what it can afford. As a service delivery organization, personnel is the largest cost factor in the operating budget. Compensating employees for a job well done, as opposed to how long they have been employed, is a sound financial model to follow. All current labor contracts expire no later than the 2012-13 fiscal year. All future budget projections regarding labor costs are based on pension cost sharing and reasonable merit salary increases.

The City Council will decide on his recommendations at its Dec. 20 meeting.

 
- Brad Haugaard

2 comments:

  1. The employees who should be based on merit pay are the administrators, especially the city manager. I'm sorry, city managers are all overpaid. If they bring in more tax revenue for cities then they should receive some sort of a stipend, dependent on how much they bring in.

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  2. Ya! I think paying by merit is the only way to go.

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