Merit Pay
Contents
- Introduction
- Sample Policies
- Articles and Publications
- Cities and Counties that Provide Merit Raises or a Combination of Merit/Step Raises
- Related MRSC Pages
Introduction
Most, if not all, employees, be they employed by a government agency or otherwise, hope for periodic wage increases. It is not uncommon for workers to be given a cost of living increase, recognizing that the cost of goods and services are increasing. Some jurisdictions will also recognize an employee's worth to the organization based upon his or her years of service. And other jurisdictions may choose to base any wage increases that they may provide upon the "merit" that an employee has achieved. Has a particular employee met or surpassed all of his or her employment goals? Has the employee worked efficiently? Have the employee's achievements resulted in savings? Depending upon the employee's performance, he or she may be rewarded by a wage increase in recognition of the merit of the employee's work.
Unless a merit pay system is carefully constructed, there is a risk that any additional wage provided in recognition of the employee's merit could be considered a gift, which would violate the state constitution. Thus, criteria for a merit wage increase must be adopted in advance of any work being performed so that an employee will know that if the criteria is met or exceeded, a wage increase will follow, not as a gift but in recognition that the certain work goals have been met.
Sample Policies
The following are some examples of merit pay plans that have been adopted by Washington jurisdictions.
- Bothell Employee Classification and Salary Plan (
), 07/01/2000
- Bellevue Employment Policies and Procedures (), 08/2002
- Cascade Water Alliance Human Resources Policies and Procedures Manual (), 12/17/2008 - See "Merit Pay Increases, Performance Ratings Standards beginning" at page 13
- Mercer Island Pay for performance plan (), 2004
- Milton Compensation for Exempt Employees (), 2010
- Sammamish Master Employee Program (), 11/2006
Articles and Publications
The following two articles provide general background information reviewing the benefits of using a merit pay system and issues that should be considered in the development of a merit pay system.
- Issues to Consider in Implementing a Pay-For-Performance Program (), by Alexis Dow, Metro Auditor, Portland, OR, 05/2004
- Pay for Performance: The Road to Success (), ICMA Press, IQ Report, 2007 - The publication explores issues regarding the implementation of a merit system, provides principles for the development of a merit plan, and discusses the potential of resistance to such plan.
Cities and Counties that Provide Merit Raises or a Combination of Merit/ Step Raises
According to the 2011 Washington City and County Employee Salary and Benefit Survey published by the Association of Washington Cities, the following cities and counties have either "merit only" or "combination step/merit" pay systems:
Cities that Provide Merit Only Raises
- Friday Harbor (2,180)
- Gig Harbor (7,200)
- Issaquah (30,690)
- Kenmore (20,780)
- Kennewick (74,665)
- Lakewood (58,190)
- Maple Valley (22,930)
- Mill Creek (18,370)
- Mountlake Terrace (19,990)
- Newcastle (10,410)
- Port Angeles (19,080)
- Rainier (1,825)
- Redmond (55,150)
- Roslyn (895)
Counties that Provide Merit Only Raises
None
Cities that Provide a Combination of Merit/Step Raises
- Airway Heights (6,220)
- Albion (555)
- Arlington (17,930)
- Bellevue (123,400)
- Bingen (720)
- Black Diamond (4,160)
- Brewster (2,365)
- Cathlamet (530)
- Colfax (2,805)
- Cosmopolis (1,645)
- Covington (17,640)
- Dayton (2,535)
- East Wenatchee (13,220)
- Edgewood (9,405)
- Ellensburg (18,250)
- Federal Way (89,370)
- Forks (3,500)
- Lake Forest Park (12,610)
- Langley (1,045)
- Marysville (60,660)
- North Bend (5,830)
- Northport (295)
- Prosser (5,780)
- Roy (795)
- Spokane Valley (90,110)
- Toppenish (8,950)
- University Place (31,170)
- Waitsburg (1,215)
- Washougal (14,210)
- Waterville (1,140)
Counties that Provide a Combination of Merit/Step Raises
- Adams (18,950)
- Franklin (80,500)
- King (1,942,600)
- Kittitas (41,300)
- Pierce (802,150)
- Whitman (44,800)