Q&A: Employee Incentive / Merit Pay Program
Why do we have an employee incentive/merit pay program? (0:41)
There are three main reasons Annette developed this program and you’ll notice that the incentives are tied to these reasons through utility and individual goals.
Value Reliability & Fiscal Responsibility: (0:49) - The first is to encourage employees to value the utility goals of reliability and financial management and to look at their own jobs daily to see how they may impact those goals. It takes a team effort to achieve the utility goals.
Professional Growth and Team building: (1:01) - The second is about employee commitment to the District and to their personal and professional growth. The idea is for employees to be engaged and informed about issues that impact the utility and building cross-departmental relationships.
Community Service: (1:07) - Finally, to promote the community-powered philosophy and urge employees to get out into the community and make a difference as well as being ambassadors for Public Power and Mason PUD 3.
How do I earn an incentive? (1:33)
Utility Goals First: (1:38) - First before employees are eligible to earn an incentive, the utility goals in section 1.0 of the policy must be met. As a reminder, those goals are that the District maintains its RP3 rating with APPA. Second, the District must receive a clean Audit from the Washington State Auditor’s Office. And Finally, the Annual Report must earn the GFOA award for excellence.
Level I: (2:29) After the utility goals are met, if employees complete twelve (12) hours of manager/supervisor approved job-related training annually (which may include cross-training, OSHA, etc.) and they attend at least two (2) of the district-wide internal communication events (like the picnic, annual meeting, breakfast with the manager) then the employee will earn the Level I incentive.
Level II: (3:37) In order to reach level two, both the utility goals and Level I goals must be met, then when
EITHER
An employee volunteers at least sixteen (16) hours in two (2) or more approved outreach activities outside of normal business hours and in a non-paid capacity
OR
An employee demonstrates donation of personal funds either through payroll deduction or other local non-profits. There is no minimum for donation (5:24) but a receipt must be provided if the donation is not made through payroll deduction. .
Level III: (4:39) Level III is reached when the utility goals and Level I are met, and an employee meets both the volunteer requirements and donates personal funds. In other words, meets all three individual goals.
While you are only required to submit the minimum donation amounts and volunteer hours, the District appreciates the generosity of its employees and will use any additional information (5:31) provided to communicate to our customers the utility-wide impact on our community. The more volunteer and donation information we have – the more we can show our collective impact on Mason County. So feel free to provide all your donation/volunteer information.
What are the incentives?
There are three levels of incentives. Employees can earn either:
Level I: 1 day of PTO (3:22)
Level II: 2 days of PTO (4:31)
What organizations/activities qualify? (4:00)
There is a list attached to the policy that outlines the organizations that have been predetermined to qualify.
The list also acknowledges the organizations/activities that are prohibited. (4:12)
The list was not intended to be all-inclusive and we recognize we may have missed some non-profits that do important work in our community. If you have an organization that is not on the list and you want to know if it qualifies, contact the HR Department.
Where do I find the Policy & Form? (7:44)
Each year, employees may fill out a form documenting the completion of the goals and submit it to the HR department. Normally, the program timeframe will run from July 1 to June 30 of each year. On the form, you’ll document the following:
Training hours (12 Hours) – Your supervisor must sign this section verifying the training meets the goal.
District-Wide Events (2 Events) – HR will sign off verifying your attendance at these events.
Community Outreach (16 Hours in 2 approved activities) – While these hours are not verified, you are certifying by signing the form that your report is true and accurate.
Donation of Personal Funds – If your donation is through payroll deduction, no need to attach a receipt. If it is through another qualifying non-profit, then simply attach a copy of the receipt.
The form is then turned into the HR department for processing.
How is 2019 different? (6:43)
In 2019, since there is money budgeted, the time frame is different. Employees will need to submit their forms by October 31, 2019 and the eligible period of activity will be from January 1, 2019 through October 31, 2019.
Keep in mind that any hours used in submitting your form this year can not also be used to meet your goals for 2020.