TO: Chris Sedgefield, City Manager FROM: Pat Alvarez, Director of Human Resources Department 楚国八百年SUBJECT: Policy Memo on RIF Plans DATE: 15 September 2010 |
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1 Background
1.1 For the coming fiscal year, budget is requiring an 8.5% reduction in overall expenditures and requested that only supervisory positions be cut.
2 Introduction
2.1 This policy memo explains my proposal designed to meet the budget requirements for the coming fiscal year following a thorough review of my department’s goals and operations. I propo a three stage program to be implemented over the cour of the year. The aim of this program is to reduce the negative impact on morale and, over the medium term, enhance the efficiency and effectiveness of the department by promoting performanc
e and professionalism.
3 Summary
3.1 The three stages are ‘Rejuvenate’, ‘Reward’ and ‘Realign’. Besides meeting the budget demand over the next fiscal year, ‘Rejuvenate’ aims to reduce morale issues related to the reduction-in-force exerci and free up resources needed to implement the next two stages.
晚安朋友圈说说
3.2 In order to promote a performance-focud culture, ‘Reward’ is necessary. This also reassures employees that management is forward-looking and appreciates their contributions. In this stage, standardid performance appraisal will be implemented and conducted every half yearly. With transparent performance indicators, top performers can be identified and publicly rewarded with performance bonus. Converly, persistent underperformers can be identified for further action.
3.3 Finally, ‘Realign’ target to moderni the department’s organisational structure so a
s to bring about operational efficiency and effectiveness. New working groups are also created to focus on performance, incentives and expenditure-related issues.
4 Stage One – ‘Rejuvenate’林俞丞
果然天空4.1 ‘Rejuvenate’ aims to reduce anxiety with regards to the reduction-in-force exerci and free up resources for the next two stages. This stage consists of the following measures to be implemented during the first three months of the coming fiscal year. The measures are no pay leave, voluntary verance, early retirement and retrenchment as explained in the table below.
Measures | Implementation Details | Estimated Budget Impact |
No Pay Leave | All employees are required to take 1 day of no pay leave every 2 weeks (10 business days) during the first 3 months of the new fiscal year. Division heads are to plan and ensure sufficient staffing during this period. This measure is meant to be temporary. As a sign of leadership and solidarity, Directors have decided on addition contributions to share the pain of the adjustment with the rest of the department. Although a small token amount, Maxine and I have agreed to contribute, on top of No Pay Leave, another 10% of our pay into the Performance Fund over the 3 months. | $58,200.00 $3,400.00 |
Voluntary Severance/ Early Retirement | Existing staff can opt for either the voluntary verance or early retirement scheme, subject to management approval. The department will pay staff, with a satisfactory performance history, one month salary for every year of rvice, capped at a maximum of 6 months. Management will consider the operational impact of all applications and restrict the approval at no more than 15% of existing workforce.森林防火的重要性 含四的成语The applications will be reviewed and announced by the end of the cond month and effective the end of the third month of the new fiscal year to allow for proper handling over of duties. | $144,900.00 |
Targeted Retrenchment Exerci | Existing staff with a persistent record of underperformance will be retrenched. The department will pay the staff, with unsatisfactory performance history, half a month salary for every year of rvice, capped at a maximum of 3 months. The department has identified only one consistent underperformer, Consortium Coordinator Ms. Mobley Vera. The department has documented her poor performance over the last 3 years, including a number of critical incident reports and client complaints. To reduce employee anxiety, the department will announce this retrenchment decision at the start of the new fiscal year, effective in one month’s time. | $27,095泰山挑夫 |
Termination of Temp Workers | Existing Temps will be terminated. No compensation will be paid as their contracts allow for immediate termination. The three affected temps are Belinda Camel, Manuel Garcia and Dana Hamilton. This termination will be announced together with the retrenchment announcement. | 为了谁串词$54,000 |
| Total | $284,200 |
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Table 1. Implementation Details and Estimated Budget Impact of ‘Rejuvenate’
4.2 The following measures are expected to yield a budget reduction of around $284,200.00 for the coming fiscal year. This works out to 10.5% reduction in budget compared with the 8.5% target. This excess 2% budget reduction will provide the department with budgetary space to support the ‘Reward’ programs.
4.3 To ensure that adequate assistance is provided to affected staff (retrenched and voluntary verance/early retirement), psychological consultation and career counlling rvices will be provided by the department. The affected personnel will receive the full amount of their verance packages in cash. As part of the retraining package, affected personnel can sign up for skills upgrading programs with any of our specialist training providers at subsidid rates.
4.4 The department will tup a Performance Fund to manage the fiscal surplus for each year. This fund will be drawn down to pay annual Performance Bonus as propod in ‘Reward’.
5 Stage Two – ‘Reward’
5.1 ‘Reward’ is necessary to instil a performance-focud organisation culture. An emphasis on ‘Reward’ empowers employees to perform and focus on the future, even during periods of uncertainty. The implementation of ‘Reward’ can reassure employees that management is forward-looking, appreciates their contributions and are prepared to reward them appropriately.
5.2 The key motivation behind ‘Reward’ is the recognition that motivated and competent workers are more efficient and effective. This implies that a smaller department can provide a superior level of rvice delivery, if staffed with highly motivated and high performing employees. Quantity is not a replacement for quality. With a smaller workforce, valuable budgetary resources are freed and can be directed to ‘Reward’ derving employees.
