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2014-26vi kv 9.1 Ri.1I III r y _ 11 i ' ' • • •. i. is occasional amendments to the Personnel Manual are necessary; and, \�� 11 The Village of Buffalo Grove has created this compensation policy to develop and implement a performance management program that creates a direct relationship between the performance of an employee and the employee's compensation. The policy is intended to measure outcomes, enhance accountability and emphasize Village-wide priorities, strategic planning and critical job success factors. The desian of the compensation plan renuires the administration of the followinLy sub-nolicies. as 70TIOT7=171TITTLER $1 eac afy IULISC uahVu lie lf nest RaTary range the comparable communities. Consistent with standard practice and to prevent range compression, range spreads (the difference between the salary range minimum and maximum) will be set at approximately 40 percent, but may be expanded or contracted based upon circumstances unique to a position or class • positions. 1� I= The Village will conduct annual employee evaluations for all Village employees in May and June, or at such other time as may be warranted to meet the business needs of the Village. All employees will be evaluated. The management staff will use the evaluations to determine an employee's annual potential salary adjustment based on a merit schedule established by th* Village Manager annually during budget preparations and consistent with this policy. Based on the results of the annual evaluation, the employee will receive a rating of I ("Unacceptable"), 2 ("Needs Improvement"), 3 ("Fully Meets Expectations"), 4 ("Exceeds Expectations"), or 5 ("Outstanding"). To ensure tested and consistent evaluation standards, staff will employ an evaluation system that will: Any employee receiving an overall evaluation score of Unacceptable (1) or Needs Improvement (2) will be placed on a formal Performance Improvement Plan. The Performance Improvement Plan will include a written statement prepared by the evaluator with the performance matters to be addressed by the employee and a specific period in which a Special Evaluation shall occur. Kffr-- � � M.