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HomeMy WebLinkAbout1999-01-19 City Council (9)TO: City HONORABLE CITY COUNCIL City of Palo Alto Manager’s Report ATTENTION: FINANCE COMMITTEE 3 FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE:JANUARY 19, 1999 CMR: 108:99 SUBJECT:APPROVAL OF AN AMENDMENT TO THE CITY’S COMPENSATION PLANS TO PROVIDE FOR THE ESTABLISHMENT OF AN EMPLOYEE REFERRAL PROGRAM RECOMMENDATION Staff recommends that the Finance Committee recommend approval to the City Council of an amendment to the compensation plans for the City’s four employee groups (Classified, Police, Fire, and Management & Confidential) to allow the establishment of an Employee Referral Program. BACKGROUND On October 5, 1998, Council approved funding for additional recruitment expenses to address the current high employee vacancy rate (CMR:389:98). Human Resources staff has been researching new and non-traditional methods of outreach and recruitment in order to further expand efforts to attract and retain qualified employees. To that end, staff is proposing the establishment of an Employee Referral Program for an 18-month trial period. Staff is requesting that Council approve an amendment to the compensation plans which would allow cash awards for employees who refer job candidates for specifically designated positions, who are subsequently hired and successfully complete their probationary period.’ DISCUSSION As the current labor market becomes increasingly tight and the City is required to become more competitive in its recruitment efforts, it is incumbent upon staff to develop new and non-traditional methods of locating and attracting qualified candidates. In filling open positions, one of the greatest assets of an organization is its existing workforce. Employee referral programs have proven to be a successful tool to supplement other recruitment efforts, and offer additional benefits in terms of lower costs per hire and increased employee morale. Prior to development of the proposed Employee Referral Program, Human Resources staff researched existing programs in both the public and private sectors. Information was obtained from the League of California Cities, Society for Human Resource Management, CMR:108:99 Page 1 of 3 and various web sites on the Intemet. The majority of referral programs are offered by private sector companies, as government entities with Civil Service regulations have so far been unable to take advantage of such programs; however, some public sector agencies do have programs in place. Sample programs from Boston University and the San Jose Police Department are attached for Council’s review. (Attachment B) Companies report several benefits of implementing an employee referral program, including: O Employees hired through referrals have a lower turnover rate. This is due to the fact that the referring employee can provide a true description of the work environment and culture to the person being referred. Also, the referring employee tends to act as a "mentor" to the new employee, as he or she has a vested interest in the welfare of this employee. O The caliber of referred employees is very high, because employees are conscious of their own reputations and do not refer candidates who will reflect badly on themselves. o Candidates do not typically need to relocate, as most employees refer friends or colleagues who live or work in the same area. o Employee morale is boosted when employees have an opportunity to become involved in the recruitment effort and to be rewarded and recognized for their efforts. Although referral programs are not yet common in the public sector, they are definitely a critical component of the recruitment strategy of private industry, including companies with which the City is now competing for candidates for positions in Information Technology, the Utilities Department’s Electric Division, and the Police Department. (Cisco Systems, a high-tech company in San Jose, reports that 60 percent of its hires are generated through its employee referral pro~am.) Staff is proposing the implementation of an Employee Referral Program for an 18-month trial period. The proposed program (Attachment A) provides a cash award for the referral, and subsequent hiring, of qualified candidates for designated positions which have been identified as difficult to fill. Human Resources Department staff will monitor the effectiveness of this program in terms of numbers of.referrals, numbers of successful hires, and potential cost savings. (Eighteen months is necessary for the successful evaluation of the program due to the length of the probationary period for Police Officer, which is a designated position and a main target of the referral program.) The draft program has been submitted to the City’s three represented employee groups (International Association of Fire fighters, Palo Alto Peace Officers’ Association and Service Employees’ International Union) for their review and comment, and has received their support. The program has also been reviewed, and approved in concept, by the City Attorney’s Office. CMR: 108:99 Page 2 of 3 RESOURCE IMPACT The required funding to implement the proposed Employee Referral Program for an 18- month trial period is estimated at $15,000. Funds for this program will be included as part of the 1999-2001 Human Resources Department budget request. Future costs of the program, should it be implemented on a permanent basis, would be funded through the Human Resources Department budget. POLICY IMPLICATIONS This report does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: Attachment B: Draft Employee Referral Program Sample Programs PREPARED BY: Leslie Jennings, DEPARTMENT HEAD: JAY C. Director of Resources Representative CITY MANAGER APPROVAL: Manager CMR:108:99 Page 3 of 3 ATTACHMENT A POLICY AND PROCEDURES 2- Page 1 of 3 EFFECTIVE: EMPLOYEE REFERRAL POLICY STATEMENT Recruiting and hiring qualified employees is essential City of Palo Alto. The purpose of the organizational recruitment and employment efforts by this process and by recognizing and rewarding that Resources reserves the right to discontinue this from referral award eligibility at any time. PROCEDURE a viable is to the to participate in of Human classification On a periodic basis Resources wil by the Director of Human ,qigible for a referral award. Eligibility (*). A current list of eligible will in the Human Resources Department. considered for this program. Resources eligible is eligible for referral award, with the exception of Human staff, Executive Staff, Council Appointed Officers and any involvement in the pre-employment selection process for an and/or post employment training process of a referred employee’s name must be written on the employment application at the of submittal. 3.The referring employee must complete and submit an Employee Referral Tracking Form to the Human Resources Department at the time of application submittal. POLICY AND PROCEDURES 2- Page 2 of 3 EFFECTIVE: Any questions regarding eligibility will be Resources or designee for resolution. Referral Award Referral incentive awards will be $1500. When a referred applicant is hired, the employee’s paycheck as taxable income. credited at the successful referring employee and new hire ~ 3.Referral awards are appear on the ($750) will be that the 4.Awards will be 5.In the the makes a valid and certified referral, among the employees. POLICY AND PROCEDURES 2- Page 3 of 3 EFFECTIVE: EMPLOYEE REFERRAL (Employee Name) for the position of referral is based on: Previous on-the-job experience Previous on-the-job Personal knowledge Applicant Date: mrtment use: Authorized Signature Successful Completion of Probation on Authorized Signature Award PAF processed Award PAF processed SAMPLE ONLY LIST OF CLASSIFICATIONS DESIGNATED AS Building Inspector Building/Planning Communications Di Electrician(Electrical Lineperson/Cable Manager, Manager, Computer Personal Computer Plans Checker Engineer Police Officer ATTACHMENT B PALO ALTO COMPANIES WITH EMPLOYEE INCENTIVE PROGRAMS INCLUDE THE FOLLOWING" 2. 3. 4. UCSF Stanford Health Care Sun Microsystems Palo Alto Medical Foundation Watkins-Johnson Company ATTACHMENT B EMPLOYEE REFERRAL PROGRAM Introduction You can help Boston University, a friend, and yourself by participating in the new Boston University Employee Referral Program. If you are an eligible employee, you can earn a cash award of $5,000 if you refer an external applicant who is hired to a designated open information systems position at the University. Who is an Eligible Employee? The Employee Referral Program is open to all regularly employed faculty or staff. Boston University students, temporary employees, Office of Personnel staff, Corporate Education Center staff, and staff from career placement offices are not eligible. Supervisory staff and faculty are not eligible when hiring in their unit. For the purposes of this program, Information Technology and University Information Systems will be considered to be one unit. What is a Designated Open Position? A department can designate any information systems position from within the salary grade 50 series. Three dollar symbols participating jobs. before the job title will be used in the posting to identify How do I Refer An External Applicant? An Employee Referral Form may be obtained from department payroll coordinators or from the Office of Personnel (or follow this link and print out a copy.) Fill out the form or a copy of it. The applicants you refer must h-~-~ this form attached to the resumes or applications that they submit to the Office of Personnel. You cannot refer anyone who has already applied to the Office of Personnel, who already works at Boston University, or anyone who has worked here within the last twelve months. This includes regular, student, and casual employees, as well as employees working at the University through temporary agencies. Boston University faculty and staff are not able to refer Boston University students to the Employee Referral Program for a minimum of twelve months after the student graduates. How Do I Get My Cash Award? The hiring department will pay you a cash award of $5,000 (subject to taxes) if the person you referred is hired for a designated position and completes six months of continuous employment. You must be employed by Boston University at that time to collect payment. 1 of 2 12/17/98 1:19 PM How Does The Hiring Departme~t D~signate A Position For The Program? The hiring department notes in the appropriate box on the PS-1 (Requisition for Personnel) or contacts the Manager of Employee Relations, Employment and Training when a position is to be included in the Employee Referral Program. The department may include a position when it is first available or at a later date; however, once included, a position may not be withdrawn from the program. What Else? If you have any further questions about the Employee Referral Program, please call your Employee Relations Representative in the Office of Personnel. The Office of Personnel reserves the right to determine whether or not referred applicants are qualified for positions covered by the program. If a referred applicant is hired for a non-designated position, no award will be paid. The University may modify or discontinue this program at any time. Should the program be discontinued, any in-process referrals will be handled on an individual basis. In the event an applicant is referred from more than one source; for example, from two employees, or an employee and an employment agency, the deciding factor will be the date of receipt of the referral within the Office of Personnel. The Office of Personnel will inform the participating parties when such situations arise. Boston University is an Affirmative Action/Equal Opportunity Employer. Return to Job Opportunities Go to Employee Referral Form 2 of 2 12/17/98 1:19 PM SAN JOSE POLICE DEPARTMENI THIS PROGRAM AI_rrHORIZES AN AWARD OF 10 TO 40 HOURS COMPENSATORY TIM~ TO ANY DEPARTMENT MF2cfBER, SWORN OR NON-SWORN, WHO RFA2RU1TS A "PROTECTIVE CLASS" (BLACK, ASIAN, HISPANIC, NATIVE AMERICAN AND FILIPINO) , BILINGUAL (CHINESE, KOREAN, FII.2~INO, CAM]3ODIAN, SPANISH OR VIETNAMESE) OR Ft2vIALE POLICE OFFICER CAND]I)ATE. . L TIiE TIM~ WILL BE AWARDED IN 10 HOUR INCREMENTS AT THE "STRAIGHT TIME" RATE AND MUST BE USED WITHIN 2 MONTHS FROM THE DATE EACH OF THE FOUR PHRASES OF EMPLOYMF_A~ IS CERTIFIED AND SIGNED OFF BY EITI-IER THE BACKGROUND, RECRUITING OR PERSONNEL SERVICES SERGEANT. THE I0 HOUR INCREMENTS ARE BASED ON THE FOLLOWING PHRASES OF EMPLOYMENT: I.CANDIDATE IS I-fIRED 2.CANDIDATE COMPLETES THE BASIC ACADEMY ( OR EQUI’VALENT ) 3,CANDIDATE CONflW.,ErES TILE. Fro PROGRAM "" 4.CANDIDATE COMPLETES PROBATION 10 HOURS 10 HOURS 10 HOURS 10 HOURS PROCh-T)I IRE PERSONNEL AWARE OF A POTENTIAL CANDIDATE AND INTERESTED IN RECEW~G RIP COMPENSATORY TIME CREDIT MUST COMPLETE EACH OF THE FOLLOWING STEPS IN ORDER TO TAKE ADVANTAGE OF THE AWARD. -PICK UP A RIP TRACKING FORM FROM THE RFAERUITING SECrION’OF THE POLICE PERSONNEL UNIT. -CONfi~.~E THE TOP PORTION OF Ti-~ FORM AND SIGN IT. -HAVE THE CANDIDATE SIGN THE FORM -TURN THE FORM OVER TO THE RECRUITMENT SECTION FOR FILING AND TRACKING. THIS COMPLETED FORM MUST BE TURNED INTO THE PERSONNEL UNIT OF THE POLICE DEPARTMENT PRIOR TO THE START OF. THE. BACKGROUND PROCESS. AS THE CANDIDATE COMPLETES EACH OF THE ABOVE PHRASES.OF EMPLOYMENT, THE DEPARTMENT MEMBER WHO RECRUITED THE CANDIDATE WILL: - OBTAIN 2 COPIES OF THE RIP TRACKING FORM FROM THE RECRUITMENT UNIT WITH THE APPROPRIATE SF_gTrION COMPLETED & SIGNED / APPROVE, D. AND WITH THE DATE BY WHICH THE OVERTIME MUST B,E USED. - ATTACH 1 COPY TO HIS I HER TIM~ S~ AND REPORT THE I0 HOURS AS STRAIGHT COMPENSATORY TIME ON THE TIME SHEET. - TURN IN THE SECOND COPY OF THE RIP TRACKING FORM TO THE ADMINISTRATIVE LIELrrENANT FOR HIS / HER WATCH, OR THE PROGRAM MANAGER OF HIS I HER UNIT IF NOT IN PATROL, AND MAKE ARRANGEMENTS TO USE THE COMPE~. SATORY TIME WITHIN THE 2 MONTH TIME -IT WILL BE THE RESPONSIBILITY OF THE ADMINISTRATIVE LIh-ZITENANT OR PROGRAM MANAGER TO INSURE THAT THE COMPENSATORY TIME IS USED BY THE DATE NOTED ON THE RIP TRACKING FORM. -IF YOU HAVE ANY SUGGESTIONS OR QUESTIONS ABOUT RECRUITING OR THE RIP, OR NEED ANY ASSISTANCE, PLEASE CONTACT THE RECRUITING UNIT AT 277-4951. SWORN & NON-SWORN PERSONNEL ASSIGNED TO THE PERSONNEL UNIT ARE NOT ELIGIBLE TO PARTICIPATE IN THIS PROGRAM WHILE ASSIGNED TO THE PERSONNEL UNIT. Lateral Recruiting Incentive Program Tracking Form This program authorizes an award to any department member* (sworn or non-sworn) of up to 20 hours of compensatory time for recn:dting a lateral police officer for the June 1,1998 hiring. Department members can also receive up to an additional 40 hours of compensatory time for recruiting a lateral that is bilingual or protected class. Protected Class Qualifying languages African American Asian Hispanic Native American- Filipino ~Female Chinese (Mandarin or Cantonese) Cambodian Korean Filipino (Tagalog Or Ilocano Vietnamese Spanish Obtaining the Forms Pick-up a LRIP tracking for~ (the backside of this form) from the Recruiting Unit (Police Personnel). Complete the top portion of the tracking form (signature required) o Have the police applicant sign the form. o Return the completed form to the Recruiting Unit prior to the start of the background process. Procedure: When the lateral applicant is hired, obtain a copy of the LRIP tracking form from the Recruiting Unit. The hire date information must be completed with an authorizing signature. This form is to be attached to the department member’s time sheet and reported as ten hours straight compensatory time. ( The overtime usage category is OTH.) When the lateral applicant successfully completes the Fro program, the department member should repeat the above process to receive the remaining ten hours of compensatory time. For a lateral applicant who are protected class or bilingual, the abov~ procedure should be followed at each of the three steps that occur between the hire date and the end of probation (18-months). The three steps are: ¯Hire Date (20 hours) ¯Completes the FTO Program (20 hours) ¯Completes Probation (20 hours) If the bilingual or protected class applicant successfully completes all the steps, the participating department member will have accumulated a total of 60 hours of straight compensatory time. It is the responsibility of the participating department member to ensure that the procedure outline above is followed at each step of the process. If you have any questions regarding the Lateral Recruiting Incentive Program~ please call the Recruiting Unit at 277-4951. *This program is not ope~ to department members (sworn or non-sworn) ~ssigned to the Personnel Unit. UCSF STANFORD HEALTH CARE ,,Dec-22-98 02:16P P.02 PALO ALTO MEDICAL FOUNDATION $ MORE $ $$$ MONEY $$$ RECEIVE A $500.00 BONUS FOR THE RIGHT PERSON REFERRING REFER QUALIFIED CAND%DATES TO }IUMAN RESOURCES FOR THE FOLLOWING BENEFITTED POSITIONS AND YOU COULD RECEIVE A REFERRAL BONUS. TELEPHONE ADVICE R.N. REGISTEKED NURSE MEDICAL ASSISTAI~T ASSISTANT CHIEF THERAPIST, RADIATION ONCOLOGY PATIENT SERVICES REPRESENTATIVE RADIOLOGY TECHNOLOGIST To qUalify for the bonus, you must be a current PAMF employee; the oandid~te must complete an application and indicate your name as the referral to PAMF; and, if the candidate is hired, he/she must successfully complete their 90 day introductory period. This referral program is in effect through 12/31/98. Direct questions to Human Resources x2953.