HomeMy WebLinkAbout07/02/1996, C-9 - REVIEW OF THE EMPLOYEE SUGGESTION AWARD PROGRAM council
Agenba Repout _
CITY OF SAN LUIS OBISPO
FROM: Ann Slate, Personnel Director6
Prepared By: Jill Sylvain, Personnel Analyst'
SUBJECT: REVIEW OF THE EMPLOYEE SUGGESTION AWARD PROGRAM
CAO RECOMMENDATION
Consider and approve the revised Employee Suggestion Award Program
DISCUSSION
As part of the 1989-91 Financial Plan, the development of an Employee Suggestion Award
Program was identified as a Reportable Program Objective of the Personnel Department. The
City Council reaffirmed its interest in the establishment of a suggestion program by listing it as
an "A" Priority in the December 1990 Council goal setting exercise. Although some preliminary
work on the program was accomplished in 1989 and 1990, it was in early 1991 that an employee
committee was formed and developed the proposed program that Council approved in July of
1991. Additionally, it was recommend that the program be evaluated by the City Council in
June of 1993. A formal review was never undertaken. After almost five years in existence, it
is appropriate to conduct such a review at this time.
The purpose of the Employee Suggestion Award Program is to recognize employees who make
suggestions which contribute to more efficient and effective City operations. Employees submit
suggestions which are reviewed by the Suggestion Review Committee which is comprised of an
employee representative from each department. The Committee determines the merit of the
award based upon the input of the affected department head. The Committee then recommends
to the City Administrative Officer (CAO) an appropriate award. The CAO has final approval
with the City Council presenting the award at a regular City Council meeting.
Since July, 1991 there have been a total of twenty-nine suggestions submitted by thirty-two
different employees (some submit as a group). To date seventeen employees have received a
total of ten awards totaling $6,935.50. In almost all cases the awards are based on the savings
to the City in the first year and the savings continue year after year. The annual savings to the
City associated with these awards is $63,266.
To date the Employee Suggestion Award Program has encountered very few problems and it
appears to be well received by City staff. Recently the Committee members met and reviewed
the current program and identified only one problem area. The Committee has frequently
Council Agenda Report - Employee Suggestion Award Program
Page 2
struggled when discussing and reviewing suggestions in the area of job relatedness. The
question typically arises, "Is the suggestion with-in the scope of the employee's regular job
duties?" In other words, is the suggestion what should normally be expected of an employee
in the position, as part of their routine duties? Or, does the suggestion go above and beyond
what would normally be expected? The current guidelines for eligible and ineligible suggestions
do not address this concern. The Committee believes this problem can be solved by adding the
following language to the list of Ineligible Suggestions: "Suggestions that are related to the scope
and functions outlined in the employee's job description". In addition a question would be added
to the Suggestion Award Submittal Form asldng the employee to explain why his or her
suggestion is not related to the scope and function of their regular job duties. This response will
be reviewed by the employee's department head and supervisor as well as the review committee.
FISCAL ENPACT
The fiscal impact, if any, to this program cannot be determined at this time. As stated
previously, the program is currently saving the City an average of $12,650 annually with
associated cost of$1,387 annually. It is possible the cost savings and resultant awards may go
down because fewer suggestions will be submitted due to the proposed "job relatedness"
stipulation.
Attachments
Revised Employee Suggestion Award Program Policy
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