It’s surprising, in these tight economic times, to learn that 28
Gilroy city managers and administrators will be able to earn
$100,000 or more when new salary increases go into effect next
month.
It’s surprising, in these tight economic times, to learn that 28 Gilroy city managers and administrators will be able to earn $100,000 or more when new salary increases go into effect next month.
Given all that taxpayers hear about budget crunches, increasing user fees, state takeaways and decreasing revenues, it’s hard to accept so many employees possibly pulling down six-figure salaries. For at least 13 City of Gilroy positions, the minimum salary is above the $100,000 mark.
But we’re not going to quibble with the salaries or this year’s 3-percent raise and next year’s 2-percent salary hike – especially after comparing Gilroy department heads’ salaries to similar positions in neighboring cities. And given the high cost of replacing experienced workers, it looks like Gilroy’s salaries are just about on target.
However, we do take issue with the means used to arrive at those salaries: essentially collective bargaining.
Management positions are not union positions, yet a union tool is used to determine how the managers at City Hall are compensated. That’s not good for taxpayers, and it sends the wrong message to all city employees.
We think City Council ought to model managerial compensation after private industry: Set goals and measure performance against those goals to determine each individual’s salary increase. It’s harder to administer than across-the-board salary increases, but it’s profoundly better for taxpayers. Strong performers – the employees the city most wants to keep – are given incentive to stay with bigger increases.
Mediocre employees see smaller increases, and poor performers see no increase at all, perhaps accompanied by a pink slip.
Managers who are compensated based on performance are motivated to be efficient and effective, a bonus for the city budget and a boost to the delivery of city services. Managers who have incentive to be efficient and effective will find ways to encourage that behavior in their subordinates, widening the benefits of performance-based compensation.
It’s important for the City Council to take a closer look at this situation and schedule a study session to review manager and administrator compensation with an eye toward adopting a performance-based compensation plan.
The City of Gilroy needs to keep good employees, and competitive compensation – with merit increases – is an important part of achieving that goal. But the City Council needs to make sure increases are based on excellent job performance, not negotiating skills.
