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there is an incentive as many people receive the same thing. <br />Some would argue that money incentives are not motivators, but <br />the lack of them may be demotivators. However, the use of bonus <br />incentive systems in the private sector does seem to stimulate <br />the behavior of those organizational employees. To a degree some <br />of the systems will create organizational discord between <br />individuals if teamwork is desired and the incentive system does <br />not incorporate that as a desired behavior. <br />In any incentive system it is recommended that the following be <br />considerations: <br />A. No Effect on Base Pay - Any system for performance in <br />one”l?ear should not mean an increase in performance for <br />years beyond that and that the postion pay remains the <br />same. <br />B. Lump Sum - Instead of a percentage seen as a small <br />part of several checks that any incentive pay be a lump <br />sum payment at the time of award. <br />C* Funding - The program should be funded from items <br />that are separate from keeping the pay schedule in line <br />with external wages and the cost of living. If it is <br />not, employees will perceive the program as a means to <br />decrease their pay and eventually undermine the idea of <br />the program. Additionally the theory of the incentive <br />is performance above and beyond that expected and the <br />expected performance is being paid for the position in <br />the pay schedule. <br />ALTERNATIVES - <br />1. Discuss. <br />2. Table. <br />3. Give direction to staff on a means of proceeding. <br />RECOMMENDATION - It is recommended that the Council indicate any <br />discussion they may have on this item together with sharing their <br />thoughts on the matter with the Administrator over the next two <br />months. <br />PROPOSED MOTION - Moved by _, seconded by _, that the Coucil <br />table discussion of this item until its March .» 1990 meeting. <br />Ayes _, Nays _. <br />cc: All Department Heads