As we enter the 2024 Fiscal Year, we are excited to share how performance pay will be implemented at Commerce. Just like the strategic plan, performance pay is designed to align our efforts and measure progress towards our objectives. Let’s explore how it works and what you can expect in the coming months.
Right now, supervisors across the agency are working hard on performance plans for the 2024 fiscal year that runs from July 1, 2023, to June 30, 2024. Every employee in the department will have a performance plan. Before your plan goes into effect, you will have an opportunity to meet with your supervisor about your plan, objectives for your work at Commerce, how they tie into the Commerce strategic plan, and the measurements you will need to meet to qualify for additional pay.
For the 2024 Fiscal Year, pay raises will average 2.5%. The amount of increase will be determined based on the evaluation category that aligns with your performance. There are four categories:
- Does not meet expectations
- Meets expectations
- Exceeds expectations
- Exemplary (reserved for a select few Commerce employees who consistently go above and beyond expectations)
Throughout the year, you will receive quarterly written evaluations from your supervisor. These evaluations will assess your performance on each objective outlined in your performance plan and assign an overall performance category. At the end of the year, supervisors will conduct an annual evaluation based on all four quarters, determining the amount of your pay increase.
This year, things will move quicker as we get the additional funds into the hands of our employees as soon as possible. After your first two evaluations, your supervisor will give you an overall evaluation for those two quarters. We will use those evaluations to distribute the funds set aside for this fiscal year in early 2024. Then there will be a second opportunity to evaluate employees in July 2024, with funding based on what the legislature chooses to appropriate in the legislative session for pay-for-performance.
Employees who do not meet expectations will not receive additional pay under the pay-for-performance plan. But those who meet expectations will receive a pay-for-performance increase, those who exceed expectations will receive more than those who meet expectations, and those in exemplary will receive even more of an increase. Our plan does not specify exactly how many employees can fit into each category, so we cannot say yet what percentage increase in pay each category will receive.
We value the feedback we received during our Commerce roundtable discussions regarding the employee-supervisor relationship. One common request was for more frequent and direct feedback from supervisors. Beyond the opportunity to earn more money, we hope each of you sees this performance pay system as a valuable tool to enhance communication between you and your supervisor.
By linking individual performance to our strategic plan, we can collectively achieve success and make meaningful progress towards our shared goals. Your dedication and hard work are integral to Commerce’s continued growth and success.