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Based on feedback from citizens, I would like to explain how the Village conducted its first performance evaluation cycle in nearly seven years and how employee performance was used to determine merit increase guidance under the Village Personnel Policy which is included below.
In July 2025, Village department leaders participated in performance management training and developed performance measures for the 2026 evaluation cycle. Because this was the first year of the renewed process, the initial performance period covered six months, from December 2025 through May 2026. During that period, employees and their leaders established goals and objectives, discussed progress, provided feedback, and adjusted goals as appropriate. At the end of the cycle, leaders completed performance evaluations based on each employee's performance against those established expectations. I was pleased with the thoughtful feedback provided by leaders regarding their employees' performance.
Each employee's performance evaluation score was then entered into the compensation model, which used that score to determine the employee's recommended merit increase percentage. In other words, the merit guidance was tied to documented individual performance; it was not an automatic increase. The recommended percentages were reviewed with department leaders and included in the FY 2026-27 Proposed Personnel Budget. Any merit increase remains subject to available funding, the budget approved by the Village Council, and the approvals required under Village policy.
From Personnel Policies:
Merit Increases
A merit increase is a salary increase within the same job classification, awarded for performance. Merit increases are not automatic. The amount of the merit increases an employee is eligible to receive, if any, shall be determined by the availability of funds, and the system/procedures adopted by Village Council each fiscal year. The Village Manager must approve all salary adjustments. Unless otherwise approved by the Village Council, merit increases will be processed at the start of the fiscal year.
Performance Management
Performance management is an ongoing cycle of creating a performance plan, observing and documenting performance and behavior, providing feedback, coaching, and mentoring, and finally, evaluating performance to assess trends and plan for the future. The goal of the performance management process is to help employees and leaders achieve the organization’s overall vision.
Evaluating and managing employee performance is a continuous and, sometimes, complex process that is the primary responsibility of those holding positions that supervise others.
Managing employee performance has many components, such as:
• Setting goals and objectives to achieve successful performance.
• Evaluating the performance against goals and objectives of the position.
• Monitoring performance and coaching for improvement.
• Implementing corrective action or discipline.
Performance Evaluation
The evaluation process will allow for employee feedback and must be signed by the employee, the supervisor conducting the evaluation (where applicable), the Department Director, Human Resources Director, and the Village Manager.
End of Year
End-of-year evaluations will be conducted in September and are due by the last business day of the month unless the Village Manager grants an extension. End-of-year evaluations will be used to determine merit-based bonus or increase if funding for such is included in the approved budget. Any increase shall become effective on the first day of the first full pay period in the fiscal year. Probationary employees will not receive any evaluation other than probationary, and those elevated to continued employment following the Mid-Year evaluation will not be eligible for a merit-based bonus following their first End of Year evaluation.
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