PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.E
SUBJECT/TITLE:
PRESENTATION ON RECRUITMENT AND HIRING INCENTIVE PROGRAM RECOMMENDATION:
Receive a presentation on the City’s Administrative Policy for recruitment and hiring incentives.
BACKGROUND:
At the October 3, 2023 Council Meeting, the City Council directed staff to return with a recommendation on recruitment incentives and strategies to hire for hard-to-fill vacancies.
Over the course of the past year, several key positions within the City have become vacant, leading to considerable recruitment efforts to fill the positions. While some recruitments have resulted in several exceptional hires, the City still has several key vacant positions, including two in the Engineering Division. Due to the competitive hiring market in San Luis Obispo County, and throughout the state, local agencies have had to get creative to incentivize potential job candidates.
To assist in recruitment efforts, the City Manager adopted an Administrative Policy creating a Hiring Incentive Program (Attachment 1) as an added benefit for job candidates to come work for Pismo Beach. Under the Hiring Incentive Program, vacant full-time positions that have been deemed hard to fill by the City Manager will be eligible for up to two types of incentives which could include Relocation Assistance and/or a one- time Lump Sum Hiring Bonus.
Relocation Assistance
1) Amount
a) Department Head Positions: up to $15,000.00
b) All Other Regular Positions: up to $10,000.00
2) Type of Relocation Assistance
a) Reimbursement: Candidates (job applicants to whom the City intends to offer a position) submit receipts for moving expenses to be reimbursed. Candidates have three months from the date of hire to request reimbursement. Must comply with IRS rules.
b) Security Deposit: City may provide a one-time payment for candidates rental housing security deposit. Candidates have three months from the date of hire to request payment for housing security deposit.
c) Down Payment Assistance: City may provide a one-time wire transfer directly into candidates escrow account for the purchase of a residence. This may require execution of a deed of trust on the property. Candidates have six Council Agenda 11-7-2023 12.E-1
months from date of hire to request payment for a home down payment wire transfer.
Lump Sum Hiring Incentive
1) Amount
a) Department Head Positions: up to $10,000.00
b) All Other Regular Positions: up to $5,000.00
Conditions of Incentive Program
Candidates that have been selected from the recruitment process and successfully completed the required background may be offered one or both hiring incentives, based on approval from the City Manager. Any candidate that is offered an incentive will be required to sign a Continued Service Agreement (Attachment 2). Failure by a candidate to continue service with the City of Pismo Beach due to voluntary resignation or dismissal from the position will result in a need to repay a proportional amount of the incentive(s) received.
Resign or Dismissal within
one year of hire
Employee must repay two-thirds (2/3) of the
incentive(s) given by the City.
Resign or Dismissal within
two years of hire
Employee must repay one-third (1/3) of the incentive
(s) given by the City.
With the addition of the Hiring Incentive Program, the City will become more competitive in the current hiring market.
Recruitment Strategies
The current vacancies within the Engineering Division are recommended to be the first positions to offer the Hiring Incentive Program. Staff will be recruiting for both vacancies simultaneously with the modified strategy of filling them from any of the classifications within the Engineering Services and the proposed Capital Projects Manager position (to be considered as part of the Consent Agenda for this meeting).
By having a broad net for the Engineering positions, the City can meet the candidates at their level, and provide the training and coaching necessary to meet the varied needs of the department. Additionally, the incentive programs as outlined above, will provide a new tool by which we can recruit a candidate from within San Luis Obispo County, as well as from outside the area.
The Human Resources Division will then put together targeted recruitment collateral and market the position on various platforms, job boards, and trade publications.
Conclusion and Recommendation
There is no recommended action. The City Council may provide feedback and discussion on the incentive program.
Council Agenda 11-7-2023 12.E-2
FISCAL IMPACT:
There is no direct fiscal impact associated with this discussion item. Staff anticipates that any additional costs for the proposed incentives be supported by projected salary savings.
In the event that budget adjustments are needed, staff will return at mid-year with a budget adjustment request.
ALTERNATIVES:
1. Provide alternate ideas for staff to consider.
ATTACHMENTS:
1.Administrative Policy: Recruitment and Relocation Incentive Program Submitted by: Meeting Date: November 7, 2023
Bianka Buchanan, Human Resources Officer
City Manager Approval:
Council Agenda 11-7-2023 12.E-3
PAGE 1 OF 4
Administrative Policy HR-003
Rev. October 31, 2023
CITY OF PISMO BEACH ADMINISTRATIVE POLICY
Policy Name: Policy Number:
Recruitment and Hiring Incentive Program AP-HR-003
Purpose:Original Adoption Date:
The City of Pismo Beach continues to focus on attracting and retaining new employees. To assist in recruitment and retention efforts, the City will be implementing incentive opportunities and establishing guidelines and procedures for the eligibility, approval, and processing of the incentives.
October 31, 2023
Revision Date(s):
City Manager Approval:
I. PURPOSE
The City of Pismo Beach continues to focus on attracting and retaining new employees. To assist in recruitment and retention efforts, the City will be implementing incentive opportunities and establishing guidelines and procedures for the eligibility, approval, and processing of the incentives.
II. APPLICABILITY AND RESPONSIBILITY
A.Applicability
Eligible job candidates that successfully complete the hiring and background process and to whom the City intends to offer a position.
B.Responsibility
The Human Resources Officer shall be generally responsible for the administration of this Policy. The City Manager shall be responsible for approving exceptions to this Policy, and for determining the method and extent of pursuing the correction of violations of this Policy.
III.DEFINITIONS
"City" means the City of Pismo Beach, a municipal corporation. "City employee" means a regular or contract employee of the City. "City Manager" means the City Manager or designee.
"City official" means an appointed or elected City official.
Attachment 1
Council Agenda 11-7-2023 12.E-4
PAGE 2 OF 4
Administrative Policy HR-003
Rev. October 31, 2023
"Candidate" means a person who successfully passed the hiring and background process, and to whom the City intends to offer a position.
IV. PROVISIONS
A.Lump Sum Hiring Incentive
To attract and retain job candidates whose positions have been deemed hard to fill by the City Manager, the City may offer a lump sum hiring incentive. The lump sum hiring incentive would be given separate from regular payroll processing as a one-time payment upon hire and be subject to taxes.
1.Lump Sum Incentive Amount
a.Department Head Positions: Lump sum hiring incentive up to ten thousand dollars ($10,000.00).
b.All other regular positions: Lump sum hiring incentive up to five thousand dollars ($5,000.00).
2. Eligibility Requirements – Lump-Sum
a. The respective Department Head must complete the Hiring Incentive Form. The job position must be deemed hard to fill by the City Manager, as recommended by the Department
Head, and with concurrence from Human Resources.
b. The Candidate must be selected from an outside recruitment, and not from an internal transfer or promotional opportunity. c. The Candidate must have successfully completed the hiring and background process, and the City must intend to offer the candidate the position.
d. The Candidate must agree to sign a Continued Service Agreement in a form approved by the City Attorney.
B.Relocation Assistance
The City recognizes that due to geographical location, housing availability, cost of living, and moving expenses, job candidates not already located on the Central Coast or in San Luis Obispo County may be deterred from applying for or accepting a position with the City. The City may offer relocation assistance that may be given in denominations not to exceed the defined limits set forth below.
1. Relocation Assistance Amount
Attachment 1
Council Agenda 11-7-2023 12.E-5
PAGE 3 OF 4
Administrative Policy HR-003
Rev. October 31, 2023
a. Department Head Positions: Total relocation benefits up to fifteen thousand dollars ($15,000.00).
b. All other regular positions: Total relocation benefits up to ten thousand dollars ($10,000.00).
2. Type of Relocation Assistance
Candidates may receive a relocation assistance in one of three possible ways:
a. Reimbursement. Candidates would be required to submit receipts for moving expenses and the City would reimburse costs up to the approved defined limit. Candidates have three (3) months from date of hire to submit receipts for
reimbursement.
b. Security Deposit. The City may provide a one-time payment for a candidate’s security deposit for rental housing, not to exceed the approved defined limit. Candidates have three (3) months from date of hire to request payment for housing security deposit.
c. Downpayment Assistance. The City may provide a one-time wire transfer directly into a candidate’s escrow account for the purchase of a residence, not to exceed the approved defined limit. The City may require execution of a deed of trust on the property to secure the Continued Service Agreement.
Candidates have six (6) months from date of hire to request payment for a home down payment wire transfer.
3. Eligibility Requirements – Relocation
a. Candidate must be relocating their primary residence to San Luis Obispo County and/or relocating fifty (50) or more miles from their current residence. If the position being filled has a call-back provision, distance from the job site will be re- evaluated by City Manager.
b. The respective Department Head must complete the Hiring Incentive Form. The job position must be deemed hard to fill by the City Manager, as recommended by the Department
Head, and with concurrence from Human Resources.
c. The Candidate must be selected from an outside recruitment, and not from an internal transfer or promotional opportunity. d. The Candidate must have successfully completed the hiring and background process, and the City must intend to offer the candidate the position.
e. The Candidate must agree to sign a Continued Service Agreement in a form approved by the City Attorney.
Attachment 1
Council Agenda 11-7-2023 12.E-6
PAGE 4 OF 4
Administrative Policy HR-003
Rev. October 31, 2023
C. Process
To promote and offer a hiring incentive for a job position, the following steps must occur:
1.The respective Department Head must complete and submit the Hiring Incentive Form.
2. The Human Resources Officer must review and provide
concurrence.
3.The City Manager must provide final approval and deem the requested position hard to fill.
Following final approval, the Human Resources Officer will coordinate the recruitment materials with the hiring department. Upon selection of a candidate and completion of the required background process, the Human Resources Officer will facilitate the administration of the Continued Service Agreement to be signed and coordinate with the Finance Department to pay the incentive.
D. Conditions of Incentive Program
The Candidate will receive the approved hiring incentive upfront and will be required to sign a Continued Service Agreement. Failure to continue service with the City of Pismo Beach due to voluntary resignation or dismissal from position will result in the need to repay a proportional amount of the lump- sum, relocation, or both incentives.
1. If the employee resigns or is dismissed within one (1) year of employment with the City, they will be responsible for repaying approximately two thirds (2/3) of the incentive(s) given.
2.If the employee resigns or is dismissed within two (2) years of employment with the City, they will be responsible for repaying one third (1/3) of the incentive(s) given.
E.Funding Source and Future Changes to Program
The City Manager is authorized to make future administrative changes to this program to successfully attract and retain well-qualified employees. If there is a change to a monetary incentive, the department will be expected to cover the cost within departmental salary savings, or the City Manager can choose to move other funding as needed to support this program.
V.APPENDICES
Hiring Incentive Form
Continued Service Agreement
Attachment 1
Council Agenda 11-7-2023 12.E-7
1 760 Maƫe Road, Pismo Beach, CA 93449
(805) 773-7004 | PismoBeach.org
CM ONLY
APPROVED
DENIED
MODIFICATION
Recruitment and ,ŝƌŝŶŐ Incentive Program
Hiring IncenƟve Request Form
Department:
Vacant Posi Ɵon:
IncenƟve Requested:
Lump Sum RelocaƟon Both
Amount of IncenƟve Requested:
Lump Sum RelocaƟon
(DH 10K / FT 5K)(DH 15K / FT 10K)
JusƟficaƟon for IncenƟve Request:
Recruitment AdverƟsing Plan:
Social Media
Indeed
Professional AssociaƟons (DEPT provide sites to HR)
Cal Poly & Cuesta
Printed Brochure
Other (explain)
_______________
Date
_______________
Date
_______________
___________________________________
Department Head Signature
__________________________________
Human Resources ^ŝŐŶĂƚƵƌĞ
___________________________________
City Manager Signature Date
Attachment 1
Council Agenda 11-7-2023 12.E-8
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(805)ϳϳϯ-ϳϬϬϰ |WŝƐŵŽĞĂĐŚ͘ŽƌŐ
CONTINUED SERVICE AGREEMENT
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ŵƉůŽLJĞĞ EĂŵĞ ^ŝŐŶĂƚƵƌĞ ĂƚĞ
ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ,ƵŵĂŶZĞƐŽƵƌĐĞƐ ^ŝŐŶĂƚƵƌĞĂƚĞ
Attachment 1
Council Agenda 11-7-2023 12.E-9