Performance pay for state workers

State employees who do a good job might have the chance to earn a bonus of at least

5 percent of their salary. One caveat: the bonus would come out of their regular pay.

The House Government Operations and Elections Committee approved a plan

March 8 to create a performance pay initiative for executive branch employees. Sponsored by Rep. Kirk Stensrud (R-Eden Prairie), HF756 would require that at least 5 percent of state employees’ pay is withheld and paid to the employees only if they receive satisfactory performance appraisals.

The bill now moves to the House State Government Finance Committee. There is no Senate companion.

Stensrud said the bill would allow the executive branch to recognize and reward hard work and good behavior by public employees.

“In private industry, this concept has existed since time began — simply the concept that the best and strongest performers are rewarded the most,” Stensrud said.

Under the provisions, Minnesota Management & Budget would expand the state’s employee appraisal system to include performance pay. Employees would be judged by their individual performance goals, those of their program and that of their agency as a whole. No employees could receive step increases or other additional compensation unless their supervisor judges their performance satisfactory.

Opponents said the bill amounted to a

5 percent cut in state employees’ salaries, and suggested it would subject their salaries to the whims of office politics.

“Most of what is going to determine their bonus is way beyond their control … and what can happen is that management just chooses favorites and rewards the people who are on their team,” said Rep. Ryan Winkler (DFL-Golden Valley).

Richard Kolodziejski, legislative affairs director for the Minnesota Association of Professional Employees, was one of several labor representatives to testify against the bill. He said the bill “goes too far” in impinging on employees’ collective bargaining rights.