Minutes 26-05-10 - Shire of Shark Bay

ORDINARY COUNCIL MINUTES – 26 MAY 2010 - 35 -Part time employees are to receive a pro rata amount based on their full timehours proportion.The motion was put forward and declared.7/0 CarriedBackgroundIn this ever-changing employment climate, the Shire of Shark Bay needs to developa retention strategy as part of their recruitment focus for employees. With theupcoming drop in unemployment rates in Western Australia and the development ofmany new projects throughout Western Australia, it is important for the Shire ofShark Bay to retain and reward their current employees.Many local governments within the North West area of Western Australia areproviding over and above the current award rates in order to retain their staffinglevels with the inclusion of some if not all of the following: travel allowance, rentalallowance, utilities allowanceCommentI believe the introduction of the retention bonus will allow the Shire of Shark Bay tonot only retain their current employees, but also save in the costs of new recruitmentexercises, including advertising, time spent in interviewing, selection of candidateand also time spent by current staff members in completing the role that becamevacant.Example of payment, an employee who commenced in March (any given year) willbe paid a ‘pro rata’ payment in March 2011 which will cover from July 1 2010 toMarch 2011. Then the following March a full payment will be made.Legal ImplicationsNilPolicy ImplicationsNilFinancial ImplicationsCosts for retention bonus:Current Full Time Non Contract Based Employees: 9Current Part Time Non Contract Employees: 4Estimate cost to council: $10,000.00 per annumCosts for recruitment:Recruitment of 1 employee cost: $5,000.00 (minimum)Therefore should the Shire of Shark Bay not need to recruit more than 2 employeesdue to this policy in any given financial year, the retention bonus policy would have infact saved council costs.Strategic ImplicationsThe Shire of Shark Bay would be able to retain their current staff and maintain a highlevel of service.Voting RequirementsSimple Majority Required.Date of Report 4 May 2010