The Elgin City Council approved a new management pay plan and benefits ordinance on Oct. 8 intended to replace the long‑standing step system for full‑time nonunion management employees with a range/merit‑based pay structure.

Why it matters: City staff said the change is designed to make compensation more market‑aligned and sustainable. Under the new plan employees will receive raises tied to performance reviews rather than automatic step increases. Implementation begins in 2026 with regular market checks; staff estimated the average starting boost for those transitioning will be roughly 2.8%.

Key details and debate: Human Resources Director Tim Bennett described how a new UKG performance system will provide oversight across three levels—supervisor, director and HR—so that ratings and pay decisions carry supporting documentation. On top‑end awards, Bennett said, “My recommendation is going to be...the highest level is a 5%” merit increase for exceptional performance; average or satisfactory ratings would receive smaller percentages, with the HR director recommending about 2% for average ratings.

Council members pressed staff on several items: how checks and balances will prevent managers from inflating scores, how frequently market reviews should be done (staff recommended biennial market checks), and how many employees were “redlined” (staff estimated roughly 8–10 out of about 145 full‑time management employees). The parks and recreation department was identified as having a disproportionate share of redlined positions. Council members also asked about the consultant cost; staff said the 18‑month evaluation and related work cost a little over $100,000.

Vote and implementation: The council approved the ordinance 9‑0. City staff said they will roll out the new performance management functionality in UKG and begin adjusting pay ranges and individual placements in 2026; the plan includes periodic COLA/market adjustments for pay grades.

Ending: Council members said the ordinance will help the city remain competitive in hiring while providing structured oversight for merit increases.