BENTONVILLE -- The Advertising and Promotions Commission is considering adding a cost-of-living allowance to its salary policy for Visit Bentonville employees.
The commission tabled the recommendation to add "Salaries and hourly pay rates will increase on January 1 based upon the Cost of Living Allowance published by the Social Security Administration the previous October. Merit raises may be given in addition to the COLA" to its salary policy for the 2016 Procedures and Personnel Manual.
Cost-of-living allowance is usually around 1.5 percent, Kalene Griffith, Visit Bentonville president and CEO, said. Employees would still be able to receive merit-based raises. Both could end up being a 3 to 4 percent total increase.
A few commissioners said they were concerned a non-merit based salary increase could lead to employees having a sense of entitlement about an annual pay increase.
Commissioner James Smith said he wanted everyone to be fairly paid but he's seen entities get "log jammed with people who are under-performing" when providing cost-of-living pay increases.
"You have to up your performance management to make sure those folks aren't accumulating more compensation over the years if they're not meeting the requirements," he said.
Commissioners discussed cost-of-living increases are often seen in governments but are not as common in private businesses.
"We're not a business," Chris Sooter, chairman, said. "Our people can only impact the results to a certain extent...We're different than a private business. We are a government entity."
The Advertising and Promotions Commission is the governing body of Visit Bentonville, a tourism bureau paid for by a tax on hotel and motel rooms and on restaurants and prepared food.
Visit Bentonville's policies mirror many of city's policies, which include cost-of-living increases to employees.
NW News on 05/27/2016