November 15, 2016

City looks at retirement incentives for new hires

By Annette Tait
It’s not easy for rural cities to hire and retain quality employees. A common practice is use retirement and other incentives as a bargaining chip to offset salaries that are lower than those found in larger areas.
Over time, the City of Center has increased the initial retirement match for new hires to 17 percent, a rate that will be difficult financially to sustain over time. For that reason, Council Member J.D. Hanson recommended council review and revise the practice.
“I think we need to look into new hires from here on out, to have room for growth rather than to have them maxed out right at the beginning,” Hanson said. “I’m not talking about taking away from the employees we have, I’m talking about future hires.”
The topic was tabled to allow council members time for further investigation and to consider means to maintain a competitive hiring process while lowering the initial retirement match percentage.

 


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