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HR Elements/HR Elements/Performance Performance ManagementManagement
SLIDE 2
Course Introduction
Agenda & Participant Materials
HR Elements• Classification & Conversion
• Pay & Compensation
• Hiring & Employment
• Workforce Shaping
Performance Management• Planning
• Monitoring & Developing
• Rating
• Rewarding
NSPS SOURCE BOOK
Tab 1 HR Elements / Performance Management
Ref 1 Classification – Occupation Codes
Ref 2 Compensation – Pay Schedules, LMS Rates
Ref 3 Staffing – Competitive Movements
Ref 4 Performance Indicators
Ref 5 Contributing Factors
ADD’L PRE-CONVERSION COURSES
Tab 2 Building Alignment / SMART Objectives
Tab 3 Objective-Driven Performance
Tab 6 Pay Pool Management for Mgrs/Supvs
SLIDE 3
Course Introduction
Questions This Course Will Answer
How do pay bands work?How does pay progress
under NSPS?
What is pay-for-performance? How does NSPS link my pay to
my performance rating?
How does conversion work? Will I lose money when I
convert to NSPS?
What is LMS? How is it different from Locality Pay?
How will my performance standards change under NSPS?
What are job objectives?
How does NSPS change the way RIF works?
How does NSPS make it easier to hire from
outside and to promote from within?
SLIDE 4
Course Introduction
Implementation Status Report
DoD• 112,000 employees converted in Spiral 1 (concluded
April 2007)• 97% of Spiral 1.1 employees rated at Valued Performer
or above and eligible for performance payouts• May 2007 OPM assessment confirms DoD has made
“adequate progress” in implementing NSPSMarine Corps• 2000 employees converted in Spiral 1.2 (HQMC,
MARCORSYSCOM, MCTSSA)• Spiral 2.2c scheduled for 03 February 2008; Spiral 2.2d
scheduled for 17 February 2008
SLIDE 5
Course Introduction
AFGE vs. Gates
• On May 18, 2007, the U.S. Court of Appeals reversed the District Court judgment and upheld all aspects of NSPS’ adverse actions, appeals, and labor relations regulations but noted that certain portions were not yet ready for judicial review.
• At this time, DoD has made no decisions regarding the implementation of these provisions.
SLIDE 6
Course Introduction
Have You Heard This One?
What federal employees need is a new “one size fits all”
personnel system, not different systems for different agencies!
What really matters is not what you achieve but how hard you try!
Employees with seniority know more and deserve to
be paid more!
NSPS will fix everything that’s wrong between employees and their
supervisors!
Supervisors should work harder than their
employees!
What DoD really wants is to pay employees
less in the future!
SLIDE 7
Course Introduction
New Ideas for a Changing Workforce
NSPS is an OPPORTUNITY-BASED system – you get out
of it what you put into it.
NSPS is an OPPORTUNITY-BASED system – you get out
of it what you put into it.
NSPS rewards you more for the CONTRIBUTIONS you make than for the time you put in.
NSPS rewards you more for the CONTRIBUTIONS you make than for the time you put in.
NSPS puts YOU IN CHARGE of your career – not your supervisor, not the
Marine Corps, and not Congress
NSPS puts YOU IN CHARGE of your career – not your supervisor, not the
Marine Corps, and not Congress
SLIDE 8
Course Introduction
Why Pay-for-Performance?
• Federal employees themselves have said that pay increases should be tied to performance
• Federal employees have also asked that something be done about poor performers
How do you define “fair”?
Both are valid perspectives. DoD believes that the second perspective will better help it achieve its mission in today’s world.
Everyone should get an equal piece of the pie.
Everyone should get an equal piece of the pie.
People who contribute more should get more.
People who contribute more should get more. 2
1
SLIDE 9
Course Introduction
What’s Not Changing?
Anti-discrimination
laws
Prohibited personnel practices
Allowances& travel/
subsistence expenses
Training
Merit system principles
Whistleblower protection
Fundamental due process
Benefits
Retirement,health, life,
other benefits
Benefits
Retirement,health, life,
other benefits
Veterans’ Preference
Veterans’ Preference
Leave& work
schedules
Leave& work
schedules
SLIDE 10
Course Introduction
What Is Changing?
Classification
StreamlinedFlexibleSimple
Classification
StreamlinedFlexibleSimple
Pay andCompensation
Performance-basedMission-responsive
Market-driven
Pay andCompensation
Performance-basedMission-responsive
Market-driven
Performance Management
Results-orientedMission-focused
Performance Management
Results-orientedMission-focused
Hiring andEmployment
StreamlinedFlexible
Adaptable
Workforce Shaping
Performance-basedMission-responsive
Less disruptive
SLIDE 11
Course Introduction
NSPS Authorities
• NSPS shifts authority from OPM to DoD for …– Setting pay band rate ranges– Setting market-responsive pay adjustments– Setting pay for employees and new hires– Administering the annual General Pay Increase and
other salary adjustments– Exercising severe shortage and critical need hiring
authorities– Extending term and temporary appointments
SLIDE 12
Classification & ConversionClassification & Conversion
SLIDE 13
Classification & Conversion
Classification Crosswalk
Today – GS Tomorrow – NSPS
Occupational Family Career Group
Pay Plan Pay Schedule
Grade Pay Band
Title and Occupational Series
Title and Occupational Code
OPM Classification Standards
NSPS Classification Standards
SLIDE 14
Classification & Conversion
Classification Architecture
Typeof Work
Levelof Work
SLIDE 15
Classification & Conversion
Career Groups & Pay Schedules
Standard CGDoD = 73% / USMC = 78%
YA Professional/Analytical
YB Technician/Support
YC Supervisor/Manager
YP Student
Medical CGDoD = 4% / USMC = <1%
YG Physician/Dentist
YH Professional
YI Technician/Support
YJ Supervisor/Manager
Scientific & Engineering CGDoD = 19% / USMC = 22%
YD Professional
YE Technician/Support
YF Supervisor/Manager
Investigative & Protective CGDoD = 4% / USMC = <1%
YK Investigative
YL Fire Protection
YM Police/Security Guard
YN Supervisor/Manager
SLIDE 16
Classification & Conversion
Pay Bands
Supervisory PB1 PB2 PB3
Supervisor/Manager Supervisor SupervisorSupervisor/
Manager
Non-Supervisory PB1 PB2 PB3
Professional/AnalyticalEntry/
DevelopmentalJourney Expert
Technician/SupportEntry/
Developmental/Technician
Journey/Assistant
Expert
SLIDE 17
FY07 Base Salary per annum, excluding Local Market Supplements
Classification & Conversion
Standard Career Group
See Ref 2 in NSPS Source BookSee Ref 2 in NSPS Source Book
SLIDE 18
FY07 Base Salary per annum, excluding Local Market Supplements
Classification & Conversion
Scientific & Engineering Career Group
See Ref 2 in NSPS Source BookSee Ref 2 in NSPS Source Book
SLIDE 19
Classification & Conversion
What Will Pay Bands Do for You?
• Increased earning potential– Step 10 caps eliminated for all employees– Maximum rate for pay band 3 in all Professional and
Supervisor pay schedules is 5% above GS-15/10– Promotion potential from lower pay bands to higher
pay bands
• Easier movement within and between pay bands facilitates career advancement– Reassignments may be non-competitive– Time-in-grade requirements eliminated– Pay setting not handcuffed by Grades and Steps
SLIDE 20
Classification & Conversion
How Conversion Works
• Conversion is automated and based on your position of record
• You may be eligible for a pro-rated Within-Grade Increase (WGI) buy-in
• Career conditional employees become career employees
• Probation periods continue with no loss of time already served
Will I lose money when I convert to NSPS?Will I lose money when I convert to NSPS?
No, your full salary is retained.
SLIDE 21
Classification & Conversion
Convert to Standard CG
* GS 9 - 11 positions without promotion potential convert to Pay Band 2. GS 9 - 11 positions with promotion potential (developmental) convert to Pay Band 1.
** All Student positions convert to YP - 1 (Standard CG, Student PS, PB 1).
PAY BAND 1 PAY BAND 2 PAY BAND 3
YA - Professional/AnalyticalGS 5-8
GS 9-11*GS 9-13 GS 14-15
YB - Technician/Support GS 1-6 GS 7-10 GS 11-12
YC - Supervisor/Manager GS 6-11 GS 12-14 GS 15
YP - Student GS 1-11** n/a n/a
See Ref 1 in NSPS Source BookSee Ref 1 in NSPS Source Book
SLIDE 22
Classification & Conversion
Convert to Scientific & Engineering CG
PAY BAND 1 PAY BAND 2 PAY BAND 3 PAY BAND 4
YD – ProfessionalGS 5-8
GS 9-11*GS 9-13 GS 14-15 n/a
YE - Technician/Support GS 1-6 GS 7-10 GS 11-12 GS 13
YF - Supervisor/Manager GS 6-11 GS 12-14 GS 15 n/a
See Ref 1 in NSPS Source BookSee Ref 1 in NSPS Source Book
* GS 9 - 11 positions without promotion potential convert to Pay Band 2. GS 9 - 11 positions with promotion potential (developmental) convert to Pay Band 1.
** All Student positions convert to YP - 1 (Standard CG, Student PS, PB 1).
SLIDE 23
Classification & Conversion
Supervisor/Manager Pay Schedule
• Must have supervisory responsibility for a subordinate government workforce– Requires more than one subordinate position (civilian
or military, volunteer, other non-contractor personnel)– Contractors not creditable for supervisor status
Current record supervisory status (SF50) used as initial indicator
– Employees in Leader positions convert to non-supervisory pay schedules
– ‘Lead’ and ‘Leader’ titles deleted upon conversion
Other criteria may be considered for conversion to Pay Band 3
– Type of work supervised– Level of work supervised– Level of supervision (immediate,
intermediate, manager)
See Conversion Fact Sheet inserted into participant materialsSee Conversion Fact Sheet inserted into participant materials
SLIDE 24
Pay & CompensationPay & Compensation
SLIDE 25
Pay & Compensation
Pay & Compensation Crosswalk
Today – GS Tomorrow – NSPS
General Pay Adjustments
Through General Pay Increase (GPI)
Through Rate Range Adjustment (funded by GPI)
Market-Responsive Pay Adjustments
Through Locality Pay, Special Salary Rates
Through Local Market Supplement (LMS)
Total Pay Equals Base Pay plus Locality Pay Equals Base Pay plus LMS
Pay Increases Through WGIs (1-3 years apart), QSIs, promotions
Through annual performance payouts, EPI, OAR, promotions, reassignments, voluntary reductions in band
Additional Recognition/Reward
Through cash bonus, Chapter 45 awards (Special Act, On-the-Spot), Time Off awards
Through cash bonus (portion of annual performance payout, EPI, OAR), Chapter 45 awards (Special Act, On-the-Spot), Time Off awards
Developmental Employees
Advancement through Career Ladder promotions
Advancement through Accelerated Compensation for Developmental Positions (ACDP)
SLIDE 26
Pay & Compensation
Pay Increases Link to Performance
• Increases directly linked to performance …– Performance payout– Rate range increase– LMS increase– EPI, OAR, ACDP
• Increases indirectly linked to performance …– Promotion– Reassignment– Voluntary reduction in band
RATING PAY ELIGIBILITY
5
Performance payoutRate range increase
LMS increase4
3
2Rate range increase
LMS increase
1 No increase
SLIDE 27
Pay & Compensation
Rate Range Adjustments
• DoD reviews all pay band rate ranges annually
• If the minimum rate of a pay band is increased, all employees in the pay band receive an equivalent increase, except those rated Unacceptable
• Rate range adjustments funded by the January GPI
PB1
PB2
PB3
ELIGIBLE
Current rating of record is Level 2 or higher, or no current rating of record (new employees)
SLIDE 28
Pay & Compensation
LMS Adjustments
• LMS rates are set by DoD and reviewed at least once annually
• Rates may vary within the same local market area by career group, pay schedule, pay band, and/or occupation
• LMS adjustments funded by January GPI
Could my LMS rate go down?Could my LMS rate go down?
Yes, but so could your locality pay rate, and how often did that happen?
SLIDE 29
Pay & Compensation
What Can LMS Do for You?
• Counts as base pay for retirement purposes (as did locality pay)
• Allows for greater flexibility in making market-responsive pay adjustments when and where they are needed
TARGETED LMS’s
– Seven targeted LMSs have been deployed to date: Three in the Standard CG by occupation and location (Air Traffic Control Specialists, Pilot and Flight Instructors, related jobs), four in the Medical CG by occupation and location (Physicians, Dentists, Nurses)
– Targeted LMSs apply in lieu of the standard LMS except in locations where the standard LMS is greater
See Ref 2 in NSPS Source BookSee Ref 2 in NSPS Source Book
SLIDE 30
PB1
PB2
PB3
Pay & Compensation
Promotion
• A promotion is a competitive move to a higher pay band and an opportunity to advance both your career and your pay
• Exceptions to competition include:– Career ladder promotion– Additional duties and responsibilities– Temporary promotion of 180 days or less– Position change due to RIF
See Ref 3 in NSPS Source BookSee Ref 3 in NSPS Source Book
SLIDE 31
PB1
PB2
PB3
Pay & Compensation
Promotion Pay Increases
• Pay increases 6-12% on promotion– Higher-level approval is required for an increase of
more than 12%– Higher-level approval is not required when an
increase of more than 12% is needed to reach the minimum rate of the new pay band
• For temporary promotions, base pay reverts upon return to permanent position
See Ref 3 in NSPS Source BookSee Ref 3 in NSPS Source Book
SLIDE 32
PB1
PB2
PB3
Pay & Compensation
Reassignment
• A reassignment is also an opportunity to advance both your career and your pay
• A reassignment is a move within a pay band or between comparable pay bands and may be competitive or non-competitive– No limit to the number of reassignments– Generally entails job change or assumption of greater
or higher-level duties
See Ref 3 in NSPS Source BookSee Ref 3 in NSPS Source Book
SLIDE 33
PB1
PB2
PB3
Pay & Compensation
Reassignment Pay Increases
• Pay may increase up to 5% on reassignment– For employee-initiated reassignments, pay may
increase up to 5% over 12 months– For management-directed reassignments, pay may
increase up to 5% with each reassignment
• Higher-level approval is required for all reassignment pay increases
See Ref 3 in NSPS Source BookSee Ref 3 in NSPS Source Book
SLIDE 34
PB1
PB2
PB3
Pay & Compensation
Voluntary Reduction in Band
• A voluntary reduction in band is a voluntary move to a lower pay band and may also be an opportunity to advance your career and your pay– Pay may increase up to 5% though pay may not
exceed the maximum rate of the new pay band
See Ref 3 in NSPS Source BookSee Ref 3 in NSPS Source Book
SLIDE 35
Pay & Compensation
Annual Performance Payouts
Rating Share Range
5 5-6 shares
4 3-4 shares
3 1-2 shares
1 or 2 No shares
Payout Options
Salary increase
Cash bonus
Combination
Eva / YA-505-3 / Financial Mgmt SpecialistBase salary = $81,752Rating and shares = Level 4 rating, 4 sharesPay pool share value = 1.1%Performance payout = $3,597 Salary increase = $2,518 (70%)
Cash bonus = $1,079 (30%)
Denise / YA-1102-2 / Contract SpecialistBase salary = $61,932Rating and shares = Level 3 rating, 1 sharePay pool share value = 1.0%Performance payout = $619 Salary increase = $433 (70%)
Cash bonus = $186 (30%)
Brian / YS-343-2 / Program AnalystBase salary = $66,951Rating and shares = Level 3 rating, 2 sharesPay pool share value = 1.0%Performance payout = $1,339 Salary increase = $937 (70%)
Cash bonus = $402 (30%)
Salary increase amounts are to base pay and would be in addition to any rate range increase (from GPI)
SLIDE 36
Pay & Compensation
Discretionary Performance Payouts
• May be awarded in addition to performance payouts to reward extraordinary performance– Extraordinary Pay Increase (EPI)– Organizational/Team Achievement Recognition
(OAR)
• May be distributed as an increase to pay, a cash bonus, or a combination of the two– May not use any portion of pay pool funds– Do not replace Special Act, On-the-Spot, and Time
Off awards
SLIDE 37
Pay & Compensation
Pay for Developmental Employees
• Accelerated Compensation for Developmental Positions (ACDP) is available to Pay Band 1 employees in developmental positions– Must have Level 3 rating or higher– May be awarded anytime during the rating cycle as
developmental milestones are achieved– Promotion from Pay Band 1 to Pay Band 2 after
successful completion of development plan– May be distributed as an increase to pay, a cash
bonus, or a combination of the two
SLIDE 38
Pay & Compensation
Can You Influence Your Pay?
PromotionReassignment
Voluntary Reduction in Band
Rate Range IncreaseLMS Increase
Performance PayoutEPI, OAR, ACDP
less influence more influence
The opportunity is yours!The opportunity is yours!
SLIDE 39
Hiring & EmploymentHiring & Employment
SLIDE 40
Hiring & Employment
Internal Placement (Merit Promotion)
• Fewer required personnel actions means less administrative burden and paperwork
• Enhanced opportunities for career advancement
NEW FLEXIBILITIES– Reassignments require no official personnel action and may be
non-competitive– Formal documentation of a “detail” required only when crossing
Component or Agency lines– Qualify for positions by meeting stated knowledge, skills,
abilities, and experience requirements
SLIDE 41
Hiring & Employment
Alternative Forms of Competition
No USAJOBS announcement requiredNo USAJOBS announcement required
Exceptional Performance Promotion
Select from Level 5 performers within specified area of consideration
Alternate Certification Submit name of candidate with description of knowledge, skills, and abilities for position
Assessment Boards Select from ranked candidates on occupational referral lists
SLIDE 42
Hiring & Employment
External Hiring
Vacancy Announcements• Consideration may be limited to local commuting
area and targeted recruitment sources• No minimum announcement period required
Probation Periods• One year for new hires• Optional three years for new hires in select
occupations
SLIDE 43
Hiring & Employment
Special Appointing Authorities
• Authority to approve severe shortage and critical need authorities shifts from OPM to DoD
• Term appointments modified to last up to 5 years, may be extended to 6 years
• Temporary appointments modified to last up to 1 year, may be extended to 3 years in one year increments
SLIDE 44
Hiring & Employment
Setting Pay for New Hires
• Authority for setting pay shifts to managers and supervisors– HR will advise mangers and supervisors on
employment regulations and procedures and provide information on compensation levels for similar work within the federal workforce and in the employment market
– Current guidance states that new hire pay may be set no lower than the minimum rate of the relevant pay band and no higher than 30 percent above the former GS Grade Step 1 equivalent
SLIDE 45
Workforce ShapingWorkforce Shaping
SLIDE 46
Workforce Shaping
Competitive Areas & Groups
Competitive Areas
• Geographic location• Organizational unit
• Line of businessLine of business• Product lineProduct line• Funding lineFunding line
Competitive Groups
• Occupational code• Trainee status
• Career groupCareer group• Pay schedulePay schedule• Pay bandPay band
New options for defining competitive areas and New options for defining competitive areas and groups make RIF less disruptive and focus groups make RIF less disruptive and focus
attention where change is neededattention where change is needed
SLIDE 47
Workforce Shaping
Competitive Areas & Groups: Example 1
Competitive Area
FinancialManagement
Product LineCompetitiveGroup
Auditors
CompetitiveGroup
ProgramAnalysts
CompetitiveGroup
Accountants
CompetitiveGroup
Secretaries
SLIDE 48
Workforce Shaping
Competitive Areas & Groups: Example 2
CompetitiveGroup
Standard CG,PB 3
CompetitiveGroup
Technician/Support PS,
PB 3
CompetitiveGroup
ProgramAnalysts,
PB 2
Competitive Area
FinancialManagement
Product Line
SLIDE 49
Workforce Shaping
Retention Factors
Today – GS Tomorrow – NSPS
1 Tenure Group1. Career2. Career conditional3. All others
Tenure Group1. Career2. Employees on initial probation3. All others
2 Veterans’ Preference1. 30% disabled veterans
(compensable, service-connected)2. All other veterans3. All other non-veterans
Veterans’ Preference1. 30% disabled veterans
(compensable, service-connected)2. All other veterans3. All other non-veterans
3 Creditable Service1. Civilian2. Military
Performance RatingAverage of employee’s 3 most recent NSPS ratings in 4 years
4 Performance Rating Creditable Service1. Civilian2. Military
SLIDE 50
Performance ManagementPerformance Management
SLIDE 51
Performance Management
What is Performance Management?
“Applying the integrated processes of setting and communicating performance expectations, monitoring performance and providing feedback, developing performance and addressing poor performance, and rating and rewarding performance in support of the organization’s goals and objectives.”
NSPS Performance ManagementNSPS Performance Management
Implementing Issuance SC1940Implementing Issuance SC1940
SLIDE 52
Performance Management
Performance Management Cycle
MONITORYear round
RATEOctober
DEVELOPYear round
PLANOctober
REWARDNov-Jan
SLIDE 53
Performance Management
Performance Management Cycle
SUPERVISOR EMPLOYEE
SLIDE 54
Performance Management
Performance Conversations
End-Cycle Review• Review employee self-
assessment• Gather data for written
appraisal
Interim Review• Check progress• Provide feedback• Make course corrections
Performance Plan• Establish performance
expectations• Align employee objectives with
organizational goals
Ongoing FeedbackOngoing FeedbackFeedback between supervisor and employee Feedback between supervisor and employee
should be ongoing throughout the rating cycleshould be ongoing throughout the rating cycle
Annual Appraisal• Review written appraisal• Communicate rating of record
and performance payout
SLIDE 55
Performance Management
Performance Assessments
Performance Planconversation
Interim Reviewconversation(s)
Annual Appraisalconversation
CloseoutAssessment
(when appropriate)
Early Annual Assessment
(when appropriate)
OCT SEP JAN
Self-AssessmentMid-cycle
End-Cycleconversation
Self-AssessmentDraft before, finalize after
OCT NOV DEC
Annual Assessment
… assessment ongoing …
SLIDE 56
Planning PerformancePlanning Performance
SLIDE 57
Planning Performance
Your Performance Contract
• Think of your performance plan as a contract between you, your supervisor, and your organization
– Specifies work to be done– Specifies conditions for
success– Specifies time and cost– Commits all parties on
signature
SLIDE 58
Planning Performance
Your Performance Rating
• You will be rated on the most important contributions you make, as described by the job objectives on your performance plan
– Every contribution you make matters, though not all your contributions will be rated
– What matters most is determined by alignment
SLIDE 59
Planning Performance
Employee Performance Plan
JOB OBJECTIVES
Identify what is to be done
Define quality of outcome
Link to organizational goals
Specific to position/salary
Recommend 3-5 per employee
CONTRIBUTING FACTORS
Identify how it is to be done
Define quality of process
Link to job objectives
Standard across DoD
Recommend 1-3 per objective
SLIDE 60
Planning Performance
Job Objectives
• Written in SMART format
• Focus on results
• Link to organizational mission and goals
• Can be accomplished within the rating cycle
• May be modified at any time
S Specific
M Measurable
A Aligned
R Realistic
T Timed
SLIDE 61
Planning Performance
Job Objectives
• Reflect your primary responsibilities
• Target Level 3 performance for your pay schedule, pay band, and salary
• May be weighted based on significance or expected effort (optional)
S Specific
M Measurable
A Aligned
R Realistic
T Timed
SLIDE 62
Planning Performance
Sample SMART Objectives
IT SpecialistIT Specialist
S = New payroll system testing completed.
M = Testing completed without exceeding project budget for overtime hours. Feedback from product support team indicates final configuration documentation is complete and accessible.
T = By 30 Sep 07.
R = Depends on timely completion of required programming tasks.
Budget AnalystBudget Analyst
S = Written reports recommending options for achieving budget objectives.
M = Recommendations conform to established policies and financial constraints within the overarching budget.
T = Submitted within 10 business days following each quarter-end.
SLIDE 63
Planning Performance
Contributing Factors
Customer FocusCustomer Focus
Technical ProficiencyTechnical Proficiency
Resource ManagementResource Management
LeadershipLeadership
Cooperation/TeamworkCooperation/Teamwork
CommunicationCommunication
Critical ThinkingCritical ThinkingWrite an opinion …
Solve a problem …
Implement a system …
SLIDE 64
Planning Performance
Performance Plan Requirements
• Supervisors must actively engage employees in developing their performance plans– Supervisor makes final decision– Higher-level review of final plan is required
• New employees must have 90 days on a performance plan to be eligible for a rating– Rating period may be extended under special
circumstances
SLIDE 65
Planning Performance
Required Supervisory Objective
• Supervisors are required to include in their performance plans at least one job objective that defines their performance management duties– USMC may issue a standard supervisory objective– Leadership must be included among contributing
factors
Clearly communicating performance Clearly communicating performance expectationsexpectations
Holding employees responsible for Holding employees responsible for accomplishing objectivesaccomplishing objectives
Fostering and rewarding excellent Fostering and rewarding excellent performanceperformance
Addressing poor performanceAddressing poor performance
Making meaningful distinctions among Making meaningful distinctions among employees based on performance and employees based on performance and contributioncontribution
Adhering to merit system principles and Adhering to merit system principles and prohibited personnel practicesprohibited personnel practices
SLIDE 66
Monitoring & Developing Monitoring & Developing PerformancePerformance
SLIDE 67
Monitoring & Developing Performance
Monitoring Performance
• Dialogue between supervisor and employee is key to effective performance management
• Performance plans are ‘living documents’ and may be modified throughout the rating cycle
– Contributing factors may be modified as may job objectives
– Modifications following the Interim Review are possible but should be few
SLIDE 68
Monitoring & Developing Performance
Developing Performance
• Employees are required to create Development Plans that support achievement of their Performance Plans
• Supervisors must take action to address poor performance– Range of options available to close
performance gap– A Performance Improvement Plan
(PIP) may be implemented though not required
SLIDE 69
Rating PerformanceRating Performance
SLIDE 70
Rating Performance
Rating Process Steps
1 Write Self-AssessmentDocument accomplishments by providing data for all job objectives and measures.
2 Write Supervisory AssessmentBuild on and supplement employee self-assessment.
3 Rate Job ObjectivesDetermine a base rating for each objective using a performance indicator, and then adjust the base rating using contributing factors.
4 Recommend RatingAverage all adjusted ratings to determine overall rating.
Job objectives & measures
Performance indicators
Contributing factors
Policies & proceduresOther relevant
standards
SLIDE 71
Rating Performance
Rating Job Objectives
RecommendedRating
(rounded)
3
ContributingFactor“How”
AdjustedRating
2
4
3+0-
+0-
+0-
X X
X X X
X X X
Job Objectives
X X X
X X X
X X
#3
#1
#2
PerformanceIndicator“What”
3
3
3
SLIDE 72
Rating Performance
Rating Guidelines
When rating objectives … • A Level 1 rating on any one objective results in a Level 1 rating overall
When adjusting ratings … • A Level 5 rating cannot be adjusted up
• A Level 2 rating cannot be adjusted down
• A Level 1 rating cannot be adjusted
+ 0 ─
SLIDE 73
Rating Performance
Performance Indicators
• Three sets of descriptors– Professional/Analytical– Technician/Support– Supervisor/Manager
• Descriptors are provided at Level 3 and Level 5
• Descriptors are descriptive, not prescriptive
RATING DESCRIPTOR
5 Role Model
4 Exceeds Expectations
3 Valued Performer
2 Fair
1 Unacceptable
NR Not rated
Establish Base RatingEstablish Base RatingReference relevant Performance Indicator to Reference relevant Performance Indicator to
establish base rating for each job objectiveestablish base rating for each job objective
See Ref 4 in NSPS Source BookSee Ref 4 in NSPS Source Book
SLIDE 74
Rating Performance
Performance Indicators
Level 5Role Model
Level 3Valued Performer 33
22
11
4455
Distinguish levelsDistinguish levelsof performanceof performance
See Ref 4 in NSPS Source BookSee Ref 4 in NSPS Source Book
SLIDE 75
Rating Performance
Rating Scale
5 Target ++Role Model
4 Target +Exceeds Expectations
3 TargetValued Performer
2 Target –Fair
1 Off the targetUnacceptable
Level 1Employee failed to achieve the assigned job objective or failed in the performance of a single assignment where such failure had a significant negative impact on accomplishment of the mission or where a single failure resulted in or could result in death, injury, breach of security, or great monetary loss.
Level 5Employee exceeded the assigned job objective at a level of performance equal to, or above, the level 5 performance indicator.
SLIDE 76
Rating Performance
Level 3 Performance
5 Target ++Role Model
4 Target +Exceeds Expectations
3 TargetValued Performer
2 Target –Fair
1 Off the targetUnacceptable
PB1Level 3 Level 3
PB2Level 3 Level 3
PB3Level 3 Level 3
SLIDE 77
Rating Performance
Contributing Factors
• Three sets of descriptors– Professional/Analytical– Technician/Support– Supervisor/Manager
• Descriptors are provided at Expected and Enhanced levels
• Descriptors are descriptive, not prescriptive Adjust Base RatingAdjust Base Rating
Reference relevant Benchmark Descriptors to Reference relevant Benchmark Descriptors to adjust base rating for each job objectiveadjust base rating for each job objective
IMPACT DESCRIPTOR
+ (1)• Matched or exceeded
Enhanced descriptors
O
• Matched or exceeded Expected descriptors,
• Below Enhanced descriptors
– (1)• Below Expected
descriptors
See Ref 5 in NSPS Source BookSee Ref 5 in NSPS Source Book
SLIDE 78
Rating Performance
Contributing Factors
EnhancedPlus (+)
ExpectedNeutral (0) 00
––
++
C
OM
MU
NIC
AT
ION
C
OO
PE
RA
TIO
N
T
EC
HN
ICA
L P
RO
FIC
IEN
CY
Would you say these bars indicate a plus (+) or a
neutral (0) for contributing factors?
See Ref 5 in NSPS Source BookSee Ref 5 in NSPS Source Book
Distinguish levelsDistinguish levelsof performanceof performance
“… “… as a whole, or in as a whole, or in the aggregate …”the aggregate …”
SLIDE 79
Rating Performance
Recommended Rating
To determine recommended rating …
1. Calculate average of adjusted ratings for all job objectives
2. Apply rounding to determine recommended rating
Weighted Job ObjectivesWeighted Job ObjectivesCalculate weighted average and apply Calculate weighted average and apply
rounding if optional weights were assignedrounding if optional weights were assigned
RATING AVERAGE
5 4.51 to 5.0
4 3.51 to 4.50
3 2.51 to 3.50
2 2.0 to 2.50
1 Less than 2.0
SLIDE 80
Rating Performance
Challenging a Rating
• Employees may challenge a rating of record only.
• Employees may not challenge:– An interim review or closeout assessment– A recommended rating or an individual job objective
rating if the requested remedy will not alter the rating of record
– A payout amount, number of shares, value of shares, or distribution of payout between salary increase and cash bonus
SLIDE 81
Rating Performance
Challenging a Rating
• A request for reconsideration must be submitted in writing to the pool manager within 10 days of receiving a rating.
• The pay pool manager’s ruling may be appealed to the Performance Review Authority (PRA).
• Decisions made through this process do not cause the recalculation of payouts made to other employees in the pay pool.
SLIDE 82
Rewarding PerformanceRewarding Performance
SLIDE 83
Rewarding Performance
Rewarding Process Overview
Supervisor Recommends
Ratingof Record
PayoutDistribution
ShareAssignment
Pay PoolPanel
Reviews
Reviews and reconciles
recommendations from supervisors
Finalizes rating of record, share assignment,
payout distribution
Pay PoolManager
Authorizes
Facilitates pay pool panel and
resolves disagreements
Reconciles differences
between funds allocated and pay
pool budget
Authorizes rating of record, share
assignment, payout distribution
SupervisorCommunicates
Communicates supervisory assessment,
rating of record, share assignment,
and payout distribution to
employee
Higher-Level
Review
SLIDE 84
Rewarding Performance
Share Assignment
• A share represents a percentage of pay for an employee
Criteria supervisors may consider …• Level and complexity of work
performed• Overall contribution to mission• Organizational success• Fiscal soundness• Other criteria consistent with merit
system principles
Rating Share Range
5 5-6 shares
4 3-4 shares
3 1-2 shares
1 or 2 No shares
One approach …One approach …
1.1. Start with average rating Start with average rating prior to rounding.prior to rounding.
2.2. Permit adjustment up or Permit adjustment up or down with justification.down with justification.
SLIDE 85
Rewarding Performance
Payout Distribution
• A payout may be distributed as a salary increase, a cash bonus, or a combination of the two
Criteria supervisors may consider …• Current salary and level and
complexity of work performed• Promotions, reassignments, or
awards received during rating cycle• Local market salary comparisons• Attrition and retention rates of
critical personnel• Overall contribution to mission
Payout Options
Salary increase
Cash bonus
Combination
One approach …One approach …
1.1. Start with Comptroller Start with Comptroller guidance.guidance.
2.2. Permit adjustment up or Permit adjustment up or down with justification.down with justification.
SLIDE 86
Rewarding Performance
Pay Pool Process Goals
• The pay pool process holds managers and supervisors accountable for rating employees fairly and equitably– Ensures decisions regarding compensation and
rewards receive higher-level review– Validates decisions made at the individual level align
with the organization's mission and goals– Ensures results are met and all decisions conform to
Merit System Principles
SLIDE 87
Rewarding Performance
Pay Pool Structure
Performance Review Authority (PRA)
Pay PoolCommanderRating Official
Pay Pool Manager
Division ChiefRating OfficialPanel Member
Division ChiefRating OfficialPanel Member
Branch ChiefRating Official
Branch ChiefRating Official
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Branch ChiefRating Official
Employee
Employee
Employee
Employee
Employee
Employee
Branch ChiefRating Official
Branch ChiefRating Official
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
SLIDE 88
Rewarding Performance
Pay Pool Structure
Sub Pay Pool BSub Pay Pool A
Performance Review Authority (PRA)
Pay PoolCommanderRating Official
Pay Pool Manager
Division ChiefRating OfficialPanel Member
Sub Pay Pool Manager
Division ChiefRating OfficialPanel Member
Sub Pay Pool Manager
Branch ChiefRating Official
Sub Panel Member
Branch ChiefRating Official
Sub Panel Member
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Branch ChiefRating Official
Sub Panel Member
Employee
Employee
Employee
Employee
Employee
Employee
Branch ChiefRating Official
Sub Panel Member
Branch ChiefRating Official
Sub Panel Member
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
Employee
SLIDE 89
Rewarding Performance
Pay Pool Roles
• Performance Review Authority (PRA)– Provide guidance to pay pool
managers
– Manage discretionary pay fund
– Decide challenges to ratings of record
• Pay Pool Panel– Financial focus (shares and
payouts)
• Sub Pay Pool Panel– Performance focus (ratings
and shares)
• Higher-Level Reviewer– Documentation focus
(employee and supervisor assessment statements)
PRA
Ensures equityacross pay pools
PRA
Ensures equityacross pay pools
Pay Pool Panel
Ensures equityacross sub pay pools
Pay Pool Panel
Ensures equityacross sub pay pools
Sub Pay Pool Panel
Ensures equity across supervisors
Sub Pay Pool Panel
Ensures equity across supervisors
Higher-Level Reviewer
Ensures qualityof written appraisals
Higher-Level Reviewer
Ensures qualityof written appraisals
SLIDE 90
Rewarding Performance
Pay Pool Fund
Element 1
Within Grade Increases, Quality Step Increases,
Promotions
Element 2
Remaining portion of General Pay Increase
Element 3
Annual bonuses
Pay Pool Fund
Total Base Salaries multiplied by sum of Elements 1, 2, and 3
Element 3
1.00 percent
Element 2
0.00 percent
Element 1
2.26 percent
EXAMPLE
SLIDE 91
Rewarding Performance
Pay Pool Share Value
• Share value is inversely related to total shares assigned within pay pool
• Share value generated at sub pay pool level will change at pay pool level
Share Value =Pay Pool Fund
(Salary x Shares) for each employee
SHARESPAY
POOLFUND
SHARE VALUE
SLIDE 92
Tools & ResourcesTools & Resources
SLIDE 93
Tools & Resources
Performance Appraisal Application
• Automated tool built into DCPDS to support the entire performance management process– My Biz (employee access)– My Workplace (manager and supervisor access)
PAA User GuidePAA User Guide available at available atwww.cpms.osd.mil/nspswww.cpms.osd.mil/nsps
Also available online …Also available online …• NSPS 101NSPS 101• iSuccessiSuccess
SLIDE 94
Tools & Resources
Information Resources
• Manpower & Reserve Affairs MPC-20• Marine Corps MyBiz PAA Help Desk
Marine Corps Letters of Instruction (LOIs)Marine Corps Letters of Instruction (LOIs)
Compensation ManagementCompensation Management Workforce ShapingWorkforce ShapingStaffing & EmploymentStaffing & Employment Performance ManagementPerformance ManagementClassification & PositionClassification & Position Pay Pool ManagementPay Pool Management ManagementManagement
SLIDE 95
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