“The Washington Scene”

Ms. Edie Olson

June 1, 2017

FOR OFFICIAL USE ONLY

Investing in people… Our MOST valuable asset!

Welcome

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OSD’s HOT HR Topics

Civilian workforce overview

“New Beginnings” overview and implementation

The Department’s new Performance Management and

Appraisal Program

The Department’s new Reduction-in-Force policy

Implementing Fiscal Year 2017 NDAA Personnel Authorities

USA Staffing and USA Hire upgrades

The DoD FM Workforce

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Civilian Workforce Overview

81.35%

13.07%

5.58%

Total Civilian Employees: 919,703

App Fund (748,155)

NAF (120,236)

Foreign Nat. (51,312)

App Fund Employees By Component

Army 254,906

Navy 206,710

Air Force 175,061

DoD Agencies 111,478

App Fund: 48% Prior Military Service *20% Retirees28% Other Veterans

App Fund: Appropriated Fund - Direct U.S. Hires

NAF: Non-Appropriated Fund hires – employees of self-funding organizations

Foreign Nat. – Foreign national hires at forward bases. Crucial enabler of Department’s forward presence.

Located in 22 Different Countries

As of April 2017*Excludes National Guard Employees

Over 750 Civilian

Occupations

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New Beginnings Overview

DoD must focus on cultural and attitudinal changes regardingperformance management, vice the structural features of thesystem

– It’s about clear guidance and continuous feedback;not about the “365th day”

Supervisors perform a critical role in hiring and performance management

– Emphasis on supervisor selection, training, development,and preparation is key

Hiring reform initiatives to date are yielding positive results

– Enhancements to hiring processes are needed to better meet needs of applicants and employees

The need for additional financial incentives is negligible

– Current incentives support positive recruiting, retention, and performance; but some additional incentives may be warranted

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99 initiatives, 87 approved to pursue covering Legislation, Policy, Resource Portals, Information Technology Enhancements, Performance Management, and More…

Several Action officers from each Division of DCPAS coordinated with Component representatives, Union Representatives, and General Counsel to implement 56 initiatives with 31 initiatives nearing implementation.

Ten Bi-Annual Congressional Reports outlining implementation progress have been submitted since 2012 and will continue through implementation and evaluation.

As of May 2017, 275,000 employees have transitioned into Defense Performance Management and Appraisal Program (DPMAP), 160,000 of which are bargaining unit employees. DPMAP implementation will be complete in 2018 covering roughly 634,000 employees.

Development and Implementation

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Adopt the Office of Personnel Management’s (OPMs) Pathways Program

Delegate Direct-Hire Authority (DHA) to DoD

Study the impact of a Veteran-centric workforce

Continue migration to OPM’s USA Staffing assessment process

Pursue enhancements to USA Jobs and USA Staffing

Improve military and civilian hiring manager training initiatives

Develop guidance, training and certification for HR functional community

Improve supervisory training on HR tools

Increase Voluntary Separation Incentive Pay (VSIP) from 25K to 40K

Hiring and Workforce Incentive Highlights

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Foster cultural, attitudinal changes in performance management, while emphasizing a strategic link between organizational goals/employee performance

Develop and implement an automated appraisal tool

Develop a DoD-wide standard rating cycle of April 1 through March 31 and a standard minimum rating period of 90 days

Require a minimum of three documented performance reviews, with emphasis on continual feedback

Encourage continuous recognition and rewards, both monetary and non-monetary

Utilize a 3-level rating pattern (Outstanding, Fully Successful, Unacceptable)

Performance Management Program Highlights

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Centralizes information for DoD employees on:

Performance management

Staffing and hiring flexibilities

Training and development

Awards

Information Highlights:

FAQs

Performance management tips sheets and guides

Hiring Manager’s Toolkit

Performance management training

New Beginnings Website

www.cpms.osd.mil/Subpage/NewBeginnings/NBHome

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DoD New RIF Procedures – Overview

DoD has reprioritized the “order of retention” as implemented by Office of Personnel Management (OPM) in government-wide regulations, by placing performance as the primary retention factor

Employees shall be ranked on a retention register based on periods of assessed performance (less than 12 months or 12 months or more), and further based on the following retention factors:

rating of record;

tenure group;

average score;

veterans’ preference; and

DoD service computation date-RIF (DoD SCD-RIF)

The new procedures do not apply to RIFs of DoD employees covered by alternative personnel systems (e.g., Acquisition Demo, Defense Civilian Intelligence Personnel System), provided such systems have procedures that comport with the NDAA

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Section 1104, Public-Private Talent Exchange. Amends chapter 81 of title 10 by adding a new section that allows for the temporary assignments of private industry employees to DoD and vice-versa. Next steps – continue developing policy.

Section 1105, Temporary and Term Appointments in the Competitive Service. Allows for noncompetitive temporary and term appointments up to 18 months for critical hiring needs. Next steps – continue developing policy.

Section 1109, Limitation on Number of DoD SES Positions. Total number of SES positions may not exceed 1,260 by December 2022 (currently 1,418); not more than 200 of such positions can be occupied by HQE’s. Next steps – continue working with DoD Components on implementation thereof.

Section 1110, DHA for Financial Management Experts in the DoD Workforce. DHA for candidates with finance, accounting, management, or actuarial science degree or equivalent experience; includes limitation on number of appointments. Next steps – working to obtain signed policy.

Section, 1111, Repeal of Certain Basis for Appointment of a Retired Member of the Armed Forces to a DoD Position within 180 Days of Retirement. Repeals authority to grant waivers to 180-day requirement on the basis of a state of national emergency. Next steps – working to obtain signed policy.

FY 2017 NDAA Civilian Matters In-Progress

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Section 1124, Pilot Program on Enhanced Pay Authority for Certain Research and Technology Positions. Authority to fix the rate of pay for a position at a rate NTE 150% of the rate of basic pay for Level I of the ES.

Section 1125, Temporary DHA for Domestic Defense Industrial Base Facilities, the MRTFB, and the Office of the DOTE. During FY17-18, Secretary of Defense may use DHA to appoint qualified candidates at any industrial base facility or MRTFB; and during FY17-21, may appoint qualified candidates with advanced degrees to DOTE scientific and engineering positions. Next steps – publish policy.

Section 1131, Elimination of Two-Year Eligibility Limitation for Noncompetitive Appointment of Spouses of Members of the Armed Forces. Eliminates 2-year time limitation on a relocating spouse’s eligibility for noncompetitive appointment. Next steps – Notified Components to enable immediate implementation; awaiting OPM guidance regarding retroactivity.

Section 1132, Temporary Personnel Flexibilities for Domestic Defense Industrial Base Facilities and MRTFB. During FY17-18, enables employees on competitive time-limited appointments at facilities to compete for permanent appointments in the competitive service. Next steps –drafting implementing guidance; personnel action codes received from OPM.

Section 1134, Advance Payments for Employees Relocating Within the US and its Territories. Authorizes advance payment of basic pay, covering up to 4 pay periods, to an employee assigned to a position outside of their commuting area. Next steps – In discussions with DFAS on required payment mechanism; OPM has authority to regulate but has not taken action.

FY 2017 NDAA In-Progress Continued

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Section 1139, Direct Hiring for FWS Employees. DHA for severe shortages or critical hiring needs.

Section 1643, Cyber Mission Force Matters. Interim authorities to hire and retain cyber personnel, including advance-in-hire and DHA. Next steps – Policy for advance in-hire and DHA drafted.

Section 1106, DHA for Post-Secondary Students and Recent Graduates. DHA for professional and administrative occupations; includes limitation on number of appointments. Implemented.

1107, Temporary Increase in Maximum Amount of VSIP Authorized for Civilian Employees of DoD. Authorizes VSIP up to $40K through September 2018. Next steps – complete.

FY 2017 NDAA Completed

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In July 2015, the then-DASD(CPP) approved the use of DoD’s validated competencies as the primary source of competency data in USA Staffing Upgrade– Components are responsible for adding Component-unique “Item” statements

for determining best qualified applicants from the applicant pool.

– These items are linked to DoD-validated competencies and are the basis for assessment questionnaires.

USA Staffing UpgradeCompetency-Based Questionnaires

Task

•SAMPLE TASK: “Applies knowledge of policies and procedures to ensure compliance with laws, regulations, and policies, and efficient use of resources to meet organizational goals and objectives. “

Competency

•SAMPLE COMPETENCY: Financial Stewardship

Item

•SAMPLE ITEM: “Decide which budget line items to increase and reduce in response to changes in program funding.”

COMPETENCIES are observable, measurable patterns of knowledge, abilities, skills or other characteristics that individuals need to perform work roles or occupational functions successfully [DoDI 1400.25, Vol 250, Nov 2008]TASKS are examples of work performed on the job. They are used in the job analysis to support the chosen competency.ITEMS are measures used to determine to what extent an applicant possesses the chosen competency. They are used in the assessment questionnaire to distinguish the best qualified from the qualified.

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Competency “Networks”

Competencies vs KSAs

While some people use the terms interchangeably, competencies are generally written at a broader level of specificity than KSAs.

KSAs are generally narrower in scope than competencies.

Competencies can be considered higher level aggregates of KSAs.

Competencies have gained in popularity over time as they:– Tend to allow for greater flexibility in

work roles;

– Serve as a manageable taxonomy;

– Provide a consistent message to employees across the HR lifecycle; and

– Serve as the basis for unifying HR functions.

A Competency Network is defined as: “a collection of competencies and associated job analysis and assessment data (i.e., tasks, rating items, and screen-out items) for a particular position or group of positions”

Source: “USA Staffing Upgrade Competency Network Quick Reference Guide,” April 2017

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Observable, measurable patterns of knowledge, abilities, skills or other characteristics that individuals need to perform work roles or occupational functions successfully [DoDI 1400.25, Vol 250, June 2016]

Competency

Demonstrated behaviors required to perform work roles.

Task

Software application that enables the electronic handling of recruitment needs. Organizations use job applicant assessments to enhance their ability to select persons who will be successful on the job.

Federal Applicant Tracking System(s)

Objective measures used to determine to what extent an applicant possesses the chosen competency(ies).

Enterprise-Wide Job Item or Custom Job Item

Collection of competencies and associated job analysis and assessment data (i.e., tasks, rating items, and screen-out items) for a particular position or group of positions.

Competency Network

Ideal Candidate

An instrument or series of questions for collecting information, and almost always involve asking a given subject to respond to a set of oral or written questions.

Selection Assessment – Performance Prediction

Successful Job Performance

Re

pe

at C

ycle

Federal Applicant Tracking System

and Competencies Hierarchy

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DoN18.4%

AF 22.1%

Army 28.7%

Current Status

Key Points

Financial Management / Acquisition Workforce

Issues/Initiatives

CIV

Navy15.4%

CIV

Air Force14.4%

CIV

Army17.7%

CIV

4th Estate30.8%

MIL

Navy3%

MIL

Air Force7.7%

MIL

Army11%

Military Workforce

21.7%

11,599

Total DoD FM

Civilian Workforce

78.3%

41,947

Total DoD FM

• USA Staffing Upgrade transitions to competency based civilian hiring

• FM Direct Hire Authority for civilians

• FM & Acquisition Exchange Program with Industry

• FM Certification Program

• Educated Workforce: 59% of civilian workforce and 42% of military have Bachelor’s degree or higher

• Aging Workforce:

- The average age of the DoD FM civilian is 46.8

- 47% of civilians are over the age of 49

- 15% of the workforce is eligible to retire now and one-third of the workforce is eligible to retire in five years or less

- 37% of FM Senior Executives (SESs) are eligible to retirenow

DoD FM Workforce

Source: DMDC JAN 2017*= DFAS 69%

Total FM Workforce

53,546

Other30.8%*

Total FM Workforce

53,546

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Workforce Staffing Update

• USA Staffing Upgrade

− USA Staffing is OPM’s hiring software system used by Federal agencies to facilitate the hiringprocess and match qualified applicants to job openings

− DoD is transitioning to the USA Staffing upgrade, which is expected to be completed by early 2018

− Competencies will be used in the hiring process in lieu of knowledge, skills, and abilities (KSAs)

− DoD’s enterprise-wide FM competencies (validated in 2016) are the source of competencydata in the USA Staffing upgrade for the FM workforce

• Job Tasks

− Job tasks are used to describe work performed on the job

− Job tasks are activities an employee performs on a regular basis to carry out the functions required

• Job Items

− A Job item is a single activity derived from a job task and is used to determine to what extent an applicant possesses the chosen competency(ies)

− Job items are used as the source for creating the self-assessment questionnaire, are linked tocompetencies and provide ability to distinguish the best qualified candidate

• Status

− OUSD(C) created a job item library for all FM occupational series and shared the librarywith the Components; provided training

− Ensures that the DoD enterprise-wide FM competencies are used consistently in the hiring process

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SEC. 1110. Direct Hire Authority for Financial Management Experts in the Department of Defense Workforce

• Provides the DoD-wide FM workforce direct hire authority, without regard to the provisions of Subchapter I of Chapter 33 of Title 5 U.S. Code

• Up to 10% of the total number of FM workforce positions of an Agency or Military Department that are filled as of the close of the fiscal year last ending before the start of the calendar year

• Positions Specified

5/3/2017

FY 2017 NDAA: Direct Hire Authority

• DoD-wide policy implementation guidance is in final coordination

− Financial management

− Accounting

− Auditing

− Actuarial

− Cost estimation

− Operational research

− Business and business administrations

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• Current status

‒ Completed implementation guide

‒ Completed coordination with DoD Office of Inspector General and Legislative Affairs

‒ Finalizing informal coordination with Deputy Chief Management Officer

‒ Will begin formal coordination in May 2017

• Deputy Chief Management Officer

• DoD Office of Inspector General

• Office Management and Budget

• Next Steps

‒ Socialize with non-traditional defense contractors

‒ Submit interim final rule to OMB for publication in Federal Register

‒ Monitor status of regulatory freeze on Federal Register

‒ Pending Federal Register timeline, targeting first participants early FY18

5/3/2017

FM /AQ Exchange Program with Industry

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DoD-Wide FM Rotational Development Program

5/3/2017

• OUSD(C) is exploring the viability of a DoD-wide FM rotational development program within the Department

• The goal of the program

− To develop a flexible, talented pool of employees who have depth of knowledge in their disciplines and or breadth of experience across the DoD

• Next Steps

− Implement pilot program by the end of this FY, with full implementation in FY18

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• DoD enterprise-wide FM Individual Development Plan

‒ Full version available for use by fall 2017

• FM Information Sharing Forum

‒ Purpose: FM CFCM focus group to provide insight and potential solutions to

FM workforce succession planning challenges

• FM/HR Summit

‒ 2nd Summit planned for October 2017

o Focus group will debrief proposed solutions at Summit

5/3/2017

FM Workforce Initiatives

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Questions?

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Component Population Work Schedule Prior Military Service

Air Force 175,165 23% 126,881 72% 48,284 28% Fulltime 721,682 96% Prior Military 334,710 48% 272,904 82% 61,805 18%

Army 255,048 34% 166,340 65% 88,708 35% Part-Time 6,567 1% Not Prior Military 355,691 52% 181,703 51% 173,987 49%

Navy 206,799 28% 150,895 73% 55,904 27% Intermittent 6,099 1% NG (Not Included in % Calculations) 58,144 - 47,336 - 10,808 -

4th Estate 111,533 15% 57,827 52% 53,704 48% Seasonal 10,068 1% Sum: 748,545 100% 501,943 67% 246,600 33%

Sum: 748,545 100% 501,943 67% 246,600 33% Other 4,127 1%

Sum: 748,543 100% Workforce Initiatives

Age Group MCO 221,106 30% 137,317 18% 83,788 11%

29 and Under 60,578 8% 41,077 68% 19,501 32% Appointment Type CYBER 40,247 5% 31,204 4% 9,043 1%

30 to 39 164,865 22% 108,280 66% 56,583 34% Permanent 709,113 95% STEM 254,310 34% 182,460 24% 71,850 10%

40 to 49 176,656 24% 116,828 66% 59,828 34% Nonperm Temp 28,119 4% DAWIA 144,881 19% 100,001 13% 44,880 6%

50 to 54 132,412 18% 89,787 68% 42,625 32% Nonperm Term 11,313 2% CEW 345,828 46% 233,615 31% 112,212 15%

55 to 59 119,754 16% 80,754 67% 39,000 33% Sum: 748,545 100% Supervisor Data

60 to 64 65,433 9% 44,525 68% 20,908 32% Army 36,853 34% 27,318 74% 9,535 26%

65 and over 28,847 4% 20,692 72% 8,155 28% ASGT Not to Exceed FY Navy 29,099 27% 22,380 77% 6,719 23%

Sum: 748,545 100% 501,943 67% 246,600 33% FY2016 - 0% Air Force 28,212 26% 21,684 77% 6,528 23%

FY2017 11,660 30% 4th Estate 13,995 13% 8,802 63% 5,193 37%

Gender FY2018 12,705 32% Sum: 108,159 100% 80,184 74% 27,975 26%

Female 246,600 33% FY2019 3,215 8%

Male 501,943 67% FY2020 1,838 5% Elig to Retire Current 19,186 18% 13,873 72% 5,313 28%

FY2021 1,154 3% Elig to Retire Next Year 4,977 5% 3,537 71% 1,440 29%

Retirement NVV 8,667 22% Elig to Retire Two to Five Years 20,541 19% 15,356 75% 5,185 25%

Elig to Retire Current 99,424 13% 65,106 65% 34,318 35% Sum: 39,239 100% Sum: 44,704 41% 32,766 73% 11,938 27%

Elig to Retire Next Year 22,806 3% 14,692 64% 8,114 36%

Elig to Retire 2-5 Years 98,339 13% 65,923 67% 32,416 33% Pay Plan Career Level 1: GS 1-8 or Equiv. 1,922 2% 1,136 59% 786 41%

Sum: 220,569 29% 145,721 66% 74,848 34% GS Like 477,519 64% Career Level 2: GS 9-12 or Equiv 29,702 27% 21,699 73% 8,003 27%

Admin Determined 11,200 1% Career Level 3: GS 13-15 or Equiv 76,535 71% 57,349 75% 19,186 25%

Disability Demo/Labs 92,594 12% Sum: 108,159 100% 80,184 74% 27,975 26%

Disability Targeted 5,452 0.7% 3,501 64% 1,951 36% Teacher 6,812 1%

Disability NonTargeted 52,532 7.0% 38,235 73% 14,297 27% Intel Non-Exec 17,728 2% MCO 37,302 34% 25,009 67% 12,293 33%

Sum: 57,984 7.7% 41,736 72% 16,248 28% FWS 138,948 19% CYBER 6,225 6% 5,031 81% 1,194 19%

Experts Consultants 2,127 0% STEM 38,337 35% 29,685 77% 8,652 23%

Career Level Without Pay 56 0% DAWIA 22,341 21% 16,193 72% 6,148 28%

1: GS 1-8 or Equiv. 127,178 17% 61,848 49% 65,330 51% Other - 0% CEW 59,167 55% 43,383 73% 15,784 27%

2: GS 9-12 or Equiv 366,208 49% 256,986 70% 109,222 30% No Valid Value - 0%

3: GS 13-15 or Equiv 255,159 34% 183,109 72% 72,048 28% Total 746,984 100% Population Now Included in the Data

Sum: 748,545 100% 501,943 67% 246,600 33% AF Military Techs 8,920 1% 7,222 81% 1,698 19%

Geographic Location Army COE Civil Function 23,936 3% 16,848 70% 7,088 30%

Education (Self Reported) CONUS Non-Wash, DC 582,498 78% ES 1,168 0% 858 73% 310 27%

With Less than Bachelors 405,309 54% 281,330 69% 123,979 31% CONUS Wash, DC 107,617 14% EX 6 0% 4 67% 2 33%

With Bachelors Degrees 205,030 27% 134,266 65% 70,764 35% Alaska/Hawaii 24,302 3% IE 62 0% 53 85% 9 15%

With Masters Degrees 120,154 16% 74,348 62% 45,804 38% Territory 4,479 1% IP 135 0% 112 83% 23 17%

With Doctorate Degrees 15,323 2% 10,148 66% 5,175 34% Foreign Country 29,386 4% SL 66 0% 53 80% 13 20%

Not Reported 2,729 0% 1,851 68% 878 32% Unspecified 263 0% ST 99 0% 86 87% 13 13%

Sum: 748,545 100% 501,943 67% 246,600 33% Sum: 748,545 100% Sum: 34,392 4% 25,236 73% 9,156 27%

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DOD-Wide Demographics Overview

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Millenials (1982-1999) Generation X (1965-1981) Baby Boomers (1946-1964) Tradition(1900-1945)

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DoD Civilian Workforce Age Profile

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