Civilian Compensation under the National Security Personnel System

1
Civilian Compensationunder theNational
Security Personnel System

• Steve Griffitts
• BUMED M1
• September 23, 2009

2
Overview

• Compensation Management
• Roles and Responsibilities
• Compensation Design Models (CDMs)
• Setting Pay
• New Hire
• Reassignments
• Promotions
• Managing Pay Progression

3
Compensation Management

• Compensation Philosophy
• Compensation Strategy
• Policies, Procedures, and Business Rules
• Roles and Responsibilities

4
Philosophy

• Manage compensation fairly
• Business case decisions
• Internal pay equity
• Market competitive
• Financial stewardship
• Dont compete among ourselves

5
Strategy

• CDM primary management tool
• GS and NSPS equity
• Pay-for-performance primary method for rewarding
  NSPS employees
• Effective use of flexibilities

6
Policies, Procedures, and Business Rules

• DoD
• Federal Register Enabling Regulations, 26 Sep
  2008
• DoD 1400.25-M, DoD Civilian Personnel Manual
  (CPM), Subchapter 1930 Compensation Architecture
  Pay Policy
• DON
• Pay Administration Under the National Security
  Personnel System (General), Jan 2009
• Includes current CDMs
• BUMED
• Compensation Guide, Mar 2008
• DRAFT revision out for review
• Local/Regional guidance

7
Roles and Responsibilities

• BUMED
• Deputy Chief BUMED, Director Total Force (M1)
• BUMED Comptroller (M8)
• Regional Commanders
• Compensation Boards
• HR Compensation Specialist
• Managers
• Rating Officials
• Employees

8
Roles and ResponsibilitiesBUMED

• Overarching policy and guidance through the
• NSPS Oversight Group (NOG)
• Sets policy (Comp Guide, Business Rules)
• BUMED Regional COS, M1, and M8
• BUMED NSPS Program Manager (ex officio)
• Approves PB3 assignments for physicians/dentists

9
Roles and ResponsibilitiesDirector Total Force
(M1)

• Chairman of NOG NSPS advisor to SG/DSG
• M1 DCPP - senior HR professional in Navy Medicine
  and principal advisor and technical expert
• DCPP Certified Compensation Analyst NSPS
  compensation policy expert for Navy Medicine

10
Roles and ResponsibilitiesComptroller (M8)

• NOG member principal advisor to SG/DSG for NSPS
  budget implications and financial policy and
  guidance
• Develops annual NSPS financial policy for pay
  pools (i.e. percentages for three elements)

11
Roles and ResponsibilitiesRegional Commanders

• NSPS program oversight and resource sponsorship
  for activities within AOR
• Ensures compliance with BUMED policies,
  procedures, and business rules
• Endorses requests for physician and dentist
  assignment to PB 3

12
Roles and ResponsibilitiesActivity Compensation
Boards

• Mandatory for activities with gt 50 NSPS employees
  
• Current structures OK, e.g. Position Mgt
  Committee
• Establish local strategies, policies, and
  procedures
• Monitor pay setting for new hires, reassignments,
  and promotions
• Monitor pay progression

13
Roles and ResponsibilitiesHR Compensation
Specialist

• Received DON Compensation Training
• Technical expert and advisor
• Can assist with setting pay and use of CDMs
• HR liaison, NSPS Program Mgr, or satellite HRO
  specialist

14
Roles and ResponsibilitiesManagers

• Understand compensation philosophy, strategy,
  policies and procedures
• Be involved with pay setting decisions
• Ensure internal equity, fairness, consistency

15
Roles and ResponsibilitiesRating Officials

• Understand compensation philosophy, strategy,
  policies and procedures
• Ensure internal equity
• Establish positioning of rated employees within
  applicable CDM
• Monitor pay progression within parameters of CDM
  and make recommendations to Pay Pool Manager, as
  necessary

16
Roles and ResponsibilitiesEmployees

• Understand that NSPS is a structured
  flexibility
• Understand that Pay-for-Performance is the
  primary system under NSPS to award performance
• Be actively involved in setting performance goals
  and objectives

17
Training

• Compensation for Supervisors
• DON/HRSC Sponsored
• 2-Day
• Managers and Rating Officials
• Compensation for HR Professionals
• DON/HRSC Sponsored
• 2-Day
• HR Liaisons and NSPS Program Managers
• Advisory Compensation Analyst
• DoD Sponsored World _at_ Work Affiliated
• 2 week, Southbridge MA
• BUMED and Regional HR Specialists
• Train-the-Trainer
• BUMED Compensation Specialist
• Advisory Compensation Analyst

18
Setting Pay New Hires

• Management responsibility
• Recommend pay
• Approve pay
• Use of flexibilities
• Initial offer/conversations with selectee
• HRO specialists advisors
• HRSC final approval and formal offer

19
Compensation Design Models

• 29 occupations
• Structured flexibility
• Salary ranges within the PBs, not control points
• Provides consistent approach
• Tool and framework to manage pay setting and pay
  progression
• In alignment with enabling regulations
• Integrates value of position with skills,
  competencies, and performance of employee
• Proposed crosswalk for health occupations

20
Compensation Design ModelsDON Policy Jan 2009
Critical Asset Recognized Expert Sustained High
Performance Target Range 4
Investment New hire Needs additional
competencies Salary Range 1
Intellectual Capital Fully seasoned Full
performance Target Range 2 3
Salary Range Minimum
Salary Range Maximum
1
2
3
4
Quartiles
Market Reference Point
24
The majority of employees are typically in the
2nd or 3rd quartiles of the salary range
25
26
27
Note The Salary Range refers to the subset of
the pay band identified for a particular kind of
work. Salary ranges are currently based on
legacy GS grades. As our compensation capability
matures, a market component will be incorporated
into the process for determining salary ranges.
37
38
21
YA-0343-2Program/Management Analyst
40,093 Professional/Analytical YA2 91,801
Salary Range 1 Performs established analytical
techniques such as task analysis, work
simplification, work-flow charts, workload
measurement and trend analysis to the resolution
of procedural problems affecting the efficiency
of administrative support functions, or
productivity of a specific work unit, or program
operations within an organization
Formerly GS-9 or GS-11 depending on level of
independence
Investment
Intellectual Capital
Critical Asset
Formerly GS-12
59,498
66,885
40,093
46,996
Salary Range 2 Performs a range of established
analytical studies of activity programs and/or
projects which may extend to field program
operations. Analyzes interrelated, or management
functions such as management controls, work
planning, manpower utilization, effectiveness of
work methods and projects related to field
program operations.
Investment
Intellectual Capital
Critical Asset
Salary Range 3 A lead analyst who consults with
managers to establish proper program measures.
Establishes criteria to identify and measure
program accomplishments, recommends methods to
improve program effectiveness, or recommends new
approaches to program evaluation which may serve
as precedents for others.
73,315
80,159
63,753
58,488
Formerly GS-13 because of responsibility to
establish criteria or measures followed by other
especially field personnel
Investment
Intellectual Capital
Critical Asset
83,591
91,801
68,933
74,171
Base Salary ranges, excluding Local Market
Supplements (LMS)
19
23
24
37
22
YA-0343-3 Management and Program Analyst
78,359 Professional/Analytical YA3 133,985
Salary range 1 Recognized expert in the analysis
and evaluation of programs. Develops new
information about the subject area studied and
establishes new criteria to identify and measure
program accomplishments. Develops proposals
requiring extensive changes in established
practices which may involve substantial agency
resources. Directs team study work to negotiate
the development of detailed plans, goals, and
objectives for the long-range implementation and
administration of the area studied.
Investment
Intellectual Capital
Critical Asset
104,683
113,058
78,359
87,969
Salary range 2 Serves as Project/Program
Manager. Responsible for the evaluation of the
effectiveness and efficiency of major program
operations throughout the agency. Reviews and
evaluates proposed legislation which may
significantly change the basic character of
agency programs. Develops study formats for use
by others at subordinate echelons.
Investment
Intellectual Capital
Critical Asset
122,217
133,985
103,399
93,999
Base Salary ranges, excluding Local Market
Supplements (LMS)
23
Setting Pay New Hires

• Pay setting steps Strongly Recommended
• Apply CDM, establish value/range of position
• - Importance to mission
• - Difficulty of work
• - Hard to fill?
• - Similarly situated positions
• - Range for which employee typically
  compensated
• 2. Initiate Pay Setting Worksheet (PSW)

24
Setting Pay New Hires

• Contact selectee
• Current salary information
• Experience and accomplishments
• Salary expectations
• Resume
• 4. Using CDM, assign selectee to appropriate
  phase in the selected range of the position

25
Setting Pay New Hires (contd)

• Criteria to assign the right phase
• Assess competencies
• Assess skills
• Assess past performance
• Education
• Achievements/accomplishments
• 6. Phase should be commensurate with employees
  contribution

26
Setting Pay New Hires (contd)

• Whats the right phase?
• Investment
• Entry level at that range
• Intellectual Capital
• Fully seasoned, full performance employee
• Vast majority of Navy Medicine employees at
  activities
• Critical Asset
• Recognized expert
• Higher command level
• Program manager
• Regional/national responsibilities

27
Setting Pay New Hires (contd)

• Assess internal equity
• Similarly situated employees
• View the quartile range
• Obtain approval
• Comptroller
• Director
• Higher level for pay outside the norm

28
Setting Pay New Hires (contd)

• Once approved, contact selectee with initial
  offer
• If accepted, forward PSW and RPA to HRSC
• Consider
• - Recruitment incentive (new to Federal system)
• - Leave accrual credit

29
DON NSPS Pay Setting Decision Form - Automated

• Newly developed pay setting tool
• Provides internal market analysis
• Evaluates pay equity
• Manages salary progression
• Documents and approves pay-setting decisions

30
DON NSPS Pay Setting Decision Form

• Optional at this time
• Requires designation of a single administrator
• Must populate data with all salaries
• Requires each NSPS employee to be assigned to a
  specific Range, Phase, and Quartile within an
  appropriate CDM
• Were not quite there, yet!

31
Reassignments

• New hire or internal move, voluntary or
  involuntary (rare)
• Employee moves to new position or new set of
  duties within same or comparable pay band
• Employee moves from non-NSPS position to an NSPS
  position at a comparable level of work
• Pay increase NOT required, its discretionary

32
Reassignments (contd)

• 5 - Maximum pay increase (to base salary)
• Geographic recalculation necessary for non-NSPS
  reassignment hires
• Calculate annual salary with LMS of new
  assignment, then perform pay increase (if any)
• Apply pay setting steps, PSW, and CDM
• Compensation boards monitor reassignments

33
Promotions

• Like reassignment, can be internal or part of a
  new hire process
• Employee moves to a higher pay band or higher
  level of work (YB to YA)
• A current Federal employee who, without a break
  in service, comes from a non-NSPS Federal pay
  system to an NSPS position determined to be a
  higher level of work

34
Promotions (contd)

• Pay setting process, PSW, and CDM used in same
  manner as new hire or reassignment
• 6 - minimum pay increase for promotion
• 12 - maximum pay increase IAW DoD/DON guidance
  and NOG business rule
• gt12 increase - must have sound business case,
  plus requires higher level approval (at least two
  levels in organizational structure above the
  selecting official)

35
Managing Pay Progression

• Enabling regulations established general criteria
  for control points and payout distribution
  between salary and bonus, i.e. controlling pay
  progression in the pay for performance system of
  NSPS
• SECDEF delegated responsibility to components
  (services) to establish specific criteria,
  policies, and procedures for control points and
  payout distribution
• DON established CDM methodology as principle pay
  progression and compensation management tool no
  control points, but stop and think points
• Complete disconnect from GS system (per enabling
  regulations requirements)

36
Managing Pay Progression (contd)

• BUMED (NOG approved) business rule default
  distribution 70 salary -- 30 bonus
• Pay Pool Managers can make exceptions based on
  certain established criteria, such as employee at
  top of pay band or the need for employee to
  receive at least the GPI
• Pay Pool Manager can also adjust default based on
  assessment of employees current salary in
  relation to CDM
• Not control points, but stop and think points
• Rating official should identify where each
  employee sits on the particular pay range line
  in the applicable CDM

37
Managing Pay Progression (contd)

• See backup slides for recommended crosswalk for
  occupations without currently approved CDMs
• Level of salary and position description should
  make placement of employee in CDM range a
  relatively simple process
• Most employees will reside in the Intellectual
  Capital phase, which consists of the 2nd and 3rd
  pay quartiles
• Employees in the Investment phase are in a
  growth position and should move into Intellectual
  Capital upon completion of performance objectives
• Critical asset is for experts, program
  managers, policy makers

38
Managing Pay Progression (contd)

• Progression up through the Intellectual Capital
  phase should be accomplished through a well
  planned performance plan in which the employee
  successfully achieves established goals and
  objectives and is determined to be a valued
  employee
• Once a valued, full performance employee reaches
  the top of the Intellectual Capital phase its
  time for management to Stop and Think how much
  more salary progression would be appropriate
  based on budget and sound business reasons
• Decisions to reduce the salary distribution below
  70 based on CDM assessment must be consistently
  applied to employees similarly situated within
  the organization

39
Backup Slides
40
Current List of CDMs

• Safety and Occupational Health Specialists
  YA-0018-2/3
• Security Administration YA-0080-2/3
• Social Science Specialists YA-0101-2/3
• Human Resources Professional
  YA-0201-2/3
• Professional/Analytical YA-0343-2/3
• Logistics Management Specialist
  YA-0346-2/3
• Telecommunications Specialists
  YA-0391-2/3
• Professional/Analytical YA-0501-2/3
• Procurement/Contracting Specialist YA-1102-2/3
• Professional/Analytical YA-1601-2/3
• Training Instruction and Administration
  YA-1712-2/3
• Professional/Analytical (IT) YA-2210-2/3
• Entry/ Developmental Work YA-1, YD-1, YH-1,
  YK-1
• Secretaries YB-0318-1/2/3
• Office Automation Technicians
  YB-0326-1/2
• Education and Training Technicians YB-1702-1/2/
  3
• Various Technicians
  
  YB-XX03-1/2
• Supervisor/Manager
  
  YC,YN-XXXX-1/2/3
• Engineer Professional
  
  YD-08XX-2/3

19
41
CDM Crosswalkproposed in DRAFT BUMED COMP Guide

• YH health care professions
• Non-physician/dentist health professionals
• Use CDM Nurse, YH-0610-2. Most, if not all,
  health profession occupations will fall under the
  YH-2 PB. The nurse CDM provides the general
  three phase construct in the YH pay band that can
  be used.
• YA Psychologists (180) Social Workers (185)
• Use CDM YA-0101-2. Social Science Specialists.
  Most, if not all clinical psychologists and
  clinical social workers at the activity level
  will be in the YA PB2.

19
37
42
CDM Crosswalk

• YA Health Care Admin Occupations
• Applies to the 0600 series admin occupations,
  e.g. medical records administrator series (669),
  health administration (670/671), etc.
• Use CDM YA-0343 Models. This quite effectively
  covers program analyst, program manager, and
  other manager positions.
• YI Health Care Technician Occupations
• Includes all health care technician occupations
  in YI PB. Also includes psychology and social
  services techs.
• Use CDM YB-XX03 Models. Insert applicable
  technical support language in each range
  description. (return)

43
Managing Pay ProgressionExample of Using the CDM

• How PPM may use CDM to deviate from default pay
  out distribution (70/30)
• May reduce or increase salary percentage
• In this example employee is an IT specialist,
  program manager, YA-2210-02
• Assigned to a Medical Center

44
Managing Pay ProgressionExample of Using the CDM

• Base salary is 70,000
• Apply the YA-2210-2 CDM
• The employees rating official has determined
  this employee is an experienced, full performance
  level IT professional
• YA-2210-2 CDM, Pay Range 2
• Intellectual Capital phase
• Not at major command, not performing policy
  therefore not appropriate for movement into Pay
  Range 3.

45
Managing Pay ProgressionExample of Using the CDM

• RO feels pay range is appropriate at the third
  quartile of the Intellectual Capital phase
• Employee not critical asset (at this time)
• Employee at 95th percentile of pay phase, or
  quartile
• 70 split towards salary moves employee into 4th
  quartile, or Critical Asset phase
• Pay Pool Manager recommends a 60 pay out to
  salary

46
Managing Pay ProgressionExample of Using the CDM

• Manager sees need to increase scope and
  complexity of position
• Employee has potential to move to critical asset
  phase
• RO sets up performance goals and objectives to
  reach that level in 2 years
• If employee successfully meets the goals and
  objectives of the performance plan, may be
  eligible for an internal reassignment

47
YA-2210-2Information Technology Specialist
40,093 Professional/Analytical YA2 91,801
Salary Range 1 Design, develop, test, install,
configure, create basic scripts and code and/or
recover established components to IT systems and
analyses within clear parameters.
Investment
Intellectual Capital
Critical Asset
59,498
66,885
40,093
46,996
Salary range 2 Plan, analyze, develop, diagnose,
troubleshoot and/or carry out difficult and
complex assignments associated with IT systems
and analyses. Provides full range of independent
support to customers at local activity.
Investment
Intellectual Capital
Critical Asset
73,315
80,159
63,753
58,488
Salary range 3 Recommends new approaches to
previously unsolvable problems for IT systems and
analyses. Troubleshooting expert for complex
problems and technical lead on group projects.
Finds solutions to integration and
interoperability issues. Propose new policy and
practices to resolve complex IT issues.
43
44
45
Investment
Intellectual Capital
Critical Asset
83,591
91,801
68,933
74,171
Base Salary ranges, excluding Local Market
Supplements (LMS)
48
YA-2210-3Information Technology Specialist
78,359 Professional/Analytical YA3 133,985
Salary range 1 Agency or large activity expert
on IT issues and systems. Regularly develops new
IT theories and integration plans for agency or
large activity.
Investment
Intellectual Capital
Critical Asset
104,683
113,058
78,359
87,969
Salary range 2 Program Manager responsible for
the planning, coordination and execution of
agency-wide IT initiatives. Strategic consultant
and advisor to senior IT managers for the
application of process improvement throughout the
agency.
Investment
Intellectual Capital
Critical Asset
122,217
133,985
103,399
93,999
Base Salary ranges, excluding Local Market
Supplements (LMS)
49
YA-0201-2Human Resources Professional
40,093 Professional/Analytical YA2 91,801
Routine HR work clearly defined methods
usually in single specialty works on individual
case -- GS-11
Salary Range 1 e.g. Journey level staffing,
benefits, training administration basic ER
Investment
Intellectual Capital
Critical Asset
59,498
66,885
40,093
46,996
Salary Range 2 e.g. advanced recruiting,
benefits, training administration Journey Level
LR/ER
Advising and counseling multiple specialties
covering multiple cases GS-12
Investment
Intellectual Capital
Critical Asset
73,315
80,159
63,753
58,488
Salary Range 3 e.g. advanced LR/ER,
compensation, recruiting lead, training
development
Advising on policy implementation and clarifying
methods GS-13
Investment
Intellectual Capital
Critical Asset
83,591
91,801
68,933
74,171
Base Salary ranges, excluding Local Market
Supplements (LMS)
50
YA-0201-3Human Resources Professional
78,359 Professional/Analytical YA3 133,985
Salary Range 1 e.g. Program Mgr/SME at OCHR,
major Echelon I/II command or equivalent level
Develops or influences policy or program
implementation guidance for DON or BSO some
direct involvement with DoD policy makers -- GS-14
Investment
Intellectual Capital
Critical Asset
104,683
113,058
78,359
87,969
Salary Range 2 e.g. officials responsible for
oversight of multiple programs/initiatives at DON
HQ or major Echelon II command
The DON expert or the HR director for BSO
advocates for and interprets policy guidance for
BSO knowledgeable of all HR disciplines GS-15
Investment
Intellectual Capital
Critical Asset
122,217
133,985
103,399
93,999
Base Salary ranges, excluding Local Market
Supplements (LMS)