PERFORMANCE MANAGEMENT WORKSHOP FOR MANAGERS

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PERFORMANCE MANAGEMENT WORKSHOP FOR MANAGERS

• COMMERCE ALTERNATIVE PERSONNEL SYSTEM (CAPS)

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Pay for Performance System

• Key Questions
• What is a pay for performance system?
• What are the key drivers for a pay for
  performance system?
• What are the benefits of a pay for performance
  system?
• What can managers/supervisors do to make the pay
  for performance system a success?

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Definition of a Pay for Performance System

• Pay for performance systems are systems in which
  pay decisions are based on defined performance
  levels rather than entitlement, tenure, or other
  non-performance related factors
• Pay decisions include
• Merit-based pay increases
• Lump sum bonuses

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Drivers of Pay for Performance Systems

• Pay for performance systems emphasize achieving
  greater individual and organizational performance
  results
• Need for more flexible compensation practices to
  Agency specific needs

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Benefits of a Pay for Performance System

• Rewards high performers
• Allows greater flexibility for recruiting and
  hiring top talent
• Provides opportunities for developing poor
  performing employees
• Increases employee motivation
• Contributes to employee retention
• Deals more effectively with marginal employees

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Pay for Performance Guidance

• Make the pay for performance process transparent
• Managers/supervisors can ensure that employees
  are informed about the pay for performance
  system, understand how the system will impact
  them, and what employee and management roles and
  responsibilities are under the new system
• Provide training for managers/supervisors
• While managers/supervisors cannot necessarily
  control the extent to which training is adequate,
  you can actively pursue information about the new
  system to make sure that you have the resources,
  tools, and skills needed to be successful

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Pay for Performance Guidance

• Provide accurate assessments on employee
  performance
• Ensure success of this system by providing
  honest, accurate assessments of employee
  performance based on articulated performance
  objectives and performance benchmark standards
  to truly distinguish employee performance
• Evaluate employees solely on performance elements
• A responsibility to clearly articulate individual
  performance expectations to employees and to only
  evaluate them on those expectations

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Understanding the CAPS Performance Appraisal
Process

• Key Questions
• What is the performance appraisal process?
• What are the responsibilities of Rating
  Officials, Pay Pool Managers, and Employees?
• What other pay-related interventions (other than
  performance-based pay) are available to
  managers/supervisors to reward employees for good
  performance?
• How can managers/supervisors acclimate new
  employees to the performance appraisal process?

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Intent of CAPS Performance Appraisal System

• Encourage high performance
• Encourage continuous dialogue between supervisors
  and employees
• Provide a basis for performance-related decisions
  (e.g., pay increases, bonuses, PIPs)

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Performance Management
1. Planning Set goals and measures Establish and
communicate elements and standards
2. Monitoring Measure performance Provide
feedback Conduct progress review
Five Key Components
5. Rewarding Recognize and reward good
performance
3. Developing Address poor performance Improve
good performance
4. Rating Summarize performance Assign the
rating of record
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Non-Monetary Ways to Reward Your Employees

• Recognition
• Acknowledge employee ideas
• Acknowledge significant contributions in
  writing

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Components of the CAPS Performance System

• Performance Indicators
• E for Eligible, N for Not Eligible, P for
  Pending, or U for Unsatisfactory
• Performance Plans
• Prepared by rating official with employee input
• Approved by Pay Pool Manager
• Critical elements only minimum of 2/maximum of
  6
• Performance Standards
• Benchmark standards
• Supplemental standards
• Performance Scores
• 100-point scale using benchmark standards

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80 100
Benchmark Performance Standards
60 - 79
40 - 59
0 - 39
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Summary Guidance for Benchmark Performance
Standards

• Assists managers in evaluating employees with
  benchmark performance standards
• Used to help make distinctions between different
  levels of performance
• Helps ensure greater consistency in the analysis
  and evaluation of performance ratings
• Approved by the CAPS Board in 2005

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Summary Guidance for Benchmark Performance Standar
ds
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Supplemental Standards

• Defined in terms of results what and how
• Expressed in terms
• Quality
• Quantity
• Timeliness
• Cost Effectiveness
• Written at the Eligible Level
• Use of Supplemental Standards is Optional

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Responsibilities of Rating Officials

• Develop performance plan with employees
• Conduct progress reviews with employees
• Modify performance plan with employees as needed
• Conduct performance review meetings to discuss
  accomplishments
• Recommend ratings, scores, payouts, and bonuses
  to Pay Pool Manager through any intervening
  higher level supervisor(s)
• Conduct evaluation feedback meetings with
  employees

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Responsibilities of Pay Pool Managers
Pay Pool A grouping of employees who are
combined together for performance-based pay
decisions

• Approve performance plan/plan modification
• Manage the pay pool
• Ensure consistency across rating officials
• Discuss with rating officials any discrepancies
  and/or the need for score adjustments
• Render final decision on ratings, scores,
  performance increases, and bonuses

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Responsibilities of Employees

• Create performance plan with Rating Official
• Modify performance plan with Rating Official
• Clearly, concisely, and accurately document
  accomplishments over past year
• Seek out performance feedback throughout year
• Respond to performance feedback

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Pay for Performance Flexibility

• Pay increases upon promotion
• Managers/supervisors may recommend employees
  salary anywhere within the band when promoted.
  Minimum of 6 pay increase.
• Performance bonuses
• Rewards high performers, with intent to motivate
  performance
• Supervisory performance pay
• Managers/supervisors at bands pay ceiling max
  may receive up to six percent higher through
  performance

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Comparability Increases

• All employees will receive the annual
  comparability increase except
• Employees with an Unsatisfactory rating
• Employees on a PIP at time of comparability
  increase
• Employees on a PIP will receive comparability
  increase at the time they successfully complete a
  PIP
• Payment of ACI not retroactive

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Acclimating Employees to the Performance
Appraisal Process

• Employees must have a clear understanding of
  performance expectations
• Employees will do well if they understand how
  performance is linked to success
• Feedback provides employees with an understanding
  of level of performance
• Employees want to understand if their performance
  is meeting management expectations

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Managing and EvaluatingEmployee Performance

• Key Questions
• How can managers/supervisors identify the linkage
  between organizational goals and work unit/team
  goals and objectives?
• How can managers/supervisors help employees
  establish performance elements that are linked to
  organizational goals?
• How are performance plans created?
• How can managers/supervisors effectively evaluate
  performance?

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Linking Individual Performance to Organizational
Goals

• Identify overall organizational goals and discuss
  how they are linked to your work unit/team
  objectives
• Discuss the work unit/team objectives and/or
  specific products or services and how they are
  linked to performance plan critical elements
• Explain the rationale of how each critical
  element is weighted the activities under each
  element and the relationship of the elements to
  the work unit/team objectives

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Components Of A Performance Plan

• ELEMENTS
• OBJECTIVES
• ACTIVITIES
• STANDARDS

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Brainstorm Task List

• Consider the whole job
• Look to the coming year for new assignments,
  resources, priorities, policies
• Teamwork makes up part of the organizations
  fabric
• Helping others work
• Information sharing
• Use active verbs e.g., manage, develop, plan,
  etc.

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S M A R T Tips

• SPECFIC
• MEASURABLE
• ATTAINABLE
• RELEVANT
• TIMEBOUND

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Choose Measurements
Quality Quantity Timeliness Resource/Cost
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Effectively Evaluating and Documenting Employee
Performance

• Provide employees with tips for writing a good
  accomplishment statement
• Keep records of accomplishments during rating
  cycle
• Summarize all accomplishments for the year by
  Critical Element
• Do not understate or overstate accomplishments
• Establish a format for accomplishment statements
  to maintain consistency and quality (e.g.,
  bullets vs. narrative)
• Discuss the desired format

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Evaluating and Documenting Employee Performance

• Evaluate the employees performance
• Accurately and objectively
• Use specific language to describe key
  achievements or deficiencies (e.g. work examples,
  address the critical activities under each
  element, use positive wording when appropriate)

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Rating Eligibility

• An Employee is NOT Ratable if
• Does not meet conditions stated as Ratable
• Employee has been placed on an approved
  Performance Improvement Plan (PIP)

• An Employee is Ratable if
• Occupies a covered position as of Sept 30 AND
• Has worked at least 120 days in one or more
  covered positions

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Concept of Intervals

• Each pay band is divided into 5 intervals.
  Intervals 1-3 are for non-supervisory positions
  and intervals 4 5 are for supervisory
  positions.
• Pay progression potential is faster at lower pay
  bands and lower intervals in pay bands.
• Based on OPM statistical study of Federal
  employee occupational salary histories.

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Intervals and Potential Pay Increases
ILLUSTRATIVE
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Payout Rules

• Highest scored employee receives highest relative
  percentage payout ( of )
• Lower scored employees cannot receive a greater
  relative percentage payout
• Tied scores might not receive same relative
  percentage payout

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Providing Effective Performance Feedback

• Key Questions
• How can feedback improve employee performance?
• What are strategies that managers/supervisors can
  use to provide effective feedback?
• What are the ramifications of providing
  inadequate, poor, or untimely performance
  feedback?
• What communication barriers may arise and what
  can managers/supervisors do to overcome them?

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Performance Feedback Is An Ongoing Process

• Reviewing Work
• Conducting Progress Reviews and Annual Appraisals
• Addressing Performance Issues
• Maintaining open lines of communications

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Performance Feedback Strategies

• Provide continuous constructive feedback
• Prepare the employee for the discussion in
  advance
• Be clear on the purpose of the meeting
• Have a clear message
• Be specific
• Emphasize the positive

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Performance Feedback Strategies

• Be timely
• Focus on accomplishments
• Respect the individual
• Leave communication lines open

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Consequences of Ineffective Feedback

• Employees may not focus on performance goals and
  expectations.
• Employees may lose motivation
• Employees may become disgruntled
• Low employee morale
• Unexpected turnover
• Grievances

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Communication Barriers

• Communication styles
• Use of verbal and non-verbal language
• Lack of trust

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Overcoming Communication Barriers

• Familiarize yourself with communication styles of
  your employees
• Understand what motivates your employees
• Become aware of your communication style and
  modify as necessary to be effective

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Providing Feedback

• Establish a relaxed environment
• Engage in a 2-way dialogue
• Highlight positive or good behavior
• Keep the conversation focused on performance
  issues
• Maintain control of the conversation
• Offer constructive criticism

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Providing Feedback

• Dont be confrontational
• Dont be accusatory
• Dont only focus on faults or mistakes
• Dont bring personal issues into the discussion
• Dont become agitated or angry

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Managing Marginal Performance

• Key Questions
• How can managers/supervisors successfully
  identify a marginal performer?
• How can managers/supervisors help marginal
  performers become high performing employees?
• What options do managers/supervisors have for
  managing marginal performance?

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Identifying Marginal Performance

• Missed deadlines
• Decreased productivity
• Lack of dependability
• Lack of proficiency
• Failure to perform current work assignments

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Understanding Causes of Marginal Performance

• Ask Yourself
• What is it about the persons performance that
  has a negative effect on the work being done?
• What are things I actually see and hear that
  indicate there is a problem?
• Does the employee know that there is a
  performance issue?
• Have I clearly communicated performance
  objectives and expectations ?

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Understanding Causes of Marginal Performance

• What aspects of the employees performance needs
  to change in order to convince me that the
  employee has improved?
• Are there obstacles or barriers to the employee
  performing well (e.g. work environment,
  training)?
• Is the problem marginal performance or misconduct?

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Marginal Performance
The failure of an employee to do the job at an
acceptable level.
Misconduct
The failure to follow a workplace rule (whether
written or unwritten). Examples of misconduct
include tardiness and absenteeism,
insubordination, and failure to follow
instructions.
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Managing the Marginal Performer

• Address marginal performance early
• Document all evidence relating to that employees
  low performance level
• Schedule performance review meetings with the
  employee
• Be prepared to take appropriate action

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Tips for the Meeting

• Avoid referring to the situation beyond the
  impact it has on the employees performance
• Engage the employee in the discussion to obtain
  their perspective on the matter
• Limit the discussion to job related issues

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Managing Continued Marginal Performance

• Readdress the issue with the employee and discuss
  the causes for lack of progress
• Continue to work with the employee to address and
  overcome performance issues
• Determine whether or not the employee is still a
  good match for the position
• Explore alternative options for managing the
  employee

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Managing Marginal Performance Under CAPS

• Managers/supervisors have more options available
  for managing a marginal performer (e.g.,
  developing a PIP, tailoring responsibilities,
  little or no pay increases)
• Employees have a more vested interest in their
  performance throughout the year

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Helping Employees who are Failing

• Develop and set specific expectations and
  standards
• Closely monitor performance
• Assign the employee a mentor
• Give specific and timely feedback
• Consider training, where appropriate
• Provide work assignments that build confidence
• Help employee plan and prioritize their work
• Determine if the performance problem is a result
  of a non-work issue

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Grievance Procedures

• 15 calendar days to file a request for
  reconsideration (informal grievance)
• 15 calendar days to formally respond to informal
  grievance
• 10 calendar days to file formal grievance with
  WFMO
• 15 calendar days for WFMO to review grievance
• 45 calendar days for Deciding Official to respond
  to formal grievance

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Grievance Rights

• Grievable
• Performance Score
• Rating
• Pay Increase
• Not Grievable
• Performance Plan
• Bonus Decisions

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Additional Information

• For further information or questions, please
  contact your Servicing Workforce Management
  Office Representative
• WFM website http//www.wfm.noaa.gov A-Z, C for
  CAPS Information
• DOC CAPS Resources Page http//hr.commerce.gov/Pra
  ctitioners/CompensationAndLeave/DEV01_006181