Department of Commerce Demonstration Project Training for Managers

1
Department of CommerceDemonstration
ProjectTrainingfor Managers
2006
2
INTRODUCTION
3
Objectives

• Increase efficiency of personnel system
• Strengthen managers role
• Improve ability to hire, motivate and retain
  staff
• Emphasize pay for performance

4
System Attributes

• Simplified/Understandable
• Flexible
• Delegated Decision-making
• Performance Enhancing
• Partnership Based
• Budget Discipline
• Fair Equitable

5
Employees Covered

• Covered
• GS
• GM
• ST3104 (appraisal, awards, RIF only)
• Excluded
• WG
• SES

6
Administration of the Project

• Office of Personnel Management
• Final Approval of Demo Project Plan
• Final Approval of Major Plan Changes
• Final Approval of Implementation Regulations
• Annual Evaluations
• Reports to Congress

7
NOAA DEMO PROJECT STEERING COMMITTEE

• Members include Deputy Assistant Administrators
  for each NOAA Participating Operating Unit
• Evaluate, propose, review and provide comments or
  recommendations on policies, procedures and
  system changes
• Oversee implementation of Demo policies,
  procedures, position classification proposals, or
  automated system changes
• Oversee NOAA-wide training activities

8
Administration of the Project

• Department Personnel Management Board (DPMB)
• Members include DOC/Operating Unit Top Management
• DOC Approval Authority for Project Plan
• DOC Approval Authority for Project Plan Change
• DOC Approval Authority for Implementing
  Regulations
• Sets Project Policies

9
Administration of the Project

• DPMB (continued)
• Delegates Authorities to Operating Personnel
  Management Boards (OPMBs)
• Authorizes Exceptions to Policies
• Establishes Project Training Plans
• Facilities Project Evaluation

10
Administration of the Project

• Operating Personnel Management Board (OPMB)
• Established for Each Line Operating Unit
• (OAR, NMFS, NESDIS PPI)
• Membership includes Operating Unit top management
• Establishes Operating Unit guidelines within
  delegated authorities
• Delegates authorities to Operating Unit managers

11
Administration of the Project

• OPMB (continued)
• Oversees training of Operating Unit Management
• Requests exceptions to policies to DPMB
• Facilitates project evaluation

12
POSITION CLASSIFICATION
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Classification Objectives

• Simplify classification process
• Increase management authority, accountability and
  flexibility

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CLASSIFICATION

• CURRENT
• One Pay Schedule (GS for all White Collar
  Occupations)
• 15 Grade Levels, each with 10 steps
• 100s of OPM Classification Standards
  Individualized PDs.

• DEMO
• 4 Pay Schedules Career Paths
• - Scientific Engineering (ZP)
• - Technical (ZT)
• - Administrative (ZA)
• - Support (ZS)
• 5 Pay Bands with Range of Salaries. No Steps
• Limited Number of DOC developed standards

15

CAREER PATHS BROAD PAY BANDS
 


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Career Path Definitions

• Two-grade interval professional technical
  positions in the physical, engineering,
  biological, mathematical, computer and social
  sciences and student positions for training in
  these disciplines.

Scientific/ Engineering (ZP)

• One-grade interval nonprofessional technical
  positions that support scientific and engineering
  activities through the application of various
  skills and techniques in the electrical,
  mechanical, physical science, biology,
  mathematics, and computer fields and student
  positions for training in these skills.

Scientific/ Engineering Technician (ZT)
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Career Path Definitions

• Two-grade interval positions in such
  administrative and managerial fields as finance,
  procurement, personnel, librarianship, public
  information, and program management and analysis
  and student positions for training in these
  fields.

Administrative (ZA)

• One-grade interval positions that provide
  administrative support through the application of
  typing, clerical, secretarial, assistant, and
  similar knowledge and skills positions that
  provide specialized facilities support, such as
  guard and fire fighter and student positions for
  training in these skills.

Support (ZS)
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Purpose of Classification

• To categorize positions by
• Career Path
• Occupational Series
• Pay Band
• Title

19
Classification Principles

• Provide classification equity
• Support the mission
• Consider the whole job
• Support Pay-for-Performance

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Features of Pay Banding

• Fewer, broader and simpler standards
• More understandable classification
• Shorter position descriptions
• Fewer classification decisions

21
Features of Pay Banding(continued)

• Complements pay for performance
• More flexible entry pay
• Better link to career stages

22
Features of Pay Banding(continued)

• Less documentation
• Easier to automate
• Facilitates delegation to line managers

23
Features of Career Paths

• Similar treatment for similar occupations
• Broader and simpler classification standards
• Focus on agency-specific work

24
Classification System
Automated Classification System (http//hr.ohrm.do
c.gov/acs/login.asp)

• User system
• Validation system
• Storage system

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Automated Classification System

• Supervisors are the authorized users of the
  system
• Supervisors classify positions, as they create
  position descriptions, through menu-driven system
• The ACS system stores created position
  descriptions and from this database a position
  description may be reviewed, copied, revised and
  printed

26
Classification Logic

• Principal Objective
• Career Path
• Series
• Pay Band
• Title

27
P D Components

• Principle objective
• Level designation
• Specialty descriptors
• Key phrases
• Supervisory/Lead designation
• Special qualifications

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STAFFING
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STAFFING
MERIT SYSTEMS PRINCPLES Staffing of all
positions must be accomplished within merit
systems principles
30
PRIORITY CONSIDERATION PROGRAMS
CTAP DOC program designed to assist displaced
(RIFd) employees in finding jobs before they are
separated from DOC. ICTAP Government wide
program designed to assist displaced employee
find federal jobs. RPL A computerized database
of separated (RIFd) DOC employees who must
receive priority consideration for positions
before an offer of employment can be made to a
non-status or non-agency applicant.
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Staffing Options

• Merit Assignment Program (MAP)
• Delegated Examining (DE)

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Merit Assignment Program

• Staffing Program Designed to Recruit from Sources
  Inside Government
• Vacancy announcement
• Open to current/previous Federal employees and
  special appointment authority candidates
• Subject to Career Transition Assistance Program
  (CTAP/ICTAP)
• Veterans preference does not apply
• Select from best qualified applicants

33
Delegated Examining

• Staffing program designed to recruit from sources
  outside government
• Vacancy announcement
• Open to all qualified candidates
• Subject to Career Transition Assistance Program
  (CTAP/ICTAP)
• Veterans preference applies
• Paid advertising may be used
• Select from top 3 available applicants

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Other Options to Fill Vacancies

• Reassignment
• Transfer
• Reinstatement
• Details
• Temporary Appointment
• Term Appointment
• Temporary Promotion
• Realignment
• Special Hiring Programs

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Special Hiring Programs

• Outstanding Scholar (3.5 GPA)
• VRA (Veterans Recruitment Authority)
• Handicapped
• IPA (Inter-Governmental Personnel Act)
• 30 Disabled Veterans
• Student Employment Program

36
Probationary Period

• Appointments of new Federal employees into
  research and development positions within the ZP
  career path are subject to a three-year
  probationary period
• Appointment of new Federal employees into
  non-research ZP positions and all ZT, ZA, and ZS
  positions are subject to a one-year probation
  period.

37
REDUCTION IN FORCE
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Reduction in Force System

• Follows all current RIF laws regulations
• Displacement limited to one band below present
  level
• Preserve retained pay and retained band
• Augmented service credit based on score
• Competitive area is career path commuting area
• Employs the use of RIF panels

39
RIF SYSTEM (continued)

• Demo
• Displacement limited to current pay band and one
  pay band below
• Competitive Area is all positions in a career
  path in organization within commuting area
• Preserve Retained Pay Retained Band
• Augmented service credit based on score

• Current
• Displacement limited to three grade levels
• Competitive area all positions within
  organization at geographic location
• Retained Grade Retained Pay
• Augmented service credit based on performance
  rating

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Reduction in Force Credit
For Each pay pool - scores in top 30
receive 10 years service credit
- scores below top 30 receive
5 years service credit Applies to last 3 ratings
during 4 -year period for possible total of 30
years credit
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Reduction-in-Force Process

• Human Resource Advisors
• Determine release from competitive level
• Conducts Qualifications Analysis
• Identifies positions for referral to RIF
  subpanel(s)
• Convenes RIF subpanel(s)

42
RIF (continued)

• RIF Subpanel
• Reviews positions for possible bump
• Refers possible positions to RIF Assignment Panel
  (RAP)
• Comprised of two subject matter specialists
  appointed by Chair-RAP
• HRA Serves as Technical Advisor Executive
  Secretary

43
RIF Assignment Panel (RAP)

• Reviews positions referred by RIF Subpanel for
  possible bump
• Requests additional info from organization
• Makes final recommendations to servicing HR
  Manager
• Chaired by OPMB Chair
• Top managers of organization participate as
  members of RAP
• HRA Serves as Technical Advisor Executive
  Secretary

44
Reduction-in-Force

• Servicing HR Manager
• Receives reviews recommendations from RAP
• Discusses recommendations with RAP
• Makes final decision on the action

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PAY ADMINISTRATION
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Pay Issues

• Locality pay is included in the Base Rate
• Special Rates expand the pay band but only for
  those occupations covered

47
Pay Setting

• New Appointments
• Conversion Actions
• Competitive Reassignments
• Promotions (at least 6)
• Change to Lower Band
• Change to Lower Interval

48
Pay Ceilings

• Basic Pay for non-supervisory position - maximum
  rate of Interval 3
• Basic Pay for supervisory position - maximum rate
  of Interval 5

49
Setting pay for New Hires

• Pay for new hires can be set anywhere within the
  pay band except for intervals 4 and 5
• Salary offers can be negotiated
• Recruitment bonus can be offered to scientific,
  engineering and other hard to fill positions
• Special salary rates expand the pay band

50
Things to Consider when setting pay for a new
hire

• Qualifications of applicant and level of
  experience
• Competitive salaries offered for similar
  positions
• Comparison of salaries of existing staff
• Expected learning curve training requirements
• Budget Issues in the organizations
• Negotiation of salaries
• Pay progression
• ACI Annual comparability increase
• Eligibility for Performance increase June 4th

51
Pay Setting Promotions Reassignments

• Pay may be set anywhere at any level in the new
  band
• Promotions must receive a minimum of a 6
  increase
• Competitive movement from one position to another
  within the same career path and pay band
• No in band promotions

52
Recruitment Bonus Criteria

• Special Qualifications for hard to fill positions
  
• High turnover rate
• Relocation/Dislocation issues
• May not exceed 25 of base salary
• Paid in lump sum or incrementally
• Service Agreement required
• Salary comparability and salary offer issues

53
Retention Bonus Criteria

• Highly qualified employee leaving federal service
  
• OPMB approval required
• Emerging Technology
• May not exceed 25 of base salary
• Special qualifications
• Service Agreement required

54
Relocation Bonus Criteria

• May be paid when, in the absence of the bonus, it
  will be difficult to fill a position.
• Must be justified in writing.
• A relocation bonus is calculated as a percentage
  of the employee's rate of basic pay (may not
  exceed 25 of basic pay) and paid as a lump sum.
  
• Before being paid a relocation bonus, the
  employee must establish a residence in the new
  commuting area.
• Service Agreement required.

55
Supervisory Pay Criteria

• Must be classified as supervisor
• Up to 6 beyond top of pay band
• Salaries for new supervisors are not set in
  intervals 4 and 5
• Movement through intervals 4 and 5 must be earned
  through annual performance increases
• Supervisory pay is terminated if you leave a
  supervisory position

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PERFORMANCE MANAGEMENT
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What is PerformanceManagement ?

• Planning work
• Monitoring work effort
• Developing employees
• Appraising employees
• Rewarding employees

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System Overview

• Two-level Rating System
• - Eligible
• - Unsatisfactory
• Pay for Performance System
• - Performance Pay Increase
• - Bonuses
• - Annual Comparability Increase

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PAY FOR PERFORMANCE
Performance Pay Increases Bonuses
Demo
Current

• General Increases
• (Annual Comparability Increase)
• WGI/Step Increase
• QSI
• Inband Promotion
• Special Act or Service Award

Continue Incentive Pay Pool - Salary
Increases Bonus Pool
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Rating Official

• Defines critical elements
• Assigns weight to each critical element
• Establishes supplemental standards
• Conducts progress review
• Conducts performance review meeting
• Submits tentative rating
• Conducts final appraisal

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Pay Pool Manager

• Controls the pay pool
• Renders final decisions on scores, ratings, and
  performance pay increases/bonuses

62
Reviewing Official

• Who
• Person at an organizational level above Pay Pool
  Manager
• Responsibilities
• Review of performance decisions when Pay Pool
  Manager and Rating Official are the same person

63
Pay Pool

• Organizational level where one or more employees
  within same career path are combined for
  performance decisions
• Rating
• Score
• Performance Pay Increase
• Bonus

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Rating Eligibility

• 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

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

65
Performance Pay Increase Ineligibility

• Employee with other than an Eligible rating
• Employees on a Performance Improvement Plan
• ST 3104 appointees
• Faculty appointees
• Temporary Student appointees
• Employees who are salary capped
• Employees on retained pay
• NOTE Employees on retained pay band are
  eligible for a pay increase

66
Performance Improvement Plan (PIP)

• Discussion of deficiencies
• Must be in writing
• Reasonable opportunity to improve
• Steps supervisor will take to assist
• Consequences of failure to improve
• Concurrence from Servicing HR Office and OGC

67
Bonus Ineligibility

• Employees with other than an Eligible Rating
• Employees on a Performance Improvement Plan
• Faculty Appointees
• Temporary Student Appointees
• NOTE Employees are eligible if they have a
  Department of Commerce rating equivalent to Fully
  Successful or better in the last 13 months

68
Temporary Promotions

• If an employee has been on a temporary
  promotion for at least 120 days, employee is
  rated on temporary position

69
Plan Development

• Remains the Same
• Determination of critical elements
• Assignment of weights
• Development of criteria for evaluation
• Differences
• Pay Pool manager signs plan
• Benchmark Performance Standards
• Element point ranges are used

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Performance Elements

• All elements are critical
• Minimum of two
• Maximum of six
• Assign weight based upon importance
• and/or time required
• Total weight must equal 100

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Performance Plan Checklist

• Are elements directly related to duties?
• Are elements properly weighted to duties?
• Are major activities directly related to
  elements?
• Are supplemental standards included as
  appropriate?
• Are elements/activities/standards clearly
  described?

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Evaluation Criteria

• Benchmark performance standards
• Supplemental standards

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Progress Review

• Require one review midway through cycle
• Discuss progress
• Identify strengths
• Identify needed improvements
• Provide guidance
• Determine if plan needs to be changed

74
Performance Plan Modifications

• Modification Requires Pay Pool Manager/Reviewing
  Official Signature

75
Performance Meetings

• Performance review
• Employee must provide accomplishments to
  supervisor in writing
• Supervisor/Employee discuss accomplishments
• No rating discussed at this meeting
• Supervisor Pay Pool Manager discuss ratings
• Evaluation feedback
• Present final rating
• Provide payout information

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Evaluation ProcessRating Official (RO)

• RO scores employees by peer group according to
  performance using the Element Point Ranges and
  Performance Standards
• Submits rating, score, payout and bonus
  recommendations to Pay Pool Manager (PM) through
  any intervening higher level supervisor(s)
• Discusses ratings with Pay Pool Manager

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Performance Ratingsand Indicators

• Eligible E, covers total scores ranging
  from 40 to 100
• Unsatisfactory U, failure to meet the minimum
  requirements of any element
• Not Ratable N, employee not eligible to
• receive an appraisal
• Pending P, final rating pending results
• of PIP

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PAYOUT RULES

• Highest scored employee receives highest relative
  percentage payout
• Tied scores may not receive same relative payout
• Lower scored employee cannot receive greater
  relative percentage payout

79
INTERLEAVING SCORES
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Sample Pay Pool

• Total Pool 21,000 CP ZP
  Pool Amount Used 20,630
• Percent New
• Name Score Salary Range Recd
  of Inc Sal. Excess
• Lynn 95 46237 0 - 12
  7.2 60.0 3329 49566
• Colette 92 50278 0 - 07
  4.2 60.0 2112 52210
  180
• Ellen 90 37625 0 - 15
  9.0 60.0 3386 41011
• Cathy 85 43380 0 - 12
  6.0 50.0 2602 45982
• Henry 85 37018 0 - 15
  7.0 46.6 2591 39609
• Bruce 75 40301 0 - 15
  6.0 40.0 2418 42719
• Dennis 70 53194 0 - 10
  3.0 30.0 1596 54789
• Mike 70 81914 0 - 04
  2.0 50.0 1638 83552
• Susan 67 47906 0 - 10
  5.0 50.0 958 48864
• John 50 34423 0 -
  15 0.0 00.0 0000 34423
• The of received is LARGER than a higher
  scored employee! Please fix it.

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Actions Based On Poor Performance

• Unsatisfactory performance
• Removal
• Reduction in pay band/interval
• Reassignment
• Loss of comparability increase
• Loss of consideration for performance pay
  increase/bonus

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Grievance Rights

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

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Grievance Procedures

• 15 calendar days for employees to file a request
  for reconsideration (informal grievance)
• 15 calendar days for management to formally
  respond to informal grievance
• 10 calendar days for employee to file formal
  grievance
• 90 calendar days for management to respond to
  formal grievance

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ADDITIONAL INFORMATION
For further information or questions, please
contact Your Servicing Human Resources
Office Line Office Systems
Administrator Additional resources are available
at www.ohrm.os.doc.gov/Demo www.wfm.noaa.gov