FAA Compensation System

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FAA CompensationSystem

• Basic Overview of the FAA Core Compensation Plan

IPMA- HR Program
John H. Shamley, FAA
202-385-8010 John.shamley_at_faa.gov September 29,
2006
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LEGISLATIVE AUTHORITY

• In consultation with the employees of the Federal
  Aviation Administration and such non-governmental
  experts in personnel management systems as he may
  employ, and notwithstanding the provisions of
  title 5, United States Code, and other Federal
  personnel laws, the Administrator of the Federal
  Aviation Administration shall develop and
  implement, not later than January 1, 1996, a
  personnel management system for the Federal
  Aviation Administration that addresses the unique
  demands on the agency's workforce. Such a new
  system shall, at a minimum, provide for greater
  flexibility in the hiring, training,
  compensation, and location of personnel.

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LEGISLATIVE AUTHORITY

• LABOR MANAGEMENT RELATIONS
• Congress did not include Chapter 71 of Title 5,
  "Labor Management Relations," in the list of
  sections that will continue to apply to FAA's new
  personnel management system. The FAA has elected
  to continue the rights and benefits of union
  representation to our employees by providing for
  recognition of exclusive representatives,
  collective bargaining, and union representation
  in accordance with the provisions of Chapter 71.
  Accordingly, present and future changes and
  ongoing matters related to FAA's personnel
  management system under this directive shall not
  be implemented for bargaining unit members until
  after the completion of substantive and/or impact
  and implementation bargaining to the same extent
  as would be required by Chapter 71.

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LEGISLATIVE AUTHORITY

• (1) CONSULTATION AND NEGOTIATION.In developing
  and making changes to the personnel management
  system initially implemented by the Administrator
  of the Federal Aviation Administration on April
  1, 1996, the Administrator shall negotiate with
  the exclusive bargaining representatives of
  employees of the Administration certified under
  section 7111 of title 5 and consult with other
  employees of the Administration.

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Exemptions and Restrictions
Title 5 Continues
Title 5 Exempt

• Labor relations
• Initially exempt but reinstated
• Strike prohibition
• Whistleblower protection
• Veterans preference in employment and retention
• Prohibition of discrimination
• Retirement
• Health, life, workers compensation unemployment
  insurances
• MSPB appeals
• Initially exempt but reinstated

• Hiring, promotions, internal placements
• Pay and differentials
• Performance appraisal
  awards
• Leave
• Training
• Reduction-in-force
• Discipline, removal appeals
  (except MSPB)
• Travel and transportation
• All executive systems

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Core Compensation Plan

• Intended to cover most of FAA
• Except for Executives and specialized pay plans
  for occupations where Core is not practical
• Reflects best practices of private/public sectors
• Broad pay bands
• No steps
• Pay-setting flexibility
• Market-based band adjustments
• Ensures competitiveness in recruitment/retention
  of well-qualified candidates
• Performance-based pay adjustments
• Recognizes employees for organizational and
  individual performance and contributions
• Withholds pay adjustments from employees who fail
  to meet minimum performance/conduct requirements

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Core Plan -- Highlights

• Old System New System
• Flexible systems replace outdated structure
• Grades, steps Pay bands
• Complex classification Simple Job
  Documentation
• Eliminates tenure based raises
• Automatic raises Performance based raises
• Provides managers new flexibilities
• Rules and formulas Guidelines, accountability
• Provides greater pay opportunity and ability to
  be competitive
• Federal pay schedules FAA bands linked to
  competitive market pay rates

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Core Plan - Job Categories
Student
Clerical Support
Admin Support
Technical Support
Para-Professional
Engineering
Specialized
Professional
Technical
Series are Grouped Into 9 Job Categories Based on
Nature of Work Being Performed and External
Market Value
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Core Plan - Pay Band Levels within each Job
Category
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FAA Core Compensation PlanPay Bands

• 2006 Pay Bands (base pay excluding locality)
• Pay Band Minimum Midpoint Maximum
• A 16200 19900 23700
• B 18500 22700 27000
• C 20900 26200 31400
• D 24100 30100 36200
• E 27700 34600 41600
• F 31700 39700 47600
• G 37200 47400 57600
• H 45300 57800 70200
• I 55200 70400 85600
• J 67400 85900 104500
• K 80500 102700 124800
• L 96300 122800 149300
• M 113500 133300 153100

Base pay rates for FAA employees, including
locality pay, are capped by law as of January 8,
2006, at 165,200. Note that the cap does not
apply to premium pays.
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Article 108 PAY
OLD
N EW
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Performance Management System Structure
Plan
Performance Summary
Monitor
Recognition
Develop
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FAA Core Compensation PlanAnnual Pay Adjustments

• Combination of OSI and SCI constitute one of four
  pay adjustment levels
• Type of Increase Amount of Increase
• -- OSI plus SCI-1 -- OSI amount plus 1.8
• -- OSI plus SCI-2 -- OSI amount plus 0.6
• -- OSI but no SCI -- OSI amount
• -- No Increase -- No increase

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FAA Core Compensation PlanAnnual Pay Adjustments

• Funding
• OSI and SCI use same pool of funds previously
  spent under GS/FG
• General Increases (also referred to as
  comparability increases, January increases, or
  Presidents pay increases)
• Within Grade Increases
• Quality Step Increases
• Pool of funds is applied uniformly to all Lines
  of Business and Staff Offices
• Organizations do not have authority to apply
  funds differently than Administrators
  agency-wide decisions

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FAA Core Compensation PlanAnnual Pay Adjustments

• OSI process
• Starting in 2004, OSI determination based on
  accomplishment of Flight Plan initiatives
• At least 90 of Flight Plan goals must be
  achieved for 100 OSI payout
• If less than 90 of goals are achieved,
  Administrator makes determination of OSI payout
• OSI maximum payout is General Increase 1
• (e.g., If General Increase is 2.5, OSI maximum
  is 3.5)

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FAA Core Compensation PlanAnnual Pay Adjustments

• SCI process
• Managers use streamlined assessment process to
  identify recipients for SCI
• Same criteria applied to all employees
• Collaboration
• Customer Service
• Impact on Organizational Success
• First level managers makes decision, documents
  via Contribution Assessment Decision Aid (CADA)
• Decisions approved by higher level manager(s)
• If non-concurs, returns to 1st level manager for
  reconsideration
• LOBs/SOs report decisions to AHP-300 who
  coordinates processing with OST/DOI

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Concepts to Remember with Organization Culture
Change

• First resistance to change for resistance to
  change sake
• Then resistance to change based on actual plan
  components
• Core Plan designed to fit FAA as FAA will be in
  the future, that is
• A performance based and market based organization
• Therefore extensive training and communication
  are an imperative

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Organization Readiness
Three Levels of Organization Readiness

• Compliance
• Mechanics
• Capability
• Do it

• Support
• Behavior
• Experience
• Like it

• Commitment
• Beliefs
• Trust
• Lead it

April 2000
3-5 Years
Time
Conditions for Transition
Compliance
Support
Commitment