BEYOND THE GS SYSTEM

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BEYOND THE GS SYSTEM? (And Other Compensation
Stuff)
Bob Lavigna Vice President, Research Partnership
for Public Service Scott Cameron Director,
Global Public Sector Grant Thornton LLP IPMA-HR
Federal Section Annual Conference September 11,
2007
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• Partnership for Public Service

Our Mission
Our Five-Part Plan

• Non-partisan, non-profit organization dedicated
  to recruiting and retaining excellence in the
  federal workforce by
• Inspiring a new generation to serve
• Transforming the way government works

• Educate potential recruits
• Communicate the value of public service
• Partner with agencies for human capital change
• Research to identify or create policies/programs
  that work
• Promote legislative reform

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Public Sector Workforceis Greying
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Public Sector Workforce is
Well-educated
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Workforce Becoming More Diverse
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Competition for Talentis Heating Up

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More Complex Workforce Multi-sector
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More Complex Workforce Generational Differences

• Traditionalists (born before 1946)
• Boomers (born 1946-64)
• Gen Xers (1965-81)
• Gen Y / Millennials (gt1982)

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Meeting the Workforce Challenges

• Develop multiple talent pipelines
• Focus on quality of work life
• Maximize engagement and satisfaction
• Make performance management work
• Create more flexible, timely, user-friendly and
  responsive HR systems
• Provide competitive comp and benefits

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The Perfect Storm 2007 Survey of Chief Human
Capital Officers
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Grant Thorntons Global Public Sector

• Our Mission

• Our Expertise

• 500 consultants based in Alexandria, Virginia
• Passion for the mission of government
• High-quality consulting services to federal,
  state, and local government agencies

• Human capital
• Financial management
• Competitive sourcing
• Budget and performance integration
• Data warehousing

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What are Federal Chief Human Capital Officers
Thinking?

• 2007 Survey by Grant Thornton and Partnership for
  Public Service
• Interviewed 55 senior leaders in 40 agencies
• Many widely-shared concerns

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The Concerns

• General Schedule has to go
• It has to become easier to hire good staff
• Make direct hire authority easier to get
• Eliminate dual compensation obstacles for
  retirees
• OPM needs to delegate more to agencies
• HR staffs need to change in outlook and skills
• Managers need to be capable of managing

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What CHCOs are Saying

• We hire bright, motivated young people, bring
  them into the bureaucracy, and then torture them
  for 20 years
• HR professionals need to think of their role as
  making it possible for line managers to
  accomplish the agency mission, and not behave as
  keepers of the keys
• On recruitment/retirement -- I watch the faucet,
  not the drain
• I used to compete with the private sector for
  talent, now Im competing with other agencies
  that have more flexible pay and performance
  systems
• On pay for performance Weve found it to be a
  great recruitment and retention tool

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Other CHCO Views -- HR LOB

• 68 think their agency is at least moderately
  likely to use shared service center by 2010
• Coping strategy for HR staff losses
• Tool to help remaining HR staff become internal
  consultants
• Get internal house in order first
• Want to see another agency go first

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Other CHCO Views -- Pay for Performance

• Beta sites working!
• 2006 FHCS results still show major issues
• Get organizational performance management system
  in good shape before tying pay to it
• People like being recognized for good work
• Talent is migrating to agencies with more
  responsive performance-rewarding systems

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Other CHCO Views -- Talent Management

• Managerial talent is facing more pressure
• Job getting tougher as budgets shrink and
  subordinates retire
• Many managers face retirement themselves
• More is expected of people skills in pay for
  performance environment
• Some great technicians now miscast as leaders

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Other CHCO Views -- Talent Management (cont.)

• Managing Talent in the Workforce
• Knowledge management huge issue as the best and
  brightest retire
• Multi-sector workforce has more complex
  motivations and loyalties
• Federal employee commitment to mission is still
  our "ace in the hole"

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Whats Going on in the Private Sector?

• Recruitment and training expensive -- hire the
  right people and keep them stimulated
• Train managers so they dont produce high
  attrition
• Constantly re-recruit dont take staff for
  granted
• Identify the best talent early and cultivate it
• Create a collegial, flexible workplace
• Use employee surveys to identify internal issues
  and employee preferences
• Support healthy lifestyles to reduce costs and
  make employees more productive

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Other Compensation and Benefits Stuff
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Compensation/Benefits --
A Few Things to Consider

• Recruits rank competitive base pay 1, health
  care 2
• Employees want competent co-workers, development
• Employees also concerned about the basic deal
• In Best Places to Work, employee satisfaction
  with pay/benefits ranked 3, performance-based
  awards 9
• By 2012, 530,000 FTP federal employees will leave
• Employers who can offer flexibility in schedules
  and workplaces will be the future employers of
  choice, especially for hot skills workers

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Compensation Approaches

• Focus on total compensation
• Pay for performance (variable/flexible pay)
• Incentives -- individual, group, organization
• Integrated with other HR systems
• Performance management -- critical
• Market-based pay
• Hiring, referral and retention bonuses

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Benefits Programs

• Tuition reimbursement, student loan repayment
• Flexibility -- work-life balance
• Housing assistance
• Child care and elder care assistance
• Legal/financial planning and support
• Identity theft insurance
• Wellness programs
• Phased retirement
• Convenience programs dry cleaning, film
  development, shoe repair, car services, etc.

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The Bottom Line?

• There isnt any silver bullet to attract, develop
  and retain talent
• It takes silver buckshot!
• Bob Lavigna Scott Cameron
• 202-744-4120
  703-637-3037
• rlavigna_at_ourpublicservice.org
  scottj.cameron_at_gt.com
• www.ourpublicservice.org
  www.gt.com

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