DOC ALTERNATIVE PERSONNEL SYSTEM CAPS

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DOC ALTERNATIVE PERSONNEL SYSTEM (CAPS)

• PERFORMANCE MANAGEMENT
• WORKSHOP FOR EMPLOYEES

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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 employees do to make the pay for
  performance system a success?

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Definition - 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 level performers
• Provides greater incentive
• Provides opportunities to encourage higher
  performance
• Increases employee motivation
• Contributes to employee retention
• Deals more effectively with marginal performers

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Pay for Performance Implementation Lessons Learned

• Failing to 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

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Pay for Performance Implementation Lessons
Learned

• Providing inadequate training for
  supervisors/employees
• 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 Implementation Lessons
Learned

• Managers/supervisors failing to truly distinguish
  employee performance
• Ensure success of this system by providing
  honest, accurate assessments of employee
  performance based on articulated performance
  objectives
• Managers/supervisors failing to evaluate
  employees solely on performance elements
• Managers/supervisors have a responsibility to
  clearly articulate performance expectations to
  employees and to only evaluate them on those
  expectations

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Understanding the Performance Appraisal Process

• Key Questions
• What is the Commerce Alternative Personnel System
  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?

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Intent of CAPS Performance Appraisal System

• Encourage high performance
• Encourage continuous dialogue between 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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Components of the CAPS Performance Appraisal
System

• Performance ratings
• 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 two/maximum
  of six
• Performance Standards
• Benchmark standards
• Supplemental standards
• Performance Scores
• 100-point scale using benchmark standards

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Responsibilities of Rating Officials

• Develop performance plan with employees
• Conduct progress reviews with employees
• Modify performance plan with employees
• 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 meeting 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 any discrepancies with rating officials
  or the need for score adjustments
• Render final decision on ratings, scores,
  payouts, 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 can set employees salary
  anywhere within the band when promoted
• Performance bonuses
• Rewards high performers, with intent to motivate
  performance
• Supervisory performance pay
• Managers/supervisors at bands pay ceiling max
  can receive up to six percent higher

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Comparability Increases

• All employees will receive the annual
  comparability increases 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 employees identify the linkage between
  organizational goals and work unit/team goals and
  individual performance?
• How can employees help establish performance
  elements that are linked to organizational goals?
  
• How are performance plans created?
• How do managers/supervisors effectively evaluate
  performance?

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Establishing Performance Elements that are
Linked to Organizational Goals

• Identify overall organizational goals and discuss
  how they are linked to the work/team objectives
• Discuss the work unit/team objectives and/or
  specific products or services and how they are
  linked to performance plan critical elements
• Discuss 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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Choose Measurements

• Quality
• Quantity
• Timeliness
• Resource/Cost

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Effectively Evaluating and Documenting Employee
Performance

• Employees need to provide good accomplishment
  statements
• Keep good records of accomplishments during the
  rating cycle
• Summarize all accomplishments for the year by
  Critical Element
• Do not understate or overstate accomplishments
• Discuss with your rating official the desired
  format

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Accomplishments

• Development of a product
• Completion of a project
• Management of an activity
• Attainment of a goal
• Progress of research
• Providing a service

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Accomplishment Guideposts

• Self assessments are the flip side of performance
  plans
• Performance plans describe the future state
• Self assessments describe the present state
• Accomplishments contribute to organizational
  mission/goals

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Recording Accomplishments

• Organize by element and activity or result
• Focus on major milestones
• Establish periodic record keeping (e.g., monthly)
• Avoid day-to-day details
• Use electronic format
• Keep it simple and non-time consuming
• Converts easily to accomplishments write up

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Helpful Hints

• Be as specific and concise as possible
• Do not under or overstate
• Describe what you did to create the results
• Describe the how as well as the what
• If you exceeded expectations say so
• Dont be repetitive
• More is not necessarily better

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Rating Eligibility

• An Employee is NOT Ratable if
• Does not meet conditions stated as Ratable
• Employee has been placed on a 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 3 intervals for
  non-supervisory positions, and 5 intervals 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
• 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 strategies should managers/supervisors use
  to provide effective feedback?
• What communication barriers may arise and what
  can employees 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

• Encourage continuous constructive feedback
• Prepare for the discussion in advance
• Be clear on the purpose of the meeting
• Be specific

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Performance Feedback Strategies

• Focus on accomplishments
• Respect the supervisor
• 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

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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 supervisors
• Keep an open dialogue with your supervisor
• Become aware of your communication style and
  modify as necessary to be effective

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Grievance Procedures

• 15 calendar days 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
• 45 calendar days for management to respond to
  formal grievance
• Bargaining Unit Employees covered by a
  negotiated agreement must follow the terms of
  that agreement to grieve a score, rating or pay
  increase. If no negotiated agreement exists, the
  DOC Grievance Procedures may be used.

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Grievance Rights

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

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Information Resources

• DOC OHRM Website -
• http//hr.commerce.gov/Practitioners/CompensationA
  ndLeave/DEV01_006181
• NOAA WFM Website Commerce Alternative Personnel
  System
• http//www.wfm.noaa.gov/a_z.htmlc_section
• Servicing Workforce Management Office
  Representative
• http//www.wfm.noaa.gov/contact_lists.html