PERFORMANCE AND COMPENSATION MANAGEMENT

1
PERFORMANCE AND COMPENSATION MANAGEMENT

• Jesse E. Hoskins
• Chief Human Capital Officer
• U.S. Government Accountability Office
• September 5, 2006

2
Multi-Year Transition

• Key Components
• Banding of Positions
• Competency-Based Appraisal System
• Performance-Based Compensation
• Market-Based Pay

3
Pay Plans and Bands

• All staff assigned to a pay plan and band
• 5 pay plans organized by occupational grouping
  and career path
• Each band represents the level of difficulty and
  responsibility within a pay plan
• Each band has a minimum rate, competitive rate
  and maximum rate

4
Competency-Based Appraisal System Objectives

• Provide clear link to strategic plan, core
  values, professional standards and protocols
• Apply valid and transparent standards
• Provide fair, honest, accurate and
  non-discriminatory assessments of performance
• Reward high performers and identify below
  expectations performers

5
Performance-Based Compensation (PBC)

• Two components
• Annual adjustment
• Individualized component based on relative
  performance
• A budget factor (determined by the Comptroller
  General on an annual basis) is used to adjust the
  total amount of PBC to maintain the budget

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Key Components of PBC

• Annual adjustment decoupled from January federal
  increase
• Annual adjustment requires at least meets
  expectations on all competencies
• Standardizes rating scores across the
  organization for individualized portion
• Computes PBC using competitive rates
• Allocates compensation between permanent pay and
  one-time performance bonus

7
Market-Based Compensation

• Hired consulting firm to design a competitive,
  fair, and equitable system
• Pay ranges are competitive with labor markets in
  which GAO competes for talent
• Market-based salary ranges for all pay plans
  implemented in January 2006
• Ranges established for 5 geographic zones (no
  longer use the GS locality)
• Ranges adjusted each year to reflect changes in
  overall market