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Demonstration Project Pay Administration

WORKSHOP FOR MANAGERS

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AGENDA

Demo Project Pay System

Flexibility on Setting Pay for New Hires

Flexibility on Setting Pay for Promotions and Reassignments

Supervisory Pay

Q & A’s

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DEMO Project Pay System

A pay system that improves our ability to attract and retain quality employees

Offers pay setting flexibility when setting pay

Streamlines approval process for pay setting actions

Emphasizes pay for performance

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Flexibility on Setting Pay for New Hires

Pay for new hires can be set anywhere within the pay band between intervals 1 and 3

Salary offers can be negotiated

Recruitment payments can be offered to scientific, engineering and other hard to fill positions

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Things to Consider When Setting Pay for a New Hire

Applicant’s level of experience

Overall qualifications for the position

Is salary competitive with salaries being offered for similar positions

Comparison of qualifications with existing staff

Expected learning curve

Training requirements

Pay progression and promotion potential to allow room for growth

Budget issues

Eligibility for pay for performance during current cycle

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Flexibility on Setting Pay for Promotions & Reassignments

Pay may be set anywhere within the new band on a promotion

Promotions must receive a minimum of a 6% increase

Pay may be set anywhere within the band on a competitive reassignment

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Things to Consider When Setting Pay for Competitive Reassignments & Promotions

Pay progression & promotion potential

Salaries of existing staff

Eligibility for performance increase – June 4th

Minimum of 6% increase for promotion actions

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Supervisory Pay

Supervisory Performance Pay allows supervisory salaries to increase up to 6% higher than the maximum rate (interval 3) of non-supervisory positions

Must be classified as a supervisor

Movement through intervals 4 and 5 must be earned through annual performance increases

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Q & A

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New Hire Pay Setting Question

My pay pool manager approved a starting salary of 75K for the person I selected, but the applicant called and asked if I could raise the salary to 80K. I think my Pay Pool Manager would agree to the increased salary, but she is tied up this afternoon and I will not be able to talk with her . Should I go ahead and say yes to the 80K?

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Answer

No. Pay Pool Managers must approve all salaries and salary increases before they are offered to selectees. Additionally, your servicing Workforce Management Office should be the one to make the increased salary offer to the selectee.

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Supervisory Pay Setting Question

My salary is capped at the maximum of interval 3, but I was selected competitively for a reassignment into a Demo supervisory position. Upon entry into the supervisory position, can my pay be set in intervals 4 or 5?

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Answer

No. Supervisors can only move into intervals 4 and 5 through pay increases based on annual performance evaluations.

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Supervisory Pay Question

If I leave my Demo supervisory position and go into a Demo non-supervisory position, do I retain my supervisory pay in interval 5?

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Answer

No, if you leave a Demo supervisory position and you are in interval 4 or 5, then you do not retain your supervisory pay. However, your pay will be reset at the top of interval 3.

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Recruitment Payment?

I selected “Joe” for an IT Specialist position located in Northeast Science Center. Joe is currently a career employee with DOD and I can’t afford for him to turn down my offer. I have had problems filling this position. Can I offer him a recruitment bonus?

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Answer

No. At the present time, recruitment payments can only be paid to an individual who is newly appointed in the organization.

*Newly appointed means their first Federal appointment regardless of tenure or appointment following a break in service of at least 90 days from last appointment other than SCEP, provisional appointment, or temp appointment that is neither FT nor the principle employment of the candidate.

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Relocation Payment?

So if I can’t offer Joe a recruitment payment, can I offer him a relocation payment?

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Answer

Yes. A relocation payment may be paid when in the absence of the payment, it will be difficult to fill a position. However, the relocation payment must be supported. The determination to pay a relocation payment must be based on factors such as proportion of vacant positions; offers made and declinations of offers received for similar positions; competition in the labor market, turn over and special qualifications required.

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Retention Payment

I have spent thousands of dollars in specialized training for Bill. Bill is the only subject matter expert that fully understands the operation of “X” within NOAA. If Bill leaves, we will not be able to meet the mission of our organization. Bill has just told me that he is accepting a position with the private industry. What can I do to retain Bill?

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Answer

Looks as if you have supportable basis in which to offer Bill a retention payment. Retention payments may be paid when, absent a retention payment, a current employee with unique or unusually high qualifications important to meeting the special needs of the organization will likely leave the Federal service.

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3 R’s Approval

Who can approve recruitment, relocation and retention payments in the Demonstration Project?

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Answer

The Pay Pool Manager, with the advice of the servicing Workforce Management Office, has the authority to approve recruitment, relocation and retention payments.

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In Summary…

The Demo pay system improves our ability to attract and retain quality employees

Offers pay setting flexibility

Streamlines approval process for pay setting actions

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References

Demonstration Project http://ohrm.os.doc.gov/Demo/dev01_000105

DEMO Project Operating Procedures http://ohrm.os.doc.gov/s/groups/public/@doc/@cfoasa/@ohrm/documents/content/prod01_001029.pdf

DOC DEMO Project pay setting guide http://ohrm.os.doc.gov/s/groups/public/@doc/@cfoasa/@ohrm/documents/content/dev01_000300.pdf