2006

Department of CommerceDemonstration ProjectTrainingfor Managers

INTRODUCTION

Objectives

Increase efficiency of personnel system Strengthen manager’s role Improve ability to hire, motivate and

retain staff Emphasize pay for performance

System Attributes

Simplified/Understandable Flexible Delegated Decision-making Performance Enhancing Partnership Based Budget Discipline Fair & Equitable

Employees Covered

Covered GS GM ST3104 (appraisal, awards, RIF only)

Excluded WG SES

Administration of the Project

Office of Personnel Management Final Approval of Demo Project Plan Final Approval of Major Plan Changes Final Approval of Implementation

Regulations Annual Evaluations Reports to Congress

NOAA DEMO PROJECT STEERING COMMITTEE

Members include Deputy Assistant Administrators for each NOAA Participating Operating Unit

Evaluate, propose, review and provide comments or recommendations on policies, procedures and system changes

Oversee implementation of Demo policies, procedures, position classification proposals, or automated system changes

Oversee NOAA-wide training activities

Administration of the Project

Department Personnel Management Board (DPMB) Members include DOC/Operating Unit Top

Management DOC Approval Authority for Project Plan DOC Approval Authority for Project Plan Change DOC Approval Authority for Implementing

Regulations Sets Project Policies

Administration of the Project

DPMB (continued) Delegates Authorities to Operating

Personnel Management Boards (OPMBs) Authorizes Exceptions to Policies Establishes Project Training Plans Facilities Project Evaluation

Administration of the Project

Operating Personnel Management Board (OPMB) Established for Each Line Operating Unit

(OAR, NMFS, NESDIS & PPI) Membership includes Operating Unit top

management Establishes Operating Unit guidelines within

delegated authorities Delegates authorities to Operating Unit managers

Administration of the Project

OPMB (continued) Oversees training of Operating Unit

Management Requests exceptions to policies to DPMB Facilitates project evaluation

POSITION CLASSIFICATION

Classification Objectives

Simplify classification process

Increase management authority, accountability and flexibility

CLASSIFICATIONCURRENT One Pay Schedule (GS for all

White Collar Occupations)

15 Grade Levels, each with 10 steps

100’s of OPM Classification Standards & Individualized PDs.

DEMO 4 Pay Schedules: “Career

Paths”- Scientific & Engineering (ZP)- Technical (ZT)- Administrative (ZA)- Support (ZS)

5 “Pay Bands” with Range of Salaries. No Steps

Limited Number of DOC developed standards

CAREER PATHS &

BROAD PAY BANDS

 Career Paths Pay BandsScientific &

Engineering ZPI II III IV V

Scientific &

Engineering

Technician ZT I II III IV V

Administrative

ZAI II III IV V

Support

ZSI II III IV V

Corresponding

GS Grade 1 2 3 4 5 6 7 8 9 10 11 1213

14 15

Career Path Definitions

One-grade interval nonprofessional technical positions that support scientific and engineering activities through the application of various skills and techniques in the electrical, mechanical, physical science, biology, mathematics, and computer fields; and student positions for training in these skills.

Scientific/Engineering (ZP)

Scientific/EngineeringTechnician(ZT)

Two-grade interval professional technical positions in the physical, engineering, biological, mathematical, computer and social sciences; and student positions for training in these disciplines.

Career Path Definitions

Support(ZS)

Two-grade interval positions in such administrative and managerial fields as finance, procurement, personnel, librarianship, public information, and program management and analysis; and student positions for training in these fields.

Administrative(ZA)

One-grade interval positions that provide administrative support through the application of typing, clerical, secretarial, assistant, and similar knowledge and skills; positions that provide specialized facilities support, such as guard and fire fighter; and student positions for training in these skills.

Purpose of Classification

To categorize positions by:

Career Path

Occupational Series

Pay Band

Title

Classification Principles

Provide classification equity Support the mission Consider the whole job Support “Pay-for-Performance”

Features of Pay Banding

Fewer, broader and simpler standardsMore understandable classificationShorter position descriptionsFewer classification decisions

Features of Pay Banding(continued)

Complements pay for performance More flexible entry pay Better link to career stages

Features of Pay Banding(continued)

Less documentationEasier to automateFacilitates delegation to line

managers

Features of Career Paths

Similar treatment for similar occupations

Broader and simpler classification standards

Focus on agency-specific work

Classification System

Automated Classification System(http://hr.ohrm.doc.gov/acs/login.asp)

User system Validation system Storage system

Automated Classification System

Supervisors are the authorized users of the system

Supervisors classify positions, as they create position descriptions, through menu-driven system

The ACS system stores created position descriptions and from this database a position description may be reviewed, copied, revised and printed

Classification Logic

Principal ObjectiveCareer PathSeriesPay BandTitle

P D Components

Principle objective Level designation Specialty descriptors Key phrases Supervisory/Lead designation Special qualifications

STAFFING

STAFFINGMERIT SYSTEMS PRINCPLES

Staffing of all positions must be accomplished within merit systems principles

PRIORITY CONSIDERATION PROGRAMS

CTAP – DOC program designed to assist displaced (RIF’d) employees in finding jobs before they are separated from DOC.

ICTAP – Government –wide program designed to assist displaced employee find federal jobs.

RPL – A computerized database of separated (RIF’d) DOC employees who must receive priority consideration for positions before an offer of employment can be made to a non-status or non-agency applicant.

Staffing Options

Merit Assignment Program (MAP)Delegated Examining (DE)

Merit Assignment Program Staffing Program Designed to Recruit

from Sources Inside Government– Vacancy announcement– Open to current/previous Federal employees

and special appointment authority candidates

– Subject to Career Transition Assistance Program (CTAP/ICTAP)

– Veteran’s preference does not apply– Select from best qualified applicants

Delegated Examining Staffing program designed to recruit from

sources outside government– Vacancy announcement

– Open to all qualified candidates

– Subject to Career Transition Assistance Program (CTAP/ICTAP)

– Veteran’s preference applies

– Paid advertising may be used

– Select from top 3 available applicants

Other Options to Fill Vacancies

Reassignment Transfer Reinstatement Details Temporary Appointment Term Appointment Temporary Promotion Realignment Special Hiring Programs

Special Hiring Programs

Outstanding Scholar (3.5 GPA) VRA (Veteran’s Recruitment Authority) Handicapped IPA (Inter-Governmental Personnel Act) 30% Disabled Veterans Student Employment Program

Probationary Period

Appointments of new Federal employees into research and development positions within the ZP career path are subject to a three-year probationary period

Appointment of new Federal employees into non-research ZP positions and all ZT, ZA, and ZS positions are subject to a one-year probation period.

REDUCTION IN FORCE

Reduction in Force System

Follows all current RIF laws & regulations Displacement limited to one band below

present level Preserve retained pay and retained band Augmented service credit based on score Competitive area is career path commuting

area Employs the use of RIF panels

RIF SYSTEM (continued)Current Displacement limited to three

grade levels

Competitive area; all positions within organization at geographic location

Retained Grade & Retained Pay

Augmented service credit based on performance rating

Demo Displacement limited to current

pay band and one pay band below

Competitive Area is all positions in a career path in organization within commuting area

Preserve Retained Pay; Retained Band

Augmented service credit based on score

Reduction in Force Credit

For Each pay pool:

- scores in top 30%

receive 10 years service credit

- scores below top 30% receive

5 years service credit

Applies to last 3 ratings during 4 -year period for possible total of 30 years credit

Reduction-in-Force Process

Human Resource Advisors Determine release from competitive level Conducts Qualifications Analysis Identifies positions for referral to RIF

subpanel(s) Convenes RIF subpanel(s)

RIF (continued)RIF Subpanel Reviews positions for possible bump Refers possible positions to RIF Assignment

Panel (RAP) Comprised of two subject matter specialists

appointed by Chair-RAP HRA Serves as Technical Advisor &

Executive Secretary

RIF Assignment Panel (RAP)

Reviews positions referred by RIF Subpanel for possible bump

Requests additional info from organization Makes final recommendations to servicing HR

Manager Chaired by OPMB Chair Top managers of organization participate as

members of RAP HRA Serves as Technical Advisor & Executive

Secretary

Reduction-in-Force

Servicing HR Manager Receives & reviews recommendations from

RAP Discusses recommendations with RAP Makes final decision on the action

PAY ADMINISTRATION

Pay Issues

Locality pay is included in the Base Rate

Special Rates expand the pay band but only for those occupations covered

Pay Setting New Appointments Conversion Actions Competitive Reassignments Promotions (at least 6%) Change to Lower Band Change to Lower Interval

Pay Ceilings

Basic Pay for non-supervisory position - maximum rate of Interval 3

Basic Pay for supervisory position - maximum rate of Interval 5

Setting pay for New Hires

Pay for new hires can be set anywhere within the pay band except for intervals 4 and 5

Salary offers can be negotiated Recruitment bonus can be offered to

scientific, engineering and other hard to fill positions

Special salary rates expand the pay band

Things to Consider when setting pay for

a new hire Qualifications of applicant and level of experience Competitive salaries offered for similar positions Comparison of salaries of existing staff Expected learning curve & training requirements Budget Issues in the organizations Negotiation of salaries Pay progression ACI – Annual comparability increase Eligibility for Performance increase – June 4th

Pay Setting Promotions &

Reassignments Pay may be set anywhere at any level in the

new band Promotions must receive a minimum of a

6% increase Competitive movement from one position

to another within the same career path and pay band

No in band promotions

Recruitment Bonus Criteria

Special Qualifications for hard to fill positions High turnover rate Relocation/Dislocation issues May not exceed 25% of base salary Paid in lump sum or incrementally Service Agreement required Salary comparability and salary offer issues

Retention Bonus Criteria

Highly qualified employee leaving federal service

OPMB approval required Emerging Technology May not exceed 25% of base salary Special qualifications Service Agreement required

Relocation Bonus Criteria

May be paid when, in the absence of the bonus, it will be difficult to fill a position.

Must be justified in writing. A relocation bonus is calculated as a percentage of

the employee's rate of basic pay (may not exceed 25% of basic pay) and paid as a lump sum.

Before being paid a relocation bonus, the employee must establish a residence in the new commuting area.

Service Agreement required.

Supervisory Pay Criteria

Must be classified as supervisor Up to 6% beyond top of pay band Salaries for new supervisors are not set in intervals

4 and 5 Movement through intervals 4 and 5 must be

earned through annual performance increases Supervisory pay is terminated if you leave a

supervisory position

PERFORMANCE MANAGEMENT

What is Performance

Management ? Planning work Monitoring work effort Developing employees Appraising employees Rewarding employees

System OverviewTwo-level Rating System - Eligible - Unsatisfactory

Pay for Performance System - Performance Pay Increase - Bonuses - Annual Comparability Increase

PAY FOR PERFORMANCE

Current

– General Increases (Annual Comparability Increase)

– WGI/Step Increase– QSI– Inband Promotion

– Special Act or Service Award

Performance Pay Increases & Bonuses:

Continue

Incentive Pay Pool - Salary Increases

Bonus Pool

Demo

Rating Official Defines critical elements Assigns weight to each critical element Establishes supplemental standards Conducts progress review Conducts performance review meeting Submits tentative rating Conducts final appraisal

Pay Pool Manager

Controls the pay pool

Renders final decisions on scores, ratings, and performance pay increases/bonuses

Reviewing Official Who:

– Person at an organizational level above Pay Pool Manager

Responsibilities:– Review of performance decisions when Pay

Pool Manager and Rating Official are the same person

Pay Pool Organizational level where one or

more employees within same career path are combined for performance decisions

– Rating

– Score

– Performance Pay Increase

– Bonus

Rating EligibilityAn 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

An Employee is NOT Ratable if:

Does not meet conditions stated as Ratable

Employee has been placed on a Performance Improvement Plan (PIP)

Performance Pay Increase Ineligibility

Employee with other than an “Eligible” rating Employees on a Performance Improvement Plan ST 3104 appointees Faculty appointees Temporary Student appointees Employees who are salary capped Employees on retained pay NOTE: Employees on retained pay band are

eligible for a pay increase

Performance Improvement Plan (PIP)

Discussion of deficiencies Must be in writing Reasonable opportunity to improve Steps supervisor will take to assist Consequences of failure to improve Concurrence from Servicing HR Office

and OGC

Bonus Ineligibility Employees with other than an “Eligible”

Rating * Employees on a Performance

Improvement Plan Faculty Appointees Temporary Student Appointees* NOTE: Employees are eligible if they have a

Department of Commerce rating equivalent to Fully Successful or better in the last 13 months

Temporary Promotions

If an employee has been on a temporary promotion for at least 120 days, employee is rated on temporary position

Plan Development Remains the Same

– Determination of critical elements– Assignment of weights– Development of criteria for evaluation

Differences– Pay Pool manager signs plan

– Benchmark Performance Standards Element point ranges are used

Performance Elements

All elements are critical Minimum of two Maximum of six Assign weight based upon importance

and/or time required Total weight must equal 100

Performance Plan Checklist

Are elements directly related to duties? Are elements properly weighted to duties? Are major activities directly related to

elements? Are supplemental standards included as

appropriate? Are elements/activities/standards clearly

described?

Evaluation Criteria

Benchmark performance standards

Supplemental standards

Progress Review Require one review midway through cycle Discuss progress Identify strengths Identify needed improvements Provide guidance Determine if plan needs to be changed

Performance Plan Modifications

Modification Requires Pay Pool Manager/Reviewing Official Signature

Performance Meetings

Performance review– Employee must provide accomplishments to

supervisor in writing– Supervisor/Employee discuss accomplishments– No rating discussed at this meeting– Supervisor & Pay Pool Manager discuss ratings

Evaluation feedback– Present final rating– Provide payout information

Evaluation ProcessRating Official (RO)

RO scores employees by peer group according to performance using the Element Point Ranges and Performance Standards

Submits rating, score, payout and bonus recommendations to Pay Pool Manager (PM) through any intervening higher level supervisor(s)

Discusses ratings with Pay Pool Manager

Performance Ratingsand Indicators

Eligible “E”, covers total scores ranging from 40 to 100

Unsatisfactory “U”, failure to meet the minimum requirements of any element

Not Ratable “N”, employee not eligible to

receive an appraisal Pending “P”, final rating pending results

of PIP

PAYOUT RULES

Highest scored employee receives highest relative percentage payout

Tied scores may not receive same relative payout

Lower scored employee cannot receive greater relative percentage payout

INTERLEAVING SCORES

Pay Pool ManagerNAME

LYNNCOLETTEELLENCATHYHENRYBRUCEDENNISMICHAELSUSANJOHN

SCORE95929085857570706750

Rating Official #2NAME

LYNNHENRY

MICHAELSUSANJOHN

SCORE

9585706750

Rating Official #1NAME

COLETTEELLENCATHYBRUCEDENNIS

SCORE

9290857570

Sample Pay PoolSample Pay PoolTotal Pool: 21,000 CP: ZP Pool Amount

Used: 20,630

Percent NewName Score Salary Range% Recd % of% Inc Sal.

Excess

Lynn 95 46237 0 - 12 7.2 60.0 3329 49566

Colette 92 50278 0 - 07 4.2 60.0 2112 52210 180

Ellen 90 37625 0 - 15 9.0 60.0 3386 41011Cathy 85 43380 0 - 12 6.0 50.0 2602 45982Henry 85 37018 0 - 15 7.0 46.6 2591 39609Bruce 75 40301 0 - 15 6.0 40.0 2418 42719Dennis 70 53194 0 - 10 3.0 30.0 1596 54789Mike 70 81914 0 - 04 2.0 50.0* 1638 83552Susan 67 47906 0 - 10 5.0 50.0* 958 48864John 50 34423 0 - 15 0.0 00.0 0000 34423

*The % of % received is LARGER than a higher scored employee! Please fix it.

Actions Based On Poor Performance

Unsatisfactory performance– Removal– Reduction in pay band/interval– Reassignment– Loss of comparability increase– Loss of consideration for performance pay

increase/bonus

Grievance RightsGrievable

– Performance Score

– Rating

– Pay Increase

Not Grievable– Performance Plan

– Bonus Decisions

Grievance Procedures

15 calendar days for employees 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

90 calendar days for management to respond to formal grievance

ADDITIONAL INFORMATION

For further information or questions, please contact: • Your Servicing Human Resources Office • Line Office Systems Administrator

Additional resources are available at:www.ohrm.os.doc.gov/Demo www.wfm.noaa.gov