Gary Hacker, CCP Human Resources Specialist (Compensation) DoD/OIG/A&M/Human Capital Advisory Services Strategic Human Capital Team Arlington, VA 703-602-4540 Gary.hacker@dodig.mil Examples of Compensation System Statements (From USAJOBS) January 2008 (10 Examples) • Example #CE-1: FCA Examiner (Credit Risk Examiner, Credit Risk Specialist, Senior Credit Risk Specialist), VH-1101-38/40 (Farm Credit Administration): The positions available under this announcement have the following grade levels (2008 base salary ranges shown): VH-1101-38 (GS-12) $67,470 - $101,204 per year; VH-1101-39 (GS-13) $77,191- $115,787 per year; VH-1101-40 (GS-14); $88,313$132,469 per year. Locality pay is in addition to these amounts. Duty station is negotiable. There are 3 positions available at any combination of one or more duty stations. • Example #CE-2: Insurance Analyst, CU-580-12/13 (National Credit Union Administration): Salary: Pay will be set using NCUA Compensation policy. The salary range shown is NCUA's Local Pay Rate (LPR). The LPR includes a locality of 4.73 per cent for the Austin, Texas geographical area. • Example #CE-3: Senior Project Controls Specialist, AD-301-00 (Presidio Trust): PLEASE NOTE: The Presidio Trust is an excepted service agency, exempt from Title V, with an administratively determined pay plan. For these reasons, all grade level information is provided for comparison purposes only. The work of this position is comparable to the GS-13 level. Any salary offer will be made on the basis of a number of factors, including but not limited to the education, work experience, and salary history of the applicant. • Example #CE-4: Executive Officer, YA-301-2 (DoD, Missile Defense Agency): This position is covered by the National Security Personnel System (NSPS). NSPS is a pay for performance system using pay bands with salary ranges. For more information on NSPS, please visit the website at http://www.cpms.osd.mil/nsps • Example #CE-5: Electronics Technician, ZT-856-III (Commerce, National Institute of Standards and Technology): This position has promotion potential to the ZT-IV (equivalent to the GS-11/12 grade levels). This position is covered by an Alternative Personnel Management System (APMS). This system replaced the General Schedule pay plan; GS and its grade structure. Under the APMS system, positions are designated by career path and pay band. The ZT-III level is equivalent to the GS-09/10 grade levels. NIST's unique Alternative Personnel Management System (APMS), which replaced the Federal GS Pay Plan and structure at NIST, allows us the flexibility to offer higher salaries, including a supervisory differential, not available in most other Federal agencies. Moreover, employees are eligible to receive an annual pay increase and bonus based upon performance. • Example #CE-6: Electronics Engineer, DB-855-3 (Army, Army Communications Electronics Command): This position is covered under an alternative personnel system known as the Science and Technology Reinvention Laboratory Personnel Management Demonstration Project at the United States Army Communications-Electronics Command, Research Development and Engineering Community. The Demonstration replaces GS grade levels with occupational families and pay bands. The salary range of the position being filled will not be decreased with the change to pay bands. This position, Electronics Engineer, DB-855-03, incorporates former GS-12 step 1 through GS-14 step 10 grade levels and salary levels. Pay increases within the pay band will be accomplished through the Pay for Performance appraisal system. • Example #CE-7: Supervisory Physicist, DB-1310-14/15 (Army, U.S. Army Research, Development and Engineering Command): About the Position: The U.S. Army Research Laboratory (ARL) is participating in an alternative personnel system known as the Laboratory Personnel Demonstration Project (DEMO). The pay band DB-04 is equal to the former GS-14 step 01 through GS-15 step 10. The Director of SLAD is looking for candidates with suitable education and experience in program management and technical oversight in survivability/lethality analysis who has the ability to supervise a diverse workforce. SLAD is located at Aberdeen Proving Ground (APG) which is in Harford County, Maryland along the northern shores of the Chesapeake Bay. • Example #CE-8: Engineering Technician (Mechanical), DE-0802-5/8 (Army, Army Medical Command): About the Position: The US Army Medical Research Institute of Infectious Diseases (USAMRIID) is participating in an alternative personnel system known as Personnel Demonstration Project. In keeping with the Demonstration pay fixing policies, employees already in the payband will not receive a pay increase. The Payband DE-2 incorporates GS-5 to GS-8 levels. • Example #CE-9: Auditor, YA-0511-2 (DoD, Office of the Inspector General): This position and its incumbent will be covered by the Department of Defense (DoD) National Security Personnel System (NSPS). NSPS is a management system that compensates and rewards employees based on performance and contribution to the DoD mission. The incumbent will be converted from the General Schedule to the appropriate NSPS Career Group, Pay Schedule and Pay Band. To learn more about NSPS, go to http://www.cpms.osd.mil/nsps/. • Example #CE-10: Federal Air Marshal, SV-1801-I (DHS, Transportation Security Administration): TSA positions are not classified under either the GS or wage grade pay systems. TSA has adopted the FAA compensation system called Core Compensation. The system includes job categories, career levels, and pay bands. To find out more about this system, visit the FAA web site at http://www.faa.gov.corecomp . Pay for Performance October 2007 Federal Government • Implementing Pay for Performance at Selected Personnel Demonstration Projects (GAO-04-83, dated January 2004) http://www.gao.gov/new.items/d0483.pdf State & Local Government • Pay for Performance Policy (Town of Cary, NC) http://www.townofcary.org/depts/tcdept/policies/031.htm Articles • • • • Risk Takers by Karen Rutzick (GovExec.com 8/17/06) http://www.govexec.com/dailyfed/0806/081706pb.htm Senator Crafts Bill Focusing on Performance Now, Pay Later by Karen Rutzick (GovExec.com 5/3/06) http://www.govexec.com/dailyfed/0506/050306r1.htm Agencies Urged to Customize Pay-for-Performance Systems by Karen Rutzick (GovExec.com 4/4/06) http://www.govexec.com/dailyfed/0406/040406r2.htm Administration seeks Foreign Service Pay-for-Performance by Karen Rutzick (GovExec.com 2/17/06) http://www.govexec.com/dailyfed/0206/021706r1.htm • • • Administration Continues Quest to Tie Pay to Performance Across Government by Karen Rutzick (GovExec.com 7/19/05) http://www.govexec.com/dailyfed/0705/071905r1.htm Union Employees at Commerce Opt for Pay-for-Performance by Karen Rutzick (GovExec.com 7/7/05) http://www.govexec.com/dailyfed/0705/070705r1.htm Study Makes Case for Performance Pay by David McGlinchey (GovExec.com 11/18/04) http://www.govexec.com/dailyfed/1104/111804d1.htm • Union Distributes Pamphlet With Negative Reactions to Performance Pay by David McGlinchey (GovExec.com 11/11/04) • Managers Called Key to Successful Performance Pay Systems by David McGlinchey (GovExec.com 3/23/04) • Performance Pay Perils by Shawn Zeller (GovExec.com 2/15/04) • • http://www.govexec.com/dailyfed/1104/111104d1.htm http://www.govexec.com/dailyfed/0304/032304d1.htm http://www.govexec.com/features/0204/0204s4.htm Air Traffic Controllers Agree to Two-year Contract Extension by Chris Strohm (FAA) (GovExec.com 12/10/03) http://www.govexec.com/dailyfed/1203/121003c1.htm Pay Bonding by Shawn Zeller (FedExec 12/4/03) http://www.govexec.com/dailyfed/1203/120403pb.htm • • • • • Postal Service Advances Pay-for-Performance Program by Matthew Weinstick (USPS) (GovExec.com 8/14/03) http://www.govexec.com/dailyfed/0803/081403w1.htm Pay for Performance by Milt Zall (fcw.com 5/26/03) http://www.fcw.com/print/9_18/news/79744-1.html Pay-for-Performance Doesn’t Always Pay Off by Martha Lagace (4/14/03) http://www.matr.net/article-6542.html The Right Pay by Steven Kelman (Gov Exec 3/17/03) http://www.ksg.harvard.edu/news/opeds/2003/right_pay_gov_exec_031703.htm Of Course We Pay For Performance by Craig N. Clive (July 2000) http://www.baylights.com/articles/0700.html Studies & Reports • GAO Post hearing Questions Related to Pay for Performance—May 19, 2003 • Modern Performance Management Systems Are Needed to Effectively Support Pay For Performance (GAO-03-612T) (GAO Testimony) (April 1, 2003) http://www.gao.gov/new.items/d03793r.pdf http://www.gao.gov/new.items/d03612t.pdf • Pay-for-Performance: A Report on the Texas Employee Compensation System http://www.hr.state.tx.us/WhatsHappening/TaskForceReport110602.pdf Books • • • Paying for Performance: A Guide to Compensation Management by Peter T. Chingos http://www.amazon.com/gp/product/0471176907/sr=11/qid=1155307839/ref=pd_bbs_1/104-1948888-2036726?ie=UTF8&s=books Merit Pay: Linking Pay to Performance in a Changing World by Robert Heneman & Jon M. Werner http://www.amazon.com/gp/product/1931576467/ref=pd_bxgy_text_b/1041948888-2036726?ie=UTF8 Pay for Performance: Evaluating Performance Appraisal and Merit Pay by George Milkovitch, Anne S. Mavor & Alexandra K. Wigdor http://www.amazon.com/exec/obidos/tg/detail/-/0309044278/104-23207970742343?v=glance • Linking Pay to Performance: An Approach to Designing a Merit Pay Plan by Steven P. Seltz, CCP, and Robert L. Heneman, Ph.D. http://www.worldatwork.org/bookstore/generic/html/pub1579630154.jsp 4/04 NSPS Compensation Guidance February 2008 Guidance • • Managing Compensation under NSPS – A Guide for Managers and Supervisors (March 2007) http://www.cpms.osd.mil/ASSETS/0BB8A1A9055342B9899A9CC5E63A26FF/Man aging_Compensation.pdf Managers Interim Guidance for Setting Pay for Employees in NSPS (May 2006) http://www.cpms.osd.mil/ASSETS/534B29E871EC4D70806D83C75025598F/Final %20Pay%20Setting%20Guide%2005%2003%2006.pdf • Department of the Navy Pay Administration Under the National Security Personnel System--Interim Guidance (Navy) http://www.hq.navy.mil/shhro/NSPS/DON%20NSPS%20Interim%20Guidance%2 0Pay.pdf Presentations • NSPS and Strategic Compensation – Compensation Theory & Design Principles and The Market (May 2007) http://www.cpms.osd.mil/ASSETS/778280F9345B413BBAC62D7ED260F363/NSP S%20and%20Strategic%20Compensation%20-%20DERLS_May07.pdf • Labor Costing in a NSPS World http://www.asmconline.org/files/PDI/Workshop23.ppt#256 NSPS Pay Setting Guidance February 2008 • DoD Policy SC1930--Compensation Architecture—Pay Policy (DoD/CPMS) http://www.cpms.osd.mil/nsps/docs/implementing_issuances/1930Compensation .pdf DoD Guides • Managing Compensation Under NSPS—A Guide for Managers and Supervisors—March 2007 http://www.hq.navy.mil/shhro/Managing%20Comp%20under%20NSPS%20MAR %2007.pdf • Managers Interim Guidance for Establishing Pay for Employees in NSPS—May 2006 http://www.cpms.osd.mil/ASSETS/534B29E871EC4D70806D83C75025598F/Final %20Pay%20Setting%20Guide%2005%2003%2006.pdf http://www.hq.navy.mil/shhro/NSPS/DOD%20Pay%20Setting%20Guide.pdf • Component Guidance USACE NSPS Compensation Guidance (USACE) http://www.spd.usace.army.mil/cpac/documents/NSPS_USACE_Compensation_Guidance2 0070119.pdf • NSPS Pay Setting (Army/CPOL) http://www.cpol.army.mil/library/permiss/B302.html • Pay Administration Under the National Security Personnel System—Interim Guidance (Navy) http://www.hq.navy.mil/shhro/NSPS/DON%20NSPS%20Interim%20Guid ance%20Pay.pdf Pay Banding Systems—Reports & Studies October 2007 • U.S. Department of Commerce Demonstration Project Evaluation Reports (December 2005) http://ohrm.os.doc.gov/Demo/DEV01_000106 • Acqdemo Evaluation • Alternative Personnel Systems In Practice And A Guide To The Future (OPM, October 2005) http://www.acq.osd.mil/dpap/policy/acqdemo/evaluation/index.htm http://www.opm.gov/publications/AlternativePersonnelSystemsOct2005.pdf • Symposium on Designing and Managing Market-Based and More PerformanceOriented Pay Systems (GAO, July 2005) http://www.gao.gov/new.items/d05832sp.pdf • Implementing Pay for Performance at Selected Personnel Demonstration Projects (GAO January 2004) http://www.gao.gov/new.items/d0483.pdf • Broadbanding in State Governments (Syracuse University—Maxwell School , 2003) http://www.maxwell.syr.edu/gpp/pdfs/Broadbanding_Learning_Paper.pdf Pay Banding Systems December 2007 Federal Government (Chapter 47 Demonstration Projects Under OPM Oversight) • • • Department of Commerce http://www.opm.gov/demos/Demofact.asp#Commerce Department of Defense Acquisition Workforce http://www.acq.osd.mil/dpap/ops/acqdemo.html http://www.opm.gov/demos/Demofact.asp#Acquisition Navy—China Lake (Permanent Demo) http://www.nawcwpns.navy.mil/~hrd/demo.htm http://www.opm.gov/demos/Demofact.asp#China%20Lake Federal Government (DoD S&T Laboratory Demonstration Projects) • Army Medical Research and Material Command (MRMC) • Naval Research Laboratory (NRL) • Naval Sea Systems Command (NAVSEA)--Naval Surface Warfare Center and Naval Undersea Warfare Center http://www.opm.gov/demos/demofact.asp#MEDICS http://www.opm.gov/demos/Demofact.asp#NRL http://www.opm.gov/demos/Demofact.asp#NSSCWC Federal Government (Agency-Specific Systems) • National Security Personnel System (NSPS) (DoD) http://www.cpms.osd.mil/nsps State Governments • • Florida • North Carolina • South Carolina • Virginia • Wyoming http://dms.myflorida.com/human_resource_support/human_resource_managem ent/for_hr_practitioners/broadband_classification_and_compensation_program http://www.osp.state.nc.us/rtablecomm/spc-actions/aug99/classact.html http://www.state.sc.us/cgi-bin/ohr/paybands http://www.dpt.state.va.us/services/compens/salarystructure.htm http://personnel.state.wy.us/pay/pay2.htm Colleges and Universities • University of Hawaii http://www.hawaii.edu/ohr/projects/projects.html • Virginia Commonwealth University (VCU) http://www.hr.vcu.edu//comp&class/index.htm