HR Elements for Managers, Supervisors, and Employees

HR Elements/HR Elements/Performance Performance ManagementManagement

Course Introduction

Agenda & Participant Materials

HR Elements• Classification & Conversion

• Pay & Compensation

• Hiring & Employment

• Workforce Shaping

Performance Management• Planning

• Monitoring & Developing

• Rating

• Rewarding

NSPS SOURCE BOOK

Tab 1 HR Elements / Performance Management

Ref 1 Classification – Occupation Codes

Ref 2 Compensation – Pay Schedules, LMS Rates

Ref 3 Staffing – Competitive Movements

Ref 4 Performance Indicators

Ref 5 Contributing Factors

ADD’L PRE-CONVERSION COURSES

Tab 2 Building Alignment / SMART Objectives

Tab 3 Objective-Driven Performance

Tab 6 Pay Pool Management for Mgrs/Supvs

Course Introduction

Questions This Course Will Answer

How do pay bands work?How does pay progress

under NSPS?

What is pay-for-performance? How does NSPS link my pay to

my performance rating?

How does conversion work? Will I lose money when I

convert to NSPS?

What is LMS? How is it different from Locality Pay?

How will my performance standards change under NSPS?

What are job objectives?

How does NSPS change the way RIF works?

How does NSPS make it easier to hire from

outside and to promote from within?

Course Introduction

Implementation Status Report

DoD• 112,000 employees converted in Spiral 1 (concluded

April 2007)• 97% of Spiral 1.1 employees rated at Valued Performer

or above and eligible for performance payouts• May 2007 OPM assessment confirms DoD has made

“adequate progress” in implementing NSPSMarine Corps• 2000 employees converted in Spiral 1.2 (HQMC,

MARCORSYSCOM, MCTSSA)• Spiral 2.2c scheduled for 03 February 2008; Spiral 2.2d

scheduled for 17 February 2008

Course Introduction

AFGE vs. Gates

• On May 18, 2007, the U.S. Court of Appeals reversed the District Court judgment and upheld all aspects of NSPS’ adverse actions, appeals, and labor relations regulations but noted that certain portions were not yet ready for judicial review.

• At this time, DoD has made no decisions regarding the implementation of these provisions.

Course Introduction

Have You Heard This One?

What federal employees need is a new “one size fits all”

personnel system, not different systems for different agencies!

What really matters is not what you achieve but how hard you try!

Employees with seniority know more and deserve to

be paid more!

NSPS will fix everything that’s wrong between employees and their

supervisors!

Supervisors should work harder than their

employees!

What DoD really wants is to pay employees

less in the future!

Course Introduction

New Ideas for a Changing Workforce

NSPS is an OPPORTUNITY-BASED system – you get out

of it what you put into it.

NSPS is an OPPORTUNITY-BASED system – you get out

of it what you put into it.

NSPS rewards you more for the CONTRIBUTIONS you make than for the time you put in.

NSPS rewards you more for the CONTRIBUTIONS you make than for the time you put in.

NSPS puts YOU IN CHARGE of your career – not your supervisor, not the

Marine Corps, and not Congress

NSPS puts YOU IN CHARGE of your career – not your supervisor, not the

Marine Corps, and not Congress

Course Introduction

Why Pay-for-Performance?

• Federal employees themselves have said that pay increases should be tied to performance

• Federal employees have also asked that something be done about poor performers

How do you define “fair”?

Both are valid perspectives. DoD believes that the second perspective will better help it achieve its mission in today’s world.

Everyone should get an equal piece of the pie.

Everyone should get an equal piece of the pie.

People who contribute more should get more.

People who contribute more should get more. 2

1

Course Introduction

What’s Not Changing?

Anti-discrimination

laws

Prohibited personnel practices

Allowances& travel/

subsistence expenses

Training

Merit system principles

Whistleblower protection

Fundamental due process

Benefits

Retirement,health, life,

other benefits

Benefits

Retirement,health, life,

other benefits

Veterans’ Preference

Veterans’ Preference

Leave& work

schedules

Leave& work

schedules

Course Introduction

What Is Changing?

Classification

StreamlinedFlexibleSimple

Classification

StreamlinedFlexibleSimple

Pay andCompensation

Performance-basedMission-responsive

Market-driven

Pay andCompensation


Market-driven

Performance Management

Results-orientedMission-focused


Results-orientedMission-focused

Hiring andEmployment

StreamlinedFlexible

Adaptable

Workforce Shaping


Less disruptive

Course Introduction

NSPS Authorities

• NSPS shifts authority from OPM to DoD for …– Setting pay band rate ranges– Setting market-responsive pay adjustments– Setting pay for employees and new hires– Administering the annual General Pay Increase and

other salary adjustments– Exercising severe shortage and critical need hiring

authorities– Extending term and temporary appointments

Classification & ConversionClassification & Conversion

Classification & Conversion

Classification Crosswalk

Today – GS Tomorrow – NSPS

Occupational Family Career Group

Pay Plan Pay Schedule

Grade Pay Band

Title and Occupational Series

Title and Occupational Code

OPM Classification Standards

NSPS Classification Standards


Classification Architecture

Typeof Work

Levelof Work


Career Groups & Pay Schedules

Standard CGDoD = 73% / USMC = 78%

YA Professional/Analytical

YB Technician/Support

YC Supervisor/Manager

YP Student

Medical CGDoD = 4% / USMC = <1%

YG Physician/Dentist

YH Professional

YI Technician/Support

YJ Supervisor/Manager

Scientific & Engineering CGDoD = 19% / USMC = 22%

YD Professional

YE Technician/Support

YF Supervisor/Manager

Investigative & Protective CGDoD = 4% / USMC = <1%

YK Investigative

YL Fire Protection

YM Police/Security Guard

YN Supervisor/Manager


Pay Bands

Supervisory PB1 PB2 PB3

Supervisor/Manager Supervisor SupervisorSupervisor/

Manager

Non-Supervisory PB1 PB2 PB3

Professional/AnalyticalEntry/

DevelopmentalJourney Expert

Technician/SupportEntry/

Developmental/Technician

Journey/Assistant

Expert

FY07 Base Salary per annum, excluding Local Market Supplements


Standard Career Group

See Ref 2 in NSPS Source BookSee Ref 2 in NSPS Source Book

FY07 Base Salary per annum, excluding Local Market Supplements


Scientific & Engineering Career Group



What Will Pay Bands Do for You?

• Increased earning potential– Step 10 caps eliminated for all employees– Maximum rate for pay band 3 in all Professional and

Supervisor pay schedules is 5% above GS-15/10– Promotion potential from lower pay bands to higher

pay bands

• Easier movement within and between pay bands facilitates career advancement– Reassignments may be non-competitive– Time-in-grade requirements eliminated– Pay setting not handcuffed by Grades and Steps


How Conversion Works

• Conversion is automated and based on your position of record

• You may be eligible for a pro-rated Within-Grade Increase (WGI) buy-in

• Career conditional employees become career employees

• Probation periods continue with no loss of time already served

Will I lose money when I convert to NSPS?Will I lose money when I convert to NSPS?

No, your full salary is retained.


Convert to Standard CG

* GS 9 - 11 positions without promotion potential convert to Pay Band 2. GS 9 - 11 positions with promotion potential (developmental) convert to Pay Band 1.

** All Student positions convert to YP - 1 (Standard CG, Student PS, PB 1).

PAY BAND 1 PAY BAND 2 PAY BAND 3

YA - Professional/AnalyticalGS 5-8

GS 9-11*GS 9-13 GS 14-15

YB - Technician/Support GS 1-6 GS 7-10 GS 11-12

YC - Supervisor/Manager GS 6-11 GS 12-14 GS 15

YP - Student GS 1-11** n/a n/a



Convert to Scientific & Engineering CG

PAY BAND 1 PAY BAND 2 PAY BAND 3 PAY BAND 4

YD – ProfessionalGS 5-8

GS 9-11*GS 9-13 GS 14-15 n/a

YE - Technician/Support GS 1-6 GS 7-10 GS 11-12 GS 13

YF - Supervisor/Manager GS 6-11 GS 12-14 GS 15 n/a


* GS 9 - 11 positions without promotion potential convert to Pay Band 2. GS 9 - 11 positions with promotion potential (developmental) convert to Pay Band 1.

** All Student positions convert to YP - 1 (Standard CG, Student PS, PB 1).


Supervisor/Manager Pay Schedule

• Must have supervisory responsibility for a subordinate government workforce– Requires more than one subordinate position (civilian

or military, volunteer, other non-contractor personnel)– Contractors not creditable for supervisor status

Current record supervisory status (SF50) used as initial indicator

– Employees in Leader positions convert to non-supervisory pay schedules

– ‘Lead’ and ‘Leader’ titles deleted upon conversion

Other criteria may be considered for conversion to Pay Band 3

– Type of work supervised– Level of work supervised– Level of supervision (immediate,

intermediate, manager)

See Conversion Fact Sheet inserted into participant materialsSee Conversion Fact Sheet inserted into participant materials

Pay & CompensationPay & Compensation

Pay & Compensation

Pay & Compensation Crosswalk


General Pay Adjustments

Through General Pay Increase (GPI)

Through Rate Range Adjustment (funded by GPI)

Market-Responsive Pay Adjustments

Through Locality Pay, Special Salary Rates

Through Local Market Supplement (LMS)

Total Pay Equals Base Pay plus Locality Pay Equals Base Pay plus LMS

Pay Increases Through WGIs (1-3 years apart), QSIs, promotions

Through annual performance payouts, EPI, OAR, promotions, reassignments, voluntary reductions in band

Additional Recognition/Reward

Through cash bonus, Chapter 45 awards (Special Act, On-the-Spot), Time Off awards

Through cash bonus (portion of annual performance payout, EPI, OAR), Chapter 45 awards (Special Act, On-the-Spot), Time Off awards

Developmental Employees

Advancement through Career Ladder promotions

Advancement through Accelerated Compensation for Developmental Positions (ACDP)

Pay & Compensation

Pay Increases Link to Performance

• Increases directly linked to performance …– Performance payout– Rate range increase– LMS increase– EPI, OAR, ACDP

• Increases indirectly linked to performance …– Promotion– Reassignment– Voluntary reduction in band

RATING PAY ELIGIBILITY

5

Performance payoutRate range increase

LMS increase4

3

2Rate range increase

LMS increase

1 No increase

Pay & Compensation

Rate Range Adjustments

• DoD reviews all pay band rate ranges annually

• If the minimum rate of a pay band is increased, all employees in the pay band receive an equivalent increase, except those rated Unacceptable

• Rate range adjustments funded by the January GPI

PB1

PB2

PB3

ELIGIBLE

Current rating of record is Level 2 or higher, or no current rating of record (new employees)

Pay & Compensation

LMS Adjustments

• LMS rates are set by DoD and reviewed at least once annually

• Rates may vary within the same local market area by career group, pay schedule, pay band, and/or occupation

• LMS adjustments funded by January GPI

Could my LMS rate go down?Could my LMS rate go down?

Yes, but so could your locality pay rate, and how often did that happen?

Pay & Compensation

What Can LMS Do for You?

• Counts as base pay for retirement purposes (as did locality pay)

• Allows for greater flexibility in making market-responsive pay adjustments when and where they are needed

TARGETED LMS’s

– Seven targeted LMSs have been deployed to date: Three in the Standard CG by occupation and location (Air Traffic Control Specialists, Pilot and Flight Instructors, related jobs), four in the Medical CG by occupation and location (Physicians, Dentists, Nurses)

– Targeted LMSs apply in lieu of the standard LMS except in locations where the standard LMS is greater


PB1

PB2

PB3

Pay & Compensation

Promotion

• A promotion is a competitive move to a higher pay band and an opportunity to advance both your career and your pay

• Exceptions to competition include:– Career ladder promotion– Additional duties and responsibilities– Temporary promotion of 180 days or less– Position change due to RIF


PB1

PB2

PB3

Pay & Compensation

Promotion Pay Increases

• Pay increases 6-12% on promotion– Higher-level approval is required for an increase of

more than 12%– Higher-level approval is not required when an

increase of more than 12% is needed to reach the minimum rate of the new pay band

• For temporary promotions, base pay reverts upon return to permanent position


PB1

PB2

PB3

Pay & Compensation

Reassignment

• A reassignment is also an opportunity to advance both your career and your pay

• A reassignment is a move within a pay band or between comparable pay bands and may be competitive or non-competitive– No limit to the number of reassignments– Generally entails job change or assumption of greater

or higher-level duties


PB1

PB2

PB3

Pay & Compensation

Reassignment Pay Increases

• Pay may increase up to 5% on reassignment– For employee-initiated reassignments, pay may

increase up to 5% over 12 months– For management-directed reassignments, pay may

increase up to 5% with each reassignment

• Higher-level approval is required for all reassignment pay increases


PB1

PB2

PB3

Pay & Compensation

Voluntary Reduction in Band

• A voluntary reduction in band is a voluntary move to a lower pay band and may also be an opportunity to advance your career and your pay– Pay may increase up to 5% though pay may not

exceed the maximum rate of the new pay band


Pay & Compensation

Annual Performance Payouts

Rating Share Range

5 5-6 shares

4 3-4 shares

3 1-2 shares

1 or 2 No shares

Payout Options

Salary increase

Cash bonus

Combination

Eva / YA-505-3 / Financial Mgmt SpecialistBase salary = $81,752Rating and shares = Level 4 rating, 4 sharesPay pool share value = 1.1%Performance payout = $3,597 Salary increase = $2,518 (70%)

Cash bonus = $1,079 (30%)

Denise / YA-1102-2 / Contract SpecialistBase salary = $61,932Rating and shares = Level 3 rating, 1 sharePay pool share value = 1.0%Performance payout = $619 Salary increase = $433 (70%)

Cash bonus = $186 (30%)

Brian / YS-343-2 / Program AnalystBase salary = $66,951Rating and shares = Level 3 rating, 2 sharesPay pool share value = 1.0%Performance payout = $1,339 Salary increase = $937 (70%)

Cash bonus = $402 (30%)

Salary increase amounts are to base pay and would be in addition to any rate range increase (from GPI)

Pay & Compensation

Discretionary Performance Payouts

• May be awarded in addition to performance payouts to reward extraordinary performance– Extraordinary Pay Increase (EPI)– Organizational/Team Achievement Recognition

(OAR)

• May be distributed as an increase to pay, a cash bonus, or a combination of the two– May not use any portion of pay pool funds– Do not replace Special Act, On-the-Spot, and Time

Off awards

Pay & Compensation

Pay for Developmental Employees

• Accelerated Compensation for Developmental Positions (ACDP) is available to Pay Band 1 employees in developmental positions– Must have Level 3 rating or higher– May be awarded anytime during the rating cycle as

developmental milestones are achieved– Promotion from Pay Band 1 to Pay Band 2 after

successful completion of development plan– May be distributed as an increase to pay, a cash

bonus, or a combination of the two

Pay & Compensation

Can You Influence Your Pay?

PromotionReassignment

Voluntary Reduction in Band

Rate Range IncreaseLMS Increase

Performance PayoutEPI, OAR, ACDP

less influence more influence

The opportunity is yours!The opportunity is yours!

Hiring & EmploymentHiring & Employment

Hiring & Employment

Internal Placement (Merit Promotion)

• Fewer required personnel actions means less administrative burden and paperwork

• Enhanced opportunities for career advancement

NEW FLEXIBILITIES– Reassignments require no official personnel action and may be

non-competitive– Formal documentation of a “detail” required only when crossing

Component or Agency lines– Qualify for positions by meeting stated knowledge, skills,

abilities, and experience requirements

Hiring & Employment

Alternative Forms of Competition

No USAJOBS announcement requiredNo USAJOBS announcement required

Exceptional Performance Promotion

Select from Level 5 performers within specified area of consideration

Alternate Certification Submit name of candidate with description of knowledge, skills, and abilities for position

Assessment Boards Select from ranked candidates on occupational referral lists

Hiring & Employment

External Hiring

Vacancy Announcements• Consideration may be limited to local commuting

area and targeted recruitment sources• No minimum announcement period required

Probation Periods• One year for new hires• Optional three years for new hires in select

occupations

Hiring & Employment

Special Appointing Authorities

• Authority to approve severe shortage and critical need authorities shifts from OPM to DoD

• Term appointments modified to last up to 5 years, may be extended to 6 years

• Temporary appointments modified to last up to 1 year, may be extended to 3 years in one year increments

Hiring & Employment

Setting Pay for New Hires

• Authority for setting pay shifts to managers and supervisors– HR will advise mangers and supervisors on

employment regulations and procedures and provide information on compensation levels for similar work within the federal workforce and in the employment market

– Current guidance states that new hire pay may be set no lower than the minimum rate of the relevant pay band and no higher than 30 percent above the former GS Grade Step 1 equivalent

Workforce ShapingWorkforce Shaping

Workforce Shaping

Competitive Areas & Groups

Competitive Areas

• Geographic location• Organizational unit

• Line of businessLine of business• Product lineProduct line• Funding lineFunding line

Competitive Groups

• Occupational code• Trainee status

• Career groupCareer group• Pay schedulePay schedule• Pay bandPay band

New options for defining competitive areas and New options for defining competitive areas and groups make RIF less disruptive and focus groups make RIF less disruptive and focus

attention where change is neededattention where change is needed

Workforce Shaping

Competitive Areas & Groups: Example 1

Competitive Area

FinancialManagement

Product LineCompetitiveGroup

Auditors

CompetitiveGroup

ProgramAnalysts

CompetitiveGroup

Accountants

CompetitiveGroup

Secretaries

Workforce Shaping

Competitive Areas & Groups: Example 2

CompetitiveGroup

Standard CG,PB 3

CompetitiveGroup

Technician/Support PS,

PB 3

CompetitiveGroup

ProgramAnalysts,

PB 2

Competitive Area

FinancialManagement

Product Line

Workforce Shaping

Retention Factors


1 Tenure Group1. Career2. Career conditional3. All others

Tenure Group1. Career2. Employees on initial probation3. All others

2 Veterans’ Preference1. 30% disabled veterans

(compensable, service-connected)2. All other veterans3. All other non-veterans

Veterans’ Preference1. 30% disabled veterans

(compensable, service-connected)2. All other veterans3. All other non-veterans

3 Creditable Service1. Civilian2. Military

Performance RatingAverage of employee’s 3 most recent NSPS ratings in 4 years

4 Performance Rating Creditable Service1. Civilian2. Military

Performance ManagementPerformance Management


What is Performance Management?

“Applying the integrated processes of setting and communicating performance expectations, monitoring performance and providing feedback, developing performance and addressing poor performance, and rating and rewarding performance in support of the organization’s goals and objectives.”

NSPS Performance ManagementNSPS Performance Management

Implementing Issuance SC1940Implementing Issuance SC1940


Performance Management Cycle

MONITORYear round

RATEOctober

DEVELOPYear round

PLANOctober

REWARDNov-Jan


Performance Management Cycle

SUPERVISOR EMPLOYEE


Performance Conversations

End-Cycle Review• Review employee self-

assessment• Gather data for written

appraisal

Interim Review• Check progress• Provide feedback• Make course corrections

Performance Plan• Establish performance

expectations• Align employee objectives with

organizational goals

Ongoing FeedbackOngoing FeedbackFeedback between supervisor and employee Feedback between supervisor and employee

should be ongoing throughout the rating cycleshould be ongoing throughout the rating cycle

Annual Appraisal• Review written appraisal• Communicate rating of record

and performance payout


Performance Assessments

Performance Planconversation

Interim Reviewconversation(s)

Annual Appraisalconversation

CloseoutAssessment

(when appropriate)

Early Annual Assessment

(when appropriate)

OCT SEP JAN

Self-AssessmentMid-cycle

End-Cycleconversation

Self-AssessmentDraft before, finalize after

OCT NOV DEC

Annual Assessment

… assessment ongoing …

Planning PerformancePlanning Performance

Planning Performance

Your Performance Contract

• Think of your performance plan as a contract between you, your supervisor, and your organization

– Specifies work to be done– Specifies conditions for

success– Specifies time and cost– Commits all parties on

signature


Your Performance Rating

• You will be rated on the most important contributions you make, as described by the job objectives on your performance plan

– Every contribution you make matters, though not all your contributions will be rated

– What matters most is determined by alignment


Employee Performance Plan

JOB OBJECTIVES

Identify what is to be done

Define quality of outcome

Link to organizational goals

Specific to position/salary

Recommend 3-5 per employee

CONTRIBUTING FACTORS

Identify how it is to be done

Define quality of process

Link to job objectives

Standard across DoD

Recommend 1-3 per objective


Job Objectives

• Written in SMART format

• Focus on results

• Link to organizational mission and goals

• Can be accomplished within the rating cycle

• May be modified at any time

S Specific

M Measurable

A Aligned

R Realistic

T Timed


Job Objectives

• Reflect your primary responsibilities

• Target Level 3 performance for your pay schedule, pay band, and salary

• May be weighted based on significance or expected effort (optional)

S Specific

M Measurable

A Aligned

R Realistic

T Timed


Sample SMART Objectives

IT SpecialistIT Specialist

S = New payroll system testing completed.

M = Testing completed without exceeding project budget for overtime hours. Feedback from product support team indicates final configuration documentation is complete and accessible.

T = By 30 Sep 07.

R = Depends on timely completion of required programming tasks.

Budget AnalystBudget Analyst

S = Written reports recommending options for achieving budget objectives.

M = Recommendations conform to established policies and financial constraints within the overarching budget.

T = Submitted within 10 business days following each quarter-end.


Contributing Factors

Customer FocusCustomer Focus

Technical ProficiencyTechnical Proficiency

Resource ManagementResource Management

LeadershipLeadership

Cooperation/TeamworkCooperation/Teamwork

CommunicationCommunication

Critical ThinkingCritical ThinkingWrite an opinion …

Solve a problem …

Implement a system …


Performance Plan Requirements

• Supervisors must actively engage employees in developing their performance plans– Supervisor makes final decision– Higher-level review of final plan is required

• New employees must have 90 days on a performance plan to be eligible for a rating– Rating period may be extended under special

circumstances


Required Supervisory Objective

• Supervisors are required to include in their performance plans at least one job objective that defines their performance management duties– USMC may issue a standard supervisory objective– Leadership must be included among contributing

factors

Clearly communicating performance Clearly communicating performance expectationsexpectations

Holding employees responsible for Holding employees responsible for accomplishing objectivesaccomplishing objectives

Fostering and rewarding excellent Fostering and rewarding excellent performanceperformance

Addressing poor performanceAddressing poor performance

Making meaningful distinctions among Making meaningful distinctions among employees based on performance and employees based on performance and contributioncontribution

Adhering to merit system principles and Adhering to merit system principles and prohibited personnel practicesprohibited personnel practices

Monitoring & Developing Monitoring & Developing PerformancePerformance

Monitoring & Developing Performance

Monitoring Performance

• Dialogue between supervisor and employee is key to effective performance management

• Performance plans are ‘living documents’ and may be modified throughout the rating cycle

– Contributing factors may be modified as may job objectives

– Modifications following the Interim Review are possible but should be few

Monitoring & Developing Performance

Developing Performance

• Employees are required to create Development Plans that support achievement of their Performance Plans

• Supervisors must take action to address poor performance– Range of options available to close

performance gap– A Performance Improvement Plan

(PIP) may be implemented though not required

Rating PerformanceRating Performance

Rating Performance

Rating Process Steps

1 Write Self-AssessmentDocument accomplishments by providing data for all job objectives and measures.

2 Write Supervisory AssessmentBuild on and supplement employee self-assessment.

3 Rate Job ObjectivesDetermine a base rating for each objective using a performance indicator, and then adjust the base rating using contributing factors.

4 Recommend RatingAverage all adjusted ratings to determine overall rating.

Job objectives & measures

Performance indicators

Contributing factors

Policies & proceduresOther relevant

standards

Rating Performance

Rating Job Objectives

RecommendedRating

(rounded)

3

ContributingFactor“How”

AdjustedRating

2

4

3+0-

+0-

+0-

X X

X X X

X X X

Job Objectives

X X X

X X X

X X

#3

#1

#2

PerformanceIndicator“What”

3

3

3

Rating Performance

Rating Guidelines

When rating objectives … • A Level 1 rating on any one objective results in a Level 1 rating overall

When adjusting ratings … • A Level 5 rating cannot be adjusted up

• A Level 2 rating cannot be adjusted down

• A Level 1 rating cannot be adjusted

+ 0 ─

Rating Performance

Performance Indicators

• Three sets of descriptors– Professional/Analytical– Technician/Support– Supervisor/Manager

• Descriptors are provided at Level 3 and Level 5

• Descriptors are descriptive, not prescriptive

RATING DESCRIPTOR

5 Role Model

4 Exceeds Expectations

3 Valued Performer

2 Fair

1 Unacceptable

NR Not rated

Establish Base RatingEstablish Base RatingReference relevant Performance Indicator to Reference relevant Performance Indicator to

establish base rating for each job objectiveestablish base rating for each job objective


Rating Performance

Performance Indicators

Level 5Role Model

Level 3Valued Performer 33

22

11

4455

Distinguish levelsDistinguish levelsof performanceof performance


Rating Performance

Rating Scale

5 Target ++Role Model

4 Target +Exceeds Expectations

3 TargetValued Performer

2 Target –Fair

1 Off the targetUnacceptable

Level 1Employee failed to achieve the assigned job objective or failed in the performance of a single assignment where such failure had a significant negative impact on accomplishment of the mission or where a single failure resulted in or could result in death, injury, breach of security, or great monetary loss.

Level 5Employee exceeded the assigned job objective at a level of performance equal to, or above, the level 5 performance indicator.

Rating Performance

Level 3 Performance

5 Target ++Role Model

4 Target +Exceeds Expectations

3 TargetValued Performer

2 Target –Fair

1 Off the targetUnacceptable

PB1Level 3 Level 3

PB2Level 3 Level 3

PB3Level 3 Level 3

Rating Performance


• Three sets of descriptors– Professional/Analytical– Technician/Support– Supervisor/Manager

• Descriptors are provided at Expected and Enhanced levels

• Descriptors are descriptive, not prescriptive Adjust Base RatingAdjust Base Rating

Reference relevant Benchmark Descriptors to Reference relevant Benchmark Descriptors to adjust base rating for each job objectiveadjust base rating for each job objective

IMPACT DESCRIPTOR

+ (1)• Matched or exceeded

Enhanced descriptors

O

• Matched or exceeded Expected descriptors,

• Below Enhanced descriptors

– (1)• Below Expected

descriptors


Rating Performance


EnhancedPlus (+)

ExpectedNeutral (0) 00

––

++

C

OM

MU

NIC

AT

ION

C

OO

PE

RA

TIO

N

T

EC

HN

ICA

L P

RO

FIC

IEN

CY

Would you say these bars indicate a plus (+) or a

neutral (0) for contributing factors?


Distinguish levelsDistinguish levelsof performanceof performance

“… “… as a whole, or in as a whole, or in the aggregate …”the aggregate …”

Rating Performance

Recommended Rating

To determine recommended rating …

1. Calculate average of adjusted ratings for all job objectives

2. Apply rounding to determine recommended rating

Weighted Job ObjectivesWeighted Job ObjectivesCalculate weighted average and apply Calculate weighted average and apply

rounding if optional weights were assignedrounding if optional weights were assigned

RATING AVERAGE

5 4.51 to 5.0

4 3.51 to 4.50

3 2.51 to 3.50

2 2.0 to 2.50

1 Less than 2.0

Rating Performance

Challenging a Rating

• Employees may challenge a rating of record only.

• Employees may not challenge:– An interim review or closeout assessment– A recommended rating or an individual job objective

rating if the requested remedy will not alter the rating of record

– A payout amount, number of shares, value of shares, or distribution of payout between salary increase and cash bonus

Rating Performance

Challenging a Rating

• A request for reconsideration must be submitted in writing to the pool manager within 10 days of receiving a rating.

• The pay pool manager’s ruling may be appealed to the Performance Review Authority (PRA).

• Decisions made through this process do not cause the recalculation of payouts made to other employees in the pay pool.

Rewarding PerformanceRewarding Performance

Rewarding Performance

Rewarding Process Overview

Supervisor Recommends

Ratingof Record

PayoutDistribution

ShareAssignment

Pay PoolPanel

Reviews

Reviews and reconciles

recommendations from supervisors

Finalizes rating of record, share assignment,

payout distribution

Pay PoolManager

Authorizes

Facilitates pay pool panel and

resolves disagreements

Reconciles differences

between funds allocated and pay

pool budget

Authorizes rating of record, share

assignment, payout distribution

SupervisorCommunicates

Communicates supervisory assessment,

rating of record, share assignment,

and payout distribution to

employee

Higher-Level

Review


Share Assignment

• A share represents a percentage of pay for an employee

Criteria supervisors may consider …• Level and complexity of work

performed• Overall contribution to mission• Organizational success• Fiscal soundness• Other criteria consistent with merit

system principles

Rating Share Range

5 5-6 shares

4 3-4 shares

3 1-2 shares

1 or 2 No shares

One approach …One approach …

1.1. Start with average rating Start with average rating prior to rounding.prior to rounding.

2.2. Permit adjustment up or Permit adjustment up or down with justification.down with justification.


Payout Distribution

• A payout may be distributed as a salary increase, a cash bonus, or a combination of the two

Criteria supervisors may consider …• Current salary and level and

complexity of work performed• Promotions, reassignments, or

awards received during rating cycle• Local market salary comparisons• Attrition and retention rates of

critical personnel• Overall contribution to mission

Payout Options

Salary increase

Cash bonus

Combination

One approach …One approach …

1.1. Start with Comptroller Start with Comptroller guidance.guidance.

2.2. Permit adjustment up or Permit adjustment up or down with justification.down with justification.


Pay Pool Process Goals

• The pay pool process holds managers and supervisors accountable for rating employees fairly and equitably– Ensures decisions regarding compensation and

rewards receive higher-level review– Validates decisions made at the individual level align

with the organization's mission and goals– Ensures results are met and all decisions conform to

Merit System Principles


Pay Pool Structure

Performance Review Authority (PRA)

Pay PoolCommanderRating Official

Pay Pool Manager

Division ChiefRating OfficialPanel Member


Branch ChiefRating Official


Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee


Employee

Employee

Employee

Employee

Employee

Employee



Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee


Pay Pool Structure

Sub Pay Pool BSub Pay Pool A

Performance Review Authority (PRA)

Pay PoolCommanderRating Official

Pay Pool Manager


Sub Pay Pool Manager


Sub Pay Pool Manager


Sub Panel Member


Sub Panel Member

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee


Sub Panel Member

Employee

Employee

Employee

Employee

Employee

Employee


Sub Panel Member


Sub Panel Member

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee

Employee


Pay Pool Roles

• Performance Review Authority (PRA)– Provide guidance to pay pool

managers

– Manage discretionary pay fund

– Decide challenges to ratings of record

• Pay Pool Panel– Financial focus (shares and

payouts)

• Sub Pay Pool Panel– Performance focus (ratings

and shares)

• Higher-Level Reviewer– Documentation focus

(employee and supervisor assessment statements)

PRA

Ensures equityacross pay pools

PRA

Ensures equityacross pay pools

Pay Pool Panel

Ensures equityacross sub pay pools

Pay Pool Panel

Ensures equityacross sub pay pools

Sub Pay Pool Panel

Ensures equity across supervisors

Sub Pay Pool Panel

Ensures equity across supervisors

Higher-Level Reviewer

Ensures qualityof written appraisals

Higher-Level Reviewer

Ensures qualityof written appraisals


Pay Pool Fund

Element 1

Within Grade Increases, Quality Step Increases,

Promotions

Element 2

Remaining portion of General Pay Increase

Element 3

Annual bonuses

Pay Pool Fund

Total Base Salaries multiplied by sum of Elements 1, 2, and 3

Element 3

1.00 percent

Element 2

0.00 percent

Element 1

2.26 percent

EXAMPLE


Pay Pool Share Value

• Share value is inversely related to total shares assigned within pay pool

• Share value generated at sub pay pool level will change at pay pool level

Share Value =Pay Pool Fund

(Salary x Shares) for each employee

SHARESPAY

POOLFUND

SHARE VALUE

Tools & ResourcesTools & Resources

Tools & Resources

Performance Appraisal Application

• Automated tool built into DCPDS to support the entire performance management process– My Biz (employee access)– My Workplace (manager and supervisor access)

PAA User GuidePAA User Guide available at available atwww.cpms.osd.mil/nspswww.cpms.osd.mil/nsps

Also available online …Also available online …• NSPS 101NSPS 101• iSuccessiSuccess

Tools & Resources

Information Resources

• Manpower & Reserve Affairs MPC-20• Marine Corps MyBiz PAA Help Desk

Marine Corps Letters of Instruction (LOIs)Marine Corps Letters of Instruction (LOIs)

Compensation ManagementCompensation Management Workforce ShapingWorkforce ShapingStaffing & EmploymentStaffing & Employment Performance ManagementPerformance ManagementClassification & PositionClassification & Position Pay Pool ManagementPay Pool Management ManagementManagement

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HR Elements for Managers, Supervisors, and Employees

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