# Presentation: 369243

## Department of CommerceDemonstration ProjectWorkforce Management Staff Training

_***2006***_

## Overview of Demonstration Project 

## History of HR Demonstration Projects

- Title VI, Civil Service Reform Act of 1978
- 	Authorizes OPM to permit Federal Agencies to conduct demo projects to determine if changes in policy/procedures would improve Federal HR management
- China Lake Project (Paybanding)
- NIST Project (Paybanding, Staffing, Perf. Mgt. & RIF
- 	Each project limited to 5,000 employees and initial 5-year test period
- Federal Employees Pay & Compensation Act of 1993
**	****Adopted many demo project interventions (e.g.  recruitment/retention bonuses)**

## Background of DOC Demo Project

- Key Project Components
- Simplified Classification System Using Career Paths and Paybanding
- Additional Hiring Flexibilities
- “Pay-for Performance” Performance Management System
- Additional Pay Flexibilities
- Revised Reduction-in-Force System

## Background of DOC Demo Project

- Project Objectives
- Attracting and Retaining High Performance Employees
- Improving the Effectiveness and Efficiency of HR
- Increased Delegation of Authority and Accountability to Managers
- HR System that Better Facilitates Organizational Mission & Excellence

## Background of DOC Demo Project

- Project Attributes
- Simplification
- Easier to Understand
- Greater Flexibility
- Delegates More Decision-Making to Managers
- Greater Emphasis on Performance Management

## Background of DOC Demo Project

- Project Design
- Fair & Equitable
- Budget Discipline
- Partnership Based

## Background of DOC Project

- Current Participating DOC Organizations
- Technology Administration, Offices of the Under Sec. & Tech. Policy
- Bureau of Economic Analysis (BEA)
- NTIA  Institute for Telecommunication Services (ITS)
- NOAA

## Background of DOC Project

- Employees Covered
- All GS
- All GM
- All ST/SL 3104 for Appraisal, Awards and RIF (not eligible for incentive pay)
- Employees Not Covered
- All SES
- All FWS

## Summary of Project Features

- Classification
- Career Paths Replace Occupational Groups
- Pay Bands & Intervals Replace Grades & Steps
- DOC Standards Replace OPM Standards

## Summary of Project Features

- Staffing
- Delegated Examining from OPM (Agency-Based)
- Streamlined Staffing = Easier Recruitment of Quality Candidates

## Summary of Project Features

- Performance Management
- Potential Annual Performance Pay Increases
- Potential Annual Bonuses
- Motivates Employees to Higher Performance
- Designed to Attract Higher Quality Candidates
- Designed to Improve Organizational Excellence

## Summary of Project Features

- Pay Administration
- Flexible Pay Setting in Recruitment & Internal Placement
- Flexible Pay Setting in Performance Management
- Supervisory pay band ceilings exceed regular pay band ceilings

## Summary of Project Features

- Reduction-in Force
- Simplified to Reduce Disruption to Organization
- Designed to Improve Match-Up of Employee Skills With Positions
- Retains All Employee Veteran Preference & Appeal Rights
- Potential Service Credit Up To 30 Years
- Transfers RIF credit from other agencies on prorated basis

## Summary of Project Features

- What Doesn’t Change
- Employee Rights (appeals, Grievance, EEO, etc.)
- Labor Relations
- Employee Training & Development
- Employee Benefits

## Demonstration Project References

- OPM Federal Registers
-  DoC Demo Website    _[http://ohrm.os.doc.gov/Demo/index.htm](http://ohrm.os.doc.gov/Demo/index.htm)_
- NOAA WFMO Website
- 	_[http://](slide16.xml)__[www.wfm.noaa.gov/index.html](slide16.xml)_

## Demonstration Project References (continued)

- DoC Demo Operating Procedures
- DoC Demo Processing Manual
- DoC Demo Pay Setting Guide
- DoC Demo Automated Classification (ACS)
- DoC Demo Project Employee Guide
- Demo Project Training Modules

## Position Classification

## Classification Principles

**Provide  classification equity**
**Simplify the process**
**Support the mission**
**Consider the whole job**
**Reinforce management accountability**
**Support pay for performance**

## Purpose Of Classification

**To Categorize Positions By****:**
- Career Path
- Occupational Series
- Pay Band
- Title

## Objectives

- Simplify Classification Process
- Increase Management Authority, Accountability, And Flexibility

## ADVANTAGES OF  PAY BANDING

- FEWER, BROADER AND SIMPLER STANDARDS
- MORE UNDERSTANDABLE CLASSIFICATION
- SHORTER POSITION DESCRIPTIONS
- FEWER CLASSIFICATION DECISIONS

## ADVANTAGES OF  PAY BANDING

- LESS DOCUMENTATION
- EASIER TO AUTOMATE
- FACILITATES DELEGATION TO LINE MANAGERS

## ADVANTAGES OF PAY BANDING

- FACILITATES PAY FOR PERFORMANCE
- MORE FLEXIBLE ENTRY PAY
- BETTER LINK TO CAREER STAGES

## Covered:
GS
GM

Excluded:
WG
SES
ST/SL-3104

- GS
- GM
_**Excluded**_**:**
- WG
- SES
- ST/SL-3104

**Positions Covered**

## Classification System

_**CURRENT**_
- 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

## Advantages Of Career Paths

- Similar Treatment For Similar Occupations
- Broader And Simpler Classification Standards

## Career Path Definitions

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

***   ***

*** *****Scientific/**
**Engineering**
**     ****(ZP)**

**Scientific/**
**Engineering**
**Technician**
**(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; assistants, and student positions for training in these skills.

## Career Path Determinations

- Biologist			Mathematician
- Chemist				Meteorologist
- IT Specialist		              Oceanographer
- Economist			Physical Scientist
- Engineer/Scientist		Statistician
- Fish Administrator

- Biology Technician
- Electronics Technician
- Engineering Technician
- Meteorological Technician
- Physical Science Technician

***  *****Scientific/**
**Engineering**
**   ****(ZP)**

**Scientific &**
**Engineering**
**Technical**
**     ****(ZT)**

## Career Path Determinations

- Accountant			Management Analyst
- Administrative Officer		Miscellaneous Administrative
- Budget Analyst		              Personnel Management 	 General Business Specialist** **	Specialist
- Printing Manager

**Administrative**
**    ****(ZA)**

- Personnel Clerk/Assistant		Accounting Technician
- Miscellaneous Clerk/Assistant	Legal Instruments Examiner Purchasing Agent        	Secretary
- Library Technician
- Office Automation/Clerk/Assistant
- Management Clerk/Assistant

**General Support (ZS)**

## Classification System

**Automated Classification System**

- User System
- HR Validation System
- PD Storage System

## Classification Logic

- Principal Objective
- Career Path
- Series
- Pay Band
- Title

## Mixed Series Positions

**Highest Pay Band Controls Series**
**Other Factors**:
- Principal Objective
- Paramount Qualifications
- Sources Of Recruitment
- Lines Of Promotion

## Interdisciplinary Positions

- Classification _And_ Staffing Issue
- Advertised In 2 Or More Series
- Classification Based On Selectee’s Qualifications

## Classification Components

**Principle objective**
**Level designation**
**Duties and Responsibilities**
**Knowledge, Skills and Abilities**
**Function Codes**
**Specialty descriptors **
**Key phrases**
**Supervisory designation**
**Position Requirements (Motor Vehicle, OGE-450, Physical Activity)**
**Position Sensitivity **

## Slide 37

| Career Paths | Pay Bands |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Scientific &
Engineering ZP | I |  |  | II |  | III | IV |  | V |
| Scientific &
Engineering
Technician ZT  | I |  | II |  | III | IV | V |  |  |
| Administrative 
ZA | I |  |  | II |  | III | IV |  | V |
| Support
ZS | I | II | III | IV | V |  |  |  |  |
| Corresponding 
GS Grade | 1  2 | 3  4 |  5  6 | 7  8  | 9 10 | 11 12 | 13    | 14 | 15 |

## Classification Standards

**Duties And Responsibilities**
- Level of responsibility
**KSAs**
- Education
- Experience

## Linked To Series

Definitions Provided

- Definitions Provided

**Titling decisions**

## Titling Practices

- Supervisory
- Research
- Assistant
- Officer
- Lead

## Classification Standards

_**Current**_
- Complex criteria
- Multiple formats
- FES
- Narrative
- Job family
- Range of grades

_**Doc Demo**_
- Simplified Criteria
- One Format
- Duties  And Responsibilities
- KSAs
- 4 Career Paths
- 5 Pay Bands

## 

Supervisor – Performs full range of supervision at least 25% of the time.

Team Lead - Team leads are responsible to their supervisors or managers for assuring that the work of their assigned team is carried out by performing a range of coordinating and supportive duties and responsibilities. 

*	Due to important and significant differences between the position classification and labor relations definitions of “supervisor,” this guidance should not be used to determine the bargaining unit status of team lead positions. 

- Supervisor – Performs full range of supervision at least 25% of the time.
- Team Lead - Team leads are responsible to their supervisors or managers for assuring that the work of their assigned team is carried out by performing a range of coordinating and supportive duties and responsibilities.
- *	Due to important and significant differences between the position classification and labor relations definitions of “supervisor,” this guidance should not be used to determine the bargaining unit status of team lead positions.

**Supervisor/Team Lead Titling Criteria****	**

##  Supervisor/Team Lead Differences

_**TEAM leads:**_
_**Explain team goals and objectives to assigned team members and assist team in organizing to accomplish work **_
_**Coach, facilitate, solve work problems and participate in the work of the team **_
_**Provide information to the supervisor on performance of the team and individuals **_
_**Communicate assignments, milestones and deadlines to the team and individuals based on supervisor’s instructions **_
_**Observe training needs and relay training needs and requests to supervisor **_
_**Inform supervisor of attendance and behavioral problems **_
_**Relay requests for resources and supplies **_

_**SUPERVISORS: **_
_**Set team goals, select team leads, assign team members and administratively and technically direct the work of subordinates **_
_**Plan, assign, review and accept, amend or reject work done by teams and subordinates **_
_**Assign performance ratings, approve awards and take performance-based corrective actions**_
_**Make work assignments, set or negotiate deadlines and completion dates **_
_**Schedule and approve funding for team and individual training **_
_**Counsel employees on behavior and initiate disciplinary actions if required **_
_**Allocate resources to teams **_

##      Authority And Accountability

_**DPMB**_
- Sets Overall Classification Policy
- Approves Changes To ACS
- Approves New Series
- Final Classification Appeal
- Resolve Project Classification Issues

## Authority And Accountability

_**OPMBs**_
- Establish OU Classification Guidelines
- Delegate Classification Authority
- Resolve OU Classification Issues (Initial Review Of Classification Appeals)

## Authority And Accountability

_**Supervisors:**_
- Comply With DPMB and OPMB Guidelines
- Observe Principle of Pay Equity For Work
- Maintain Accurate PD’s

## Classification Appeals

_**Appeal Levels**_
- OPMB -  1st Level
- DPMB - Final Decision

## Non-appealable Issues

**PD Accuracy**
**Pay Band Standards**
- Accuracy
- Consistency
- Applicability
**Assignment Of Duties**
**Constructed Title**

## STAFFING

## Staffing Options

**Delegated Examining (DE) – Agency Based**
**Merit Assignment Program Staffing (MAP)**

## Hiring Flexibilities and Appointment Process

**Principal Objectives**
**Streamline the Hiring Process (Time and Administration)**
**Delegate Authority**

## Agency BasedA Staffing Program Designed to Recruit from Sources Outside the Government 

**Vacancy Announcement**
**Must be placed in USAJOBS**
**Open to All Qualified Candidates**
**Subject to Veterans’ Preference, CTAP/ICTAP, and Other Priority Placement Programs**
**Paid Advertising May Be Used**
**When More Than 3 Qualified Candidates or Mix of Vet/Non-Vet, Rate and Rank**
**Rule of Three Applies**

## 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**

## BASIC QUALIFICATIONS

**OPM Basic Qualifications Apply with the following exceptions:**
**Testing not used**
**Superior Academic Achievement 2.9**
**Minimum qualifications apply to lowest GS grade within the pay band**

## TIME IN BAND

**Minimum requirements met on the basis of:**
**Time spent at next lower band; or**
**Combination of of next lower band and equivalent lower grade.**
**Note: When the band consists of more than one grade, requirements can be met based on time spent in next lower band but not solely on basis of lowest grade in the band. (e.g. 1 yr @ GS-13 does not meet minimum requirements for the ZP/ZA-PB-V) **

## Other Options to Fill Vacancies

**Merit Assignment Program**
**Reassignment**
**Transfer**
**Reinstatement**
**Details**
**Temporary Appointment**
**Term Appointment**
**Temporary Promotion**
**Realignment**
**Special Hiring Programs**

## ZP Probationary Period

- Purpose
- 	“To allow a hiring official to view the full cycle of a research assignment before making a final decision on retaining the employee.”

## ZP Probationary Periods

- Action Options
- End the Probation Period (any time after 1st year)
- Continue the Probation Period (up to 3 years)
- Terminate Appointment

## ZP Probationary Period

- Coverage
- All Non-Status ZP R&D Employees (I.e. functional codes 11 and 13) Hired After Implementation of the Project
- Not Covered
- All Current Employees
- All Employees in the ZT, ZA, & ZS Career Paths (one-year probationary period)

## ZP Probationary Period

- WFMO Staff Responsibility:
- Attach Memo to CD-352 for initial period
-    CD-352 automatically initiated: 9/21/05 for 33 mos.
-  If management decides to end probationary period you must process an update 6 action code to zero out the probationary/trial period

## References

**Delegated Examining and Merit Assignment:**
**Federal Register**
**Project Operating Procedures**
**WFMO Standard Operating Procedures**
**NOAA Merit Assignment Plan**
**OPM DEU Handbook**
**DOC HR Bulletins**

## RIF

## Reduction-in-Force

**Follows All Current RIF Laws & Regulations**
**Redefines Competitive Areas**
**Competitive Levels Unchanged**
**Revises Method to Augment Service Credit**
**Employs the Use of RIF Subpanels and RIF Panel**

## Reduction-in-Force System

_**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

## RIF CREDIT

**Credit for a “meets or exceeds” is 12 years**
**Last 3 ratings of record w/in last 4 years are averaged**

**An employee with a performance score in the top 30 percent of scores within a pay pool, is credited with 10  years of service credit for retention purposes. All other ratable employees receive 5 years of service credit.**

**CURRENT**

**DEMO**

## RIF CREDIT (CONT)

**Total potential credit under current system is 12 years. (Based on three consecutive “Meets or Exceeds” ratings.)**

**Total potential credit  under Demo is 30 years (Based on being in top 30% for three consecutive cycles.)**

**CURRENT**

**DEMO**

## Reduction-in-Force

**HRAs**
**Determines Release from Competitive Level**
**Conducts Qualifications Analysis**
**Identifies Positions for Referral to RIF Subpanel(s)**
**Convenes RIF Subpanel(s)**

## Reduction-in-Force

**RIF Subpanel:**
***Reviews Positions for Possible Bump by RIFee**
***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**

## Reduction in Force RIF Assignment Panel (RAP):

**Reviews Positions Referred by RIF Sub panel for Possible Bump**
**Requests Additional Info. from Organization if Needed**
**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

**Service HR Manager:**
**Receives & Reviews Recommendations from the RAP**
**Discusses Recommendations with RAP (if needed)**
**Makes Final Decision on the Action**

## PAY

## Pay References

- References Include:
- OPM Federal Register Notices
- Demo Project Operating Procedures
- Demo Project Pay Setting Guide
- Demo Project Pay Tables

## Pay Rates

- Locality pay is included in the Base Rate
- Special Rates expand the pay band but only for those occupations covered
- Separate pay tables for every locality and every special rate within each locality are used

## Pay Conversion

- Employees convert at same pay level
- Lump sum pay given for credit towards next WIGI
- One period for special pay adjustment for employees eligible for career ladder promotion within the pay band.

## Pay Ceilings

_***Pay Ceilings***_

- Basic Pay for non-supervisory position - maximum rate of Interval 3
- Basic Pay for supervisory position - maximum rate of Interval 5
**	**

## Pay Setting

_***Pay Setting***_

- New Appointments
- Competitive Reassignment w/Pay Adjustment
- Conversion Actions
- Promotions (minimum 6%)
- Change to a lower grade (band)

## Supervisory Pay

** “**Placement” In Supervisory
- Pay Band

- No immediate pay increase upon conversion or selection. Advancement in pay band based on annual performance rating
- Supervisory pay band ceilings exceed regular pay band ceilings into intervals 4 and 5 (i.e. maximum of 6%)
- Applies *only *while in supervisory position

## Supervisory Pay

** **WFMO Staff Responsibility

- Obtain written agreement from line office when employee moving into interval 4 of pay band. Change Special Employee Code to “12”. File agreement on right hand side of OPF
- When employee moving out of supervisory position pay must not exceed Interval 3. Change Special Employee Code from “12” to “0”.
- Employee has no appeal rights for loss of supervisory performance pay

## Leaving the Project or Determining and equivalent GS grade and step

-  Federal Register notice provides guidance
-  attach the “*Information about the Department of Commerce Demonstration Project*” (conversion out sheet) to the right side of the OPF and to 75 information
- Employee is entitled to pay retention if salary exceeds step 10 of the equivalent grade

## Converting from Demo to a GS position

- Consider the following:                                                                          Career Path                                                    Pay Band                                               Interval                                                     Base Pay and Locality Pay

## Determining GS Grade and Step

- If the pay band equals a single grade, then the band has to equal grade.  Determine what step is equivalent to the salary.  If salary is between steps the higher step is appropriate.                            Example:                                                                  ZP-V equals GS-15  ZP-V has a salary of 104,700 which  falls between GS-15 step 4 (102,664) and step 5 (105,775). The converted out step would be step 5.  The employee is converted out as a       GS-15/5.

## Determining GS Grade (continued)

- For multiple grade bands always start comparisons at the highest equivalent GS grade in the band.
-  If the employee is in the ZP or ZA career path, remember that these are two grade interval positions when determining the appropriate grade.
-  If the employee has been placed in the ZT or ZS career path then one grade intervals apply.
- Bands corresponding to two or more grades convert to one of those grades          Example: ZS-III equals GS-5/6
- For Pay bands equivalent to more than one GS grade:                                                     1. compare to the highest grade in the pay band  2.If salary is equal to or greater than the step 4, assign the highest grade

## Determining GS Grade (continued)

- Example:                                                          If the employee is in the ZP or ZA career path, pay band II, the equivalent grade pattern is GS 7/9.  If the salary is equal to or greater than step 4 of the GS-9, then that grade is the equivalent grade.  If the salary is less than step 4 of the GS 9, then move to the next highest grade of the band (GS-7) and set the step based on the salary.

## Determining GS Grade (continued)

- Example:                                                                     If the employee is in the ZT career path, pay band II, the equivalent grade pattern is GS 5/6/7/8.  If the salary is equal to or greater than step 4 of the GS-8, then that grade is the equivalent grade.  If the salary is less than step 4 of the GS-8, then move to the next highest grade of the band (GS-7) and perform the same comparison at the next lower levels until the salary reaches the step 4 representative rate.  This is done down to the lowest grade in the band.

## Qualifications vs Pay

- Note that qualifications are based on work experience, knowledge, skills and abilities
- DEMO salaries are not used solely for qualifications purposes. However, they must be considered when determining the equivalent GS grade.

## Performance Management

## What is PerformanceManagement ?

- Planning work
- Monitoring work effort
- Developing employees
- Appraising employees
- Rewarding employees

## 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

- Reviews and approves performance plans
- Controls pay pool
- Final decisions - rating, pay increase, bonus
- Responds to Requests for Reconsideration (i.e.informal grievances)

## Reviewing Official

- Who:
- Person at a 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 employees are combined by career path : **
**Rating**
**Score**
**Pay**
**Bonus**

## Appraisal Cycle

**October **

**September**

**April**

**Issue**
**Performance**
**Plan**

**Mid-Year**
**Review**

**Appraisal**

## The Performance Plan

- Communication tool
- Performance appraisal tool

## Plan Development

**Remains Essentially the Same**
**Determination of Critical Elements**
**Assignment of Weights**
**Criteria for Evaluation**
**Differences**
**Pay Pool Manager Signs Plan**
**All Elements Must Be Critical**
**Benchmark Performance Standards**
**Element Point Ranges Are Used**

## Performance Plan Modifications

**Process Remains the Same                                       ****Rating official**** ****signs****                                    **
**Exception**
**Modification Also Requires Pay Pool Manager/Reviewing Official Signature**
**	****	**

## Critical Elements

**Only critical elements**
**Minimum of two**
**Maximum of six**
**Assign weight based upon importance**
-     **and/or time required**
**Total weight must equal 100**

## Evaluation Criteria

**Benchmark performance standards**
**	****    ****Performance attributes**

## Mid-Cycle Progress Review

**Process Remains the Same                           ****Rating Official Signs**
**Increased Importance**
**Exception**
**Modification Also Requires Pay Pool Manager/Reviewing Official Signature**

## Progress Review

- Require one review mid-way by April 30th
- Discuss progress
- Identify problems
- Provide guidance
- Determine if plan needs to be changed

## Who Is Appraised?

**All employees in a covered position as of September 30****th**** AND who have worked 120 days in a covered position **
**EXCEPT: Employees who were promoted or received a pay adjustment during the last 120 days**

## Annual Appraisal

**Request written accomplishments**
**Inform employees of their opportunity**
**    ****for Performance Review Meeting**

## Performance Review Meeting

**List of Accomplishments  - Mandatory**
**Employee Must Provide to Supervisor in writing**
**Information Exchange**
**Supervisor/Employee Discuss Accomplishments**
**No Rating Discussed at this Meeting**

## Deriving a Rating

**Each critical element is rated in**
**comparison to the Benchmark**
**Performance Standards**

## Performance Ratings

**Eligible****	****	****	****“E”, covers total scores ****	**** ****	****	****	****	****ranging from 40 to 100**
**Not Ratable****	****	****	****“N”, employee not eligible to **
**	****	****	****	****	****receive an appraisal**
**Pending****	****	****	****“P”, final rating pending ****	****	****	****	****	****results of in-place PIP**
**Unsatisfactory****	****	****“U”, failure to meet PIP ****	****	****	****	****	****requirements of any element**
**	****	****	****	****	**

## Additional Rating Designations

**Pending**
**“****P” = Employees whose rating period is extended Beyond September 30 because on Performance  Improvement Plan (PIP)**
**Not Rated**
**“****N” = Employees who are ineligible for a rating as of September 30 because did not work in a covered position minimum of 120 days or received a pay adjustment within the last 120 days of the rating cycle.**

## PAY & BONUS POOL

**QSI's**

**WGI's**

**IN-LEVEL PROMOTIONS**

**HISTORICAL SPENDING**

**INCREASES**
**SALARY**

**INCENTIVE PAY FUND**

**Base Pay Adj**

**BONUS**

- SA

- PA

## PAY OUT RULES

**Highest *****scored***** employee receives highest relative percentage payout (0-100%)**
**Employees with tied *****scores***** may receive different relative percentage payouts**
**Lower *****scored***** employee **_**cannot**_** receive higher relative percentage payout than higher *****scored***** employee**

## PERFORMANCE PAY INCREASES

**Performance pay increases are automatically processed via the Pay for Performance System (PPS)**
**Effective date of performance pay out and bonuses is first PP in November.**

## PERFORMANCE BONUSES

**Up to $10K**
**Not eligible:  STEP and Faculty appointees; and employees unratable at the end of the rating cycle unless they have a DOC rating of at least Fully Successful within the past 13 months.**
**Processed via PPS NOA 840. SF-50s filed in EPFs**

## PIP Requirements

**Identify critical elements failed**
**Describe improvement required**
**Describe assistance to be provided**
**Provide reasonable time to improve**
**State consequence of failure**

## Responsibility During PIP

**DOCUMENT, DOCUMENT, DOCUMENT**
**Keep regularly scheduled meeting**
**Treat employee with dignity**

## Decision Process

**Did the employee meet the**
-     **requirements of the PIP?**
**Review the evidence in comparison**
**    ****to the standards**
**Review your documentation**
**Obtain support of higher level management**
**Consult with OHRM**

## Acceptable Determination

**Issue concluding memorandum**
**Continue to monitor performance**
**Warn against “Roller Coaster” performance**

## Unsatisfactory Performance

**Performance which fails to meet the**
**    ****established performance standards - ONE or more critical elements**
**Evidence required!**
**Standards are acceptable and defensible**
**Minimum appraisal period - 120 days**

## Unsatisfactory Performance

**Unsatisfactory Performance**
**Removal**
**Reduction in Pay Band/Grade**
**Reassignment**
**Loss of Comparability Increase**
**Loss of consideration for performance pay increase/bonus**
**The choice is a management decision and will not be subject to review on appeal**

##  Reviewable

** ****Reviewable**
**Rating**
**Performance Score**
**Pay Increase**
**Not Reviewable**
**Performance Plan****	**
**Bonus Decisions**

##  Request for Reconsideration Rating

** ****Request for Reconsideration Rating**
**15 calendar days for employees to file Request for Reconsideration (an informal grievance) **
**15 calendar days for management to formally respond to informal grievance**
**Formal Grievance (DAO 202-771)**
**10 calendar days for employee to file formal grievance**
**90 calendar days for management to respond to formal grievance**

## Project Evaluation

## Evaluation Background

- The project was designed to apply several HR interventions from earlier Demonstration Projects to a wider range of occupational areas for organizations with different missions. The current project seeks to build on and duplicate that success.

## The Need for an Evaluation

- The evaluation is an OPM approved evaluation plan.
- Evaluations are administered on an annual basis to determine whether the interventions  are achieving the goals and objectives of the project within acceptable cost limits.

## OPM’s EVALUATION CRITERIA

- 1.  Did the project meet its intended goals?
- 2.  Was the project implemented and operated appropriately and accurately?
- 3.  What was the cost of the project?
- 4.  What was the impact of the project on veterans and other EEO groups?
- 5.  Were the Merit Systems Principles adhered to and Prohibited Personnel
-       Practices avoided?
- 6.  Can the project or portions thereof be generalized to other agencies or
-      government-wide?

- _OPM’s EVALUATION CRITERIA_

##  EVALUATION TECHNIQUES

- Collection of objective personnel data (e.g. pay increases, bonuses, performance ratings, race, age, gender, etc.)
- A Survey with Demo Project and Comparison Group Employees
- Focus groups conducted nationwide with employees from Demo Project and Comparison Groups
- Interviews with senior managers and Human Resources staff

## 1.  Did the Project Meet its Intended Goals?

- _Goal 1:  Greater Hiring Flexibilities_
- Flexible entry salary intervention is providing sufficient salary to attract desired candidates
- Local authority for recruitment payments is an effective tool for attracting and hiring employees
- Positive supervisor assessment

## 1.  Did the Project Meet its Intended Goals? (Cont.)

- _Goal 2:  Greater Pay Setting Flexibilities_
- Pay banding provides greater pay setting flexibilities
- Pay increases aligned with performance
- Positive supervisor and employee assessments

## 1.  Did the Project Meet its Intended Goals? (Cont.)

- _Goal 3:  Pay for Performance_
- Managers have more latitude to increase pay of high performers
- High performers benefit from cumulative pay increases
- Inverse relationship between performance rating and turnover
- Positive supervisor and employee assessment

## 1.  Did the Project Meet its Intended Goals? (Cont.)

- _Goal 4:  Simplified Position Classification_
- Positive Human Resources staff assessment
- Reduced time needed to produce and classify a position
- Positive supervisor and employee assessment