# Presentation: 661373

## FAA CompensationSystem 

**Pay Flexibilities and Incentives**

-               Bernadette O’Brien, AGL-14

- FAA Managers
- Charlene Argo, AHP-300
- January 30-31, 2008

## Today’s Topics

**Pay Setting Flexibilities**
**Recruitment Incentives **
**Retention Incentives**
**Relocation Incentives**
**Resources**

## Pay Setting Flexibilities

## Pay Setting Flexibilities

**New Hires/Rehires**** **
**pay may be set anywhere in the new pay band**
**Promotion**** **
**increases may range from ****0****% to ****15****%**
**Reassignment Increase**** **
**may be granted increase of ****1****% to ****7****% **
**Reassignment Bonus****  **
**may be granted lump sum payment of ****1****% to ****7****% **

## Pay Setting Flexibilities

**In-position Increase**** **
**may range from ****1****% to ****7****%**
**Demotions****	****	**
**Career-Enhancing**
**Voluntary**
**Involuntary, No Fault of Employee**
**Involuntary, Performance/Conduct Issue**
**Expert Level**** **
**may establish position above normal career levels in Professional, Technical, Engineering, and Specialized categories**

## New Hire Pay: Decision Tool Example

*Relative Importance of Each Criteria Determined by Manager*

## Automated Decision Support Tool

## Recruitment Incentives

## Recruitment Incentives

**          **
**Newly appointed employee**
**Prolonged difficulty in attracting adequate # of candidates in hard-to-fill positions, or**
**Need for unique competencies critical to agency mission**

## Recruitment Incentives

*** Based on criticality of agency need**

| Authority | Amounts |
| --- | --- |
| LOB or Staff Office | Up to 25% of basic pay |
| AHR-1 | *Up to 50% of basic pay |

## Recruitment Incentives

**    ****Method of Payment**
**Initial lump-sum payment**
**Installments                              **
**Final lump-sum payment**
**Combination of methods**
**Incentive may not be paid before an employee enters on duty**

## Retention Incentives

##  Retention Incentives

** **
**       **
**Unique qualifications/special needs are essential to retain employee**
**Possible loss of employee likely to leave Federal Service**
**Current performance rating at least “fully successful”**
**LOB written documentation justifying need, amount, time and length of service period**

## Retention Incentives

*** Based on criticality of agency need**

| Authority | Amounts |
| --- | --- |
| LOB or Staff Office | Up to 25% of basic pay |
| AHR-1 | *Above 25%of basic pay |

## Retention Incentives

**          ****Method of Payment**

| Installments | After completion of specified periods of service during course of full service period (biweekly, monthly, quarterly, etc.)  |
| --- | --- |
| Single 
Lump-Sum | After completion of full period of service required by a service agreement |

## Relocation Incentives

## Relocation Incentives

**             **
**	****Current employees who must relocate to accept a position **
**in FAA or **
**from another agency in a different geographic area **
**when the position would be difficult to fill in**
**the absence of the incentive**

## Relocation Incentives

| Authority | Amounts |
| --- | --- |
| LOB or Staff Office | Up to 25% of basic pay with movement of 50 miles or more |
| AHR-1 | *Above 25% of basic pay up and movements less than 50 miles |

## Relocation Incentives

**         ****Method of Payment**** **
**Initial lump sum payment**
**Installments**
** **
**Final lump-sum payment **
**Combination of methods**

## Recruitment, Retention, and Relocation Incentives

**        ****Service Agreement**
**To receive relocation incentive, employee must sign written agreement**
**Service agreement must be at least 12 months but not greater than 4 years**

## Recruitment, Retention, and Relocation Incentives

**                 **
**Service Agreement – Termination**
**Discretionary  **
**May be terminated based on management needs**
**Mandatory **
**Demoted or separated for cause  **
**Rating of record less than “fully successful” **
**Fails to fulfill terms of the service agreement**

## FAA Managers Guide to 

*FAA Managers Guide to *
*Human Resources*

## FAA Managers Guide to Human Resources

- About the FAA
- Accountability Board
- Core Compensation
- eLMS
- Employee Relations
- Filling Vacant Position – Competitive Process
- Guide to Interviewing

- Hiring Flexibilities
- Labor Management Relations
- Merit System Flexibilities
- Merit System Principles
- Prohibited Personnel Practices
- Training Requirements for Mgrs
- Veterans’ Preference

**Helpful tool with information on**:

**https://employees.faa.gov/org/staffoffices/ahr/sup_man_services/**

## FAA Flexibilities and Incentives Resources

**Human Resources Policy Manual (HRPM)**
**Recruitment, Retention, Relocation Incentives Policy Bulletin #42**
_**[https://employees.faa.gov/org/staffoffices/](https://employees.faa.gov/org/staffoffices/)**_
**ahr/p**olicy_guidance/hr_policies/hrpm/bulletin/bullet42/
- Questions?  Please call ...

## This permanent site allows you the option of viewing 

- Past Broadcast at your PC whenever you need a quick refresher.
**http://www.academy.faa.gov/intranet/vod/sst.asp**
- The new  Managers' Guide to Human Resource Management that can be found at:
**https//employees.faa.gov/org/staffoffices/ahr/**
**sup_man_services**