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Department of Commerce Demonstration Project Workforce Management Staff Training
2006
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Overview of Demonstration Project
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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)
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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
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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
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Background of DOC Demo Project
Project Attributes Simplification Easier to Understand Greater Flexibility Delegates More Decision-Making to Managers Greater Emphasis on Performance Management
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Background of DOC Demo Project
Project Design Fair & Equitable Budget Discipline Partnership Based
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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
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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
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Summary of Project Features
Classification Career Paths Replace Occupational Groups Pay Bands & Intervals Replace Grades & Steps DOC Standards Replace OPM Standards
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Summary of Project Features
Staffing Delegated Examining from OPM (Agency-Based) Streamlined Staffing = Easier Recruitment of Quality Candidates
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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
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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
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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
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Summary of Project Features
What Doesn’t Change Employee Rights (appeals, Grievance, EEO, etc.) Labor Relations Employee Training & Development Employee Benefits
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Demonstration Project References
OPM Federal Registers DoC Demo Website NOAA WFMO Website
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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
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Position Classification
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Classification Principles
Provide classification equity Simplify the process Support the mission Consider the whole job Reinforce management accountability Support pay for performance
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Purpose Of Classification
To Categorize Positions By: Career Path Occupational Series Pay Band Title
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Objectives Simplify Classification Process
Increase Management Authority, Accountability, And Flexibility
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ADVANTAGES OF PAY BANDING
FEWER, BROADER AND SIMPLER STANDARDS MORE UNDERSTANDABLE CLASSIFICATION SHORTER POSITION DESCRIPTIONS FEWER CLASSIFICATION DECISIONS
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ADVANTAGES OF PAY BANDING
LESS DOCUMENTATION EASIER TO AUTOMATE FACILITATES DELEGATION TO LINE MANAGERS
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ADVANTAGES OF PAY BANDING
FACILITATES PAY FOR PERFORMANCE MORE FLEXIBLE ENTRY PAY BETTER LINK TO CAREER STAGES
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Positions Covered Covered: GS GM Excluded: WG SES ST/SL-3104
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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
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Advantages Of Career Paths
Similar Treatment For Similar Occupations Broader And Simpler Classification Standards
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Career Path Definitions
Two-grade interval professional technical positions in the physical, engineering, biological, mathematical, computer and social sciences; and student positions for training in these disciplines. Scientific/ Engineering (ZP) 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 Technician (ZT)
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Career Path Definitions
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. Support (ZS)
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Career Path Determinations
Biologist Mathematician Chemist Meteorologist IT Specialist Oceanographer Economist Physical Scientist Engineer/Scientist Statistician Fish Administrator Scientific/ Engineering (ZP) Scientific & Engineering Technical (ZT) Biology Technician Electronics Technician Engineering Technician Meteorological Technician Physical Science Technician
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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)
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Classification System
Automated Classification System User System HR Validation System PD Storage System
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Classification Logic Principal Objective Career Path Series Pay Band Title
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Mixed Series Positions
Highest Pay Band Controls Series Other Factors: Principal Objective Paramount Qualifications Sources Of Recruitment Lines Of Promotion
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Interdisciplinary Positions
Classification And Staffing Issue Advertised In 2 Or More Series Classification Based On Selectee’s Qualifications
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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
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Career Paths & Broad Pay Bands
Scientific & Engineering ZP I II III IV V Engineering Technician ZT Administrative ZA Support ZS Corresponding GS Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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Classification Standards
Duties And Responsibilities Level of responsibility KSAs Education Experience
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Titling decisions Linked To Series Definitions Provided
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Titling Practices Supervisory Research Assistant Officer Lead
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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
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Supervisor/Team Lead Titling Criteria
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.
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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
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Authority And Accountability
DPMB Sets Overall Classification Policy Approves Changes To ACS Approves New Series Final Classification Appeal Resolve Project Classification Issues
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Authority And Accountability
OPMBs Establish OU Classification Guidelines Delegate Classification Authority Resolve OU Classification Issues (Initial Review Of Classification Appeals)
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Authority And Accountability
Supervisors: Comply With DPMB and OPMB Guidelines Observe Principle of Pay Equity For Work Maintain Accurate PD’s
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Classification Appeals
Appeal Levels OPMB - 1st Level DPMB - Final Decision
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Non-appealable Issues
PD Accuracy Pay Band Standards Accuracy Consistency Applicability Assignment Of Duties Constructed Title
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STAFFING
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Staffing Options Delegated Examining (DE) – Agency Based
Merit Assignment Program Staffing (MAP)
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Hiring Flexibilities and Appointment Process
Principal Objectives Streamline the Hiring Process (Time and Administration) Delegate Authority
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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
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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
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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
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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 GS-13 does not meet minimum requirements for the ZP/ZA-PB-V)
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Other Options to Fill Vacancies
Merit Assignment Program Reassignment Transfer Reinstatement Details Temporary Appointment Term Appointment Temporary Promotion Realignment Special Hiring Programs
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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.”
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ZP Probationary Periods
Action Options End the Probation Period (any time after 1st year) Continue the Probation Period (up to 3 years) Terminate Appointment
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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)
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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
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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
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RIF
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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
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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
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RIF CREDIT CURRENT DEMO 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.
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RIF CREDIT (CONT) CURRENT DEMO
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.)
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Reduction-in-Force HRAs Determines Release from Competitive Level
Conducts Qualifications Analysis Identifies Positions for Referral to RIF Subpanel(s) Convenes RIF Subpanel(s)
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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
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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
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Reduction-in-Force Service HR Manager:
Receives & Reviews Recommendations from the RAP Discusses Recommendations with RAP (if needed) Makes Final Decision on the Action
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PAY
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Pay References References Include: OPM Federal Register Notices
Demo Project Operating Procedures Demo Project Pay Setting Guide Demo Project Pay Tables
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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
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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.
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Pay Ceilings Basic Pay for non-supervisory position - maximum rate of Interval 3 Basic Pay for supervisory position - maximum rate of Interval 5
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Pay Setting New Appointments Competitive Reassignment w/Pay Adjustment
Conversion Actions Promotions (minimum 6%) Change to a lower grade (band)
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“Placement” In Supervisory
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
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WFMO Staff Responsibility
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
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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
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Converting from Demo to a GS position
Consider the following: Career Path Pay Band Interval Base Pay and Locality Pay
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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.
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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: 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
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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.
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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.
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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.
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Performance Management
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What is Performance Management ?
Planning work Monitoring work effort Developing employees Appraising employees Rewarding employees
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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
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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)
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Reviewing Official Who: Responsibilities:
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
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Pay Pool Organizational level where employees are combined by career path : Rating Score Pay Bonus
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Appraisal Cycle Mid-Year Issue Appraisal Review Performance Plan April
October April September Issue Performance Plan Mid-Year Review Appraisal
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The Performance Plan Communication tool Performance appraisal tool
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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
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Performance Plan Modifications
Process Remains the Same Rating official signs Exception Modification Also Requires Pay Pool Manager/Reviewing Official Signature
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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
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Benchmark performance standards
Evaluation Criteria Benchmark performance standards Performance attributes
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Mid-Cycle Progress Review
Process Remains the Same Rating Official Signs Increased Importance Exception Modification Also Requires Pay Pool Manager/Reviewing Official Signature
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Progress Review Require one review mid-way by April 30th
Discuss progress Identify problems Provide guidance Determine if plan needs to be changed
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Who Is Appraised? All employees in a covered position as of September 30th 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
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Annual Appraisal Request written accomplishments
Inform employees of their opportunity for Performance Review Meeting
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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
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Deriving a Rating Each critical element is rated in
comparison to the Benchmark Performance Standards
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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
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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.
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PAY & BONUS POOL INCREASES SALARY HISTORICAL SPENDING
WGI's QSI's SA IN-LEVEL PROMOTIONS Base Pay Adj BONUS PA HISTORICAL SPENDING INCENTIVE PAY FUND
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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
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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.
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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
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PIP Requirements Identify critical elements failed
Describe improvement required Describe assistance to be provided Provide reasonable time to improve State consequence of failure
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Responsibility During PIP
DOCUMENT, DOCUMENT, DOCUMENT Keep regularly scheduled meeting Treat employee with dignity
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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
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Acceptable Determination
Issue concluding memorandum Continue to monitor performance Warn against “Roller Coaster” performance
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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 days
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Actions Based On 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
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Employee Reconsideration Rights
Reviewable Rating Performance Score Pay Increase Not Reviewable Performance Plan Bonus Decisions
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Reconsideration Procedures
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 ) 10 calendar days for employee to file formal grievance 90 calendar days for management to respond to formal grievance
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Project Evaluation
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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.
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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.
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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?
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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
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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
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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
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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
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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
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