1 Demonstration Project Pay Administration WORKSHOP FOR EMPLOYEES

2 AGENDA  Demo Project Pay System  Pay Flexibility  Setting Pay for Promotions and Reassignments  Q & A

3 DEMO Project Pay System  A pay system that improves the ability to attract and retain quality employees  Offers flexibility when setting pay  Streamlines approval for pay setting actions  Emphasizes pay for performance

4 Pay Flexibility  Pay for new hires can be set anywhere within the pay band except for intervals 4 and 5  Salary offers can be negotiated  Recruitment bonus can be offered to scientific, engineering and other hard to fill positions  Special salary rates expand the pay band

5 Things that are considered when setting pay:  Qualifications of incumbent and level of experience  Competitive salaries offered for similar positions  Comparison of salaries of existing staff  Expected learning curve & training requirements  Budget Issues in the organizations  Negotiation of salaries  Pay progression  ACI – Annual comparability increase  Eligibility for Performance increase – June 4th

6 Setting Pay for Promotions and Reassignments  Pay may be set anywhere between interval 1 and 3  Promotions must receive a minimum of a 6% increase  Pay progression & promotion potential  No in band promotions

7 Setting Pay for Promotions and Reassignments (con’t)  Eligibility for performance increase – June 4 th  Competitive movement from one position to another within the same career path and pay band

8 How supervisory pay is obtained?  Must be classified as supervisor  6% Beyond non-supervisory cap of pay band  Salaries for new supervisors are not set in intervals 4 and 5  Movement through intervals 4 and 5 must be earned through annual performance increases  Supervisory pay is terminated if you leave a supervisory position

9 Q & A

10 Supervisory Pay  I will be a new supervisor in the Demo Project. I am currently capped at the end of interval 3, but was selected competitively for a reassignment into a DEMO supervisory position. Upon entry into the supervisory position can my pay be set in intervals 4 or 5?

11 Answer  No. Supervisors can only move into intervals 4 and 5 through pay increases based on annual performance evaluation.

12 Promotions  I am currently a Fishery Biologist, ZP with promotion potential to the ZP I have served as the pay band 3 for over a year and my supervisor has elected me for promotion to the next band. My current salary is $53,468 and he proposes a 6% increase. Is 6% the max amount for promotion and is that all that I am entitled to?

13 Answer  No. At a minimum, salaries promotions actions have to be at least 6% increase above the current salary. Nonetheless, salaries can be set higher. The promotion salary also has to be identifiable in the proper band and interval.

14 Pay Setting for New Hire  I will be a new federal employee in the Demo Project. I not familiar with the project. I don’t know how pay is set and will be due to start my tenure the first pay period of the year. I am aware of the cost of living taking place at the beginning of year as well as the federal service receiving locality pay based on geographical areas. I would like to receive the greater salary/ benefit when excepting this position. Will my starting salary include the cost of living increase?

15 Answer  Yes. Under the Demo Project, all salaries include the locality pay for each geographical area. In most cases, the locality difference and cost of living increase are taken into consideration when setting salaries.

16 Conversion out of Demo  I am a ZP status employee resigning from the government. I would like to return to the government if the opportunity presents itself. How will my pay be set compared to the GS schedule?

17 Answer  Pay will be set based on converting the Demo Project Pay rate to the GS pay rate. Pay conversion occurs using the corresponding locality chart. For multi grade bands, the highest GS grade in the band is used to set pay.  For example, if an employee is currently a ZP-3, the equivalent grade pattern is a GS-11/12. If the salary is equal to or greater than the step 4 of the GS-12, then that grade is equivalent grade. If the salary is less than step 4 of the GS-12, then the next highest grade of the band (the GS-11) is used to compare and set pay.

18 References  DEMO Project Operating Procedures  DOC DEMO Project Pay Setting Guide

19 DEMONSTRATION PROJECT WEB SITE