Compensation Management under NSPS Competing with the Market

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AFFTC participated in DoD Civilian Acquisition Personnel Demonstration Project (AcqDemo)1999 20073 Pay SchedulesBroadbanded structureLinked pay to contributionAfter three years we knew we needed some type of compensation management systemMaintain internal equityMinimize competition for tale

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Compensation Management under NSPS Competing with the Market

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2. After 7 years in the AcqDemo Project and 7 appraisal cycles, employees will convert into a management system called National Security Personnel System (NSPS) on 20 Jan 07. Prior to conversion employees under AcqDemo will receive their final payouts on 7 Jan 07. AFFTC Conversion Breakdown 1,539 (67%) Standard Career Group 731 (32%) Scientific and Engineering Career Group 3 (.13%) Medical Career Group 17 (.74%) Investigative/Protective Services The big push now is to train the remainder of our workforce; ~approximately 19% of our workforce still require some form of NSPS training. Updating data in the civilian personnel data system is an on-going effort in the Civilian Personnel Flight. Communication is a key driver for effective performance management. Managers/supervisors will have open and ongoing communications with their employees to ensure expectations are clear and that both share a mutual understanding of priorities, goals, and objectives. Establishing effective two-way communication is crucial. The U.S. Court of Appeals, D.C. Circuit heard oral arguments on Dec. 11 in a case that will determine the future of the Department of Defense's National Security Personnel System. A three-judge panel will decide whether provisions in the NSPS violate employees' rights to collective bargaining. In February, Judge Emmet Sullivan of the U.S. District Court, District of Columbia handed the unions challenging the NSPS system a decisive win and enjoined several labor relations provisions. American Federation of Government Employees, AFL-CIO, et al. v. Donald Rumsfeld, Secretary, Department of Defense et al., Court decision is expected in Feb 07. DoD still plans to implement the HR portion for all. This could mean letting the Unions bargain using the current labor statute. After 7 years in the AcqDemo Project and 7 appraisal cycles, employees will convert into a management system called National Security Personnel System (NSPS) on 20 Jan 07. Prior to conversion employees under AcqDemo will receive their final payouts on 7 Jan 07. AFFTC Conversion Breakdown 1,539 (67%) Standard Career Group 731 (32%) Scientific and Engineering Career Group 3 (.13%) Medical Career Group 17 (.74%) Investigative/Protective Services The big push now is to train the remainder of our workforce; ~approximately 19% of our workforce still require some form of NSPS training. Updating data in the civilian personnel data system is an on-going effort in the Civilian Personnel Flight. Communication is a key driver for effective performance management. Managers/supervisors will have open and ongoing communications with their employees to ensure expectations are clear and that both share a mutual understanding of priorities, goals, and objectives. Establishing effective two-way communication is crucial. The U.S. Court of Appeals, D.C. Circuit heard oral arguments on Dec. 11 in a case that will determine the future of the Department of Defense's National Security Personnel System. A three-judge panel will decide whether provisions in the NSPS violate employees' rights to collective bargaining. In February, Judge Emmet Sullivan of the U.S. District Court, District of Columbia handed the unions challenging the NSPS system a decisive win and enjoined several labor relations provisions. American Federation of Government Employees, AFL-CIO, et al. v. Donald Rumsfeld, Secretary, Department of Defense et al., Court decision is expected in Feb 07. DoD still plans to implement the HR portion for all. This could mean letting the Unions bargain using the current labor statute.

3. Background NSPS designed to be labor market sensitive Be competitive enough to attract and retain skilled and talented workers Requires significant cultural change Longevity to performance Supervision to management Task completion to results achieved Strategic compensation management can help drive culture shift Align expectations to mission Reward and recognize results achieved

4. Pay Structure Design Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

5. Pay Structure Design Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

6. Pay Structure Design Standard Career Group 2009 Base Pay Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

7. Range Assignment Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

8. Range Assignment Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

9. Compensation Management Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

10. Compensation Management Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

11. Next Steps Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.Personnel system changes under NSPS will be covered in a review of five Personnel Management Areas. The first three shown here: Classification, Compensation, Performance Management. We’ve bolded items to reinforce some key points before moving to a more comprehensive discussion of each subject area. DoD occupations, under classification. This is highlighted not because DoD proposes to come up with many new occupations, but to point out that NSPS allows DoD to define new occupations. - You are going to see a number of areas where DoD has obtained flexibility to do things differently if circumstances drive to a change. Much of that flexibility isn’t being exercised as we move into NSPS, but one of the primary reasons DoD wants NSPS is to have a personnel system that allows it to respond to changes in personnel requirements. On the other hand, some areas remain as is – Incentive Awards – those monetary and non-monetary awards given outside the annual performance management cycle continue to be authorized. Under performance management – we see Standard Performance Factors bolded. Different factors and a different appraisal process than AcqDemo, but the concept of applying the same performance factors to all jobs in the same pay schedule and same pay band is similar to AcqDemo.

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