COMMERCE ALTERNATIVE PERSONNEL SYSTEM (CAPS). PERFORMANCE MANAGEMENT WORKSHOP FOR MANAGERS. Pay for Performance System. Key Questions What is a pay for performance system? What are the key drivers for a pay for performance system? What are the benefits of a pay for performance system?
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What is a pay for performance system?
What are the key drivers for a pay for performance system?
What are the benefits of a pay for performance system?
What can managers/supervisors do to make the pay for performance system a success?
Pay for performance systems are systems in which pay decisions are based on defined performance levels rather than entitlement, tenure, or other non-performance related factors
Pay decisions include:
Pay for performance systems emphasize achieving greater individual and organizational performance results
Need for more flexible compensation practices to Agency specific needs
Rewards high performers
Allows greater flexibility for recruiting and hiring top talent
Provides opportunities for developing poor performing employees
Increases employee motivation
Contributes to employee retention
Deals more effectively with marginal employees
Make the pay for performance process transparent
Provide training for managers/supervisors
Provide accurate assessments on employee performance
Evaluate employees solely on performance elements
What is the performance appraisal process?
What are the responsibilities of Rating Officials, Pay Pool Managers, and Employees?
What other pay-related interventions (other than performance-based pay) are available to managers/supervisors to reward employees for good performance?
How can managers/supervisors acclimate new employees to the performance appraisal process?
Encourage high performance
Encourage continuous dialogue between supervisors and employees
Provide a basis for performance-related decisions (e.g., pay increases, bonuses, PIPs)
Set goals and measures
Establish and communicate
elements and standards
Conduct progress review
Five Key Components
Recognize and reward
Assign the rating of
60 - 79
40 - 59
0 - 39
Develop performance plan with employees
Conduct progress reviews with employees
Modify performance plan with employees as needed
Conduct performance review meetings to discuss accomplishments
Recommend ratings, scores, payouts, and bonuses to Pay Pool Manager through any intervening higher level supervisor(s)
Conduct evaluation feedback meetings with employees
Pay Pool: A grouping of employees who are combined together for performance-based pay decisions
Approve performance plan/plan modification
Manage the pay pool
Ensure consistency across rating officials
Discuss with rating officials any discrepancies and/or the need for score adjustments
Render final decision on ratings, scores, performance increases, and bonuses
Create performance plan with Rating Official
Modify performance plan with Rating Official
Clearly, concisely, and accurately document accomplishments over past year
Seek out performance feedback throughout year
Respond to performance feedback
Pay increases upon promotion
Supervisory performance pay
All employees will receive the annual comparability increase except:
Employees with an “Unsatisfactory” rating
Employees on a PIP at time of comparability increase
Employees must have a clear understanding of performance expectations
Employees will do well if they understand how performance is linked to success
Feedback provides employees with an understanding of level of performance
Employees want to understand if their performance is meeting management expectations
How can managers/supervisors identify the linkage between organizational goals and work unit/team goals and objectives?
How can managers/supervisors help employees establish performance elements that are linked to organizational goals?
How are performance plans created?
How can managers/supervisors effectively evaluate performance?
Identify overall organizational goals and discuss how they are linked to your work unit/team objectives
Discuss the work unit/team objectives and/or specific products or services and how they are linked to performance plan critical elements
Explain the rationale of how each critical element is weighted; the activities under each element; and the relationship of the elements to the work unit/team objectives
Consider the whole job
Look to the coming year for new assignments, resources, priorities, policies
Teamwork makes up part of the organization’s fabric:
Use active verbs – e.g., manage, develop, plan, etc.
Provide employees with tips for writing a good accomplishment statement
Evaluate the employee’s performance
An Employee is Ratable if:
An Employee is NOT Ratable if:
Each pay band is divided into 5 intervals. Intervals 1-3 are for non-supervisory positions and intervals 4 & 5 are for supervisory positions.
Pay progression potential is faster at lower pay bands and lower intervals in pay bands.
Based on OPM statistical study of Federal employee occupational salary histories.
Highest scored employee receives highest relative percentage payout (% of %)
Lower scored employees cannot receive a greater relative percentage payout
Tied scores might not receive same relative percentage payout
How can feedback improve employee performance?
What are strategies that managers/supervisors can use to provide effective feedback?
What are the ramifications of providing inadequate, poor, or untimely performance feedback?
What communication barriers may arise and what can managers/supervisors do to overcome them?
Conducting Progress Reviews and Annual Appraisals
Addressing Performance Issues
Maintaining open lines of communications
Provide continuous constructive feedback
Prepare the employee for the discussion in advance
Be clear on the purpose of the meeting
Have a clear message
Emphasize the positive
Focus on accomplishments
Respect the individual
Leave communication lines open
Employees may not focus on performance goals and expectations.
Employees may lose motivation
Employees may become disgruntled
Low employee morale
Use of verbal and non-verbal language
Lack of trust
Familiarize yourself with communication styles of your employees
Understand what motivates your employees
Become aware of your communication style and modify as necessary to be effective
Establish a relaxed environment
Engage in a 2-way dialogue
Highlight positive or good behavior
Keep the conversation focused on performance issues
Maintain control of the conversation
Offer constructive criticism
Don’t be confrontational
Don’t be accusatory
Don’t only focus on faults or mistakes
Don’t bring personal issues into the discussion
Don’t become agitated or angry
How can managers/supervisors successfully identify a marginal performer?
How can managers/supervisors help marginal performers become high performing employees?
What options do managers/supervisors have for managing marginal performance?
Lack of dependability
Lack of proficiency
Failure to perform current work assignments
What is it about the person’s performance that has a negative effect on the work being done?
What are things I actually see and hear that indicate there is a problem?
Does the employee know that there is a performance issue?
Have I clearly communicated performance objectives and expectations ?
What aspects of the employee’s performance needs to change in order to convince me that the employee has improved?
Are there obstacles or barriers to the employee performing well (e.g. work environment, training)?
Is the problem marginal performance or misconduct?
The failure of an employee to do the job at an acceptable level.
The failure to follow a workplace rule (whether written or unwritten). Examples of misconduct include tardiness and absenteeism, insubordination, and failure to follow instructions.
Address marginal performance early
Document all evidence relating to that employee’s low performance level
Schedule performance review meetings with the employee
Be prepared to take appropriate action
Avoid referring to the situation beyond the impact it has on the employee’s performance
Engage the employee in the discussion to obtain their perspective on the matter
Limit the discussion to job related issues
Readdress the issue with the employee and discuss the causes for lack of progress
Continue to work with the employee to address and overcome performance issues
Determine whether or not the employee is still a good match for the position
Explore alternative options for managing the employee
Managers/supervisors have more options available for managing a marginal performer (e.g., developing a PIP, tailoring responsibilities, little or no pay increases)
Employees have a more vested interest in their performance throughout the year
Develop and set specific expectations and standards
Closely monitor performance
Assign the employee a “mentor”
Give specific and timely feedback
Consider training, where appropriate
Provide work assignments that build confidence
Help employee plan and prioritize their work
Determine if the performance problem is a result of a non-work issue
15 calendar days to file a request for reconsideration (informal grievance)
15 calendar days to formally respond to informal grievance
10 calendar days to file formal grievance with WFMO
15 calendar days for WFMO to review grievance
45 calendar days for Deciding Official to respond to formal grievance
For further information or questions, please contact your Servicing Workforce Management Office Representative
WFM website http://www.wfm.noaa.gov – A-Z, C for CAPS Information
DOC CAPS Resources Page http://hr.commerce.gov/Practitioners/CompensationAndLeave/DEV01_006181