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The Center for Human Resources will
be hosting a series of Seminars for HR Professionals. The
dates for those seminars are listed below with the summary
from the seminars and links to Powerpoint presentations and
other information availible at the seminar. All the seminars
take place here at the Academy offices unless otherwise noted.
SES Pay for Performance - May 18,
2004
On May 18, 2004
the Human Resources Management Consortium, in conjunction
with the International Public Management Association for Human
Resources and the Executive Performance Consortium sponsored
a Forum on SES Pay for Performance.
Ron Sanders of the Office of Personnel Management
discussed OPM's regulations and perspective, Claudia Cross
of the Department of Energy discussed DOE's work and experience
in SES performance management and compensation, and Monika
Edwards Harrison, recently retired from the Small Business
Administration described SBA's approach. Please
click here to view Ms. Cross' presentation, and to view
SBA's Personal Business Commitment Plan forms for SES,
Supervisor/Manager,
and Employee.
Lisa Shames of the General Accounting Office spoke about the
recent GAO research on agency SES performance management experiences.
Please click
here to view highlights of the GAO report Results-Oriented
Cultures: Creating a Clear Linkage Between Individual Performance
and Organizational Success. Angelica Ibarguen of the Equal
Employment Opportunity Commission talked about her previous
private sector experience in developing executive compensation
packages. Please
click here to view Ms. Ibarguen's presentation. Allen
Hatcher of IPMA and Myra Howze Shiplett of NAPA moderated
the presentations.
For more information regarding these
presentations, as well as information regarding about what
participating agencies are doing to certify their SES performance
management systems, please click
here for the informal survey results.
On
June 19, 2003, the National Academy of Public Administration's
Center for Human Resources Management hosted its third HR
Professionals Seminar. Senior Academy Consultant Howard Risher-an
expert in pay and compensation with more than 30 years' experience
in public and private sector compensation and performance
management-presented "Using Pay to Drive Culture Change
and to Build a Performance Culture." Peggy Higgins, Manager
of Performance Management at the U.S. Office of Personnel
Management, discussed the proposed Human Capital Performance
Fund, which she described as a move toward pay-for-performance.
Dr. Risher reported that nearly 45% of all
federal employees soon may find themselves working in organizations
with non-traditional human resources systems, many of which
will include some type of pay-for-performance compensation
system.
In a broadband salary structure, jobs are
assigned to ranges-or bands-based on their level or stage
in a career ladder, Dr. Risher explained. The bands then are
aligned with salaries for similar jobs in the labor market.
Annual salary increases are based on performance and contribution
assessments. The bands provide the flexibility to recognize
individual value and labor market trends.
Dr. Risher advised attendees that the 1980
demonstration projects at two Navy laboratories, commonly
known as the China Lake Demo, were the first applications
of broadbanding in any organization, public or private. Several
Academy Panels have advocated broadbanding for the federal
classification system since 1991, having issued reports that
year and in 1995.
Dr. Risher participated in a recent Academy
study of broadband pay experiences in the private and public
sectors. The study, which identified current trends in compensation
system design, concluded that most recently designed broadband
approaches take a more holistic approach to human resources
systems-that is, pay-for-performance is a key factor and performance
expectations are closely linked to an organization's strategic
objectives. With banding, managers have greater responsibility
for managing performance, determining pay increases, and managing
people. Experience shows that this approach results in fewer
inflated ratings, and that the often-anticipated increase
in payroll costs does not materialize.
Dr. Risher emphasized that communicating
with employees, managers and professional organizations through
various media is essential from the design stage through implementation.
Organizations report that their organizational culture has
changed from one where pay was considered an entitlement linked
to longevity to one where pay is based on performance.
Ms. Higgins said the proposed Human Capital
Performance Fund was passed in the House as part of the Defense
Department's reauthorization bill. A separate bill is pending
in the Senate, and OPM is optimistic about its chances. The
legislation represents a move toward pay-for-performance.
Ms Higgins said the fund will focus on the star performer:
an organization's highest performing and most valued performers.
If enacted, the legislation would take effect
in fiscal year 2004, and OPM has begun to draft implementing
regulations. Ms. Higgins said OPM anticipates the Fund will
apply to all agencies and to employees, except Senior Executive
members (and perhaps SL and ST members). OPM expects Congress
to appropriate $500 million annually for redistribution to
agencies to reward top performers. The legislation also requires
OPM to allocate 90% of those funds to agencies on a pro-rata
basis, based upon each agency's pro-rate share of Executive
Branch payroll. OPM will use the remainder to increase allocations
to agencies that have especially good organizational performance
and plans for using the Fund. OPM will set aside 10% of the
total appropriation for planning and administration training.
If the legislation is enacted, Fund allocations
will be available to agencies in fiscal year 2004. To receive
an allocation, an agency must prepare a formal plan for OPM
review and approval that sets forth:
· its performance management system
and describes how the system makes meaningful distinctions
in employee performance
· criteria for deciding which employees will receive
payments
· training for decision-makers on Fund administration
· internal mechanisms for reviewing pay decisions
· a financial plan for funding adjustments to base
pay in out-years (Fund payments are treated as permanent adjustments
to the base pay of recipients and the Fund will pay for the
adjustments only in the year they are granted)
· procedures for revoking Fund adjustments if performance
deteriorates.
Plan approval will be done in consultation
with the Chief Human Capital Officers Council.
Fund participation entails continuous
reporting by agencies to ensure that their plans and operations
continue to meet approval requirements. OPM will refine its
planned regulations in the coming weeks. Ms. Higgins plans
to continue participating in Academy meetings and seminars
to update agencies about the Fund and its anticipated operation
and administration.
Brigitte
Schay, Joe Hillery and Bernard Nickels of OPM's Center for
Talent Services discussed research that OPM has conducted
on managerial competencies. OPM's many years of research in
this area culminated in the development of a leadership competency
model with 27 managerial competencies grouped into 5 meta-competencies,
now known as the SES Executive Core Qualifications.
These experts also
discussed leadership competency models that they have developed,
as well as their efforts to identify competencies that have
the greatest impact or relevance at various leadership levels-such
as first-line supervisor, mid-level manager, and executive.
The representatives shared emerging research
on Emotional Intelligence (EI) and the attendant interpersonal
competencies that are increasingly important to manage team
and project leaders. OPM has developed a crosswalk between
EI competencies and current managerial competencies.
Finally, the speakers discussed various
assessment and feedback tools that assist agencies in selecting
high quality leaders and ensure that leader development programs
are competency based. The tools include interactive exercises
and simulations in the life of a manager of a fictitious Federal
agency, 360 degree feedback, the structured interview, accomplishment
records and a leadership assessment center.
Click
here for more detailed information on these tools and
a PowerPoint presentation.
The HR Professional Seminars are open
to Consortium agencies' human resources professionals with
interest in the topic being presented. Please watch the monthly
e-newsletter for announcements of upcoming seminars. Formal
invitations to the HR Professional Seminars are sent to Consortium
primary contacts, who are urged to share the information with
other professional staff.
On February 13,
2003, CHRM hosted its first HR Professional Seminar during
which NASA, DOL and SSA presented their Strategic Human Capital
Plans. Each agency has received a yellow on the OMB Executive
Management Scorecard for 2002.
Pat Simpkins, an environmental engineer
in the space shuttle program, currently serves as the Manager
of NASA's HR IT Systems Integration, and as such lead NASA's
efforts to devise a strategy for dealing with its 'brain drain".
Pat shared copies of NASA's Strategic Human Capital Plan and
talked candidly about getting senior executive support as
well as the support of the various scientific and technical
professionals in the organization for this effort - Pat described
how he made the point that ensuring NASA has the skills it
needs for mission accomplishment and that they are properly
deployed is not simply an HR initiative. Pat was successful
in this endeavor because the goal for NASA is not 'getting
to green' but instead, devising an integrated plan for managing
human capital. Pat's PowerPoint presentation is posted on
NAPA's website here.
Jerry Lelchook, an economist by training,
currently serves as DOL's Deputy Human Resources Director,
and described how DOL has set up a Management Review Board
to devise and institutionalize a common management approach
(for the 13 agencies that make up the Department of Labor)
for key management issues - and the most predominate issue
is strategic human capital management. DOL's plan is organized
around OMB's 6 dimensions: strategic alignment; workforce
planning and deployment; leadership and knowledge management;
talent; results-oriented performance culture; and accountability.
DOL's efforts in each area are memorialized in a PowerPoint
presentation which is also posted on NAPA's website here.
Dr. Reginald F. Wells, a psychologist who
currently serves as the Deputy Commissioner for Human Resources
at SSA, described the human capital planning process that
has been ongoing at SSA for several years and the successes
they have experienced in de-layering the organization and
in reducing its supervisory ratio; in increasing the number
of front-line positions available to serve the public; and
in its succession planning which includes national leadership
development programs, various recruitment initiatives and
a campaign to market SSA as an employer of choice. Dr. Wells
presentation has also been posted on NAPA's website here.
To view SSA's action plan, please click here.
Our next HR Professional Seminar will
be on June 19. Be on the lookout for the announcement of the
topics and for the invitations. These free seminars are sponsored
by the HRM consortium agencies and available for their HR
professionals.
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