1 1 Contribution –based Pay in the Air Force Research Laboratory Michelle Williams Laboratory Demonstration Project Office HQ Air Force Research Laboratory Michelle Williams Laboratory Demonstration Project Office HQ Air Force Research Laboratory 2 2 AFRL Vision Anticipate, find, fix, track, target, engage and assess – anything, anywhere, anytime 3 3 • Most federal government employees fall under “Title V” - a set of personnel management regulations – Title V is administered by the Office of Personnel Management (OPM) • Other controls are established by the agency (Department of Defense), service (Air Force), and command (Air Force Materiel Command) • Demonstration project authority allows waivers to be granted to Title 5 and encourages relief from other controls What is a Demonstration Project? Background
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Contribution –based Pay in the Air Force Research Laboratory
Michelle WilliamsLaboratory Demonstration Project OfficeHQ Air Force Research Laboratory
Michelle WilliamsLaboratory Demonstration Project OfficeHQ Air Force Research Laboratory
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AFRL Vision
Anticipate, find, fix, track, target, engage and assess – anything,
anywhere, anytime
33
• Most federal government employees fall under “Title V” - a set of personnel management regulations– Title V is administered by the Office of Personnel Management
(OPM)
• Other controls are established by the agency (Department of Defense), service (Air Force), and command (Air Force Materiel Command)
• Demonstration project authority allows waivers to be granted to Title 5 and encourages relief from other controls
What is a Demonstration Project?
Background
44
• FY95 Defense Authorization Act gave “S&T Reinvention Labs” personnel demo authority– About 15 demos across Army, Navy, and Air Force Labs
– Single Air Force Demo: 2,500 Scientists and engineers in 9 primary locations
• Broad Guidance– Broad paybands
– Simplified classification
– New performance management system
– Cannot effect employee rights or entitlements
Demo Legislation
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• Enhance Work Force Quality– Motivate employees through equitable compensation
– Enhance employee development
– Flexibly adjust work force in times of change
– Bottom Line: Achieve the best work force to accomplish AFRL’s mission
• Improve Work Force Efficiency– Simplify current personnel procedures
Goals and Objectives
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• Simplified Classification– Positions classified by supervisors
• Classification authority delegated to laboratory management
• Positions classified based on standard set of factors and descriptors
– 1 page classification document: Statement of Duties and Experience (SDE)
– Automated PC-based software; menu driven• Programmed “Look-up Tables”
Key Demonstration Initiatives
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• Broadbanding– Seven traditional civil service “grades” combined into four “bands”
– Bands follow typical career progression
– Progression through the bands meant to be “seamless”
Title V GS-152007 Salary $40,710 – 67,773 $56,948 – 89,423 $78,598 – $100,248 –
$111,073 $124,010
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• Contribution-based Compensation (CCS)– An integrated broadbanding, classification and performance
management system
– Measures the “contribution to the organization” rather than how well the employee performed a job as defined by an individualized performance plan
• Provides an equitable and fair basis for salary adjustments
– Does not view pay increases as entitlements
– Supports rank-in-person concept and dual track
Key Demonstration Initiatives
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What is measured in the AFRL Contribution-based Compensation System?
• Technical Problem Solving
• Communications and Reporting
• Corporate Resource Management
• R&D Business Development
• Technology Transition/ Technology Transfer
• Teamwork and Leadership
Contribution-Based Compensation System
Six Factors
1010
Highlights of the AFRL Contribution-based Compensation System
• Employee scores are determined by a group of supervisors– “Meeting of Managers”
• Individual factor scores are assigned for each employee• Factors scores are weighted (by job category)• Weighted average is the “Overall Contribution Score” (OCS)
• The OCS listing is reviewed to ensure equity• Some surprises may result from the “bottoms-up” approach
• OCSs are plotted against salaries and pay adjustments are then determined
Contribution-Based Compensation System
1111
Definition of Key Terms
• OCS - Overall Contribution Score (OCS) – The weighted average of an employee’s six factor scores. The
weights depend on the employee’s job category. • Expected Score
– The OCS corresponding to an employee’s basic pay. This is the level of contribution expected of the employee, given his or herpay.
• Delta OCS – The difference between an employee’s actual OCS and his or her
expected OCS, based on their current basic pay and the Standard Pay Line.
• Delta Y – The difference between and employee’s actual basic pay and
what their pay should be based on their OCS and the Standard Pay Line.
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Bas
e Sa
lary
($K
)
Overall Contribution Score (OCS)
Under-CompensatedMinimum Increase is “G + I”
SPL
Equitably CompensatedMinimum Increase is “G”
$20
$30
$40
$50
$60
$70
$80
$90
$100
1 2 3 4 5
Over-CompensatedMaximum Increase is “G”
“G” = General Cost of Labor Increase (Set by Congress)“I” = Incentive Increase (Set by AFRL Corporate Board)
Delta-Y($20K)
CCS Scatterplot
Delta OCS1.4
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• Management has a lot of pay adjustment flexibility and they use it
• Significant raises are given to the most under-compensated – Raises are withheld from the over-compensated
• Maximum 2007 percentage increase was 28.6%– Max in 2006 – 30.8%
• Average 2007 increase was 4.8%– 2006 average 4.0%
• Maximum 2007 dollar increase was $16,797– Max in 2006 – $15,920
• Average 2007 increase was $4,082– 2006 average – $3,306
Salary Adjustments
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• Movement between levels is seamless – Zones established for CCS score/salary combinations
• Eligible (but not recommended) for change
• Recommended for change (but not mandatory)
• Mandatory; change is automatic
– No “formal” competition is required for advancement within or between broadbands
98% of AFRL supervisors are in favor of the Demonstration Project initiatives
• Increased ability to recruit top talent– 70% believe AFRL is able to attract high-quality candidates
• Up from 36% in 1996
• Increased ability to reward high contributors– Supervisors expressed an eight-fold increase from implementation
values in authority to influence pay
• Simple, streamline classification process– What used to take weeks now takes hours
• CCS process keeps employees focused on mission– Employees feel more empowered with more active role
– Over 90% of workforce understand how their job relates to AFRL’s
mission
What Managers Like
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87% of AFRL employees are in favor of the Demonstration Project initiatives
• Ability to reward top contributors– 70% of workforce is satisfied with their pay
• Improved mentorship and feedback– Enhanced mission awareness
• Over 91% of workforce understand Laboratory’s mission– Better understanding of what it takes to succeed
• Almost 90% of workforce understand the Contribution-based Compensation System
• Evolving improvement in quality of supervision– CCS forcing managers to be more proactive
• Almost 75% believe they received adequate contribution feedback
What Employees Like
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• Lab Demo is an Air Force success story– Supervisors have the ability to manage their workforce– CCS is clearly accomplishing its goals– Overall contribution has increased – Deserving employees are rewarded for high contribution– High contributors stay and low contributors either improve or leave– Simplified processes
• Driving the culture of AFRL– Salary increases are not peanut-butter spread– Rewards initiative and breaks the entitlement mentality
• Success is not automatic– Management understanding, support for, and attention to
CCS is vital for continued success
Summary
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• Lab Demo public website:– http://www.wpafb.af.mil/library/factsheets/factsheet.asp?id=8080