To be recognized as the best, we must recognize and reward the best in our employees. Pay for Performance & Performance Management System Veterans Health.

To be recognized as the best, we must recognize and reward the best in our employees.

Pay for Performance & Performance Management System

Veterans Health Administration February 26, 2008

Three Elements of Pay

Base Pay

Market Pay

Performance Pay

Performance Pay

What is performance pay?

A component of compensation paid to recognize the achievement of specific goals and performance objectives

Not an Incentive Award

Performance Pay

The amount payable may not exceed the lower of$15,000 orThe amount equal to 7.5% of the annual pay

(base + market) on September 30th of the fiscal year

Performance Pay

ProcessObjectives communicated 90 days of the

beginning of the fiscalNewly hired communicated within 30

days of entrance on dutyPhysicians & Dentist hired after July 1 are

not eligible within that fiscal year

Performance Pay

ProcessPhysicians & Dentist that separate prior to

September 30 are not eligiblePayments disbursed no later than March 31 of

the following year

VHA Performance Management

Established evidence-based performance measures based on overall strategic goals and hold accountable and reward line senior executives for achievement

Developed and implemented the High Performance Development Model & workforce succession programs

Senior Executive Performance System

ECF Performance System

VA 5-level Performance System

VHA Performance Management

VHA Performance Management

ECF Performance SystemECF members – senior management, mid-

management, first line management, senior staff positions

VHA Performance Management

ECF Performance SystemCycle begins October 1 & ends September 30Minimum appraisal period is 90 days under

performance plan

VA Strategic Plan

VHA Strategic Plan

Goals & Performance Measures

Chief Officer Performance PlansSubordinate Senior Exec. Performance Plans

VHA Performance ManagementAlign Performance

VHA Performance Management

Plan StructureMission Critical Measures/Business Plan

(critical)Transformational Measures (non-critical)High Performance Development Model

(HPDM) Core Competencies (critical) Additional HPDM Core Competencies (non-

critical)

VHA Performance Management

Summary Ratings:Outstanding = All elements exceptional. Excellent = All critical elements

exceptional; one other element fully successful.

Fully Successful = All critical elements fully successful; other elements fully successful or higher.

VHA Performance Management

Summary Ratings Continued:Minimally Satisfactory = All critical

elements fully successful. One or more non-critical elements less than fully successful.

Unsatisfactory = One or more critical elements less than fully successful.

VHA Performance Management

FundingECF bonus pool is based on the number of

ECF members assigned to the organizationFunds are distributed based on ECF

calculations in the Performance Database

VHA Performance Management

Bonus Pool RangeSenior Executive pool determined by the

SecretarySenior Manager - $2,500 to $10,000Mid-manager - $1,500 to $7,500Front-line - $750 to $5,000

Note: Bonuses may not be awarded for a rating below the fully successful level

VHA Performance Management

References:Performance Pay – VA Handbook 5007/21,

Part IX, section 12Performance Management System – VA

Handbook 5013Other Sources: Employee Recognition &

Awards – VA Handbook 5017

VHA Performance Management

Contacts:Pay for Performance:

Anika Woods – 202-461-7259

George Neureither – 202-461-7396

Performance Management SystemElias Hernandez – 202-461-7398

Anika Woods – 202-461-7259

VHA Performance Management

QUESTIONS?