FUNDAMENTAL PRINCIPLES AND OBJECTIVES OF THE COMPENSATION SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000300430001-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 27, 2016
• Document Release Date: September 27, 2012
• Sequence Number: 1
• Publication Date: July 29, 1988
• Content Type: MISC

Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6 II
PART I. FUNDAMENTAL PRINCIPLES AND OBJECTIVES OF THE
COMPENSATION SYSTEM
Response Due: July 29, 1988
In this Part, the questions relate to the objectives of the
agency's compensation system or systems, and to the principles
underlying the system.
An employer's compensation system may serve several purposes
simultaneously. The amounts an employer pays to employees, and
the methods by which the employer decides on the rates of pay may
reflect deeply held views about fairness within the organization
("internal equity"), about the stature of the organization in
relation to other employers ("external equity"), about what it
takes to motivate employees to do the work of the organization
("incentives and rewards"), about the employer's sense of social
responsibility, and about the central concepts of management
within the enterprise, among other matters.
Question 1. What are the objectives and principles underlying the
compensation system of the agency? Check mark any
statements below that describe the fundamental
objectives of the pay plan of the agency.
(Statements may overlap; they are not necessarily
mutually exclusive):
INTERNAL EQUITY OBJECTIVES
/ 1. Should provide equal pay for substantially equal
work.
2. Should provide equal pay for work of equal value.
3. Differences in compensation should be based on
differences in difficulty and responsibility of
the work performed.
4. Should be accepted by managers and employees -
perceived as fair and equitable.
5. Should enable the agency to get and keep the kind
and quality of employees needed to carry out its
mission.
6. Should enable the agency to meet the competition;
to match or keep in step with market rates for
the kinds of skills, knowledges, and abilities it
needs.
7. Should enable the agency to beat the competition;
to get ahead of the market rates for the kinds of
skills, knowledges, and abilities needed.
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6
 Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6
Should provide incentives and recognition for
superior work performance, and withhold monetary
rewards for ineffective performance.
Should recognize differential contributions of
workers to accomplishment of the work goals of
the organization.
10. Should recognize differential contributions of
managers to accomplishment of the missions of the
agency.
Shoula recognize and reward seniority, loyalty,
and long service to the organization.
12. Should recognize and reward differences in
productivity of workers within the organization
or agency.
13. Should comply with laws against discrimination
based on race, sex, national origin, age,
handicapping condition.
14. Should foster, support, or encourage distribution
of women and minorities throughout the grade and
pay levels, and should discourage concentration
of women and minorities in low-paying occupations.
15.
Should support the concepts of "pay equity" or
"comparable worth", including equalization of pay
of women and minorities as groups with the pay of
men and majority groups in the work force.
Should provide a structural framework for the
personnel management programs of the agency --
career entry, career planning and development,
internal placement, compensation and benefits,
retirement, etc.
17. Should aid in forecasting work force requirements
and planning to meet them.
Should be efficient or cost effective to
administer.
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6
 Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6
CENTRAL MANAGEMENT OBJECTIVES
/v/
19.
/ /
20.
21.
f
A//
22'.
It
Question 2.
Should promote efficient job design and
organizational structuring within the agency.
Should support systematic, rational
administrative processes -- budgeting, financial
management, resource allocation.
Should contrioute to ability to predict and
control costs of operations.
with mission accomplishment.
Should maintain personnel resource costs at
levels that assure. maximum returns for tax funds
spent, or keep costs at lowest levels consistent
State any objectives or principles of the agency
compensation system or systems that are not covered
by the statements above.
A- -A 61 L) M
Indicate the approximate rank order of th
of the major groups of objectives. In
below, indicate the most important gr
objectives by the numeral "1", then_
other groups of objectives, down
important.
importance i) i +L,
e boxes hr rr-
p of
ank order the
1*NTERNAL EQUITY: Treating mployees doing similar
wo~kk in similar circumsta ces about the same.
/ / EXTERbL EQUITY: Keepirfig pace with the competition
in la oT, markets outside the agency.
/ /
WORK PERFORMANCE Recognizing differential
contribution ;? success of the enterprise.
SOCIAL RESPONSIW LITY: Meeting an employer's
responsibVities ith respect to non-discrimination
and othejsocial o ectives.
PERS NEL MANAGEMENT: roviding a basis for orderly
ad nistration of the hu an resources of the agency.
/ COST MANAGEMENT: Providin resources necessary for
7 mission accomplishment at 'let possible cost.
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6
 t?.
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-00530R000300430001-6
Question 3. Have the fundamental objectives and principles of the
compensation system of the agency been stated or
published in any way?
11) LAC Hoo~ P` H
-In statute? (Provide a citation or a copy).
_0A t~_ rr
-In regulations? (Provide a copy)
-In other statements of policy/handbooks/
manuals/or other places? (Provide a copy of
relevant portions).
Are any such statements of objectives available to
employees? To supervisors and managers? To
interested persons or organizations outside the
agency? -j
Question 4a. With respect to external labor markets for people
with the kinds of knowledges, skills, and abilities
needed for the work of the agency, identify the
primary competitors the agency faces. Primary
competitors seeking the same kinds or levels of
skills as the agency in critical occupational areas
may be (cneck as many as apply):
Other agencies of the intelligence community.
Other Federal agencies outside the intelligence
community.
The Foreign Service.
The Military Services.
State and Local Governments.
/ /
Corporations and companies of the private sector of
the economy. (Indicate what kinds of companies,
e.g., multinational corporations; technical companies
engaged in manufacturing and marketAr_ Q ucts;
service industries engaged in research or in
providing information or advisory services; small
en rprises en aaged-in providing services or
products, or others).
Academic institutions. (Indicate what kinds of
institutions, such as college and university
faculties (in what subject-matter areas?); nonprofit
research foundations ("think tanks"), associations of
scnolars devoted to area studies/modern language
studies/science/technology transfer/social
science/public administration/business
administration/policy analysis/or other fields of
concentration; archival and library institutions, or
others.)
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-00530R000300430001-6
 Declassified and Approved For Release 2012/12/12 : CIA-RDP90-00530R000300430001-6
/ / Other entities or organizations. (Please describe
them),.
Question 4b. Next, describe, in a general way, the conditions the
agency faces with respect to the primary competitors
identified and how these conditions affect the
compensation package of the agency. For instance,
with respect to a particular category of competitor,
the agency may find itself at a comparative
disadvantage because the other employers seeking the
same kinds of people can pay more, or can adjust pay
schedules faster, or can offer pay incentives
different from those of .the agency, or can make
hiring decisions and pay offers faster, or can offer
working conditions that are more attractive (e.g,
freedom from security restrictions, less hazardous
environment, etc.).
Question 4c. Finally, outline the methods the agency uses to find
out what labor market competitors are offering or
paying. For-instance, these methods may include
reference to standard wage or salary surveys (BLS,
CENSUS, private associations); systematic
agency-conducted surveys; feedback from agency
recruiters; attrition studies; cost-of-living data;
feedback from prospective employees who decide to
accept offers from other employers; feedback from
agency employees who leave for jobs with other
employers that pay more or have better benefits or
better working conditions; or other methods.
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-00530R000300430001-6
 ~r
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-00530R000300430001-6
Question 4b
Recruitment and retention of secretarial /clerical personnel are a
continuing problem for DIA. Despite extensive recruitment efforts,
competition in the Washington metropolitan area is great and the DIA salary
structure is not on a par with the private sector (even though DIA has
adopted a special salary rate for these skills.) Turnover is high,
especially among the better quality secretarial /clerical personnel, most of
whom leave for higher salaries or to accompany a military spouse.
DIA does not recruit in engineering/scientific and technical or computer
science personnel at the entry or pre-professional level. Because of the
narrow and highly specialized nature of such positions within DIA,
recruitment efforts are concentrated on full-performance senior level
candidates. Competition for such skills is intense, making these DIA's
+c
(Lrt vac am+ up
hardest slots to fill. Often the relatively few two years.
A
DIA's major competition is with the private sector 25 for experienced
engineers/scientific and technical and computer science personnel. Higher
salaries and better benefit packages are the major obstacles faced.
Due to its special salary authorities, DIA is able to compete favorably
with other Federal agencies and members of the Intelligence Community.
Losses to NSA, CIA and DoD Intelligence components are due to promotional
opportunities or work content for the most part. A career move within the
community is not viewed as a loss to the profession.
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-00530R000300430001-6
 Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6
Question 4c
DIA reviews standard references, obtains information from other
recruiters at job fairs, and analyzes its own offer/separation data to
assess what the labor market offers for people having skills DIA needs.
With existing authorities, DIA can make appropriate adjustments to its
special salary rates when labor market conditions warrant. It has been
DIA's experience that small adjustments can have a major impact when
problems are identified.
Declassified and Approved For Release 2012/12/12 : CIA-RDP90-0053OR000300430001-6