GAO'S PAY FOR PERFORMANCE SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000501230001-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 37
• Document Creation Date: December 23, 2016
• Document Release Date: October 26, 2012
• Sequence Number: 1
• Publication Date: May 1, 1988
• Content Type: MISC

Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
rIq
GAO
GAO'S
PAY
FOR
PERFORMANCE
SYSTEM
Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO System Overview,.
Phase in over several years
First year -
Bonus payments
Second year -
? Convert to bands
? Continue bonus payments and
start permanent pay increases
2
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GAO Why We Are Going To A
Pay-For-Performance System
? Base rewards on performance
? Increase number of winners
? Attract high performers
? Increase staff motivation
? Allow staff to influence pay
? Put GAO in line with- other
agencies
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 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO Why We Are Going To
Broadbands
? Helps support GAO's teamwork
environment
? Expands staff assignment
opportunities
? Expands range of pay
4
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GAO Why Phased-In Approach?
? Consistent with existing
appraisal and assessment
cycles
i
? Allows transition into NFC
? Permits phase-in of funding
? Permits staff/manager training
? Permits evaluation of
assessment process
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GAO Who Is Included In PFP
System?
Types of positions included
? Evaluators
? Evaluator-related specialists
Guidelines for inclusion
? Appraised under BARS or
GS-15 appraisal system
? Promotions under M.S.P.
6
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GAO Key Elements in GAO's
Pay-For-Performance System
? Most employees will receive
greater rewards in new system
? After conversion to bands,
all fully successful employees
will. obtain salary increases at
least equal to those which
they would have received
under the GS system
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 i
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GAO Key Elements in GAO's
Pay-For-Performance System
*-After conversion to bands,
staff will receive an
adjustment to permanent pay
to account for the accrued
portion of their within-grade
pay increase
8
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GAO Key Elements in.GAO's
Pay-For-Performance System
? The Pay-For-Performance
system will not .affect
comparability adjustments
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 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO Key Elements in GAO's
Pay-For-Performance System
? The Pay-For-Performance
budget will be allocated to
divisions, regions and small
offices
10
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GAO Why Unit Budgets?
? Provides the tools. to support
unit management responsibility
? Permit greater control over
payout decisions
? Minimize competition among
units
? Provide for management
flexibility
11 .
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 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO Allocation of Units Budgets
? The allocation of the Pay-For-
Performance budget will be
based upon the number of
persons in each band and the
anticipated payout distribution
12 11
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GAO Examples of Unit Budgets
(First Year Payouts)
Unit
Payout
Medium Programming
Division
$206,000
Large Programming
Division
$327,000
Large Region
$ 81,000
Medium Region
$ 66,000
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 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO Who Will Receive Bonuses?
? About 50% of affected staff
? About 1,400 evaluator and
evaluator-related specialists
? First payouts due October
1989
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 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO First Year Payout
? 15% (over 400 staff) can
receive $1,500 to $3,800
in bonuses.
? 35% (over 1,000 staff) can
receive $600 to $2,100
in bonuses.
15
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GAO Comparison with Current
System
Current System
? 12 percent of staff can
receive awards of
$500 to $750
Under PFP
50 percent of staff can
receive bonuses of
$600 to $3,800
16
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GAO Permanent Pay
Permanent pay will be
introduced
? Phase-in leading .toward salary
increases described in "Green
Book"
? Phase-in over several years
? Yearly budget supplementation
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 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO Permanent Pay
18
? Pay protection assured for all
fully successful staff
? Percentage increases based on
bandbase salary
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GAO Assessment For Pay
? BARS will be the basis of
the assessment process
? Unit head will appoint panel
? All staff will be assessed
? Panelists must have knowledge
of work
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GAO Assessment For Pay
Panelists must be from higher
band than those assessed
Panelists produce ranked list
of assessed staff
? Use BARS appraisals
? Use accomplishments, results
and activities
? Use panel discussion
-2 0
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GAO Assessment For Pay
Panel recommends cut points
Unit head determines bonus
amounts within GAO-wide limits
2
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GAO Three Banded System
Conversion will be mechanical
hand I -- GS-7 through GS-12
? Developmental Level
? Full Performance Level
Band II -- GS-13/14
? Leadership
Band III -- GS-15
? Managerial
22.
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GAO Band I: Developmental Phase:
? Developmental period for entry
level staff
? Movement from developmental
to full performance level
? Probationary period will be 2
years
23
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GAO Band I: Full Performance
? Bonuses available'
? Top performers can go to
GS-12/10 salary equivalent
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GAO Band II
Potential Issues
? Broad definition allows
variety in assignments
? Band II staff can rate
each other
? Assessment of Band II will
be by a higher-level panel.
25
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GAO Band III
Potential Issues
? Who will assess Band III staff
in regions?
*Currently evaluating options
(Ron Lauve)
26
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GAO Promotion
? Use same annual cycle
(Tim McCormick)
? Use existing MSP
? Panels rate BARS dimensions
? Panels relatively rank staff
?Cut points by same BQ formula
-*Unit head picks from BQ list
27,
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GAO What We Need To Do --
Broad Bands
? Complete revising appraisal
systems (Dave Littleton)
? Band the BARS dimensions
? Decide how expectations and
results will be documented
*introduce new Band III rating
system
28
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GAO What We Need To Do --
Broad Bands
? Training staff (Ray Rist)
?Appraisal systems
*Expectation setting
?Assessment panels
?Managing change
'2P.
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 Declassified and Approved For Release 2012/10/26: CIA-RDP90-0053OR000501230001-5
GAO What We Need To Do --
Broad Bands
? Design pay progression
formulas (Mary Hamilton)
? Update personnel systems
(Dave Hanna)
Revise recruitment program to
reflect broad bands.
(Art Goldbeck)
30-
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GAO What We Need To Do --
? Develop software to assist
processes (Jack Wheeler)
? Test assessment process
(Ed Densmore)
? Develop evaluation plan
(Carl Wisler)
. 31
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GAO Key Dates
June 1988
? Begin appraisal period for first
year payouts
Fall 1988
? Develop training package for
new BARS appraisal system
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GAO Key Dates
Spring y989
? Give specialized training on
? New appraisal system
?Assessment for pay process
? Needs determination by bands
33
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GAO Key Dates
June1989
? Convert to bands
? Pro rata buyout of.within-grades
? Use new appraisal systems
? Begin new appraisal period
J4,
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GAO Key Dates
July 1989
? Assessment for first year
payouts
October 1989
? First payout
? Bonus only
?GS system
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GAO Key Dates
October 1990
? Second payout
*Bonus- plus permanent pay
?Bands
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GAO Key Dates
October 1991
? Enhanced funding
:3?
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