DESIGN OF A NEW AGENCY JOB CLASSIFICATION AND COMPENSATION SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91B00874R000100300003-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 15
• Document Creation Date: December 22, 2016
• Document Release Date: August 25, 2011
• Sequence Number: 3
• Publication Date: October 31, 1986
• Content Type: MEMO

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31 October 1986
MEMORANDUM FOR: Members of the Human Resource Modernization and
Compensation Task Force
SUBJECT: Design of a New Agency Job Classification and
Compensation System
1. We now have an opportunity--a window--to do something about the
Agency's personnel and compensation system. Thus far we have:
-- instituted a form of banding, which has been well received in our
Office of Communications;
-- put in place a new system to improve pay and give greater career
opportunity to our secretaries;
established a Human Resource Task Force to look at our entire
personnel system, with the conclusion that there is substantial
room for improvement in personnel and compensation systems;
and, in connection with testimony before the SSCI, the DCI
himself called for "new departures and bold innovations in
recruiting, training, compensation, and general personnel
management."
Now we need to build upon our earlier efforts, move in the direction the
DCI has indicated, and design a system more responsive to our managers
and better for our employees.
2. Looking at complaints which have been levied at our current
system, I would note that:
o Many managers are dissatisfied with our ability to compete for the
best people and concerned that the problem is growing worse. Under
the GS system we too often face the Hobson's choice of bringing
people in at a higher grade than they deserve in order to pay what we
need to get them, or, remaining faithful to the system and losing the
talented people we need to do our work.
-- The Director has?spoken about getting around the problem,
proposing to "replace the current and inflexible GS system."
ADMINISTRATIVE - INTERNAL USE ONLY
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o Many managers are uncomfortable with our ability to adequately
reward our best people or to encourage lateral entry of personnel
with the experience and background we need.
-- The Director has proposed that we "adjust our pay system...to
better relate performance and compensation: and that we "establish an
Agency-unique pay and allowance structure which will be second to
none in the U.S. Government."
o Many managers feel put upon by the cumbersome PMCD process when
they want to create jobs and upgrade positions, and some even feel
the need to reorganize so as to create management level jobs in order
to better pay and thus retain their star performers.
L -The Director has proposed that we "redesign a career
development program to clearly allow for specialist and management
tracks" and "more adequately reward experts as opposed to managers."
3. Going beyond the deficiencies of the current system, many of us
believe we can achieve both a more satisfied and a more committed and
productive workforce by replacing today's often haphazard,
longevity-dominated, and somewhat impersonal system of financial rewards
with a new, scheduled, thoughtful, and comprehensive performance-oriented
system.
4. As your work proceeds you will face many complex issues. We will
deal with these one at a time as they arise. In addition to the more
general guidance laid out in this memo, I ask you to observe the
following:
-- The systems you devise should not reduce internal mobility for
our people; if possible, mobility should be enhanced.
-- Your effort cannot dramatically increase costs. Overall, the
system you propose cannot add more than 2% to the Agency's
current compensation program--larger future costs in selected
areas must be "paid for" by non-growth in other areas.
-- It is understood that you may recommend a system in which the
effective starting and final salary levels will vary among
functional groups.
-- It is understood that different functional specialties will
require different systems of reward for specialists.
-- Implementation will be phased, but the broad outline of the whole
system will be known before we take the next major steps.
-- The pay/incentive/benefits structure and performance criteria for
functionally similar individuals will be the same, regardless of
their organizational affiliation.
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STAT
STAT
5. Your task is to ensure that what we can see in very general
outline becomes a reality. We want you to design a new total
compensation system based on pay for performance, with
specialist-management tracks as appropriate and the automation,
communication, and training that will be needed to support the system.
We are not looking for a study; we want an implementation plan which will
allow us to put in place an improved personnel and compensation system,
starting with the ADP and DO case officers' occupations and extending
from there., an occupation at a time, until we have encompassed the
balance of the Agency. The Director wants the process begun immediately,
wants to see some near-term progress--by March or April--and expects the
job to be substantially completed within two years.
6. In designing and implementing an improved human resource and
compensate-on-system, you will need not only to scope out the broad policy
directions, but also to help us develop the broad base of support and
commitment we will need to accomplish our task. Each of you will
represent your Deputy Director and you will need to keep them informed
about the progress of the project. While you must represent your
directorate's interests, in developing a new system we want--and you must
achieve--a coherent Agency-wide system which is viable for each
occupational family, not five unrelated systems.
7. We will have some outside help. There is a contract with TPF&C,
a consulting corporation with major compensation systems experience, a
smaller one with Hay Huggins and a possibility that we can license
certain job analysis and survey instruments. But for the most part, the
effort to design a new job classification and compensation system will be
an internal effort, using Agency personnel.
8. As Task Force Chairman,) responsible for
organizing a series of project teams to provide you with staff support in
devloping the new system. You will need to provide, as requested,
personnel from your respective directorates on a full- and part-time
basis to staff these teams. In addition, as each Agency occupation is
analyzed, you will be responsible for assembling a team of 5-7 or more
experts from that occupation, who are acceptable to the chairman and his
project teams, to work full-time on that effort. Finally, as each
occupation is brought along you will bear, major responsibility to oversee
and assist in this implementation.
9. I will meet periodically with your chairman and with the Task
Force to review the progress you are making and also to go over plans to
brief OMB and our oversight committees at appropriate intervals.
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STAT EXDIR
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Original - DD/OP/PA&E.
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1 - ExDir Chrono
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PROJECT TEAM
PROJECT MANAGER
POSITION
CLASSIFICATION
AND PAY
PERFORMANCE
APPRAISAL
SYSTEM
COMPUTER
SYSTEMS
PROMOTION
SYSTEM
TOTAL
COMPENSATION
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POSITION
LASSIFICATION
AND PAY
New position
classification
system
Establish posi-
tion require-
ments for
managers/
specialists
Design pay sys-
tem
Establish Simplify
external market Administration
linkages
PERFORMANCE
APPRAISAL
SYSTEM
Develop job-
specif is
performance
requirements
Provide basis for
linkage to pay
Performance Plans
Performance
Appraisal
System
PROMOTION
SYSTEM
COMPUTER
SYSTEMS
TOTAL
COMPENSATION
Develop Agency- Personnel/
Flexible bene-
Educate & feed- System Adm.
wide & occupa- Payroll system
fits
back
tion specific modifications
Mgmt Training
requirements
Attitude Surveys
Cost Projections
Specialist
Models
Occupational
Briefings Training
linkage
Publications
Dual Track Employee Bene-
System fits simulation
linkage
Career Hand-
books
Automated posi-
tion classifica-
tion/performance
appraisal
System Maintenance
& reporting
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STAT
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PROJECT TEAM
I PRaJFx.'r MANAGER I
I
I I i
I I I I I
I POSITION I I PERFORMANCE I I
ICLASSIFICATIONI I APPRAISAL I I
I AND PAY I I SYSTEM I
I I I I I
I I
PROMOTION I I a iPITT'ER
SYSTEM I I SYSTEMS
0
152 "ex
? 1 GS-14
? 1 GS-14
? 1 GS-14
? 1 GS-13
? 1 GS-13
? 1 GS-12
? 1 GS-12
? 1 GS-12
? 1 GS-12
? 1 GS-11
? 1 GS-09
? 2 GS-06
I I
I TOTAL I
i COMPENSATION I
perts" for occupational panels
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100%
PMCD 100% (T3D)
I
I i
I I I I
I I i I
I a l1uNICATIc I I TRAINnn
I I I I
I I I I
Total: 40.1 Work Years
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 I i
I POSITION
ICLASSIFICATIONI
I AND PAY
I I
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PROIT L'r MANAGER
I I
I I I I I
PERFORMANCE I I PROMOTION I I COMPLTrER I
APPRAISAL I I SYSTEM I I SYSTEMS
I SYSTEM I I I I I
I I I I I I
? 1 GS-14 PMCD 100%
? 1 GS-14 PA&E 50%
? 1 GS-15 OMS 30%
? 1 GS-14 CMS 50%
? 1 GS-14 OMS 50%
? 1 GS-13 OMS 60%
I I i I I I
I TOTAL I I I I I
COMPENSATION I IOOI4tJNICATIOMSI I TRAINING I
I I I I I I
I I I I I I
? 1 GS-13 arE 20% (TBD)
? 1 GS-08 OMS 50% (TBD)
? P/'r Participation Agency CMOs
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I I
I POSITION I
ICIASSIFICATIONI
I AND PAY
I i
I I I I
I I I i I I
I PERFORMANCE I I PROMOTION I I OOMPJTER I I TOTAL I
APPRAISAL I I SYSTEM I I SYSTEMS I I COMPENSATION I
I SYSTEM I I I I I I I
I I I , I I I I I
I
? 1 GS-14 PA&E 100%
? 1 GS-14 OTE 100% (IBD)
? 2 GS-13 OP 100% (TBD)
? 1 GS-15 OGC 10% (TBD)
? P/T participation Agency CMOs
I I I I
I I I
I WMWICATIOAS I I TRA NING I
I I I I
I I I
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I PRO= MANAGER I
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I
I I
I I
I PRa= MANAGER I
I I
I I
I I I
I POSITION
CLASSIFICATION
I AND PAY I
I I
I I I
I I
I PER RMANCE I
APPRAISAL
I SYSTEM
I I
I I I I I I I
I
I PROMOTION I I COMPUTER I I TOTAL I I I
I SYSTEM I I SYSTEMS I I COMPENSATION I I 144UNICATION;S I
I I I I I I I I
I I I I I I I I
A. System Development
? 1 GS-14 OIT 100% (TBD)
? 1 GS-12 OIT 100%
? 1 GS-11 OIT 100%
? 1 GS-13 OP 30%
? 1 GS-12 OP 30%
B. Occupational Conversion:
? 1 GS-14 PA&E 50%
? 1 GS-12 OF 30% (TBD)
? 1 GS-09 PA&E 30% (TED)
Total: 11.0 Work Years
I I
I I
I TRAINING I
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I
PROJECT MANAGER I
I
I I
I POSITION I
ICLASSIFICATIONI
I AND PAY I
I I
I I I I
I I I I I
I PERFORMANCE I I PRCMDTION I I COMPUTER I
APPRAISAL I I SYSTEM I I SYSTEMS
I SYSTEM I I I I I
I i t I I I
? 1 GS-15 OGC 30% (TBD)
? 1 GS-15 ESD 30% (TED)
? 1 GS-14 IOD 30% (TED)
? 1 GS-14 PA&E 50%
? 1 GS-14 EB&S 100% (TBD)
? 1 GS-14 PMC'D 30% C
? 1 GS-13 EB&S 100% (TED)
? 1 GS-12 PMCD 30%
? 1 GS-09 PMCD 30%
I I I I I I
I "AL I I I I I
I COMPENSATION I I CM4JNICATIONS I I TRAINING I
I I I I I I
(Costed under position class & pay)
(costed under position class & pay)
(costed under position class & pay)
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I I
i i
I PRWECr MANl I
I I
I I
I I
POSITION I
ICLASSIFICATIONI
I AND PAY I
I I
I I
PERFORMANCE I
I APPRAISAL
I SYSTEM I
I I I I I
I PRQ4)TION I I COMPUTER I
I SYSTEM I I SYSTEMS
I 1 I I
I I I I
? 1 GS-15 OTE 100%
? 1 GS-14 PMCD 30%
? 1 GS-15 DDA 20% (TBD)
? 1 GS-15 DDO 20% (TBD)
? 1 GS-15 DDI 20% (TBD)
? 1 GS-15 DDS&T 20% (TBD)
? 1 GS-15 DCI 20% (TBD)
? 1 GS-13 PA&E 30% (TBD)
? 1 GS-15 OCA 20% (TBD)
? 1 GS-14 CMS 20% (TBD)
? 1 GS-15 COMP 10% (TED)
? 1 GS-15 OGC 10% (TBD)
Total: 5.4 Work Years
I
I
I I
I TOTAL I
CON PFNSATION
I I
I I
I I
I I
I ?4UNICATIONSI
I I
I I
I TRAINnac I
I I
I I
.01
(costed under position class & pay)
(costed under perf
appraisal)
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I PRO= MANAGER I
I I
I I
I I
I POSITION I
I C LIASSIFICATION I
AND PAY I
STAT
i I I
I I
I PERFORMANCE I
APPRAISAL I
I SYSTEM
I I
I
I I I
I I I
I I I I I
I PROMOTION I I t14 JrER I I TOTAL I
SYSTEM I I SYSTEMS I I COMPENSATION I
I I I I I
I I i I I I
? 1 GS-15 OTE 100% (TBD)
? 1 GS-14 PMCD 30%
? 2 GS-14 OTE
30% (TBD)
? 1 GS-14 DDA
30% (TM)
? 1 GS-14 DDO
30% (TBD)
? 1 GS-14 DDI
30% (TBD)
I C O M[)NICATIONS I
I I
I I
I TRAIN'IM I
(costed under position class & pay)
? 1 GS-14 DDS&T 30% (TBD)
? 1 GS-14 DCI 30% (ZBD)
? 1 GS-12 PMCD 30% (TBD) (costed under position class & pay)
Total: 6.8 Work Years
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