PART I. FUNDAMENTAL PRINCIPLES AND OBJECTIVES OF THE COMPENSATION SYSTEM
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP90-00530R000501010001-9
Release Decision:
RIFPUB
Original Classification:
K
Document Page Count:
8
Document Creation Date:
December 27, 2016
Document Release Date:
March 20, 2013
Sequence Number:
1
Case Number:
Publication Date:
July 29, 1988
Content Type:
REPORT
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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.
-1111"
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.
VJF7. Should enable the agency to beat the competition;
to get ahead of the market rates for the kinds of
skills, knowledges, and abilities needed.
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8.
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9.
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10.
11.
12.
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.
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.
productivity of workers within the organization
or agency.
Should recognize and reward differences in
SOCIAL RESPONSIBILITY OBJECTIVES
/ 13. Should comply with laws against discrimination
based on race, sex, national origin, age,
handicapping condition.
7 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.
16. 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.
7 17. Should aid in forecasting work force requirements
and planning to meet them.
18. Should be efficient or cost effective to
administer.
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/ 19. Should promote efficient job design and
organizational structuring within the agency.
20. Should support systematic, rational
administrative processes -- budgeting, financial
management, resource allocation.
21. Should contribute to ability to predict and
control costs of operations.
/ 22. Should maintain personnel resource costs at
levels that assure maximum returns for tax funds
spent, or keep costs at lowest levels consistent
with mission accomplishment.
State any objectives or principles of the agency
compensation system or systems that are not covered
by the statements above.
Question 2.
Indicate the approximate rank order of the importance,
I A%, of the major groups of objectives. In the boxes
below, indicate the most important group of
objectives by the numeral "l", then rank order the
ther groups of objectives, down to the least
INTE~AL EQUITY: Treating employees doing similar
/j/ EXTERNAL UITY: Keeping pace with the competition
in labor ma Nets outside the agency.
WORK PERFORMANNE: Recognizing differential
contributions to success of the enterprise.
SOCIAL RESPONSIBILI Meeting an employer's
responsibilities wit respect to non-discrimination
and other social objec 'ves.
PERSONNEL MANAGEMENT: Proms'ding a basis for orderly
administration of the human;esources of the agency.
COST MANAGEMENT: Providing reso ces necessary for
t mission accomplishment at least po ble cost.
OTHER:
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Question 3. Have the fundamental objectives and principles of the
compensation system of the agency been stated or
published in any way?
-In statute? (Provide a citation or a copy).
-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?
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 marketing products;
service industries engaged in research or in
providing information or advisory services; small
enterprises engaged 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.)
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/ / 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.
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FUNDAMENTAL PRINCIPLES AND OBJECTIVES OF THE
COMPENSATION SYSTEM
Question 3.
Have the fundamental objectives and principles of
the compensation system of the agency been stated or published
in any way?
Response:
Yes. Objectives and principles have been set out in
the following materials.
Available to the general public are: United States
Code, Title 5, Government Organizations and Employees; Basic
Federal Personnel Manual and Supplements, Letter, and Bulletins;
Code of Federal Regulations, Administrative Personnel; Handbook
of Occupational Groups and Series of Classes; Position Classification
Standards; X-118 Handbook, Qualification Standards for Positions
Under the General Schedule; X-118C Handbook, Job Qualification
System for Trades and Labor Occupations; Federal Register,
includes all Executive Orders relating Federal personnel management;
Codification of Presidential Proclamations and Executive Orders;
Congressional Records; Senate and Congressional Bills; Federal
Employees' Almanac; and various other pamphlets.
In addition to the above, FBI employees have access to
the following: Department of Justice Directives; Manual of
Administrative Operations and Procedures; Handbook for FBI Employees;
Merit Promotion and Placement Plan for FBI Support and Service
Personnel; Leave/Time and Attendance Manual; Performance Management
System pamphlet; and etc. (Employee Benefits Unit and Equal
Employment Opportunity Office have distributed material).
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FUNDAMENTAL PRINCIPLES AND OBJECTIVES OF THE
COMPENSATION SYSTEM
Part I, Question 4B. 7/29/88
Response: The FBI faces the same increasingly competitive forces in the
marketplace as experienced by other agencies in the Intelligence
Community. The FBI's ability to recruit and retain the proper caliber of
personnel for our professional Special Agent workforce has become
increasingly more difficult as our once pre-eminent salary and benefits
package in the law enforcement community in many cases is no longer
comparable to the compensation package of many major local and state
law enforcement agencies. Likewise, our ability to properly staff a cadre
of professional support staff, especially in the skill areas of language
specialists, computer scientists, and engineers is anticipated to meet
greater roadblocks as greater demand both in the corporate and academic
arenas will dictate more flexible and innovative approaches. This also is
true in the government sector as well. Oftentimes, the FBI must vie for the
same scarce pool of resources as other intelligence community agencies
but without benefit of some of their broader legislative flexible
authorizations, thus placing our agency at a relative disadvantage. As you
are already aware, the FBI is addressing a critical staffing problem in our
New York field office's ability not only to maintain an adequate staff but
also to increase the experience level of our Special Agents in order to
more effectively combat the growing complexity of our investigative
matters, which will result in a greater operational capability. Clearly, the
ability to index pay to high cost of living areas should be seriously
considered. Obviously, the FBI presence in these locations is dictated by
the crime and/or security problems, regardless of living conditions or the
agency's ability to compete with the local private or public sectors.
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FUNDAMENTAL PRINCIPLES AND OBJECTIVES OF THE
COMPENSATION SYSTEM
Question 4c.
The FBI utilizes a variety of methods to determine
what compensation levels among competitors are.
We subscribe to the College Placement Council annual
salary survey so as to determine national starting salaries
among professional groups we seek to attract applicants from.
Along the same lines we receive similar information from the
National Law Placement Association so as to determine where our
salary stands among those seeking attorneys.
The FBI has recently started a systematic analysis of
attrition rates, especially resignation rates so as to track the
principle reasons individuals cut short their careers. In line
with this, the Bureau conducts what is termed an "exit interview"
which although it does not elicit any salary figures, does
determine the reason for resignation, which can be interpreted
as being financial reasons, i.e. better paying job. In fact,
some resignation letters actually state this fact.
A recent development within the FBI has been the
phenomena of a small number of employees transferring within
their job classification to a separate government agency. In
such instances it has been possible to exactly track salary
rates. Of interest here is that salary increase has not been
the primary basis for such moves, but rather a wide ranging variety
of other factors has led to such a shift.
The FBI has recently created the new position of
Regional Recruiting Special Agent within selected geographic
areas of the country. This program is designed to impact strongly
within the key colleges throughout the country where an analysis
of the campus populations shows the types of students the FBI
seeks are now studying. Additionally, the FBI will strive to
recruit on those campuses where we have traditionally found
qualified individuals. The feedback from this system has been
significant and has provided substantial helpful data regarding
our competitiveness among potential employees.
The sum of our efforts have provided much in the way
of feedback concerning the competitive standing of the FBI.
Competitiveness of potential employees among the job-seeking
public is a difficult sense to define. The efforts underway now
within the FBI have done much to enhance our understanding of our
relative standing, and hopefully will continue to leave us in the
same or better relative position we now enjoy in the minds of
those seeking a job with significant importance.
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