performance management workshop for managers commerce alternative personnel system (caps) february...
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PERFORMANCE MANAGEMENT WORKSHOP FOR MANAGERS
COMMERCE ALTERNATIVE PERSONNEL SYSTEM
(CAPS)
February 2010 1
Pay for Performance System
Key QuestionsWhat is a pay for performance system? What are the key drivers for a pay for
performance system? What are the benefits of a pay for
performance system? What can managers/supervisors do to
make the pay for performance system a success?
February 2010 2
Definition of a Pay for Performance System
Pay for performance systems are systems in which pay decisions are based on defined performance levels rather than entitlement, tenure, or other non-performance related factors
Pay decisions include: Merit-based pay increases Lump sum bonuses
February 2010 3
Drivers of Pay for Performance Systems
Pay for performance systems emphasize achieving greater individual and organizational performance results
Need for more flexible compensation practices to Agency specific needs
February 2010 4
Benefits of a Pay for Performance System
Rewards high performers Allows greater flexibility for recruiting and hiring
top talent Provides opportunities for developing poor
performing employees Increases employee motivation Contributes to employee retention Deals more effectively with marginal employees
February 2010 5
Pay for Performance Guidance
1. Make the pay for performance process transparent Managers/supervisors can ensure that employees are informed
about the pay for performance system, understand how the system will impact them, and what employee and management roles and responsibilities are under the new system
2. Provide training for managers/supervisors While managers/supervisors cannot necessarily control the
extent to which training is adequate, you can actively pursue information about the new system to make sure that you have the resources, tools, and skills needed to be successful
February 2010 6
Pay for Performance Guidance
3. Provide accurate assessments on employee performance Ensure success of this system by providing honest, accurate
assessments of employee performance based on articulated performance objectives and performance benchmark standards to truly distinguish employee performance
4. Evaluate employees solely on performance elements A responsibility to clearly articulate individual performance
expectations to employees and to only evaluate them on those expectations
February 2010 7
Understanding the CAPS Performance Appraisal Process
Key Questions What is the performance appraisal process? What are the responsibilities of Rating Officials, Pay
Pool Managers, and Employees? What other pay-related interventions (other than
performance-based pay) are available to managers/supervisors to reward employees for good performance?
How can managers/supervisors acclimate new employees to the performance appraisal process?
February 2010 8
Intent of CAPS Performance Appraisal System
Encourage high performanceEncourage continuous dialogue between
supervisors and employeesProvide a basis for performance-related
decisions (e.g., pay increases, bonuses, PIPs)
February 2010 9
Performance Management
1. PlanningSet goals and measures
Establish and communicateelements and standards
2. Monitoring Measure performance
Provide feedbackConduct progress review
3. Developing Address poorperformance
Improve goodperformance
5. Rewarding Recognize and reward
good performance
4. Rating Summarize performance
Assign the rating ofrecord
Five Key Components
February 2010 10
Recognition
Acknowledge employee ideas
Acknowledge significant contributions in writing
Non-Monetary Ways to Reward Your Employees
February 2010 11
Components of the CAPS Performance System
Performance Indicators “E” for Eligible, “N” for Not Eligible, “P” for Pending, or “U” for
Unsatisfactory Performance Plans
Prepared by rating official with employee input Approved by Pay Pool Manager Critical elements only – minimum of 2/maximum of 6
Performance Standards Benchmark standards Supplemental standards
Performance Scores 100-point scale using benchmark standards
February 2010 12
February 2010 13
80 – 100
60 - 79
40 - 59
0 - 39
BenchmarkPerformance
Standards
February 2010 14
Summary Guidance for Benchmark Performance
Standards Assists managers in evaluating employees with benchmark performance standards
Used to help make distinctions between different levels of performance
Helps ensure greater consistency in the analysis and evaluation of performance ratings
Approved by the CAPS Board in 2005
February 2010 15
Performance Attributes
0 – 39% 40 – 59% 60 – 79% 80 – 100%
Work ResultsWork not successfully completed
Minimally acceptable work results
Work results were accurate, effective and efficient
Exemplary work resulted in maximum impact
Guidance
Failed to follow directions, guidance and procedures
Procedures were minimally correct
Minimal guidance required; brought suggested revisions to supervisor's attention
Guidance rarely, if ever, required
Initiative/Independence
None Rarely offered to provide additional support
Developed proposals for new tasks and activities with input from supervisor
Continuously found new and better ways of performing work
Knowledge
Insufficient technical knowledge/skill
General technical understanding
Superior technical knowledge in all tasks
Exceptional technical knowledge; beyond expectations for position
Quality
Work did not meet minimum specifications
Products were completed with adequate quality
Consistently above average quantity/quality of work
Exceptional quality, rarely room for improvement; serves as benchmark
OriginalityNone Products met stated
requirementsOriginality and creativity in assignments
Exceptional originality and creativity
Problem Solving
Routine problems were not resolved satisfactorily
Routine problems dealt with satisfactorily
Complex problems addressed as they became known and dealt with skillfully and resourcefully
Unforeseen problems solved with dedicated perseverance; conflicts anticipated and avoided through creative alternatives
Communication
Written and oral communications poor and not understandable
Written and oral communication generally understandable
Written and oral communications clear, convincing and effective
Complex ideas presented clearly to varied and diverse audiences; desired outcome achieved
Cooperation
Exhibited uncooperative/unresponsive behavior
Reasonable degree of cooperation with others
Promoted positive and productive relations
Forged new cooperative relations (internal and external)
Organizational Prestige
Negative impact to organization
Minor impact to organization Increased organizational prestige and recognition
Enhanced world class reputation of organization
Timeliness
Work unacceptably late The majority of final work products submitted by established deadlines, but required rework or major editing
Final work products submitted by established deadlines without the necessity for rework or major editing required
Work often completed early
Leadership
Poor leadership skills; provided no positive direction to staff
Sufficient leadership skills Outstanding leadership skills; predetermined goals always attained
Exemplary leadership skills; goals consistently surpassed
Administration
Unable to organize and prioritize work and/or wasted time
Able to organize work sufficiently to meet deadlines without too many delays
Made appropriate, useful suggestions to improve administrative processes
Derived and implemented improvements in administrative processes
Teamwork
Ineffective in working with others
Demonstrated reasonable cooperation in working with others
Contributed positively to group
Initiated suggestions to better group
Summary Guidancefor BenchmarkPerformance
Standards
February 2010 16
Supplemental Standards
Defined in terms of results – “what” and “how” Expressed in terms –
Quality Quantity Timeliness Cost Effectiveness
Written at the “Eligible” Level Use of Supplemental Standards is Optional
Responsibilities of Rating Officials
Develop performance plan with employees
Conduct progress reviews with employees
Modify performance plan with employees as needed
Conduct performance review meetings to discuss accomplishments
Recommend ratings, scores, payouts, and bonuses to Pay Pool Manager through any intervening higher level supervisor(s)
Conduct evaluation feedback meetings with employees
February 2010 17
Responsibilities of Pay Pool Managers
Approve performance plan/plan modification Manage the pay pool Ensure consistency across rating officials Discuss with rating officials any discrepancies
and/or the need for score adjustments Render final decision on ratings, scores,
performance increases, and bonuses
February 2010 18
Pay Pool: A grouping of employees who are combined together for performance-based pay decisions
Responsibilities of Employees
Create performance plan with Rating Official Modify performance plan with Rating
OfficialClearly, concisely, and accurately document
accomplishments over past yearSeek out performance feedback throughout
yearRespond to performance feedback
February 2010 19
Pay for Performance Flexibility
Pay increases upon promotion Managers/supervisors may recommend
employee’s salary anywhere within the band when promoted. Minimum of 6% pay increase.
Performance bonuses Rewards high performers, with intent to
motivate performance Supervisory performance pay
Managers/supervisors at band’s pay ceiling max may receive up to six percent higher through performance
February 2010 20
Comparability Increases
All employees will receive the annual comparability increase except: Employees with an “Unsatisfactory” rating Employees on a PIP at time of comparability
increase Employees on a PIP will receive comparability
increase at the time they successfully complete a PIP
Payment of ACI not retroactive
February 2010 21
Acclimating Employees to the Performance Appraisal
Process Employees must have a clear understanding of
performance expectations Employees will do well if they understand how
performance is linked to success Feedback provides employees with an understanding
of level of performance Employees want to understand if their performance is
meeting management expectations
February 2010 22
Managing and Evaluating
Employee PerformanceKey Questions How can managers/supervisors identify the linkage
between organizational goals and work unit/team goals and objectives?
How can managers/supervisors help employees establish performance elements that are linked to organizational goals?
How are performance plans created? How can managers/supervisors effectively evaluate
performance?
February 2010 23
Linking Individual Performance to
Organizational Goals Identify overall organizational goals and discuss how
they are linked to your work unit/team objectives Discuss the work unit/team objectives and/or specific
products or services and how they are linked to performance plan critical elements
Explain the rationale of how each critical element is weighted; the activities under each element; and the relationship of the elements to the work unit/team objectives
February 2010 24
Components Of A Performance Plan
ELEMENTS OBJECTIVES ACTIVITIES STANDARDS
February 2010 25
Brainstorm Task List Consider the whole job
Look to the coming year for new assignments, resources, priorities, policies
Teamwork makes up part of the organization’s fabric:
Helping others work Information sharing
Use active verbs – e.g., manage, develop, plan, etc.
February 2010 26
S M A R T Tips
February 2010 27
SPECFIC
MEASURABLE
ATTAINABLE
RELEVANT
TIMEBOUND
Choose Measurements
February 2010 28
Quality
Quantity
Timeliness
Resource/Cost
Effectively Evaluating and Documenting Employee
PerformanceProvide employees with tips for writing a
good accomplishment statement Keep records of accomplishments during rating
cycle Summarize all accomplishments for the year by
Critical Element Do not understate or overstate accomplishments Establish a format for accomplishment
statements to maintain consistency and quality (e.g., bullets vs. narrative)
Discuss the desired formatFebruary 2010 29
Evaluating and Documenting Employee Performance
Evaluate the employee’s performance Accurately and objectively Use specific language to describe key
achievements or deficiencies (e.g. work examples, address the critical activities under each element, use positive wording when appropriate)
February 2010 30
Rating Eligibility
An Employee is Ratable if:
Occupies a covered position as of Sept 30 AND
Has worked at least 120 days in one or more covered positions
An Employee is NOT Ratable if:
Does not meet conditions stated as Ratable
Employee has been placed on an approved Performance Improvement Plan (PIP)
February 2010 31
Concept of Intervals
Each pay band is divided into 5 intervals. Intervals 1-3 are for non-supervisory positions and intervals 4 & 5 are for supervisory positions.
Pay progression potential is faster at lower pay bands and lower intervals in pay bands.
Based on OPM statistical study of Federal employee occupational salary histories.
February 2010 32
Intervals and Potential Pay Increases
February 2010 33
ZA - ADMINISTRATIVE
Band Interval Increase
V(GS 15)
4 – 5 0% – 4%
3 0% – 4%
2 0% – 5%
1 0% – 6%
IV(GS 13–14)
4 – 5 0% – 6%
3 0% – 6%
2 0% – 8%
1 0% – 10%
III(GS 11–12)
4 – 5 0% – 7%
3 0% – 7%
2 0% – 12%
1 0% – 15%
ILLUSTRATIVE
ILLUSTRATIVE
ZA – ADMINISTRATIVE (CONT.)
Band Interval Increase
II(GS 7–10)
4 – 5 0% – 8%
3 0% – 8%
2 0% – 16%
1 0% – 20%
I(GS 1–6)
4 – 5 0% – 7%
3 0% – 7%
2 0% – 12%
1 0% – 14%
Payout Rules
Highest scored employee receives highest relative percentage payout (% of %)
Lower scored employees cannot receive a greater relative percentage payout
Tied scores might not receive same relative percentage payout
February 2010 34
Providing Effective Performance Feedback
Key Questions How can feedback improve employee performance? What are strategies that managers/supervisors can use to
provide effective feedback? What are the ramifications of providing inadequate, poor,
or untimely performance feedback? What communication barriers may arise and what can
managers/supervisors do to overcome them?
February 2010 35
Performance Feedback Is An Ongoing Process
Reviewing WorkConducting Progress Reviews and Annual
AppraisalsAddressing Performance IssuesMaintaining open lines of communications
February 2010 36
Performance Feedback Strategies
Provide continuous constructive feedback Prepare the employee for the discussion in
advanceBe clear on the purpose of the meetingHave a clear messageBe specificEmphasize the positive
February 2010 37
Performance Feedback Strategies
Be timelyFocus on accomplishmentsRespect the individualLeave communication lines open
February 2010 38
Consequences of Ineffective Feedback
Employees may not focus on performance goals and expectations.
Employees may lose motivationEmployees may become disgruntledLow employee moraleUnexpected turnoverGrievances
February 2010 39
Communication Barriers
Communication stylesUse of verbal and non-verbal languageLack of trust
February 2010 40
Overcoming Communication Barriers
Familiarize yourself with communication styles of your employees
Understand what motivates your employees
Become aware of your communication style and modify as necessary to be effective
February 2010 41
Providing Feedback
Establish a relaxed environmentEngage in a 2-way dialogueHighlight positive or good behaviorKeep the conversation focused on
performance issuesMaintain control of the conversationOffer constructive criticism
February 2010 42
Providing Feedback
Don’t be confrontationalDon’t be accusatoryDon’t only focus on faults or mistakesDon’t bring personal issues into the
discussionDon’t become agitated or angry
February 2010 43
Managing Marginal Performance
Key QuestionsHow can managers/supervisors successfully
identify a marginal performer? How can managers/supervisors help
marginal performers become high performing employees?
What options do managers/supervisors have for managing marginal performance?
February 2010 44
Identifying Marginal Performance
Missed deadlinesDecreased productivityLack of dependabilityLack of proficiencyFailure to perform current work
assignments
February 2010 45
Understanding Causes of Marginal Performance
Ask Yourself: What is it about the person’s performance that has
a negative effect on the work being done? What are things I actually see and hear that
indicate there is a problem? Does the employee know that there is a
performance issue? Have I clearly communicated performance
objectives and expectations ?
February 2009 46
Understanding Causes of Marginal Performance
What aspects of the employee’s performance needs to change in order to convince me that the employee has improved?
Are there obstacles or barriers to the employee performing well (e.g. work environment, training)?
Is the problem marginal performance or misconduct?
February 2010 47
The failure to follow a workplace rule (whether written or unwritten). Examples of misconduct include tardiness and absenteeism, insubordination, and failure to follow instructions.
The failure of an employee to do the job at an acceptable level.
February 2010 48
Managing the Marginal Performer
Address marginal performance early Document all evidence relating to that
employee’s low performance levelSchedule performance review meetings
with the employee Be prepared to take appropriate action
February 2010 49
Tips for the Meeting
Avoid referring to the situation beyond the impact it has on the employee’s performance
Engage the employee in the discussion to obtain their perspective on the matter
Limit the discussion to job related issues
February 2010 50
Managing Continued Marginal Performance
Readdress the issue with the employee and discuss the causes for lack of progress
Continue to work with the employee to address and overcome performance issues
Determine whether or not the employee is still a good match for the position
Explore alternative options for managing the employee
February 2010 51
Managing Marginal Performance Under CAPS
Managers/supervisors have more options available for managing a marginal performer (e.g., developing a PIP, tailoring responsibilities, little or no pay increases)
Employees have a more vested interest in their performance throughout the year
February 2010 52
Helping Employees who are Failing
Develop and set specific expectations and standards
Closely monitor performance
Assign the employee a “mentor”
Give specific and timely feedback
Consider training, where appropriate
Provide work assignments that build confidence
Help employee plan and prioritize their work
Determine if the performance problem is a result of a non-work issue
February 2010 53
Grievance Procedures
15 calendar days to file a request for reconsideration (informal grievance)
15 calendar days to formally respond to informal grievance
10 calendar days to file formal grievance with WFMO
15 calendar days for WFMO to review grievance 45 calendar days for Deciding Official to respond
to formal grievance
February 2010 54
Grievance Rights
Grievable– Performance Score– Rating– Pay Increase
Not Grievable– Performance Plan– Bonus Decisions
February 2010 55
Additional Information
For further information or questions, please contact your Servicing Workforce Management Office Representative
WFM website http://www.wfm.noaa.gov – A-Z, C for CAPS Information
DOC CAPS Resources Page http://hr.commerce.gov/Practitioners/CompensationAndLeave/DEV01_006181
February 2010 56