Appendix A-3: Workforce Compensation and Performance Service (WCPS)

FY 2000 Performance Report
Goal & Performance Indicators Checklist

Forward | Back | Table of Contents | OPM Home Page

OPM STRATEGIC PLAN GOAL I

PROVIDE POLICY DIRECTION AND LEADERSHIP TO RECRUIT AND RETAIN THE FEDERAL WORKFORCE REQUIRED FOR THE 21ST CENTURY.

WCPS Goal 1 M

By the end of FY 2000, needed changes in all significant OPM program policies are identified and changes are introduced so that Federal agencies are better equipped to respond to changing human resources and agency needs in the 21st century.

This program goal was established under Strategic Goal I to identify policy issues that need updating in order to improve the human resources climate in the Federal Government. There are four indicators to assess whether or not this goal is achieved. Of these, the fourth indicator was identified at the beginning of the year as the most critical for achieving the goal. We met this goal by publishing the regulations and legislative proposals listed below.

M An increase in the level of agency HR Directors’ satisfaction with OPM’s compensation, position classification, and performance management policy leadership, as measured by informal customer feedback and/or a 2% increase over FY 1998 levels in the percentage of favorable ratings (or maintenance at 90% or higher) in the DCSS.

Reported levels of satisfaction as measured by the DCSS were as follows:

Most Federal agencies do not employ FWS workers. In the DCSS, only 26 of 55 respondents expressed an opinion on OPM leadership in this program area, and only 1 reported dissatisfaction. There was no question in the FY 2000 on COLA because few agencies responded in the FY 1998 survey.

The Strategic Compensation Policy Center (SCPC) created workgroups in FY 2000. Agencies assigned staff to these work groups and expressed support and appreciation by continuing to participate in the activities. Policies dealing with performance management, classification revisions, and pay and leave administration were frequently cited as models for aligning performance to strategic compensation.

Taken together, informal feedback from customers and survey data support the achievement of this indicator.

M A report to the Director is issued on each phase of the scheduled policy review.

Informal reports were presented to the Director on major activity associated with this goal.

M An increase in the level of agency HR Directors’ satisfaction with their opportunity for involvement with the compensation, position classification, and performance management policy making process, as measured by informal customer feedback and/or a 2% increase over FY 1998 levels in the percentage of favorable ratings (or maintenance at 90% or higher) on the DCSS.

Reported levels of satisfaction as measured by the DCSS were as follows:

In the FY 2000 survey, there was a single generic question dealing with opportunity for involvement in Compensation Administration rather than questions on each specific program area.

M Specific legislative and regulatory proposals which reflect broad consensus among stakeholders are developed. [Critical indicator]

This is the critical indicator because it reflects real results.

We issued a number of regulations in response to agencies’ requests for clarification and enhancement of current regulations, as follows:

WCPS issued final regulations on December 27, 1999, to provide agencies with authority to establish an emergency leave transfer program that permits employees to transfer their unused annual leave to other Federal employees adversely affected by a major disaster or emergency.

On December 20, 1999, we issued final miscellaneous pay administration regulations to correct or clarify various regulatory provisions dealing with compensation of Federal employees. Many changes were prompted by questions and comments from agencies and other stakeholders.

We issued final regulations on December 2, 1999, to give agencies greater flexibility to pay retention allowances of up to 10 percent to a group or category of employees in certain limited circumstances. Agencies express wide support for this flexibility.

On May 8, 2000, we issued final regulations on the Family and Medical Leave Act of 1993 to ensure that both employees’ and agencies’ rights are protected and their responsibilities fulfilled.

On May 25, 2000, WCPS issued proposed regulations on grade and pay retention to grant agencies discretionary authority to provide pay retention for certain employees moving to positions under pay systems other than GS or FWS. This regulation was requested by the Department of Justice.

On June 13, 2000, we issued final regulations that permit employees to use a total of up to 12 weeks of sick leave each year to care for a family member with a serious health condition.

We issued proposed regulations on locality pay area definitions on August 16, 2000.

OPM developed a legislative proposal entitled the “Federal Employees’ Overtime Pay Limitation Amendments Act of 2000.” This legislation was prepared in response to agency requests to help address the challenges posed by emergencies and disasters. The proposal assures that no Federal employee receives less than his/her normal rate of pay for overtime work and increases the hourly overtime pay rate limitation from GS-10, step 1, to GS-12, step 1, for FLSA-exempt employees performing overtime work in connection with an emergency. This legislative proposal was introduced in Congress on September 26, 2000.

Throughout the year we issued 14 regulations covering changes in wage area boundaries that had been worked out in partnership with the Federal Prevailing Rate Advisory Committee. This completed the cycle based on the 1990 census data. The boundary adjustment process will begin again in FY 2003, based on 2000 census data.

WCPS Goal 2 -- M

Options for performance-oriented approaches to strategic compensation in the Federal Government are formulated and vetted among stakeholders so that consensus legislative proposals can be drafted and forwarded for action.

This program goal was established under Strategic Goal I to design a new performance-oriented system for determining the value of work and setting and adjusting basic pay for all Federal workers in a highly flexible structure to adjust to rapidly changing mission needs, technologies, and labor markets. There are three indicators to assess whether or not this goal is achieved. Of these, the first indicator was identified at the beginning of the year as most critical for achieving the goal. We met this goal by developing background information and producing studies on compensation and classification practices as described below.

M OPM develops and disseminates a comprehensive picture of state-of-the-art compensation practices. [Critical indicator]

This is the critical indicator because it makes it possible for OPM to develop a knowledgeable consensus among stakeholders.

WCPS developed background information on Structure Setting and Adjustment, Job/Work Evaluation, and Variable Pay for stakeholder working groups examining technical and policy issues involving various components of Federal compensation. We arranged to have Booz-Allen & Hamilton produce a Study of Private Sector Compensation Practices and used it as a source document for further studies. The study included information about the wide variety of current private sector compensation practices, categorized Federal work into a typology of work developed by SCPC to facilitate comparison with private sector work, and reported on interviews with private sector employers, based on a standardized interview protocol. This study has been completed and findings shared with Federal stakeholders.

We also arranged for a report by the Human Resources Research Organization on Work Evaluation: Study of the Position Classification System and Alternative Approaches for Valuing Jobs and Work. Phase 1 of this study includes 4 reports.

The first deals with strategic issues and alternative methods employed in work evaluation. The second deals with the origins and features of the GS system, and features and purposes that have developed over the last 50 years. The third covers the current role of position classification in the operation of HRM functions and programs. The last examines alternative job evaluation and compensation systems in U.S. Government organizations. The first report has been completed in June 2000 and distributed to Federal stakeholders. The other three reports are underway and are due during 2001.

Phase 2 of the study includes reports on technical requirements for a successor work evaluation system, the evaluation of alternative approaches relative to requirements of a successor system, and a final report describing project objectives, methodology, and results. This phase will also be completed in FY 2001.

At the Strategic Compensation Conference 2000, WCPS presented 27 breakout sessions on compensation issues and state-of-the-art practices, including updates on classification performance management, and strategic compensation; variable pay, including group incentives; aligning performance with agency strategic plans; information technology and the HR challenge; the role of the compensation practitioner; and broadbanding.

M Federal stakeholders indicate their satisfaction with the opportunity to express views and opinions to OPM on its strategic compensation efforts.

On September 6, 2000, at the Strategic Compensation Initiative’s workgroup on structure setting and adjustment, AFGE’s representative said that she was very pleased with the way we were conducting the workgroup process and especially pleased with our taking pains to include instances of union-bargained compensation examples in our discussions of compensation practices.

At the Strategic Compensation Conference 2000, comments on end-of-conference surveys included the following:

“Presenters were very well prepared and obviously experts on this topic. [I] believe in this area OPM is actually ‘stepping up to the plate’ to guide/help agencies in a very critical area.”

“This is exactly what the HR community needs to hear!”

“Good participation from the group. Great getting an idea of what you’re working on and featuring.”

M The Strategic Compensation Conference is shown by end-of-conference surveys to have satisfied participants’ expectations for the level and type of information provided to help them understand developing issues in Federal compensation.

On a five-point scale, the average overall rating of the Conference was as follows:

At the Strategic Compensation Conference 2000, comments on end-of-conference surveys included the following:

“The honesty and willingness of the presenting staffers cannot be overvalued. Excellent dissemination of information.”

WCPS Goal 3 -- M

Compensation systems under current law are administered efficiently, accurately, and in a timely manner. These include: (1) the pay-setting process for General Schedule (GS) and related pay systems; (2) the FWS; and (3) the COLA program.

This program goal was established under Strategic Goal I to ensure that Federal employees continue to be paid in an efficient, accurate, and timely manner. There are five indicators to assess whether or not this goal is achieved. Of these, the first was identified at the beginning of the year as most critical for achieving the goal. We met this goal by publishing the new pay tables for the January 2000 pay adjustments promptly and accurately, as described below.

M All actions necessary to make new pay schedules effective are accomplished within statutory deadlines, and agencies are provided with sufficient information to implement new pay schedules on a timely basis. [Critical indicator]

This is the critical indicator because these actions are needed to ensure the prompt implementation of new pay schedules.

WCPS prepared guidance on the January 2000 General Schedule pay adjustments, issued 32 locality pay tables, 33 law enforcement officer tables, 427 special salary rates tables, as well as tables covering the Executive Schedule, members of the Senior Executive Service, administrative law judges, and members of Boards of Contract Appeals, and posted them on the Website on December 21, 1999, in two formats, HTML and PDF.

M The annual report by the President’s Pay Agent is issued in a complete and timely manner.

WCPS provided staff support to the President’s Pay Agent, including issuing the 1999 annual report to the President on locality pay on December 8, 1999.

M Through comments and feedback provided informally and/or through the CSS, relevant Federal agencies, unions, and employee groups express satisfaction with OPM’s efforts to provide leadership for FWS administration and to involve them in administering the COLA program.

WCPS provided support to FPRAC at 13 meetings during the year, and all recommendations were worked out by consensus of all members. We published the FWS Appropriated Fund Operating Manual and created a Website specifically for FWS compensation issues.

Informal comments on responses to FWS-related queries included the following:

“Thank you very much for your prompt, thorough response.”

NX Maintain the level of satisfaction of HR Specialists with regard to the pay tables guidance materials, as reported in the CSS and/or informal customer feedback.

The satisfaction level in the CSS with pay tables guidance was as follows:

The CSS was not conducted in FY 2000.

M An increase in the level of HR Specialists’ satisfaction with OPM’s information sharing and technical assistance about pay issues as measured by informal customer feedback and/or a 2% increase over FY 1999 levels in the percentage of favorable ratings (or maintenance at 90% or higher) on the CSS.

The levels of satisfaction as measured by the CSS were as follows:

The CSS was not conducted in FY 2000.

Informal comments in emails on pay issues included the following:

“Thanks for your quick response!”
“Thanks so much for your help. Appreciate the quick response.”
“Thank you VERY MUCH for the quick response!!!”
“Thanks for your help. You’re a great Government resource!”

WCPS Goal 4-- M

In order to ensure a cost-effective Federal service, a collaborative review of the COLA program and other compensation issues affecting employees in the COLA areas is carried out in preparation for a report to Congress.

This program goal was established under Strategic Goal I to ensure that Federal employees in the COLA areas continue to be paid in an efficient, accurate, and timely manner. There are three indicators to assess whether or not this goal is achieved. Of these, the first was identified at the beginning of the year as most critical for achieving the goal. We met this goal by settling the court action with the COLA plaintiffs, as described below.

In the FY 2001 performance plan, this goal is being absorbed into a more broadly defined Federal compensation administration goal.

M On the basis of joint and independent research efforts and appropriate discussions with key stakeholders, OPM reaches agreement with COLA plaintiffs on common principles and/or clearly articulates its rationale for areas of disagreement. [Critical indicator]

This is the critical indicator because it ensures current and future COLA payments are designed to assist recruitment and retention efforts in nonforeign areas.

The U.S. District Court for the Virgin Islands approved the settlement of Caraballo, et al. v. United States (No. 1977/0027) on August 17, 2000, resolving litigation with current and former Federal employees who receive nonforeign area cost-of-living allowances. The settlement provides for back payments to COLA employees and makes changes in the COLA program based on principles developed jointly by COLA employee representatives and OPM.

M Report submitted to Congress on the status of the COLA program.

On February 7, 2000, the Director sent a letter to Congress stating that we were delaying our report pending settlement of pending litigation. (The report was sent to Congress on January 18, 2001.)

NX An increase in the level of agency HR Directors’ satisfaction with 1) OPM’s policy leadership, and 2) their opportunity for involvement, as measured by informal customer feedback and/or a 2% increase over FY 1998 levels in the percentage of favorable ratings (or maintenance at 90% or higher) in the DCSS.

The HR Directors’ satisfaction levels as measured in the DCSS were as follows:

There were no questions in the FY 2000 survey on COLA because few agencies are directly involved in the program.

WCPS Goal 5 -- M

Policies and programs for Governmentwide pay, leave, and hours of work under current law are administered in an effective and timely manner in order to ensure a cost-effective Federal service.

This program goal was established under Strategic Goal I to ensure that policy guidance to Federal agencies on compensation and leave issues is kept current. There are two indicators to assess whether or not this goal is achieved. Of these, the second was identified at the beginning of the year as the most critical for achieving the goal. We met this goal by providing regulations and policy guidance as described below.

M An increase in the level of HR Specialists’ satisfaction with OPM’s information sharing about pay and leave issues as measured by informal customer feedback and/or a 2% increase over FY 1999 levels in the percentage of favorable ratings (or maintenance at 90% or higher) in the CSS.

The HR Specialists’ levels of satisfaction as measured by the CSS were as follows:

The CSS was not conducted in FY 2000.

Informal comments in email and correspondence on pay and leave issues included the following:

“I would like to thank you for the effort, perseverance, and assistance provided by the Office of Personnel Management in the recent settlement of Caraballo v. United States. The ‘Safe Harbor Process,’ which was instrumental in achieving the settlement, required your agency to invest a significant amount of personnel time and resources over several years. There is no question that, without this investment on your part, the settlement, which we believe provides substantial benefits to the Government, could never have been achieved.” (David Ogden, Assistant Attorney General, Civil Division, to OPM Director, September 14, 2000)

M Regulations and policy guidance on pay, leave, and hours of work issued as needed. [Critical indicator]

This is the critical indicator because this activity ensures that pay, leave, and hours of work policies meet the needs of Federal agencies and employees.

WCPS issued numerous memoranda, fact sheets, questions and answers, and additional guidance to agencies concerning Federal compensation policies and programs. The information we provided increased agencies’ awareness and provided guidance on the availability of pay flexibilities to help recruitment and retention problems. For example, we issued:

-- guidance to agencies on the final regulations permitting employees to use a total of up to 12 weeks of sick leave each year for family care;
-- fact sheets on a number of Federal pay and leave programs and policies, including family and medical leave; sick leave for family care; the leave transfer and leave bank programs; holidays; compensatory time off; night pay; recruitment, retention, and relocation payments; and availability pay for criminal investigators;
-- questions and answers on the use of recruitment, retention, and relocation payments;
-- memoranda and guidance to assist employees who were prevented from reporting for work as a result of major disasters and emergencies, such as adverse weather conditions, the fires around Los Alamos, and the April 2000 World Bank/International Monetary Fund meetings in Washington, DC;
-- guidance on pay and leave entitlements for employees who were involved in Year 2000 computer conversion efforts over the New Year’s Day weekend;
-- memorandum announcing that employees may use up to 30 days of paid leave each year for organ donation; and
-- guidance on an employee’s entitlement to use 15 days of military leave for inactive duty training, as well as active duty training.

In addition, we initiated and managed a Governmentwide study on the possibility of establishing special rate schedules for information technology (IT) workers. We initiated this study in response to requests for additional compensation flexibility from agency HR and IT officials to help resolve IT recruitment and retention problems. The information gathered in this study will be used to support proposed special salary rate schedules for IT workers. (The proposed special rates were approved in November 2000 and became effective in January 2001.)

We provided program and technical assistance to OPM’s Office of the General Counsel and the Department of Justice to support the Government’s interest in fair and reasonable settlement of litigation, such as the special rates lawsuit affecting more than 100,000 Federal employees.

WCPS Goal 6 -- N

Agencies are equipped with a further simplified GS classification system that contains fewer than 225 classification standards. Agencies are equipped with a FWS system that is updated and maintained to reflect agency work practices.

This program goal was established under Strategic Goal I to simplify the classification system, decrease its administrative burden, and thus improve the prospects of recruiting and retaining a high-quality workforce. There is one indicator to assess whether or not this goal is achieved. We did not meet this goal in FY 2000.

Simply tallying the number of classification standards is not an effective measure of the usefulness and timeliness of these standards. This goal is being replaced in the FY 2001 Performance Plan by one measuring the weighted average age of standards (see WCPS Goal 7), which was introduced for the first time in the FY 2000 plan.

N By the end of FY 2000, approximately 150 single series standards have been eliminated from the classification system. This is 56 percent of the FY 2002 goal, a reduction of at least 267 single series from the FY 1997 baseline.

This measure is being replaced by the weighted average age of GS classification standards, which is currently part of Goal 7.

WCPS Goal 7 -- N

Leadership of the multi-year effort to develop job family standards to evaluate GS positions that comply with title 5 U.S.C. and the National Partnership for Reinventing Government initiatives is continued.

This program goal was established under Strategic Goal I to simplify the classification system, decrease its administrative burden, and thus improve the prospect of recruiting and retaining a high-quality workforce. There are four indicators to assess whether or not this goal is achieved. Of these, the second was identified at the beginning of the year as most critical for achieving the goal. Since we failed to meet this indicator, we did not meet the goal.

FY 2000 was the first year in which we measured the weighted average age of GS classification standards, and we are still refining both our measurement techniques and determination of reasonable target levels.

NX HR Specialists’ satisfaction levels on specific guidance materials issued in FY 2000 as measured in the CSS and/or informal customer feedback are maintained at 80% or higher.

The HR Specialists’ satisfaction levels with guidance materials were as follows:

The CSS was not conducted in FY 2000.

N Declining weighted average age of GS position classification standards indicates that standards are more current. This indicator measures our progress in modernizing the GS standards by examining the decreasing average age of standards covered in the studies WCPS conducts each year. As WCPS progresses with additional studies, the average age of the position classification standards as a whole should decrease on an annual basis. At the same time, this element also measures the employee populations covered by those occupations. Ultimately, WCPS would determine the appropriate cycle for maintaining a specific average age. [Critical indicator]

This is a critical indicator because it measures the currency of the overall GS classification standards system. (Note that but for (a) the release of new final standards in a given year and (b) shifts in population across occupations, the average age indicator would naturally increase by 12 months each year.)

We are still in the process of refining our method of definition and computing this figure. The long-term target has not yet been determined. The baseline average, FY 2000 actual average, and the FY 2001 target have been corrected to reflect recalculations. There were errors in the original database calculation which reported several of the standards as more than 150 years old. In addition, the production schedule has been updated. These errors have been corrected in the above figures. In addition, we are refining these figures further to take into account subpopulations whose correct series, title, and grade are determined using functional guides, rather than occupational standards.

M The HR community and managers are familiar with and understand the new simplified classification approach, as demonstrated through informal responses from the HRMC Position Classification Network, the classification Website email inquiry system, conferences, and/or forums.

Feedback from the HRMC Position Classification Network, the Strategic Compensation Conference 2000, other presentations made as invited speakers to professional forums, and the FedClass Website email inquiry system on the two job family standards already developed indicate overall satisfaction with the new simplified approach. From the nature of questions raised, staff are able to determine that the concepts and approaches are generally well understood and accepted.

N Five additional job family standards are issued for agency implementation. This comes to 11% of the approximately 45 job family standards that will be developed, dependent upon adjustments that need to be made as a result of other studies and resultant changes.

No additional job family standards were issued in FY 2000. The issuance schedule in FY 2001 has been accelerated from 5 to 6, and in FY 2002 from 5 to 8, in order to bring the project back on track.

During FY 2000, a significant setback was experienced when the agencies, whom we are required by law to consult as we develop new classification standards, raised strong objections through their highest level HR officials to the scope and pace of our standards development. The burden that OPM places on agencies as they participate in standards development is expanded under the job family approach when a given document released for Governmentwide review or issued for implementation may cover multiple occupations, in contrast to the former practice of developing standards for single occupations. The agencies requested that we suspend our study schedule and not issue final standards for implementation at the same time we were conducting factfinding and asking them to review and test apply draft classification standards. OPM took these concerns very seriously and worked with senior HR officials to resolve these issues in a way that would let us proceed with issuing standards at a reasonable pace that supported our strategic objectives while accommodating agencies’ concerns. A key change in OPM’s approach was to take into account that our long-standing practice of releasing draft standards to every agency for review and test application assumed that agencies were fully staffed with experienced classification specialists who could be assigned this work. The opposite is true: agencies have streamlined their classification programs, often delegating classification authority to line managers, and there was no prospect that former staffing levels would ever be restored. As a consequence, OPM proposed a different approach to testing draft standards, as well as clarifying our guidance for implementation of final standards, that would significantly lower the level of resources that agencies would be expected to spend. The proposal was endorsed by the Human Resources Management Council for refinement and implementation in FY 2001. The effect on our ability to issue final standards in FY 2000 remained, however, and the absence of timely agency comments during this period meant that we were unable to issue any final standards. We did, however, issue draft job family standards for human resources management and information technology occupations.

Goals 6 and 7 are being absorbed into a single, broadly defined goal in FY 2001 which is more targeted toward the strategic goal.

WCPS Goal 8 -- M

Agency managers are receiving easy-to-use classification and position management program guidance that facilitates delayering and streamlining their organizations.

This program goal was established under Strategic Goal I to ensure that Federal agencies were receiving accurate program guidance which improve the prospect of recruiting and retaining a high-quality Federal workforce. There are six indicators to assess whether or not this goal is achieved. Of these, the second indicator was identified at the beginning of the year as most critical for achieving the goal. We met this goal by improving the efficiency and timeliness of responses to requests for advisories by using the FedClass Website inquiry system.

NX Comments and feedback provided through customer surveys of the HRMC Network on Position Classification representatives indicate satisfaction with the Guide in their agencies.

There was no survey in FY 2000.

M Classification and position management program guidance is issued, as necessary. [Critical indicator]

This is the critical indicator because it tracks direct services to Federal agencies.

Requests for informal advisories through the FedClass Website inquiry system were answered and, where necessary, interpretations of existing guidance were produced. No new formal advisories interpreting existing guidance wasere needed during FY 2000.

N Issuance of two enhanced HRCD-ROMs each year with current salary tables and other automated improvements.

Since no new classification standards were issued during FY 2000, the HRCD-ROM issued in FY 1999 was still current. Owing to that, plus our interest in encouraging users to locate and apply the most current materials, which are now available on the OPM Website, we did not issue an edition of the HRCD-ROM in FY 2000.

M An increase in the level of agency HR Directors’ satisfaction with 1) OPM’s policy leadership, and 2) their opportunity for involvement, as measured by informal customer feedback and/or a 2% increase over FY 1998 levels in the percentage of favorable ratings (or maintenance at 90% or higher) in the DCSS.

The HR Directors’ satisfaction levels as measured in the DCSS were as follows:

The FY 2000 survey did not include a specific question on agency involvement in position classification policy development.

In addition, several HR Directors expressed their appreciation and support for the way we acted swiftly to propose fundamental changes in long-standing OPM practices for reviewing and testing draft classification standards as a way to accommodate their resource limitations, while still maintaining our leadership and stewardship of the position classification system and working to ensure its currency and credibility.

NX An increase in the level of HR Specialists’ satisfaction with OPM’s information sharing about position classification and position management as measured by informal customer feedback and/or a 2% increase over FY 1999 levels in the percentage of favorable ratings (or maintenance at 90% or higher) in the CSS.

The HR Specialists’ satisfaction level was as follows:

The CSS was not conducted in FY 2000.

NX Satisfaction levels at 80% or higher as measured by HR Specialists’ ratings on specific guidance materials issued in FY 2000 as measured in the CSS.

The HR Specialists’ satisfaction levels with guidance materials were as follows:

The CSS was not conducted in FY 2000.

WCPS Goal 9 -- M

Pending major reform of the Federal compensation system, a proposal for a credible annual pay adjustment process for the GS and related systems is developed.

This program goal was established under Strategic Goal I to revise the annual pay adjustment process and improve the prospects of recruiting and retaining a high quality Federal workforce. There are two indicators to assess whether or not this goal is achieved. Of these, the second was identified at the beginning of the year as most critical for achieving the goal. We met this goal by creating a National Compensation Survey Improvements Working Group, whose activities are described below.

NX Stakeholders indicate through the CSS and informal customer feedback that their interests and views are reflected in proposals to implement the consensus reached on short-term and/or long-term changes.

The CSS was not conducted in FY 2000.

M A proposal for a revised annual pay adjustment process is developed and disseminated to stakeholders. [Critical indicator]

This is the critical indicator because the proposal for interim changes in the pay setting process is the output for this goal.

OPM, OMB, and the Bureau of Labor Statistics combined resources to form an interagency National Compensation Survey (NCS) Improvements Working Group to find creative solutions and make viable recommendations to address the concerns expressed by the Federal Salary Council and the President’s Pay Agent about the use of the NCS program for setting locality pay rates. The group worked cooperatively on sensitive technical issues, such as grade leveling guides, and produced recommendations that were accepted by both the labor and technical expert members of the Council, as well as the Pay Agent.

The success of this group helped sustain the cooperative process between the Council and the Pay Agent in making recommendations and decisions on the locality pay program, and the future implementation of the recommendations is expected to help the Government sustain its ability to recruit and retain a high quality white-collar workforce.

WCPS Goal 10 -- M

The Governmentwide policy framework is up-to-date and accommodates cutting-edge proposals so that agencies can enhance individual and organizational performance and ensure individual accountability.

This program goal was established under Strategic Goal I to promote performance improvements by maintaining a flexible, decentralized framework for appraisal and awards within which agencies can establish results-oriented and merit-based programs for managing employee performance at the individual, group, and organizational level. There are two indicators to assess whether or not this goal is achieved, both of which are critical. We met this goal by creating a web-based Performance Management Clearinghouse to publicize the breadth of existing regulations and flexibilities.

M Performance management regulations include all necessary adaptive changes required by: changes in the laws affecting performance management; changes in OPM’s and the Administration’s performance management policy interpretation; and changes in regulations made by other HR program areas. [Critical indicator]

No new performance management regulations were proposed in FY 2000 for the reasons this indicator covers because no such legislative or regulatory changes occurred and there were no such changes in policy interpretation.

M Performance management regulations have clearly defined, broad parameters and provide maximum flexibility, so that agencies understand they can do most of what they want to do under current performance management regulations without needing to request demonstration authority. [Critical indicator]

The newly created Performance Management Clearinghouse demonstrated the breadth of existing regulations and the fact that agencies continue to be able to establish and adapt the performance management program options that they need and have no need to use the demonstration project authorities to establish new program options.

WCPS Goal 11 -- M

Agencies are provided assistance and advice in developing employee performance management systems that meet the requirements of the Government Performance and Results Act (GPRA) and are used to support and reward accomplishment of agency strategic goals.

This program goal was established under Strategic Goal I to promote credible and effective programs that provide incentives and recognition for individual, group, and organizational achievements. There are three indicators to assess whether or not this goal is achieved. Of these, the second indicator was identified at the beginning of the year as most critical for achieving the goal. We met this goal by establishing a Performance Management Clearinghouse, as described below.

In addition to the accomplishments described under each indicator, we also established the first OPM Director’s PILLAR Awards, which were presented on August 28 at the Strategic Compensation Conference. PILLAR stands for Performance, Incentives, and Leadership Linked to Achieve Results. This is an honorary award established to recognize and publicize effective employee performance management programs, processes, and practices that support alignment of employee performance management practices with organizational strategic goals as well as results-oriented and customer-focused performance.

We received 35 nominations from 18 agencies. The award recipients were:

(1) Department of Agriculture, Food and Nutrition Service, Southeast Regional Office, for its performance management program, which is part of its Total Quality Management (TQM) Initiative, and
(2) Department of Veterans Affairs, Veterans Health Administration, VA Healthcare Network Upstate New York (VISN 2), for its goalsharing program.

Honorable Mentions were given to:

(1) Department of the Army, Tobyhanna Army Depot, for its Rewarding the Workforce Award program,
(2) National Aeronautics and Space Administration, John F. Kennedy Space Center, for its Goal Performance Evaluation System (GPES), and
(3) Department of Transportation, Federal Aviation Administration Logistics Center (FAALC), Quality Systems Group, for its performance management practices, particularly establishing and implementing individual performance plans linked directly to the FAALC Strategic Plan.

M An increase in the level of HR Specialists’ satisfaction with OPM’s information sharing about performance appraisal and incentive awards policies as measured by informal customer feedback and/or a 2% increase over FY 1999 levels in the percentage of favorable ratings (or maintenance at 90% or higher) in the CSS.

The HR Specialists’ satisfaction levels were as follows:

The CSS was not conducted in FY 2000.

M Performance management products address features and explain the five fundamental processes of performance management (planning, monitoring, developing, rating, and rewarding performance). [Critical indicator]

This is the critical indicator because these products are the principal method whereby agencies receive assistance and advice on performance management issues.

The Performance Management Clearinghouse was designed and approved in FY 2000 as a dynamic database on the Website. It was created in response to customer requests to serve as an information exchange about performance management practices in Federal agencies and helps members of the Federal community share information about practices that have worked well for them.

Agencies submit a description of a successful practice(s). The submission is reviewed by WCPS staff, cleared by the agency performance management contact, and posted on the database for all to see.

M Agencies are satisfied with the advice WCPS provides on employee and group performance issues, including aligning performance elements in employee performance plans with organizational goals, providing feedback to employees on individual and group performance against established goals, analyzing employee training and development needs and providing training and development opportunities that support the needs of the organization, rating employee performance against established elements and standards, and rewarding individuals and groups who achieve individual and organizational goals. This is demonstrated by the response to a question in the FY 2000 CSS.

PMIAD staff are recognized by experts who routinely ask them to participate in programs and seminars. For example, in FY 2000, PMIAD staff made presentations at conferences on (1) Human Capital Management in Government, and (2) Government Innovations Summit 2000, both sponsored by the National Institute of Government Innovation, and conducted a performance measurement workshop and break-out sessions on innovative awards and performance management updates at SOELR.

In a national survey of Federal employees, 21,157 respondents were asked about the following issues:

The positive trend on all three issues in FY 2000 suggests that OPM is being successful in getting the word out to agencies on performance management issues and encouraging them to develop modern performance management systems in line with GPRA requirements.

The CSS was not conducted in FY 2000.

OPM STRATEGIC PLAN GOAL III

PROVIDE ADVICE AND ASSISTANCE TO HELP FEDERAL AGENCIES IMPROVE THEIR HUMAN RESOURCES MANAGEMENT PROGRAMS TO EFFECTIVELY OPERATE WITHIN THE ECONOMY, DEMOGRAPHICS, AND ENVIRONMENT OF THE 21ST CENTURY.

WCPS Goal 12 -- M

Federal agencies receive timely, clear, accurate, and useful advice and assistance on classification, compensation, and performance management that keeps them better informed about appropriate system flexibilities and ways in which they can be used to support accomplishment of agency strategic goals.

This program goal was established under Strategic Goal III to ensure that agencies are receiving proper advice and assistance on HRM issues. There are five indicators to assess whether or not this goal is achieved. Of these, the third and fourth were identified at the beginning of the year as most critical for achieving the goal. We met this goal by successfully conducting a Strategic Compensation Conference and a series of workshops, as described below.

M An increase in the level of HR Specialists’ satisfaction with OPM’s technical assistance about compensation, position classification, and performance management issues as measured by informal customer feedback, and/or a 2% increase over FY 1999 levels in the percentage of favorable ratings (or maintenance at 90% or higher) in the CSS.

The HR Specialists’ satisfaction levels with technical assistance in the CSS were as follows:

The CSS was not conducted in FY 2000.

M Increased number of requests for consultation demonstrates overall satisfaction with the quality of services provided.

WCPS provided technical guidance and assistance to the Department of State in developing and refining its Information Technology (IT) Professional Skills Pilot Program. Under this program, the agency uses the group and individual retention allowance authorities to help reduce turnover and increase the skill base of its critical IT workforce.

We worked closely with the Panama Canal Commission in resolving an issue relating to lump-sum payments for annual leave for agency employees who were separated from the Federal Government because the agency ceased to exist as a Federal agency on December 31, 1999.

WCPS met frequently with and provided advice to agencies (e.g., Social Security Administration, Energy, HHS, NOAA, Patent and Trademark Office) on developing and modifying their alternative work schedule programs and policies. In addition, we assisted agencies in resolving critical problems concerning work schedules, travel, and overtime and premium pay rules.

On September 1, 2000, we approved a variation of the recruitment and relocation bonus and retention allowance authorities to expand the Internal Revenue Service’s authority to grant such payments.

The National Institute for Standards and Technology asked us to conduct repeated sessions of our employee performance measurement workshop to train all of their managers and supervisors, and to tailor the material extensively to cover specific agency needs. We considered this request to train the Government’s most elite measurement experts a particularly notable expression of confidence in and satisfaction with the quality of our approach and methods.

M Post-workshop customer surveys indicate overall satisfaction with workshop presentations. [Critical indicator]

This is a critical indicator because these surveys measure our success in responding to issues of specific interest to agency staff and managers.

Mean Ratings of Workshops in a Scale of 1 to 5

Informal comments on post-workshop surveys included the following:

“Very helpful in answering questions and followed up if did not have info.”
“I wish this was a mandatory class for supervisors!”
“Truly one of the best classes I have had. Right to the point!”
“Excellent presentation! Appreciate the fact that the presenters were involved in actually writing policy.”

M The Strategic Compensation Conference is shown by end-of-conference surveys to have satisfied participants’ expectations for the level and type of information provided to help them understand developing issues in Federal compensation. [Critical indicator]

This is a critical indicator because the Conference is our principal method of two-way communications with agency staff on the broad range of WCPS technical assistance issues.

Post-conference surveys for the 2000 Conference showed an average rating on a five-point scale for breakout sessions as follows (listed in descending order of attendance):

Informal comments on the post-conference survey included the following:

“Presenters were very well prepared and very obviously experts on this topic. Believe in this area OPM is actually stepping up to the plate to guide/help agencies in a very critical area.”
“The honesty and willingness of the presenting staffers cannot be overvalued. Excellent dissemination of information.”
“Great participation from the group. Great getting an idea of what you’re working on -- and featuring.”
“This is exactly what the HR community needs to hear!”
“Interesting, comprehensive, common-sense approach. A full value presentation.”

M Degree of customer satisfaction with reimbursable projects results as measured by direct customer feedback (e.g., number of requests for repeat business, assessment of verbal or written complaints and/or compliments) indicates overall satisfaction with products.

We conducted a series of measurement workshops for the National Institute for Standards and Technology. The agency asked us to conduct repeated sessions to train all of their managers and supervisors, and included extensive tailoring of the material to cover specific agency needs.

We also assisted the National Archives and Records Administration’s St. Louis office in revising its performance appraisal and awards program by facilitating management discussions, coordinating decisions, and incorporating changes into program descriptions.

WCPS Goal 13 -- M

Agency demonstration projects address compensation, classification, and performance management issues effectively.

This program goal was established under Strategic Goal III to ensure that agencies were kept aware of the full range of flexibilities available to them under demonstration project authority. There is one indicator to assess whether or not this goal is achieved. We met this goal by providing support to and receiving positive feedback from OMSOE and other agencies on demonstration projects as described below.

M Positive comments and feedback provided through the CSS and other instruments indicate that customers are satisfied with the levels of service provided.

WCPS provided well-received support to OMSOE and to the Department of Defense on demonstration projects using innovative approaches in the fields of compensation, classification, and performance management, including the Army’s Tank-automotive and Armaments Command (TACOM) and the Communications-Electronics Command (CECOM), which are currently under development, and helped OMSOE with modifications to Federal Register notices. For further details, see OMSOE Goal 9.