1. PERFORMANCE MANAGEMENT WORKSHOP FOR MANAGERS
COMMERCE ALTERNATIVE PERSONNEL SYSTEM (CAPS)
PERFORMANCE MANAGEMENT WORKSHOP FOR MANAGERS
February 2010

2. Pay for Performance System
Key Questions
What 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

3. 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

4. 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

5. 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

6. Pay for Performance Guidance
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
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

7. Pay for Performance Guidance
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
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

8. 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

9. Intent of CAPS Performance Appraisal System
Encourage high performance
Encourage continuous dialogue between supervisors and employees
Provide a basis for performance-related decisions (e.g., pay increases, bonuses, PIPs)
February 2010

10. Performance Management
1. Planning
Set goals and measures
Establish and communicate
elements and standards
2. Monitoring
Measure performance
Provide feedback
Conduct progress review
Five Key Components
5. Rewarding
Recognize and reward
good performance
3. Developing
Address poor
performance
Improve good
4. Rating
Summarize performance
Assign the rating of
record
February 2010

11. Non-Monetary Ways to Reward Your Employees
Recognition
Acknowledge employee ideas
Acknowledge significant contributions in writing
February 2010

12. 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

13. Benchmark Performance Standards 80 – 100 60 - 79 40 - 59 0 - 39
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. Summary Guidance for Benchmark Performance Standards February 2010
Performance Attributes
0 – 39%
40 – 59%
60 – 79%
80 – 100%
Work Results
Work 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
Originality
Products met stated requirements
Originality 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 Guidance
for Benchmark
Performance
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
February 2010

17. 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

18. Responsibilities of Pay Pool Managers
Pay Pool: A grouping of employees who are combined together for performance-based pay decisions
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

19. Responsibilities of Employees
Create performance plan with Rating Official
Modify performance plan with Rating Official
Clearly, concisely, and accurately document accomplishments over past year
Seek out performance feedback throughout year
Respond to performance feedback
February 2010

20. 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

21. 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

22. 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

23. Managing and Evaluating Employee Performance
Key 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

24. 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

25. Components Of A Performance Plan
ELEMENTS
OBJECTIVES
ACTIVITIES
STANDARDS
February 2010

26. 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

27. S M A R T Tips SPECFIC MEASURABLE ATTAINABLE RELEVANT TIMEBOUND
February 2010

28. Choose Measurements Quality Quantity Timeliness Resource/Cost
February 2010

29. Effectively Evaluating and Documenting Employee Performance
Provide 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 format
February 2010

30. 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

31. Rating Eligibility An Employee is NOT Ratable if:
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

32. 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

33. Intervals and Potential Pay Increases
ILLUSTRATIVE
ZA - ADMINISTRATIVE
Band
Interval
Increase V
(GS 15)
4 – 5
0% – 4% 3 2
0% – 5% 1
0% – 6% IV
(GS 13–14)
0% – 8%
0% – 10%
III
(GS 11–12)
0% – 7%
0% – 12%
0% – 15%
ZA – ADMINISTRATIVE (CONT.)
Band
Interval
Increase II
(GS 7–10)
4 – 5
0% – 8% 3 2
0% – 16% 1
0% – 20% I
(GS 1–6)
0% – 7%
0% – 12%
0% – 14%
February 2010

34. 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

35. 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

36. Performance Feedback Is An Ongoing Process
Reviewing Work
Conducting Progress Reviews and Annual Appraisals
Addressing Performance Issues
Maintaining open lines of communications
February 2010

37. Performance Feedback Strategies
Provide continuous constructive feedback
Prepare the employee for the discussion in advance
Be clear on the purpose of the meeting
Have a clear message
Be specific
Emphasize the positive
February 2010

38. Performance Feedback Strategies
Be timely
Focus on accomplishments
Respect the individual
Leave communication lines open
February 2010

39. Consequences of Ineffective Feedback
Employees may not focus on performance goals and expectations.
Employees may lose motivation
Employees may become disgruntled
Low employee morale
Unexpected turnover
Grievances
February 2010

40. Communication Barriers
Communication styles
Use of verbal and non-verbal language
Lack of trust
February 2010

41. 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

42. Providing Feedback Establish a relaxed environment
Engage in a 2-way dialogue
Highlight positive or good behavior
Keep the conversation focused on performance issues
Maintain control of the conversation
Offer constructive criticism
February 2010

43. Providing Feedback Don’t be confrontational Don’t be accusatory
Don’t only focus on faults or mistakes
Don’t bring personal issues into the discussion
Don’t become agitated or angry
February 2010

44. Managing Marginal Performance
Key Questions
How 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

45. Identifying Marginal Performance
Missed deadlines
Decreased productivity
Lack of dependability
Lack of proficiency
Failure to perform current work assignments
February 2010

46. 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

47. 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

48. Marginal Performance Misconduct
The failure of an employee to do the job at an acceptable level.
Misconduct
The failure to follow a workplace rule (whether written or unwritten). Examples of misconduct include tardiness and absenteeism, insubordination, and failure to follow instructions.
February 2010

49. Managing the Marginal Performer
Address marginal performance early
Document all evidence relating to that employee’s low performance level
Schedule performance review meetings with the employee
Be prepared to take appropriate action
February 2010

50. 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

51. 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

52. 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

53. 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

54. 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

55. Grievance Rights Grievable Performance Score Rating Pay Increase
Not Grievable
Performance Plan
Bonus Decisions
February 2010

56. Additional Information
For further information or questions, please contact your Servicing Workforce Management Office Representative
WFM website – A-Z, C for CAPS Information
DOC CAPS Resources Page
February 2010