1. Federal Energy Regulatory Commission Office of the Executive Director Module 1 RECRUITMENT, RELOCATION, & RETENTION INCENTIVES Presented by: Human Resources Division * Please Note: The following content is subject to change due to OPM’s Hiring Reform Initiative. For more information on the reform please visit http://www.opm.gov. or contact a representative from HR (content last updated 6/2010). http://www.opm.gov

2. 2  Purpose..........................................................................................................................................3  Types of Incentives.......................................................................................................................4  Recruitment..................................................................................................................................5 -Difficult to fill Positions.........................................................................................6 - Written Justification.............................................................................................7 - Payment................................................................................................................8 - Service agreements...............................................................................................9  Relocation....................................................................................................................................10 - Written Justification............................................................................................11 - Payment..............................................................................................................12 - Service agreements.............................................................................................13  Retention.....................................................................................................................................14 - Key Features......................................................................................................15 - Difficult to fill Positions.....................................................................................16 - Written Justification...........................................................................................17 - Payment..............................................................................................................18 - Annual Review Requirements............................................................................19  CSALA.........................................................................................................................................20 - Key Features........................................................................................................21 - Written Justification.............................................................................................23 - Service Agreement...............................................................................................24 Table of Contents Module 1: Recruitment, Relocation, & Retention Incentives Federal Energy Regulatory Commission Human Resources Division

3. 3 Purpose Federal Energy Regulatory Commission Human Resources Division Recruitment, Relocation, and Retention (3Rs) incentives are used to acquire and retain talented Human Capital Resources to accomplish FERC’s mission. Module 1: Recruitment, Relocation, & Retention Incentives

4. 4 Types of Incentives Federal Energy Regulatory Commission Human Resources Division Recruitment: cash paid to entice Non-Feds to accept job offer. Relocation: cash paid to entice Fed employees to relocate to accept job offer. Retention: cash paid to current employees with mission essential skills to encourage them to remain @ FERC CSALA: Leave accrual credit for Non-federal work experience to entice candidates to accept job offer. Module 1: Recruitment, Relocation, & Retention Incentives

5. 5 Federal Energy Regulatory Commission Human Resources Division Recruitment Incentives Definition A payment of up to 25 percent of basic pay that is paid to a newly appointed employee OR an individual to whom an offer of employment has been made (For purposes of recruitment incentives, basic pay includes locality or special rate pay.) Key Features A recruitment incentive can be paid to a newly appointed employee who will occupy a position that has been identified as being difficult to fill. The determination to pay a recruitment incentive must be made before the prospective employee enters on duty. The recruitment incentive may not exceed 25 percent of the employee’s annual rate of basic pay. Module 1: Recruitment, Relocation, & Retention Incentives

6. 6 Federal Energy Regulatory Commission Human Resources Division Difficult to Fill Position A difficult to fill position may be identified by the agency (with OPM review and oversight) and should be justified by one or more of the following factors: –Availability and quality of candidates possessing the competencies required for the position –Salaries typically paid outside the Federal government –Recent turnover in similar positions –Employment trends and labor-market factors –Special or unique competencies required for the position –Desirability of the duties, work or organizational environment or geographic location of the position –OPM approved direct hire authority granted for the identified position Module 1: Recruitment, Relocation, & Retention Incentives

7. 7 Federal Energy Regulatory Commission Human Resources Division Written Justification Must Include: The basis for determining that a position is likely to be difficult to fill; The basis for authorizing a recruitment incentive; The basis for the amount and timing of the approved recruitment incentive payment and the length of the required service period. Module 1: Recruitment, Relocation, & Retention Incentives

8. 8 Federal Energy Regulatory Commission Human Resources Division Payment of Recruitment Incentives A recruitment incentive may be paid in the following ways: –As an initial lump-sum payment at the beginning of the service period; –In installments throughout the service period; –As a final lump-sum payment upon completion of the service period; or –In any combination of the above methods Module 1: Recruitment, Relocation, & Retention Incentives

9. 9 Federal Energy Regulatory Commission Human Resources Division Service Agreements Prior to receiving a recruitment incentive, an employee must sign a written agreement to complete a one-year term of continuous employment with the agency. This service agreement must include: The length of the agreement; Date the agreement begins and ends; The amount of the recruitment incentive; The method and timing of incentive payments; The conditions under which an agreement will be terminated by the Agency; Details of agency and employee obligations if the service agreement is terminated; and Any other terms and conditions for receiving and retaining a recruitment incentive. Module 1: Recruitment, Relocation, & Retention Incentives

10. 10 Federal Energy Regulatory Commission Human Resources Division Definition A payment of up to 25 percent of basic pay to a current Federal employee who must relocate to accept a position in a different geographic area. (For purposes of relocation incentives, basic pay includes locality or special rate pay.) Key Features Paid to a current employee moving to a position identified as being difficult to fill Incentive may not exceed 25 percent of the employee’s annual rate of basic pay Employee must establish residence in new geographic area. Relocation Incentives Module 1: Recruitment, Relocation, & Retention Incentives

11. 11 Federal Energy Regulatory Commission Human Resources Division Written Justification Must Include: The basis for determining that a position is likely to be difficult to fill; The basis for authorizing a relocation incentive for an employee; The basis for the amount and timing of the approved relocation incentive payment and the length of the required service period; That the worksite of the employee’s new position is not in the same geographic area as the worksite of the position held immediately before the move; and That the employee established a residence in the new geographic area. Module 1: Recruitment, Relocation, & Retention Incentives

12. 12 Federal Energy Regulatory Commission Human Resources Division Payment of Relocation Incentives A Relocation incentive may be paid in the following ways: –As an initial lump-sum payment at the beginning of the service period; –In installments throughout the service period; –As a final lump-sum payment upon completion of the service period; or –In any combination of the above methods A relocation incentive may not be paid until the employee establishes a residence in the new geographic area. Module 1: Recruitment, Relocation, & Retention Incentives

13. 13 Federal Energy Regulatory Commission Human Resources Division Service Agreements Prior to receiving a relocation incentive an employee must sign a written agreement to complete a one-year term of continuous employment with the agency at the new duty station. This service agreement must include: The length of the agreement; Date the agreement begins and ends; The amount of the incentive; The method and timing of incentive payments; The conditions under which an agreement will be terminated by the agency; Details of agency and employee obligations if the service agreement is terminated; Any other conditions for receiving the incentive. Module 1: Recruitment, Relocation, & Retention Incentives

14. 14 Federal Energy Regulatory Commission Human Resources Division Definition A continuing payment of up to 25 percent of basic pay to a current agency employee who possesses high or unique qualifications, or whose services are mission essential and that in the absence of a retention incentive the employee would be likely to leave the agency. Key Features A retention incentive may be paid to an employee who has been identified as being likely to leave the Federal service for any reason (i.e., private sector employment, retirement, etc.) A retention incentive must be calculated as a percentage of the employee’s rate of base pay, which includes locality and/or special rate pay (not-to-exceed 25 percent) Retention Incentives Module 1: Recruitment, Relocation, & Retention Incentives

15. 15 Federal Energy Regulatory Commission Human Resources Division Key Features (continued) Retention incentives may not be offered to an individual prior to their employment with the agency A retention incentive may not be authorized for an employee if the incentive, when added to the employee’s pay, would cause the pay actually received during the calendar year to exceed the rate of Level I of the Executive Schedule at the end of the calendar year ($199,700 for CY 2010) A retention incentive may continue to be paid to an employee as long as the conditions giving rise to the original determination to pay the incentive exists - this determination must be evaluated annually A retention incentive may not be paid to an employee while they are currently under a pre-existing recruitment or relocation incentive service agreement Module 1: Recruitment, Relocation, & Retention Incentives

16. 16 Federal Energy Regulatory Commission Human Resources Division Written Justification Must Include: The basis for determining that the unusually high or unique qualifications of the employee or a special need of the agency for the employee’s services makes it essential to retain the employee; The basis for determining that the employee would be likely to leave the Federal service without the retention incentive; and The basis for establishing the amount and timing of the approved retention incentive payment(s) and the length of the required service period Module 1: Recruitment, Relocation, & Retention Incentives

17. 17 Federal Energy Regulatory Commission Human Resources Division Payment of Retention Incentives A retention incentive may be paid in the following ways: –In bi-weekly installments; –In installments (i.e., 3 or 6 months) after completion of a specified service period; or –As a single lump-sum payment upon completion of the full service period A retention incentive may not be paid as an initial lump sum payment at the start of a service period or in advance of fulfilling the service period for which the retention is being paid. Module 1: Recruitment, Relocation, & Retention Incentives

18. 18 Federal Energy Regulatory Commission Human Resources Division Service Agreements Prior to receiving a lump sum or installment retention incentive, an employee must sign a written agreement to complete a one-year term of continuous employment with the agency. This service agreement must include: The length of the service agreement; Date the agreement begins and ends; The retention incentive percentage rate established for the employee; The method and the timing of incentive payments (lump sum, or installments) The conditions under which the agreement will be terminated by the agency; Details of agency and employee obligations if the service agreement is terminated; and Any other conditions for receiving and retaining a retention incentive. Note: A retention incentive service agreement is not required if the incentive payments are made in biweekly installments. Module 1: Recruitment, Relocation, & Retention Incentives

19. 19 Federal Energy Regulatory Commission Human Resources Division Annual Review Requirements Lump Sum payments and installment payments (other than bi-weekly) Service agreements must undergo a review prior to renewal to determine whether payment is still warranted. Bi-weekly installment payments (no service agreement required) Each retention incentive determination must be reviewed annually to determine whether payment is still warranted and document certification of this determination in writing. The retention incentive must be reduced or terminated whenever payment at the original level is no longer warranted. The retention incentive must be terminated (when no service agreement is required) if the employee is demoted or separated for cause, receives a rating of record of less than “Fully Successful”, or other conditions change such that the original determination to pay the incentive no longer applies. The employee must be notified in writing prior to the termination of a retention incentive. Module 1: Recruitment, Relocation, & Retention Incentives

20. 20 Federal Energy Regulatory Commission Human Resources Division Creditable Service for Annual Leave Accrual Provides credit for non-federal work experience or uniformed service that otherwise would not be creditable for the purpose of determining the annual leave accrual rate. Eligibility First appointment as a civilian employee of the Federal government; or Reappointment following a break in service of at least 90 days Module 1: Recruitment, Relocation, & Retention Incentives

21. 21 Federal Energy Regulatory Commission Human Resources Division Key Features Amount of service credit that may be granted to an employee is determined at the discretion of the head of the agency; and May not exceed the actual amount of service during which he/she performed duties directly related to the position to which he/she is being appointed Skills and experience must be directly related and essential to the new position to which he/she is being appointed; and Necessary to achieve an important agency mission or performance goal The determination to approve an employee’s qualifying prior work experience must be made before the employee enters on duty – the determination cannot be made retroactively Approval is subject to management discretion Module 1: Recruitment, Relocation, & Retention Incentives

22. 22 Federal Energy Regulatory Commission Human Resources Division Key Features (continued) Credit for prior work experience is granted to the employee upon the effective date of his or her initial appointment to the agency or reappointment after a 90-day break in service. After one year of continu ous service with the agency, the service is permanently creditable for the purpose of determining employee’s annual leave accrual rate. May not receive dual credit for service. Once permanently credited with a period of non-federal service or uniformed service, that period of service may not be considered for further credit if the employee has a future break in service. Module 1: Recruitment, Relocation, & Retention Incentives

23. 23 Federal Energy Regulatory Commission Human Resources Division Written Justification Must Include Request from the employee to be granted credit for non-federal or uniformed service for the purpose of annual leave accrual. Request from the Office Director recommending the amount of service (years and months) to grant the employee. This amount is limited and must be approved by the Human Resources Director. Resume, DD-214 and other written documentation of military experience (if applicable) should be included. Supervisors must submit a completed request package and supporting documentation through their respective Office Director to the Human Resources Director before the effective date of the candidate’s appointment. Module 1: Recruitment, Relocation, & Retention Incentives

24. 24 Federal Energy Regulatory Commission Human Resources Division Service Requirements Employee is required to complete a one-year period of continuous service. If an employee is placed in a leave without pay status during the required one-year period of continuous service, the period of continuous service must be extended by the amount of time in a leave without pay status unless: –the employee separates or is placed in a leave without pay status to perform service in the uniformed services and later returns to civilian service through the exercise of a reemployment right provided by law, Executive order, or regulation; or –the employee separates or is placed in a leave without pay status because of an on-the-job injury with entitlement to injury compensation and later recovers sufficiently to return to work Module 1: Recruitment, Relocation, & Retention Incentives

25. 25 Federal Energy Regulatory Commission Human Resources Division Service Requirements (continued) Credit granted to an employee for non-Federal service or uniformed service remains to the credit of the employee unless the employee fails to complete one full year of continuous service with the FERC. Once an employee completes one full year of continuous service with the FERC, the period of service for which he or she was granted credited service for related work experience is permanently creditable for the purposes of determining his or her annual leave accrual rate for the duration of the employee’s Federal career. Module 1: Recruitment, Relocation, & Retention Incentives