Contribution -based Pay in the Air Force Research Laboratoryipma-er.org/Presentations/Contribution based Pay-Michelle Williams.pdf · 11 Contribution –based Pay in the Air Force

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Contribution –based Pay in the Air Force Research Laboratory

Michelle WilliamsLaboratory Demonstration Project OfficeHQ Air Force Research Laboratory

Michelle WilliamsLaboratory Demonstration Project OfficeHQ Air Force Research Laboratory

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AFRL Vision

Anticipate, find, fix, track, target, engage and assess – anything,

anywhere, anytime

33

• Most federal government employees fall under “Title V” - a set of personnel management regulations– Title V is administered by the Office of Personnel Management

(OPM)

• Other controls are established by the agency (Department of Defense), service (Air Force), and command (Air Force Materiel Command)

• Demonstration project authority allows waivers to be granted to Title 5 and encourages relief from other controls

What is a Demonstration Project?

Background

44

• FY95 Defense Authorization Act gave “S&T Reinvention Labs” personnel demo authority– About 15 demos across Army, Navy, and Air Force Labs

– Single Air Force Demo: 2,500 Scientists and engineers in 9 primary locations

• Broad Guidance– Broad paybands

– Simplified classification

– New performance management system

– Cannot effect employee rights or entitlements

Demo Legislation

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• Enhance Work Force Quality– Motivate employees through equitable compensation

– Enhance employee development

– Flexibly adjust work force in times of change

– Bottom Line: Achieve the best work force to accomplish AFRL’s mission

• Improve Work Force Efficiency– Simplify current personnel procedures

Goals and Objectives

66

• Simplified Classification– Positions classified by supervisors

• Classification authority delegated to laboratory management

• Positions classified based on standard set of factors and descriptors

– 1 page classification document: Statement of Duties and Experience (SDE)

– Automated PC-based software; menu driven• Programmed “Look-up Tables”

Key Demonstration Initiatives

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• Broadbanding– Seven traditional civil service “grades” combined into four “bands”

– Bands follow typical career progression

– Progression through the bands meant to be “seamless”


GS-7 GS-9 GS-11 GS-12 GS-13 GS-14DR-I DR-II DR-III DR-IVLab Demo

Title V GS-152007 Salary $40,710 – 67,773 $56,948 – 89,423 $78,598 – $100,248 –

$111,073 $124,010

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• Contribution-based Compensation (CCS)– An integrated broadbanding, classification and performance

management system

– Measures the “contribution to the organization” rather than how well the employee performed a job as defined by an individualized performance plan

• Provides an equitable and fair basis for salary adjustments

– Does not view pay increases as entitlements

– Supports rank-in-person concept and dual track


99

What is measured in the AFRL Contribution-based Compensation System?

• Technical Problem Solving

• Communications and Reporting

• Corporate Resource Management

• R&D Business Development

• Technology Transition/ Technology Transfer

• Teamwork and Leadership

Contribution-Based Compensation System

Six Factors

1010

Highlights of the AFRL Contribution-based Compensation System

• Employee scores are determined by a group of supervisors– “Meeting of Managers”

• Individual factor scores are assigned for each employee• Factors scores are weighted (by job category)• Weighted average is the “Overall Contribution Score” (OCS)

• The OCS listing is reviewed to ensure equity• Some surprises may result from the “bottoms-up” approach

• OCSs are plotted against salaries and pay adjustments are then determined

Contribution-Based Compensation System

1111

Definition of Key Terms

• OCS - Overall Contribution Score (OCS) – The weighted average of an employee’s six factor scores. The

weights depend on the employee’s job category. • Expected Score

– The OCS corresponding to an employee’s basic pay. This is the level of contribution expected of the employee, given his or herpay.

• Delta OCS – The difference between an employee’s actual OCS and his or her

expected OCS, based on their current basic pay and the Standard Pay Line.

• Delta Y – The difference between and employee’s actual basic pay and

what their pay should be based on their OCS and the Standard Pay Line.

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Bas

e Sa

lary

($K

)

Overall Contribution Score (OCS)

Under-CompensatedMinimum Increase is “G + I”

SPL

Equitably CompensatedMinimum Increase is “G”

$20

$30

$40

$50

$60

$70

$80

$90

$100

1 2 3 4 5

Over-CompensatedMaximum Increase is “G”

“G” = General Cost of Labor Increase (Set by Congress)“I” = Incentive Increase (Set by AFRL Corporate Board)

Delta-Y($20K)

CCS Scatterplot

Delta OCS1.4

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• Management has a lot of pay adjustment flexibility and they use it

• Significant raises are given to the most under-compensated – Raises are withheld from the over-compensated

• Maximum 2007 percentage increase was 28.6%– Max in 2006 – 30.8%

• Average 2007 increase was 4.8%– 2006 average 4.0%

• Maximum 2007 dollar increase was $16,797– Max in 2006 – $15,920

• Average 2007 increase was $4,082– 2006 average – $3,306

Salary Adjustments

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• Movement between levels is seamless – Zones established for CCS score/salary combinations

• Eligible (but not recommended) for change

• Recommended for change (but not mandatory)

• Mandatory; change is automatic

– No “formal” competition is required for advancement within or between broadbands

Broadband Movement

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Broadband Distribution After 2007 Band Movements

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007*

High-grade controls

lifted

More DR-IIIs than DR-IIs

DR-I

DR-IV

DR-II

DR-III

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1997 Overall LabDemo Plot

2500035000450005500065000750008500095000

105000115000125000

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5O bserved CCS Score

FY19

97 B

ase

Pay

Lower Rail SPL Upper Rail 1997 Total

65.2% Equitably

Compensated

Assessment Results

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2500035000450005500065000750008500095000

105000115000125000


FY19

98 B

ase

Pay


70.4% Equitably

Compensated

Assessment Results

1818


2500035000450005500065000750008500095000

105000115000125000


FY19

99 B

ase

Pay


72.4% Equitably

Compensated

Assessment Results

1919


2500035000450005500065000750008500095000

105000115000125000


FY20

00 B

ase

Pay


76.7% Equitably

Compensated

Assessment Results

2020


2500035000450005500065000750008500095000

105000115000125000


FY20

01 B

ase

Pay


82.7% Equitably

Compensated

Assessment Results

2121


2500035000450005500065000750008500095000

105000115000125000

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5Observed CCS Score

FY20

02 B

ase

Pay


85.6% Equitably

Compensated

Assessment Results

2222


2500035000450005500065000750008500095000

105000115000125000


FY20

03 B

ase

Pay


86.5% Equitably

Compensated

Assessment Results

2323


2500035000450005500065000750008500095000

105000115000125000

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5O bse rve d C C S S core

FY20

04 B

ase

Pay


91.2% Equitably

Compensated

Assessment Results

2424


2500035000450005500065000750008500095000

105000115000125000


FY20

05 B

ase

Pay


93.5% Equitably

Compensated

Assessment Results

2525


2500035000450005500065000750008500095000

105000115000125000

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5Observed CCS Score

FY20

06 B

ase

Pa


94.3% Equitably

Compensated

Assessment Results

2626


2500035000450005500065000750008500095000

105000115000125000


FY20

07 B

ase

Pay


94.0% Equitably

Compensated

Assessment Results

2727

98% of AFRL supervisors are in favor of the Demonstration Project initiatives

• Increased ability to recruit top talent– 70% believe AFRL is able to attract high-quality candidates

• Up from 36% in 1996

• Increased ability to reward high contributors– Supervisors expressed an eight-fold increase from implementation

values in authority to influence pay

• Simple, streamline classification process– What used to take weeks now takes hours

• CCS process keeps employees focused on mission– Employees feel more empowered with more active role

– Over 90% of workforce understand how their job relates to AFRL’s

mission

What Managers Like

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87% of AFRL employees are in favor of the Demonstration Project initiatives

• Ability to reward top contributors– 70% of workforce is satisfied with their pay

• Improved mentorship and feedback– Enhanced mission awareness

• Over 91% of workforce understand Laboratory’s mission– Better understanding of what it takes to succeed

• Almost 90% of workforce understand the Contribution-based Compensation System

• Evolving improvement in quality of supervision– CCS forcing managers to be more proactive

• Almost 75% believe they received adequate contribution feedback

What Employees Like

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• Lab Demo is an Air Force success story– Supervisors have the ability to manage their workforce– CCS is clearly accomplishing its goals– Overall contribution has increased – Deserving employees are rewarded for high contribution– High contributors stay and low contributors either improve or leave– Simplified processes

• Driving the culture of AFRL– Salary increases are not peanut-butter spread– Rewards initiative and breaks the entitlement mentality

• Success is not automatic– Management understanding, support for, and attention to

CCS is vital for continued success

Summary

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• Lab Demo public website:– http://www.wpafb.af.mil/library/factsheets/factsheet.asp?id=8080

• Email and Phone– [email protected]

• 937-656-9747

For More Information

Documents

Contribution -based Pay in the Air Force Research Laboratoryipma-er.org/Presentations/Contribution based Pay-Michelle Williams.pdf · 11 Contribution –based Pay in the Air Force