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March 2, 2009
GAO Employees
Develop Alternative to SRS for 2009 Performance-Based Compensation
In the past several years, GAO management calculated a standardized
rating score (SRS) for each employee, which was then used to calculate
the amount of performance based compensation (PBC) each employee would
receive. The intent of the SRS was a legitimate one – to
standardize ratings scores so that they were comparable across
teams. This was meant to correct the problem of teams that were
“hard” raters compared with teams that were “easy” raters.
However, many problems with the calculation of SRS were
recognized. One of the biggest problems was that, depending on
the distribution of ratings in a team, a very small difference in
ratings – even the difference of a single check mark for one competency
– could result in exaggerated differences in the amount of PBC
earned. This was particularly true when a large number of
employees’ ratings were very similar within a team. Under
these circumstances, small differences were magnified
by the SRS mechanism, distorting the small differences between actual
ratings.
ARM pulled together a group of specialists – statisticians, economists,
and methodologists – that included employees in the bargaining unit and
managers. Alternatives to the SRS score were developed by this
work group in consultation with HCO. One alternative for 2009
emerged for further consideration by HCO and the GAO Executive
Committee because it is easy to understand, better reflects the fact
that GAO has a high performing work force, and does not exaggerate
minimal differences in performance.
This alternative was presented to the Union’s Interim Council and the
IC voted unanimously to accept this alternative to the SRS for
2009. GAO will send it out for employee comment when the
negotiations are completed. If GAO management decides to propose
a different alternative, the Union will have a chance to negotiate
further. The alternative mechanism will be subject to
ratification by the Union membership as a part of any agreement that is
reached with management for the 2009 PBC pay, once we receive a budget.
This alternative for 2009 is a simple one. Each employee’s
overall appraisal rating is subtracted from their relevant team’s group
average rating. The resulting number is what is used in the
calculation for the PBC amount:
PBC % = (employee appraisal average – group appraisal average) + Budget
factor
The outcome is that the PBC an employee receives is based on their
overall rating relative to their group’s average rating, without
problematic distortions. There is a smaller difference in the PBC
payout between those at the lower end and those at the higher end of
ratings within a team. This is a better reflection of employee
performance at GAO: most staff are strong performers with smaller
differences in their ratings, with fewer at the higher and lower
extremes.
GAO management will send out a notice shortly that will have examples
to illustrate the SRS alternative. This alternative would apply
to all employees in the Pay for Performance plan (PFP). It does
not apply to developmental employees, PDP and CAP, who receive PBC
through the separate PRG process.
PAST COMMUNIQUES:
02/20/09: FMA
Assembly Delegate chosen, Union Assembly Officially Takes Office
02/02/09: Management
announces policy to streamline reports; Union seeks clarification and
guidance on implementation
01/27/09: New
Look Communique
01/16/09: Assembly
Election Schedule; Join the Union by January 30th to Vote
12/17/08: Officer
Election Results
12/15/08: GAO
Presents Initial 2009 Pay Proposal
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