To be recognized as the best, we must recognize and reward the best in our employees.

To be recognized as the best, we must recognize and reward the best in our employees. Pay for Performance & Performance Management System Veterans Health Administration February 26, 2008

Three Elements of Pay • Base Pay • Market Pay • Performance Pay

Performance Pay • What is performance pay? • A component of compensation paid to recognize the achievement of specific goals and performance objectives • Not an Incentive Award

Performance Pay • The amount payable may not exceed the lower of • $15,000 or • The amount equal to 7.5% of the annual pay (base + market) on September 30th of the fiscal year

Performance Pay • Process • Objectives communicated 90 days of the beginning of the fiscal • Newly hired communicated within 30 days of entrance on duty • Physicians & Dentist hired after July 1 are not eligible within that fiscal year

Performance Pay • Process • Physicians & Dentist that separate prior to September 30 are not eligible • Payments disbursed no later than March 31 of the following year

VHA Performance Management • Established evidence-based performance measures based on overall strategic goals and hold accountable and reward line senior executives for achievement • Developed and implemented the High Performance Development Model & workforce succession programs

VHA Performance Management • Senior Executive Performance System • ECF Performance System • VA 5-level Performance System

VHA Performance Management • ECF Performance System • ECF members – senior management, mid-management, first line management, senior staff positions

VHA Performance Management • ECF Performance System • Cycle begins October 1 & ends September 30 • Minimum appraisal period is 90 days under performance plan

VHA Performance ManagementAlign Performance VA Strategic Plan VHA Strategic Plan Goals & Performance Measures Chief Officer Performance Plans Subordinate Senior Exec. Performance Plans

VHA Performance Management • Plan Structure • Mission Critical Measures/Business Plan (critical) • Transformational Measures (non-critical) • High Performance Development Model (HPDM) Core Competencies (critical) • Additional HPDM Core Competencies (non-critical)

VHA Performance Management • Summary Ratings: Outstanding = All elements exceptional. Excellent = All critical elements exceptional; one other element fully successful. Fully Successful = All critical elements fully successful; other elements fully successful or higher.

VHA Performance Management • Summary Ratings Continued: Minimally Satisfactory = All critical elements fully successful. One or more non- critical elements less than fully successful. Unsatisfactory = One or more critical elements less than fully successful.

VHA Performance Management • Funding • ECF bonus pool is based on the number of ECF members assigned to the organization • Funds are distributed based on ECF calculations in the Performance Database

VHA Performance Management • Bonus Pool Range • Senior Executive pool determined by the Secretary • Senior Manager - $2,500 to $10,000 • Mid-manager - $1,500 to $7,500 • Front-line - $750 to $5,000 Note: Bonuses may not be awarded for a rating below the fully successful level

VHA Performance Management • References: • Performance Pay – VA Handbook 5007/21, Part IX, section 12 • Performance Management System – VA Handbook 5013 • Other Sources: Employee Recognition & Awards – VA Handbook 5017

VHA Performance Management • Contacts: • Pay for Performance: Anika Woods – 202-461-7259 George Neureither – 202-461-7396 • Performance Management System Elias Hernandez – 202-461-7398 Anika Woods – 202-461-7259

VHA Performance Management QUESTIONS?

To be recognized as the best, we must recognize and reward the best in our employees.