New Defense Personnel System Gets Early Passing Grade

The Defense Department has made "adequate progress" in establishing a new pay-for-performance system but it is too soon to gauge employee support and perceptions, a review found.

Congress approved creation of the National Security Personnel System for Defense civil service employees in 2004. NSPS regulations were published in late 2005, but the system has taken longer to start up than projected, in part because federal unions challenged some of the new rules in a suit that is pending before a federal appeals court. When completed, the system will cover nearly 700,000 Defense employees, making it one of the biggest changes in the civil service in decades.

The regulations were written in partnership with the Office of Personnel Management, which conducted the review of the NSPS. The 165-page paper is the first of several audits, by analysts inside and outside the Bush administration, to determine if the overhaul in pay and personnel rules leads to improvements in Defense workforce management and departmental operations.

According to the OPM review, the Pentagon provided data showing that National Security Personnel System has leaders committed to the program, a strategy for training employees and managers and procedures to tie employee pay raises to annual job performance ratings.

Most of the 11,000 employees in the first wave of the new personnel system appear to have met expectations set by their managers, according to data released by the NSPS program office. That report showed 97 percent of the employees qualified for a performance-based raise or bonus that was awarded on top of the across-the-board pay raise given all federal employees.

OPM's report noted that because the National Security Personnel System has been rolled out to "a relatively small portion" of the Defense workforce, some elements of the system could not be analyzed at this time. For example, the report characterized employee support for the NSPS as "not ratable" and offered no finding on whether the new system is increasing the productivity at Defense.

"When NSPS has been in place longer, longitudinal analysis of the available data will provide insight into improved workforce productivity," Kevin Mahoney, an OPM associate director, said. "Additionally, as the system matures, we will be able to collect other data to show turnover of low performers, another indicator of improving workforce productivity."

Federal unions and some Defense employees have opposed the NSPS, contending that such systems erode teamwork, which is prized in the government, by pitting employees against one another to get bonuses. Unions also fault the systems for being difficult to administer in a manner that employees accept as fair and credible.

Mary Lacey, the NSPS program executive, said the OPM assessment "affirms that our phased implementation approach is effective and on track for meeting goals and objectives." She said the personnel system will make adjustments as it gets feedback from Defense leaders and employees.

Pushing Pay Parity

Rep. Thomas M. Davis III (R-Va.) yesterday urged leaders of the House Appropriations Committee to maintain parity in pay raises for the civil service and the military.

On Wednesday, a House Armed Services subcommittee proposed a 3.5 percent pay raise for the military in 2008. In a letter to the Appropriations Committee, Davis wrote, "I believe it is critical civilian personnel receive a similar increase."

Davis pointed out that federal employees in key agencies, including the FBI, CIA and State Department, work to ensure the nation's security. He also noted that Congress in past years has supported a policy of providing equal raises to the civil service and the military.

President Bush recommended a 3 percent raise for military personnel and federal employees in his fiscal 2008 budget.

Talk Shows

Carl Fillichio, vice president of the Council for Excellence in Government, and F. Warren Wright, managing partner, Government/World Poll Division of the Gallup Organization, will discuss the upcoming Public Service Recognition Week on "FedTalk" at 11 a.m. today on http://federalnewsradio.com and WFED radio (1050 AM).

Lawrence Warder, chief financial officer at the Education Department, will be the guest on "The IBM Business of Government Hour" at 9 a.m. Saturday on WJFK radio (106.7 FM).

Stephen Barr's e-mail address isbarrs@washpost.com.