Ms Kaye Kennedy HR Operating Officer March 12

Ms. Kaye Kennedy HR Operating Officer March 12, 2008

Off-site sales l Focus is on recruiting spouses and family members l l Using critical hires for initial 30 day period Alternatives options being explored for additional needs HR in contact with Family Readiness POCs at specified locations l Zone Managers and Store Directors are kept in the loop l

New Employee Orientation • Web-based Introduction • Mission • Historical Perspective • Organizational Structure Soon to be available on deca. mil, HR, Training Link

WEBINAR • Real-time Training sessions on employee computers via • Power. Point • Audio

WEBINAR • Students ask questions through phone • Tests and responses are done on computer

Region East Training

HROD MOVE l Four HROD resources will move to Columbus to serve on De. CA team l DLA received ten candidates for Chief position to lead De. CA support l Transition schedule starts June 2008 and will continue every other month until June 2009 l First two eastern zones to transition in June 2008: Zones 21 and 23

NSPS l Moving forward and on schedule o o o l OCONUS—Jan 20 HQ, FOA and Region—Feb 17 Store-level—Mar 16 De. CA interim guidance completed l l Compensation Guide Staffing Guide Currently training store-level leadership l Store-level job objectives out for review l

NSPS Design Highlights Classification Simple Flexible _______ l Career Groups l Pay Schedules l Broad Pay Bands l Simplified classification guidance l Do. D occupations Compensation Market sensitive Performance based _______ l Rate range adjustments l Performance payouts l Local market supplements l No change to incentive awards Performance Management Mission focused Compensation cornerstone _______ l High-performing workforce l Pay increases l Includes conduct and professional demeanor l Job objectives linked to mission 9

NSPS Design Highlights Staffing Right Person, Right Place, Right Time _________ l Do. D hiring authorities l Ability to streamline the Workforce Shaping Streamlined, Mission Responsive _________ l Recent changes to RIF guidance due to NDAA hiring process l Paysetting flexibilities l Do. D qualification requirements l Veterans’ preference rights protected 10

Changes – External Recruitment Do. D can create new qualification standards ***** May consider applicants in the local commuting area first***** Eliminated the rule of three (NDAA) Eliminated career conditional appointments Established new appointment authorities ***** Modified probationary periods 11

Public Notice Requirements l Requirements Open to all US citizens l May limit first consideration to local commuting area and other targeted recruitment sources l No minimum period of time vacancies must be announced l Open period based on type of position and availability of candidates l 12

Centralized Recruitment Cell l Corporate Recruitment Campaign l Hiring All Entry-Level Managers l Store and Above-Store l Projected 80% Retirements - next 5 years l Director’s Focus: Recruitment of spouses, wounded warriors, students, etc.

New Appointing Authorities l Time-limited l l appointment authorities Term appointments – up to six years Temporary appointments – up to three years l Can be converted to career appointment, if criteria met l l Selected under competitive examining procedures Announcement contained a statement which stated that the appointment could lead to a career appointment Must have served at least two years with a Level 2 rating Converted to a career position in the same pay band for which hired 14

New Definitions l Promotion: movement of an employee from one band to a higher band Ø l Reassignment: movement of an employee to a different position or set of duties in the same or a comparable pay band on a permanent or temporary/time-limited basis Ø l Example: Pay Band 2 to Pay Band 3 Example: Non-supervisory professional and/or analytical pay schedule to supervisory PS across corresponding pay bands (2 to 2) Reduction in Band: movement of an employee either voluntary or involuntary from one pay band to a lower pay band Ø Example: PB 2 to PB 1 15

Pay Setting – You Set Pay Now! l Pay setting determinations will be based on: l l l l Payroll budget – ability to pay Current salary – salary history of candidate Experience, education and training/certifications of candidate Market-sensitive data/value Long-term impact – potential for future salary growth Critical Agency Business Needs Other appropriate criteria l l Scarcity of qualified applicants Use of Recruitment, Relocation, or Retention Incentives (3 Rs) 16

Three Types of Pay Equity l NSPS compensation addresses l Internal Pay Equity l External Market Value l Individual – Pay-for-performance recognizes your personal effort to mission goals 17

Pay Equity - Internal l Base Salary is determined by: l l l Career group Pay schedule Pay band Does not include local market supplement l Do. D established a method to create and adjust pay-band rate ranges l Does not mean that everyone on a specific position description gets the same pay, but that there is an overall consistency between people doing like work across organizations and locations l 18

Pay Equity – External l Base Salary is negotiable and may be adjusted to reflect market conditions l Must comply with NSPS Interim Guidance for Establishing Pay l Determine GS-equivalent for PB position l Must comply with De. CA’s pay policy 19

Pay Setting Approval Levels Personnel/Pay Action for: Selecting Official (SO) Authorizing Management Official (AMO) Higher Level Management Official (HLMO) Store level supervisor Store Director Zone Manager Region Deputy Zone Manager Region Deputy Region Director Chief, Operating Officer 20

New Hire/Reappointment Interim Guidance l Minimum l The lowest rate of the appropriate pay band for the occupation and duties performed l Maximum l Rate of Pay/Salary Offer: Rate: The highest rate of the appropriate pay band for the occupation and duties performed 21

Pay Setting Quick Reference Guide l New Hires Pay Band Minimum to Maximum IAW De. CA policy Increase 6% – 20% l Promotions l Voluntary Reassignment or Reduction in Band Discretionary (may be up to 5%) l Management-Directed Reassignment Discretionary (may be up to 5%) l Involuntary Reassignment or Reduction in Band Discretionary (may be down to 10%) l Expiration/Termination of Temporary Promotion Re-Set to Previous Pay Level 22

Impact of NSPS to Employee Relations l PERFORMANCE MANAGEMENT – NSPS EMPLOYEES l Continue to Review and Measure Performance l l Procedures under 5 U. S. C. 43 requiring Performance Improvement Periods (PIP’s) no longer applies 5 U. S. C. 75 – Disciplinary and Adverse Action procedures apply l l Assist Employee in Overcoming Obstacles Counsel Employee Progressive Discipline PERFORMANCE MANAGEMENT – NON-NSPS EMPLOYEES l Continue to Review and Measure Performance l Procedures under 5 U. S. C. 43 requiring Performance Improvement Periods (PIP’s) apply l l l Counsel Employee Performance Improvement Period Applicable Administrative Action based on Sub-Standard Performance

Impact of NSPS to CCP l Conversion/Classification GS-1144 management positions classified as pay band - YC l Titles change for GS-1144 positions l i. e. , Commissary Officer changes to Supv Commissary Specialist (Store Director) l

Impact of NSPS to CCP l Staffing 1144 Vacancies l l l CCP will be used to fill all NSPS and non-NSPS 1144 positions competitively HROD will continue to handle external recruitment and bargaining unit positions at GS 8 and below Management may continue to effect noncompetitive reassignments without use of CCP

Impact of NSPS to CCP Referrals will continue to be done in the same manner l After NSPS conversion referrals will reflect new NSPS titles and pay bands. l Referrals issued prior to NSPS deployment may continue to be used l l Compensation rules apply upon selection CCP can provide applicant salary information and compensation worksheet at time of referral May result in larger pool of employees being referred for reassignments (i. e. , Pay Bands: YC-1 = GS-6 – 11 equiv; YC-2 – GS-12 – 14)

NSPS Rating and Rewarding l l l The rating and rewarding phase occurs after the end of the rating cycle Employees complete their self-assessments at the end of the cycle Ratings are done immediately thereafter Pay pool panels meet (Nov-Dec) Once approved by the pay pool manager, final ratings are relayed to the employee during the appraisal conversation The payout is effective on the first full pay period in January Oct Sep Jan Rating Panels Payout 27

Pay Pools - Headquarters Performance Review Authority PRA: Rick Page HQ PP 1 Senior Leadership— 28* PPM: Mike Dowling HQ PP 2 CC, CI, CO, GC, IG, IR, LL, RM— 125** PPM: Vicki Archileti HQ PP 3 AM, DO, EE, HS, PM, PS, SE, OC, XP— 108** PPM: Jerry Oestreich HQ PP 4 HR— 59** PPM Pam Conklin * HQ/FOA/ Region Deputy Directors ** Includes FPO Assets (66 overseas and/or CONUS Remote)

Pay Pools by Store Sales Band Performance Review Authority (PRA) Rick Page SB PP 5 Sales Bands 12, 13 and 14 PPM: Bob Vitikacs SB PP 10 Sales Band 6 PPM: Randy Chandler SB PP 6 Sales Bands 10 and 11 PPM: Keith Hagenbuch SB PP 11 Sales Band 5 PPM: Jay Hudson SB PP 7 Sales Band 9 PPM: Chris Burns SB PP 12 Sales Band 4 PPM: Julie Childrey SB PP 8 Sales Band 8 PPM: De. CA East Deputy SB PP 13 Sales Band 3 PPM: Janet Haase SB PP 9 Sales Band 7 PPM: Bob Hayden SB PP 14 Sales Bands 1 and 2 PPM: Gerry Adair

Pay Pools - OCONUS Non-Supv Performance Review Authority (PRA) Rick Page De. CA Europe De. CA West—Far East NS PP 16 MED Zone PPM: Randy Eller NS PP 19 Korea Zone— PPM: Wayne Walk NS PP 17 UK/Bamberg Zone PPM: John Campbell NS PP 18 Ramstein Zone PPM: Salah Ud-din NS PP 20 Japan/Okinawa Zone PPM: Bruce Graf All Region’s Combined NS PP 21 CMPP, CDC and Region Staff PPM: Herb Winchester, Jr.

Major Milestones to Mock Pay Pool Mar April May Mock Pay Pools Initial Performance Plan Conversations Alignment Cascade Begins Objectives Entered in PAA Ongoing Performance Conversations Interim Reviews Self Assessments Due Managerial Assessments Due

Major Milestones to Pay Pool June July Augus t Ongoing Performance Conversations Objectives Adjusted as Needed Objectives Finalized Sept Oct Nov Initial End-0 f Cycle Performance Plan Review Conversations Dec Ongoing Performance Conversations Jan Payouts Effective Annual Appraisal Conversation Self Assessments Due Managerial Assessments Due Pay Pool Begins Deliberations Pay Out Certified