October 1998

TRANSFORMATIONS '98: Every Employee an MVP

On September 9-10, 1998, the U.S. Office of Personnel Management (OPM) held its Fourth National Performance Management Conference, "TRANSFORMATIONS '98: Every Employee an MVP!" at the McLean Hilton Hotel in McLean, Virginia. In attendance were over 350 Federal employees representing 59 departments and agencies from 30 states. The conference focused on designing and using performance management programs that encourage every employee to become a Most Valuable Player (MVP) through linking agency Mission and Vision with employee Performance. Plenary speakers presented supporting themes on the future of human resources management reform, including total compensation issues, and effecting change and achieving goals.

• What human resources management reforms will OPM be proposing in the future?
• What is total compensation?
• How can we accomplish change and achieve our goals?

What human resources management reforms will OPM be proposing in the future? OPM Director Janice R. Lachance keynoted the conference by sharing with attendees OPM's proposed initiatives to enhance Federal human resources management and create greater flexibility for agencies to design programs that meet their needs. Several initiatives will require legislation. Some highlights include:

• promoting the use of performance management in improving and recognizing individual and group performance;
• enhancing the tools managers have for resolving performance problems;
• enhancing the current position classification system by establishing a Governmentwide broadbanding authority that permits—not mandates—agencies to use broadbanding if they choose;
• simplifying the classification standards to allow more flexibility in the way positions are classified;
• expanding the definitions of occupational groups, which allows agencies to use much shorter position descriptions;
• reducing inequities with special pay rate systems by letting them operate more like locality pay, that is, as an add-on to the basic pay rate; and
• redesigning Federal pay systems to increase total compensation flexibilities.

What is total compensation? Doris Hausser, OPM's Assistant Director for Performance and Compensation Systems Design, further explained OPM's efforts to research and review the total compensation of Federal employees. Ms. Hausser defined total compensation as everything that an applicant or employee perceives to be of value coming from the employment relationship. A study of total compensation includes a review of both intrinsic and extrinsic rewards.

Intrinsic rewards are built-in or naturally-occurring benefits that employees value through the employment relationship. As an example, an intrinsic reward that is sometimes overlooked in the Federal sector is the opportunity to serve the public and solve problems for the Nation. Many Federal employees prefer working for Federal organizations that have important public goals rather than working for private sector companies that are chiefly concerned with making a profit.

Extrinsic rewards can be both financial and non-financial. Financial rewards include an employee's salary or hourly wage, and also include other benefits, such as insurance, retirement, fare subsidies, variable pay programs, cash awards, retention or recruitment bonuses, and premium pay. Non-financial extrinsic rewards include honorary recognition programs, family-friendly policies, improved work-life programs, and enhanced employee involvement practices.

OPM's efforts to review and research total compensation issues include:

• establishing the Total Compensation Policy Center within OPM;
• researching current practices and innovations;
• gathering views and opinions about total compensation issues throughout the Federal Government; and
• working with stakeholders throughout the Federal community to fashion comprehensive proposals for a compensation system that ensures equity while providing organizations the tools necessary to meet future challenges.

• Dream. First, we need to develop a vision for what we want to accomplish in our profession, our organization, and our lives.
• Decide. Second, we have to decide what we want, or life will decide for us.
• Do. Last, we need to act on our dream.

Mr. Jolley shared with the audience ten steps to create positive change and achieve our dreams:

• Decide what you want.
• Write it down.
• Read it three times a day.
• Set a deadline for accomplishment.
• Think of it often.
• Dream, imagine, see it.
• Develop a plan of action to achieve it.
• Do three things a day toward achieving your goal.
• Stay positive.
• Act as though you have achieved it.

TRANSFORMATIONS '98 included many other important and valuable topics presented by performance management experts. The articles in this edition of Workforce Performance describe sessions that were well received and of interest to many conference attendees.