The National Security Personnel System: Transforming Human Resources Management in DoD.

Kathleen Ott

Program Manager, National Security Personnel

System Department of the Navy

About NSPS 

According to Ms. Kathleen Ott, the National Security Personnel System (NSPS) came about because of the events of September 11, 2001. Ms. Ott, the NSPS program manager for the Department of the Navy, presented a workshop titled "The National Security Personnel System: Transforming Human Resources Management in DoD" during the ASMC Professional Development Institute 2005.

The NSPS provides a unified approach and cohesiveness among military, civilian, and contracted employees. Public Law 108-136 (November 2003) authorized the Department of Defense (DoD) to establish NSPS. In the summer of 2004, DoD and the Office of Personnel Management (OPM) convened working groups to craft various aspects of the system. The resultant proposal was published in February 2005 and received 58,000 comments. This past spring, the government conducted the meet and confer process, which was scheduled to conclude on June 3, 2005. Since the workshop was presented that same day, the outcome of the meet and confer process was unknown.

The objective of NSPS is to facilitate a DoD human resources environment that promotes employee growth, performance, initiative, and accountability that places the right person in the right job with the right skills at the right time at the right cost. The NSPS changes the current classification system, DoD employee pay, and the management of employee performance, hiring, reductions-in-force (RIFs), and appeals and adverse actions. Designs will be finalized in a collaborative process. At this time, Intelligence personnel, the Defense laboratories, and mariners (civilian boat drivers) are excluded from NSPS.

Pay for Performance

Simplified job classification is the result of the new pay bands being implemented under NSPS. Pay bands are based on the level of work (entry, full performance, expert, and supervisor). Pay bands will be arranged in career groups (for example, medical, professional and administrative, investigative, and engineering and scientific), with simplified and generic job descriptions.

The NSPS will allow DoD to attract, develop, retain, and reward high-performing employees through appropriate compensation. It also enables DoD to use local market factors when setting pay. Annual performance pay increases will be based on performance and contribution. Larger increases will be awarded to outstanding performers, and no increase will be given to unacceptable performers (but they will not lose pay). Adjustment to rate ranges will be determined by the Secretary of Defense, allowing greater flexibility in pay setting for factors such as promotion or permanent change of station.

The different levels of pay bands will consist of entry level at grades GS-5-9, journeyman level at GS-9-13, and expert level at GS-14 and above. Supervisors will have their own pay bands separate from the pay bands of those whom they supervise.

Pay for performance will require a huge cultural shift because pay under NSPS is linked to performance rather than entitlement. The DoD plans to conduct intensive training for employees and supervisors, as well as for managers and the human resources community. Military supervisors also will receive training on NSPS.

Communication is the key. Pay pools will be created to ensure fair ratings among all employees in the pool. A pay pool will be made up of all supervisors and employees within a career group at a location. Ratings among all employees will be compared by all supervisors within the pay pool to ensure fairness to all employees and to prevent bias by any supervisor.

Performance Management

NSPS will foster high performance, encourage robust communication, and enhance overall effectiveness. Supervisors will work with employees to establish performance goals and factors that fully recognize how well assigned duties are performed. Ratings will reflect meaningful distinctions in performance; there will be no more forced distribution of ratings or quotas. Conduct, teamwork, and professional demeanor are all now ratable "discrete behaviors." Employees' performance levels and complexity of work will determine the size of their payments.

Hiring and Staffing

The NSPS provides the flexibility needed to improve DoD's hiring processes, attract high-quality applicants, and enable DoD to meet critical mission requirements while respecting the principles of merit and fitness and preserving the veterans preference.

The DoD and OPM may establish new hiring authorities, with direct-hire authority for severe shortages or critical needs vested in the Secretary of Defense. The NSPS provides the opportunity to improve and streamline the hiring process. Job security in the event of RIFs will be based on performance rather than on longevity. Appeals will be more streamlined.

Implementation Challenges

Changing the culture from entitlement to high performing will be the biggest challenge as NSPS is implemented. Everyone will get a within-grade increase buyout prior to being transferred to NSPS, which will produce a costly, one-time impact on the DoD budget. Managing the costs associated with implementing NSPS and controlling pay increases within the pay bands will be another big challenge. Supervisors must ensure that performance is tied to business results, and DoD must also ensure the availability of systems to document and track performance goals and pay modules.

Summary

The NSPS is the largest human resources change since the Civil Service Reform Act of 1978. It covers DoD appropriated civilians, non-appropriated fund civilians, and foreign nationals--over one million employees. The NSPS comprises three distinct pieces: It establishes a new and different human resources system, it establishes a different labor relations dynamic, and it establishes a new appeals and grievance process. It does not affect merit principles, veterans benefits, or whistleblower protections. The NSPS supports national security goals and objectives and an agile, responsive, high-performing workforce within DoD.

Guiding Principles Used to Develop the Regulations Governing NSPS

* Put mission first--support national security goals and strategic objectives

* Respect the individual; protect rights guaranteed by law

* Value talent, performance, leadership, and commitment to public service

* Be flexible, understandable, credible, responsive, executable

* Ensure accountability at all levels

* Balance human resources interoperability with unique mission requirements

* Be competitive and cost-effective

Key Performance Parameters--Required Operational Capabilities

* High-performing [workforce and management]: Employees/ supervisors are compensated/retained based on performance/ contribution to the mission.

* Agile and responsive workforce and management: The workforce can be easily sized, shaped, and deployed to meet changing mission requirements.

* Credible and trusted: The system ensures openness, clarity, accountability, and merit principles.

* Fiscally sound: Aggregate increases in civilian payroll, at the appropriations level, will conform to Office of Management and Budget fiscal guidance, and managers will have flexibility to manage to budget.

* Supporting infrastructure (training and information technology (IT) systems): Training, IT support, and change management plans are available and funded.

* Timely implementation: NSPS will be operational and stable by November 2009, the sunset date for the Labor Relations System.

Reported by Carla Koty

Ms. Carla Koty is a systems acceptance tester in the M&CPS BL at DFAS Indianapolis. She currently is the chairperson for Competition/Awards of the Indianapolis Chapter; she has a/so served as the chapter's secretary and Programs chairperson.