Monitoring the Status of the ForceSeptember 12, 2007
Civilian Personnel Policy
Readiness of the Force
Trends in Culture and Language Competency
Health Affairs: Sustaining the Benefit
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The All Volunteer Force is our paradigm
Cost of manpower will rise more rapidly than budget
We will complete transition to an Operational Reserve
Civilians can play a larger role
Operations will be integrated
Personnel and Readiness
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Military Pay
9th QRMC: identified significant gap in military member’s regular military compensation
Goal: ensure military pay would be equal to the 70th percentile of earnings for private sector employees with comparable education and experience
FY2000/2001/2002: Congress makes annual pay raises equal to ECI + 1/2% / targeted raises are introduced / President adds $1B to mil pay
FY2001-2004: officer pay gap closed and 73% of enlisted gap
2006: 97% of enlisted pay gap closed
Combination of increase in basic pay (ECI + ½) & substantial increases in BAH
2007 raise eliminates the gap
2.2% across-the-board pay raise
Targeted pay raises for mid-grade and senior enlisted as well as warrant officers.
An expansion of military basic pay table from 30 to 40 years of service.
2008 proposed 3.0% sustains success
FY-04 Pay Raise -- $205M in targeting
Minimum pay raise of 3.7%
Targets E5-E9 and warrants, 4.6 – 6.25%
Cumulative targeting to date will reduce “gap” by about 70% from CY-2001 level
Basic Pay increased 26% at a cost of $10.6B FY01-05
Regular Military Compensation* increased 37%
FY02 Pay Raise
FY03 Pay Raise
FY04 Pay Raise
FY05 Pay Raise
No targeting (3.5% pay raise across the board)
(Jan 2000-2005, BAH increased 65% for enlisted and out-of-pocket expenses fell from 18.8% to zero in 2005)
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Actions
$22.8B
Billions $
$17.4B
$12.7B
$21.3B
$20.0B
$18.9B
*
Recommendations
Change non-disability retirement system (i.e. vesting)
Revamp Basic Pay table to better reward performance and to support longer career profiles where desirable
Change housing allowances/other allowances (remove discrepancies in pay unrelated to performance)
Consolidation, simplification and enhancement of Special and Incentive Pays
Revise the health benefits for retirees system--more closely align benefit’s value to retiree with its cost to the Department of Defense
Periodic evaluation of quality-of-life programs to ensure they are cost-effective and adequate
Review of Reserve Component pay/benefits to ensure equality to Active Component members
Personnel and Readiness
Civilian Personnel Policy
Military to Civilian Conversions
Objective: Convert military billets in activities that do not require a military person to DoD civilian or private sector performance.
Chart1
FY04
FY04
FY04
FY04
FY05
FY05
FY05
FY05
FY06
FY06
FY06
FY06
FY07
FY07
FY07
FY07
FY08
FY08
FY08
FY08
FY09
FY09
FY09
FY09
FY10
FY10
FY10
FY10
FY11
FY11
FY11
FY11
FY12
FY12
FY12
FY12
FY13
FY13
FY13
FY13
Army
Navy
0
0
412
1,238
2,201
2,651
3,176
3,701
4,226
4,746
Total
0
1,772
3,467
5,583
8,280
10,299
12,569
14,431
15,685
16,877
Note: Data does not include 57 DHP TMA conversions or 40 non-DHP conversions in Army R&D medical
MILITARY SERVICE
0
0
412
826
963
450
525
525
525
520
4,746
Total
0
1,772
1,695
2,116
2,697
2,019
2,270
1,862
1,254
1,192
16,877
Note: Does not include DHP TMA conversions or 40 non-DHP in Army R&D medical which was programmed separately
DMRP conversions
Promotes excellence
Modern compensation system based on pay for performance and market based pay
Streamlined and more responsive hiring process
Flexibility in assigning work
Preservation of employee collective bargaining rights
Tools to shape a more effective and efficient workforce
Regulations established a NEW human resources (HR) management system that is:
- flexible
- contemporary
- responsive
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Classification
Jobs in broad “pay bands” based on work nature and competencies (eliminates “grades and steps”) Simple and flexible
Compensation
Performance Management
Linked to agency mission Job objectives and contributing factors influence rating Meaningful distinctions in employee performance Employee development with ongoing feedback and dialogue
Staffing
Flexibility to respond to mission change The right person, in right place, at the right time
Workforce Shaping
LABOR RELATIONS SYSTEM - Enjoined
This is a summary of the major design elements of Human Resource System and the Labor Relations System. I’ll discuss each element in more detail later in the brief but want you to have a brief overview at the start.
The classification system provides broad pay bands allowing the Department to move employees more freely across a range of work opportunities and detailed position descriptions are no longer needed.
The compensation architecture implements a pay-for-performance program that replaces General Schedule with market-based pay bands, in which employees pay progression is driven by performance – not longevity. No employee will lose pay when they convert to NSPS.
IN the new performance management program, managers and employees will set clear performance expectations, creating a culture where performance feedback is an important part of DoD’s missions and goals. Employees will know what is expected to them and have confidence in their manager’s ability to fairly and equitably recognize different levels of performance.
The new staffing flexibilities allow the Department to expand its ability to quickly hire and assign resources.
The rules of Reduction in Force are streamlined and more mission responsive. The four retention factors remain but with more emphasis on performance (tenure; veterans’ preference, performance and seniority)
Adverse Actions and appeals is enjoined
A balanced Labor Relations System is enjoined.
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Two and a half years of joint design and development
“Spiral Development” approach, with Program Executive Office leading effort; oversight by DepSecDef
Partnership with Office of Personnel Management
Aggressive, comprehensive communications strategy
Spiral 1.1 implemented on 30 April 2006
HR provisions only: pay banding, pay for performance, staffing, reduction in force
Approximately 11,000 non-bargaining unit employees
12 organizations spread across the Department
All employees, supervisors, and managers trained (web based orientation & classroom training, with focus on performance management)
Spiral 1.1 Performance Management
Rating cycle through October 2006
Performance payout in January 2007
Spiral 1.2 implementation October 2006 – February 2007
66,000 employees converted
Spiral 1.3 implementation March – April 2007
35,500 employees
90,000 employees
Personnel and Readiness
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*
DESERT SHIELD / STORM
61.3 M Duty Days
44.2 M Duty days
62.0 M Duty days
41.3 M Duty Days
12.7 M Duty days
13.5 M Duty days
0.9 M Duty days
5.3 M Duty Days
67.2 M Duty Days
Data as of: May 31, 2007
All Reserve Components – including USCGR
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The new guard and reserve will be organized, trained and
equipped to support operational military mission requirements
to the same standard as the Active component. Individuals
and units will be tasked to prepare for and participate in missions,
across the full spectrum of operations, in a cyclic or periodic
manner that provides predictability for service members and
their families and employers.
capabilities and to limit involuntary mobilization to predictable
and sustainable rates (e.g., one year in every six)
Organized, equipped, and trained to support operational missions
in periodic cycles
enhance volunteerism
SORTS Data are Often Misleading
Scores are based on inputs (what units have on hand) as opposed to outputs (what they can actually do)
Is input (resource) based rather than output (capability) based
Measures on hand versus required resources
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Iraq / Afghanistan
In Theatre
From:
Notional Data
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Objectives:
Concentrate effort on state relationships and educating state leadership on 10 key issues
Alert DoD leadership of state-level debates on key issues to provide an opportunity for their participation
Leadership Involvement:
USD(P&R)
2007
2004
Number in state/territory represents the state ranking by the number of total force & families residing within the state.
States/territories meeting at least 75 percent of criteria
States/territories meeting between 50-75 percent of criteria
States/territories meeting less than 50 percent of criteria
Personnel and Readiness
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Conclusions
The AVF has served us well – but we need stronger national support for military service.
We are well on the way to a truly operational reserve.
Civilians can – and will -- play a larger role.
States are responding to the Department family agenda.
Language and culture are accorded greater standing as necessary military skills, but still not at the level likely to be needed.
Congress is reluctant to deal strategically with personnel costs.
Readiness thinking is shifting to a mission orientation, but old habits persist.
1,384,968
2,174,217
2,251,936
825,985
1,170,560
918,970
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
11
UNCLASSIFIED
UNCLASSIFIED
104,392
283,143
444,581
Total members mobilized for ONE/OEF/OIF 387,53546.6%
Total members who have served once in ONE/OEF/OIF 283,14334.0%
Total members who have served more than once in ONE/OEF/OIF 104,39212.5%
Total members not mobilized for ONE/OEF/OIF 444,58153.4%
0
5
10
15
20
25
30
FY03FY04FY05FY06FY07FY08FY09FY10
Redux RepealConcurrent Receipt