GovernmentExecutive.com

The Homeland Security Department should build on its personnel reforms by beginning to implement the pay-for-performance and job classification portions, the Office of Personnel Management argues in a new report.

The report, issued May 1, assessed DHS' progress since April 12 on the performance management part of its new personnel system, now called the Human Capital Operational Plan. The report noted that the department's strategy is to use the performance management system as the foundation for other changes, including pay for performance.

The department is preparing to implement the appeals and adverse actions aspects of the system, but so far, the pay for performance and classification parts have remained stagnant. The labor relations portion was blocked last summer, after an appeals court upheld a ruling that it did not provide adequate collective bargaining rights for employees.

The report said DHS has made progress on providing adequate and up-to-date information on the personnel system, considering employee feedback and executing a comprehensive training strategy. But some weaknesses remain, OPM said.

"At the present time, the evidence suggests DHS is not keeping employees committed to the organization," the report stated. OPM also found that the system does not differentiate between high and low performers, and thus, does not promote a high-performance workforce.

DHS has faced challenges since its creation in 2003 that may have influenced its decision to only focus on performance management, OPM noted. The massive merger of 22 agencies into one department and a significant turnover in its chief human capital officer and other senior positions were major impediments, the report said.

But it also noted the 2002 Homeland Security Act requires OPM and DHS to implement a performance-based, market-sensitive pay system, along with greater flexibility in how employees are evaluated. "DHS should have taken the opportunity to implement the remaining systems, in addition to the performance management system, to meet its statutory obligation," the report said.

In February, the department announced plans to move more cautiously on pay for performance in particular, amid opposition and anxiety from federal labor unions and agency employees. It announced that for the time being, only intelligence employees would move to performance-based pay, under an initiative developed by the Office of the Director of National Intelligence.

Officials pledged to hold off on switching other agency employees until 2009, and even then such a move would be contingent on the success of the pilot initiative.

In a letter included in the OPM report, DHS Chief Human Capital Officer Marta Brito Perez called the assessment incomplete. She charged that some of OPM's conclusions create the "incorrect impression" that DHS has done little to prepare for the implementation of the remaining components of the system.

"This assessment provides limited insight into the extensive preparation work completed by DHS, particularly in the areas of leadership engagement, employee outreach and the inclusion of many of our stakeholders," Perez wrote.

The National Treasury Employees Union criticized OPM's recommendations Friday, arguing that OPM and DHS should recognize that the system is misguided and lacks fairness, transparency and objectivity.

"I find it extremely disappointing that OPM both recommends and is ready to support DHS implementation of the remaining segments of the system 'as soon as possible' to take advantage of 'existing program momentum,' " said NTEU President Colleen Kelley. "The fact is, the DHS personnel system is a failed system, and there is no momentum to take advantage of."

OPM recommended that the department put a program management office in place to make the reforms a corporate goal rather than a human resource initiative. DHS officials should also review data to discover what is behind the decline in employee morale and commitment, the report said.

At a hearing last month, Rep. Mike Rogers, R-Ala., recommended that the department conduct monthly surveys to ensure that any new personnel changes are having a positive effect.

DHS spokesman Larry Orluskie said Friday that he is unaware of any additional reviews of the system or employee morale surveys in the near future.

"We always welcome oversight, and the department gets an awful lot of it," Orluskie said. "It's always good to have an outside look at what our successes are."

COMMENTS

• NSPS is poorly implemented and basically unfair. DOD did a disservice to the many dedicated defense employees when it forced us into the NSPS system. It was rushed through, those who were at the GS13 level were ALL put into Pay Band II (Journey level) without regard for the functions of their specific positions. This despite the fact that under the mandated DAWIA requirements, GS13's were required to be certified at DAWIA Level III, as experts in their field. Clearly a disconnect. Payout was extremely meager. Supervisors evaluated employees then a panel overrode the supervisor's determination and in many, many cases, decided to lower the rating. Most were given a rating of 3 and the payout was extremely meager -- in most cases approx $800.00. The workforce has been demoralized and that is costly to an organization. Those who, in the past, would put in additional hours and effort are now heading out the door. Even the rating form is absurd -- some 14 pages long. Orion Posted June 4, 2007 8:51 AM
• NSPS is the current Defense initiative by OPM to change the current personnel system. Let us not forget that all this reform started with Acquisition Reform back during the Clinton administration. That was the start of all this hoopla. Doesn’t matter if you’re a republican or democrat, once you’re in office you really don't care about the Gov. Employee’s. You’re only looking out for the corporations that are filling your pockets. We as a great nation are being sold out and if we let this continue we will end up being a bunch of chicken pluckers excepting a minimum wage that we can barely live on. When are the people of the US going to wake up and see what is happening and start doing something about it? George Webb Posted May 30, 2007 1:43 PM
• Amen to all the previous comments! If other offices is like this one, the morale and positive move forward to "carry out DHS's mission" is lost because of the daily occurrences that tend to display the lack of thought, the lack of communication skills, lack of leadership skills and the over use of bad judgement! or unwillingness to change! Because of many incidents that have indicated unfair and bias treatment, there is very little if any trust that the new personnel system will indeed be utilized as it is "theoritacally" designed, a fair and objective program to enable managers make better decisions on performances however, on the surface the new system only highlights the potential and opportunity to do the opposite and no or very little recourse for the employees after the fact! The current system may need change but for the better and not just "change" for change sake and to a "worse" system! there has to be a way to present changes for the employees to support or buy into the new system; one cannot just change a name and expect the personnel to fall in line; it isn't going to happen. There must be clear objectives and means for employees to participate in the design of a new and better "overhaul" of a new system that all can live with and believe that it is a fair system to all. Brenda Ray-Nayfeh Posted May 30, 2007 8:24 AM