FY 1988 UNFUNDED REQUIREMENT - HUMAN RESOURCE MODERNIZATION AND COMPENSATION PROJECT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP10M02287R000200160052-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 27, 2016
• Document Release Date: December 26, 2012
• Sequence Number: 52
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
"E DRANDUM FOR: Deputy Director for Administration
FROM: Hugh E. Price
Director of Personnel
SU$7DCT: FY 1988 Unfunded Requirement -..Human Resource Modernization
and C nsation Project
When the.FY 1?8P budget submissions were compiled last year, the Bran
Resource Modernization arc9 Compensation Task Force (HRM&C!'F)had.not refined
its preliminary design to the point where realistic FY 1988 and out yeau'funds
and position requirements could be presented and justified. The HRM&' has
since made some progress in this area and OP will need resources amounting to
during F1 1988 to begin implementation of.some of the Proposed
system features and to o:eare for FY 1989 and out:. year implementatio-: phases,
of the remaining features Attachment A to this memorandum is the s=-iary
be provided..
listings of the require:.?erts which can be accomplished in FY 1988 if :nds can
Attachments:
As stated
25X1
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
25X1
1i r,-rt.o-ate'Expenditure Center: DDA/CP?
Initiative Name and FY: Human Resource Modernization and Compensation Project
Date of F:'l Operating Capability: To Be Determined
Cost Est._i'te:
Fund
Position=
(Dollars, in Thousands)
1989 1990 1991 1992
Probler- to be Addressed: The DCI's National Foreign Intelligence
Strategy, presented to Congress in 1987,
included the intent to ensure the Agency's
ability to address increasingly complex
intelligence issues through the next several
decades. The ability to do so rests entirely on
the aquisition and maintainence of a work force
that consists of dedicated and skilled employees
and managers.
Proposal:
just i f tion of Proposal:
Descr_-t_on of Fundina
Re3u1r -e .ts.
current Agency personnel management system must
be improved to deal with the competitive
environment we will face as we attempt to
recruit and retain a.quality.work force.
to. human resource.planning'and management.. The
Planning and development of the proposed Agency
HR management system began in FY87 and the early
stages of implementation are scheduled to begin
in FY88. Experimentation with non-GS pay
systems that started with the office of
Communications inFY84 and the Agency
Secretarial System in FY87 will be. expanded to
include other Agency occupations in several
phases.
Significant changes in Agency mission, combined
'with demographic, social and economic trends,
have surfaced the need for a strategic approach
(See Attachment B)
The Hr3n Resource Modernization and
Compensation Task Force, consisting'of Senior
Officers from. each.Agency Career.Service, is.in
charge of the Project. Every Agency component
will participate, as well as coordinate, in
project development and implementation through
their respective Task Force members.
Space =pact Statement: (TBD)
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
ASSUMPTIONS
25X1
25X1
75X1
25X1
1. DCI approves imple-mentation of new system.
2. A phased implementation beginning with the banding of four
occupations, consisting of:
Operations officers employees)
ement 7;i ineers_mployees)
Project Mana
g
Intelligence Analysts employees) i (-fo sr
Computer. Systems a_-ia related professional employees)
3. These occupations will be phased into the new system starting in the
second quarter of FY88 and will continue through the remainder of the Fiscal
Year
4. Performance, SIS ar- MEIPP bonuses will be distributed at the end of
the Fiscal Year for the entire year.
2
SE)CFOr
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
U
25X1
Conversion to Pay for Performance-
Prorated Step Increases
(cllars in Thousands)
FYSE FY89 FY90 FY91 FY92
At the time of conversion to the new pay system, we have decided that our
people should receive compensation for t.cie.portions of the within-grade
waiting periods they have completed town their next step. To minimize
long-term costs, we will provide, ne-t ir :ash payments to each employee
prorated for that portion. of thewaitinc riod"completed toward the next step.
Costs for this conversion cost will be read overapproximately-_.3-_y_ears based
on anticipated conversion of approximatE _ professional employeesin
FY88, with the remaining population to be converted over the following two
years.
I lementation of the Performance
VAw~ard Program associat with-the
new pay for performance system
FY89 FY90 FY91 FY92
The major, component of the new pay- for--ormance system will be a cash
performance award system designed to current year performance without
carrying costs into following years. _:ormance awards will be made annua_'y
at.the end of the fiscal year to minima internal administrative costs
associated with distribution of awards ==- to maximize internal pay equity.
Cost projections for the performance awa system assume that approximately
.the remainder of the agency population follow over. the next two fiscal
years.
professional-level employees will == placed into the system in FY88, With
S
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
nagement__Expert_Incenii es,,.
A major objective of the new Human Resources System is to in r ove management
accountability for management of resources. As a tool for a:.hieving this
objective, a new management expert incentive program has been structured that
allows for performance awards of up to 15.percent of pay for those managers
who demonstrate the greatest proficiency in effectively and efficiently
managing resources under their control.
Cost projections for this program assume a phase in of the p:agram over two
years, with the costs to at a rate not to exceed. the rate cf agency personal
services growth.
SI1 - S-BONI S- PROGRA
With the increased accountability that Agency managers will .ave under the new
system, we intend to extend bonus eligibility of our SIS =L:-aation td 80.
percent-,from the current 39 percent. The program costs pr.c_9cted include
ose costs projected for the current SIS bonus distribute plan. The
proposed bonus distribution. plan is designed to bring the Ancy more closely
into alignment with private sector executive.conpensation = avtices..
-Salary Administration Support
FY88 FY89 FY90 =?91. FY92
To enable managers to effectively allocate their merit dc' =-s to employees
under their control, automated support is required to ide- ~fy the population
within the merit pool and to assure. that projected merit _-_r ibut ions are
within the allocated fundin levels. External contractor s_. ort will be
required to. develop the sofwa-r-e that will be required fc_ is system.
System specifications ill be developed by the Office of -sonnel based on
the design features for the system developed by the Task :-,=::e and approved by
Agency management. Current Agency hardware will be used =-j_ the system: This
design and implementation effort will require -approximate:_ two man years of
contractor'support.
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
FY88 FY89 FY90 FY91 FY92
'Salary Schedule Maintenance
On a biannual basis the office of Personnel will review the Agency salary
structure. to determine its currency with the market. To support this effort,
external contractor-support will be required to develop the necessary market
information that will be used to recommend salary structure adjustments to
Agency management. Current OP personnel will be.used to accomplish the Agency
portion. of the biannual reviews.
Diagnostic Cost Model
(Dollars in Thousands)
F'Y FYR9 FY90 FY91
The projection of personnel costs in the new pay system is based on
assumptions that periodically must be re-validated. If not, personnel servi.e
costs might escalate out-of-control.
Develop a computer model that projects future salary costs based on actual
...data on within-level-increases, promotion rates and cash awards. Validate
assumptions on CIA personnel Growth, attrition rate, EOD rate, and separatz
rate.
local managers can understand the dynamics of the new pay system.
The model must. be able to isolate individual organization components so th
data from the new pay system. ano..projects new__pers_onnel costs.) This model
also-accepts actual data on head count, attrition data, EOD, and separation
ona series of assumptions.3 new model is required that accepts theactua.
ILLEGIB
5
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 ' crrus.~r+
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
25X1
25X1
Career Develo rent
System
Positions
.(Dollars in Thousands)
FY90 FY91 FY92
Anticipate= n,anges in skills needs and availabilities in the nineties make it
essential CIA develop an integrated human resource planning, budgeting
and career yaelopment system that will ensure our ability to meet
intelligence production requirements.
The Career ievelopment System will require managers to become more involved in
planning IL:= -human resource needs to match program needs, will ensure
employees current. information on Agency skill needs to encourage
self-deveic ent,'and will include a feedback mechanism for improving the'
system.
Each emplc-.-es will receive an oc uc Pat on-specific career handbook outlining
the career development, training, performance management, and pay .
administrao-, procedures relevant to that occupation. Recruiters, human
resource p'-iners, and career counselors will use the books as reference
guides to i entify Agency skills needs. Books will be in loose-leaf form so
updating cen:'be made at minimal cost. Approximately books will be
needed in to bring up the first sets of occupations in e new system,
to train mc- gers, publicize the new system, etc. Another books will
be reqire? _n FY89.. Outyear costs are for revisions and 10% a itional
printings =D_ new, employees and transfers between occupations.. Career
aLsD will be~made accessiblevi Ca with the goal of gradually.
reducing tr3_ number of-printed handbooks as more employees gain terminal
access.
CP/Review 3iranch will serve as the,focal point for initial publication of
-handbooks ati, will provide a coordination and edit function for revisions.
Initial i=- enentation will. require drawing on personnel resources from
throughoL_, one Agency but.willnot require additional personnel. Maintenance
can be dc r= within current resource. limits provided the entire regulatory
process is _=::_omated.
develop- 7-_ and employee training costs.
Career a`-a-icement will be predicated on.growth in skills outlined in the
career ha-~z)oks.. Supervisors will. evaluate employees an skills
proficie-:e using an autora.ted procedure that will cost including
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Cry,
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
25X1
25X1
25X1:
The BC oprofile and`automated~Performance- Appr-aisal Syst included elsewhere
in the FY89 budget will provide the data base for implementing agency-wide.
automated succession and assi nt planning capabilities. System design and
developnent_costs of will...be incurred in FY88 withChardwa e
nisition_, trainin. ,and i lementatn to be phased into FY89 and FY90 at a
cost of respectively for.access by .70 stations.
? Managers will par cipate a_ ctively in identif_ying_and_planning for human
resource needs inZmnncer-t=with the budget process using_automated planning
tools_t led to=the corporate data base. will be needed in FY88 to
.define system specifications for an integrated long-term humah resource
planning system that will be implemented concurrently with the automated
BioProfile and Performance Appraisal Systems. One per's~nriel off-icier positi
,(,GS-12)-Fandrene clerical positom-(IS-02) will be .required to implement this
iriitiative including design; development and' training, and to provide
consulting assistance.in.the out years.
Overall system efficiency and effectiveness will be measured on a continuing
basis by the Office of Personnel using the automated tools supplemented by an
employee survey progra 3 Desigr development and initial .implementation and
evaluation of a comprehensive an5 continuing program will require one (1)
Industr-ka-1=-Psychologist (GS=144)"`andg on (1)Jpart=time Data Inp t Cle k (GS=04
at'50$-of-time). Surve inting, distribution and computer analysis w l~h`
cost an estimated initially with outyear costs averaging about
two-thirds that amount for targeted and periodic full surveys.
Implementation will require close coordination with~0/_Cgrrtptrol'ler roller-..Directorate
Resource Planning Staffs, OIT, and CP/Human Resource Systems Inforirztion
Center.
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
bllars in Thousands)
FY3:: FY89 FY90 FY91 FY92
25X1
Flexible Benefits
Development and Implementation:
Personnel Services:
This initiative will allow introduction of a fl blebenefits program in
January 1989. Open season for this program will coincide with the normal
benefits open season in November 1988. The major costs of a flexible benefits
.plan are the costs of the benefits provided. Tb flexible benefits plan can
be-designed to develop the desired cost level. ';'tis budget, initiative assumes
that, except for the additional costs of develop .nt and implementation, no.
new funds will be required in FY88 and FY89 for Benefits and FICA
Contributions (SCC=1210). This initiative addresses only the.oosts of
developing and implementing a new flexible benef program.
Development costs.for a new flexible benef:ts program include:
-conducting an employee benefits s.vey
designing and pricing a flexible befits program
- .test marketing the program with .Ape y employees.
The implementation costs of a new flexible benefits- program include:
conducting a communications campai,- to educate employees
..regarding their benefits choices, e-curage program participation,
and avoid unnecessary administrative expenses
modifying'existing manual and autocz-:-d enrollment, claims
processing, payroll, and human reso_ .-:!e systems to acccxrrr date'a
flexible benefits program
SB2REr
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
Flexible Benefits Cost Breakout:
for new enrollment software
for claims processing software modifications,
for payroll system modifications
for 30 percent software margin
~or approximately 200 hours of consultant time
for first year communication expenses
FY89 and outyears
for software modifications and maintenance
for miscellaneous administrative costs
for ongoing corrimunications activities
SDCREr
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
(Dollars in Millions)
Initiative Name:
FY 1988 Fv~ 1989
STAT
FY 1990 FY 1991 FY 1992
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
 STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5
Declassified in Part - Sanitized Copy Approved for Release 2012/12/26: CIA-RDP10M02287R000200160052-5