A COMPENSATION SYSTEM FOR THE CENTRAL INTELLIGENCE AGENCY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000800070059-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 22, 2016
• Document Release Date: October 29, 2002
• Sequence Number: 59
• Publication Date: March 19, 1958
• Content Type: MISC

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19 March 1958
A COMPENSATION SYSTEM
for the
CENTRAL INTELLIGENCE AGENCY
A revision of the Agency's system of compensation and wage administration will
require the approval of the Bureau of the Budget and the House and Senate Appro-
priations and Armed Services Committees. In reviewing the system herein described
the Career Council should weigh the advantages it will bring to the Agency against
the problems associated with introducing such a plan at this time.
2. SUMMARY
a. This compensation system for Agency personnel is designed
(1) to afford a mechanism for a better personnel management program, and
(2) to maintain a definite relationship to the existing Government salary
structure.
b. The system embraces the following features which are in consonance with
industrial pay practices, and with recent Government compensation studies
(refer to Annex 1).
(1) Consolidation of 9 grades (GS-7 through GS-15) into five new groups.
(2) Extension of salary ranges in each group in varying degrees to a 48~
maximum of the base rate.
(3) Overlapping salary ranges.
(4) Elimination of the automatic periodic step increase above the grade 6
(GS-6) level.
(5) Two types of advancement:
a.1 Step increase at the lower levels to be granted in accordance with
current practice
a.2 Merit increase at the upper levels, based on performance, to be
granted by the responsible Operating Official with the concurrence
of the Head of the Career Service concerned; and
b.. Competitive grade promotion by the Career Services.
{6) The conversion of all employees GS-8 through GS-15 to the lowest group
which will accommodate their present scheduled salary ranges. This will
provide an opportunity for adequate screening, prior to subsequent
selection to higher levels (refer to Annex .
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REVISED COMPENSATION SCHEDULE (Refer to Annex 3)
(Group GR-1 through GR-6,1same as General Schedule GS-1 through GS-6)
Old
N
Grade
ew
Group
No. of
Steams
Bottom Step
of Group
Increments
Top Step
of Grown
Percentage
Range
GS-07
GR-07
17
$ 4525
$135
$ 6685
48%
GS-11
GS
GR-08
15
$ 6390
$215
$ 9400
47%
-13
GS
4
GR-09
15
$ 8990
$215
$12000
33%
-1
GR-10
15
$10320
$2'-5
$13330
29%
GS-15
GR-17.
10
$1163-0
$270
($215)
$14040
21%
GS-16
GS
1
GR-12
10
$12900
$215
814835
15%
-
7
GR-13
8
$13975
$215
$15480
11%
GS-18,
GR-14
1
$16ooo
--
16ooo
o
3. SOME SIGNIFICANT ADVANTAGES
The principal advantages to the plan relate directly to the following features:
the extended ranges for each grade; :erit (or earned) step increases; overlapping
of salary rates between grades. The plan will:
a. Permit merit increases (one to three increases at a time) in pay without change
in grade. Under the present system of compensation significant
pay can be achieved only through inc.: er~.ses in
pay salary of the s ugh promotion; in-grade advances are slow and
i many to a aar beak gradetis for not greatly higher than the base. This ha.s~resulted
who, for one reason or another, cannootoreliably hopecto beead anced to theeut
next higher grade. A case in
many GS-15's in the point is the situation to be found among the
will achieve Agency. It is well kr_own among them that relatively few
grade GS-16 in the foreseeable future, and the rest are left
without pay incentives.
b. Advancement from one grade to the next higher as a result of core etitiv
mo~ion will occur less frequently than at p e pro-
panels will handle fewer cases and will be able to make bettervselections.a
Promotions will then become more significant as a mark of status.
c. The grade structure will conform more exactly with definable levels of
responsibility. There are not seven levels of work between GS-7 and GS-15
that mean anything. There are
junior professionals (group 7) Journeymen
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(group 8), isateraec'. ate ?eve (group 9p;?obab' two levels of &enior
professionals (groups 10 and 11). By doing; away with the hair-splitting
between the duties and functions of, for examyle, the present GS-1i and GS-12
case officers and analysts, and introducir..r broader, more z.eaningful cateGories
of,personnel, we can simplify our job and organizational structure and assign-
ment of personnel will br_ fao11 i.-Vc Clad.
d. Meritorious advancement of an individual into the overlapping pay range of the
next higher new group carp be used as a means of rewarding the specialist who
could not be expected co }~ssu,:.e Gen rsl d ties at the next grade level in his
Career S(rvice. It can also be used as an incentiv- for the ran who, through
Rio fault of is o:ai, hv.s been a niod an opnar ~~n:. ~ ? to demonstrate his
qua .'if icat:Loan, for ' i noety'ii e '?)roinotion but whose career plan provides for such
opportunity in the future.
e. The process of c:convcrsion of each employee in GS-8 to OS-15 to the lowest group
i hich aceoimaoda tea d ,'-s current :alai; range will per:iit selection of personnel
o tiCi'dA iecn eii ; 1-o a liij;ae. & ou_). It the s c t..iae persons not selected for
f
subsequent onion ri.11 Plain the sue c rpenwiticn potential as under the
GS schedule. If uuc`a Nu'>cequvi. , selec Jicn is done wisely;, the icor.e competent
~rsoiinel will advance to t`.e top l e re1c .
1+. CAR'R SERVICE CONTROL I LTE'J OF T/C CONTROL
a. Historical
T e i. enc; under.Yen rapid e: pension from it- ir_c ption in 1947 until the
61
close of the ,orean conflict. During this period, a substantial number of
Tables of Organization were authorized on the basis of projected programs
and functions. Zicae T/0's contained an abundance of high tided posit'.ons.
This resulted in t1;< rapid ad ancement of many employees, the recruitment of
specialists at high Lrades and the lowering of qualification standards. This
accelerated growth of the A ency and rapid increase in pay took place without
the benefit of coordinated plann4n;; and monitoring by management. Sub3e-
queutly, the Career Service Syste, was inaugurated, which today provides an
instrument which can plan and control pay adi.thiistration.
b. Present Personnel and Staffing Situation
Today the follo.ring conditions exi3t:
(1)
Some Career Services provide ample opportunities for advancement while
other Career Services provide practically none.
(2) Qualifications of personnel at the same grade level, even within Career
Services, are widely divergent.
(3)
Many young employees are confronted with limited opportunities for
advancement
(1+) The large majority of personnel obtain step increases without careful
regard to level of performance.
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c. Adopted and Proposed Remedial Measures
(1) The Competitive Promotion System, recently adopted, affords the
mechanics for the promotion and assignment of personnel and permits,
under certain conditions, the overslotting of employees on the T/O.
(2) The Staffing/Development Manpower Control System provides the following:
(a) Allocation of personnel ceiling by Career Services
(b) Establishment of an annual Career Service Staffing Authorization to
administer equitably a coordinated salary control. This is the
result of careful planning for the composition and structure of
each Career Service to best fulfill Agency requirements in the
most economical manner. This controls the planned attrition, re-
cruitment and number of promotions of personnel at each level.
(c) Flexibility for Operating Officials to redistribute ceiling as
required without the necessity of all the red tape inherent in the
rigid Table of Organization System.
(d) Distinction between individuals officially assigned to work burden
positions and those in training, casual status, etc., in order to
obtain a better understanding of staffing requirements and employee
utilization problems.
d. Effect of the Revised Compensation System on the Control of Payroll Costs
The Installation of the revised Compensation System will allow payroll costs to
vary considerably under the recently adopted annual Career Service Staffing
Authorization which limits the number of employees at each grade. The reasons
for this are the establishment of wider salary ranges at each grade level,
overlapping salary rates, and substantial merit step increases of a non-
automatic nature.
e. Control
(1)
It is proposed that each Career Service Head at the time of the prepara-
tion of the annual Career Service Staffing Authorization establish
limitations on the total number of meritorious step increases that may be
granted employees under the control of his Career Service. These limita-
tions would be incorporated into the annual Career Service Staffing Authori-
zation and subjected to the same review and approval by the responsible
Deputy Director, the Director of Personnel and the Deputy Director
(Support).
(2) Factors to be considered in the establishment of these limitations for
merit increases are:
(a) current compensation of members of each Career Service translated
into average salary for each grade;
(b) number of planned promotions proposed;
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(3)
(c) the Agency's budget prospects.
Accordingly, within approved Staffing Authorizations, the Career Service
concerned will approve all grade promotions. Merit increases will be
controlled by a Career Service accounting system which will distribute
those actions equitably throughout the Service and throughout the budget
year.
(4) The principles of position evaluation will be utilized in the analysis
of organizational and career service staffing requirements in setting
Staffing Authorizations. This is essential to maintain satisfactory
wage alignment among the organizations and the Career Services. Position
surveys will be made to
(a) obtain information necessary for Career Service Staffing Authoriza-
tion revisions,
(b) advise Operating Officials and Career Service Heads on the status
of job levels versus compensation levels,
(c)
(5)
provide the Director of Personnel with information on personnel
utilization, and
obtain wage data and salary data from other Government agencies and
industry to enable CIA to maintain as competitive a. position in
compensation as is possible.
With the establishment of fewer and more readily defined grade levels,
standard positions descriptions prepared by Office of Personnel with
concurrence from the Career S,.rvices will replace the position guidelines
now in use and will serve to guide Operating and Career Service Officials
in personnel assignments, utilization, and compensation.
5. DESCRIPTION Of A COMPENSATION SYSTEM FOR CIA
a. Construction of the Compensation Schedule (See Annex 3)
The Compensation Schedule is a system of fourteen groups based primarily on the
Government General Schedule. It involves the following combinations:
Groups 1 through 6 (GR-1 through GR-6) are exactly like the same grades
in the General Schedule (GS-1 through GS-6).
Groups 7 and 8 (GR-7 and GR-8) are essentially combinations of GS-7
through GS-9 and GS-11 and GS-12 respectively with ranges of 48% and 47%.
Groups 9, 10, and 11 (GR-9, GR-10 and GR-11) are fundamentally GS-13,
GS-14, and GS-15 with ranges extending from 33% to 2l over the base
pay rate.
Groups 12, 13, and 14 are Supergrade positions (GS-16, 17 and 18) with
salary range extensions of 15,j and 11% for GR-12 and GR-13.
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The base rates for all Groups correspond to the base rate for the lowest
GS grade encompassed. This will permit adaption of subsequent GS pay
increases without complication.
b. Use of the Professional Schedule
(1) In-Hiring Rates: In-hiring rates will normally be at the base
of the group unless advanced recruitment rates have been authorized
for the job or applicant as specified in paragraph 5 (page 7).
(2) Periodic Step Increases: Groups 1 through 6, one step per year for
satisfactory work performance. Group 7 and above - none.
(3) Longevity Step Increases: Groups 1 through 6 - Longevity increases
will be given in accordance with approved Federal practices. Group "j
and above - none.
(4) Merit Step Increases:
(a) Increases for persons in Group 7 and above can be awarded in
recognition of:
(1) Growth of an individual in the performance of his duties
over a period of time,
(2) Excellent performance of duties for a sustained period of
time, and
(3) Exceptional contribution to the success of the Agency's
mission.
(b) Size: Merit step increases for Group 7 will be from one to
seven steps. Merit step increases for Group 8 and above will be
from one to three steps. The size of the increase will be in
proportion to degree of the employee's performance in comparison
to that of other employees of the same grade and salary.
(c) Eligibility: An employee's eligibility for a merit increase will
depend on his performance in comparison with others in his unit
area and the availability of spaces for such increases, as deter-
mined by the Career Service concerned.
(d) Method of Approval: An employee's performance will be assessed
at least once annually for consideration of a possible merit
increase. Normally, this will be coincidental with the prepara-
tion of the Fitness Report. Merit increases will be recommended
by Operating Officials, and concurred in or disapproved by the
Head of the employee's Career Service which will control the
number of increases in relation to the Staffing Authorization.
Concurrence by the appropriate Career Service will be subject
to final approval by the Director of Personnel. Merit increases
above the base salary of GR-12 (supergrade) will be subject to
approval by the Supergrade Review Board. This requirement thus
applies also to steps 6 t:u ough 10 of Group 11.
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(e) Effect of Merit Increase on Promotion: The receipt of one or
more merit increases will not affect the eligibility of an
individual for a grade promotion. The receipt of such increases
will be an indicator to Competitive Evaluation Panels of the
employee's ability.
(5} Advanced Recruitment Rates:
(a) Purpose: Recruitment at salary steps above the base salary of
the Groups may be authorized by the Director of Personnel:
(1)
To meet competitive labor market conditions for critical
categories of personnel;
() In recognition of an individual's outstanding qualifications
of direct application to the position which he is to fill.
(b) Method of Approval:
(1)
Scarce or Critical Occupational Categories:
(a)
(b)
Advanced base rates may be approved by the Director of
Personnel for the recruitment of personnel in job
categories whenever Agency recruitment experience and
wage surveys indicate such action is required for
successful recruitment.
The qualifications of all personnel on duty in the
Agency who are assigned to a position for which an
advanced base rate has been approved will be reviewed
at that time for individual salary adjustments
commensurate with their ability, experience and
suitability.
(2) Individual Applicants: Whenever an individual applicant
possesses outstanding qualifications for a specific vacancy,
he may be recruited at any step above the base rate, when
necessary to effect a successful recruitment. Such action
must be approved by the Director of Personnel., Requests
will be considered for approval on the basis of:
(a) Degree of qualification for the specific job.
(b) Applicant's current salary level.
(c) Applicant's long range potential.
(d) Availability of other qualified applicants for the position.
(e) Salary levels for the occupation outside the Agency.
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(f)
Alignment of proposed advance rate with salaries held
by Agency personnel performing similar work. Individual
advanced rates approved for applicants will not result
in an adjustment of salary rates for personnel on duty.
(6) Promotion Time-in-Grade Rec-.uirements: GR-1 through GR-6 - same
Agency time-in-group guidelines apply. GR-7 and above - no time-in-
group requirements.
c. Installation of the Revised Compensation System
(1)
~ragraph A(2), "Agency Policy Relative to the Classification
Act of 1949" (Refer to Annex 4)
'Ceiling and Position Authorization"
Section 5(a), "Time in Grade Promotion Requirements"
"Pay Administration"
~ragraph H, "Starting and In-Service Pay Rates"
(2) The Compensation Schedule: This schedule will be the basis of
compensation for all employees except Wage Board types. Examples of
the kinds of positions characteristic of each grade are as follows:
Intelligence Production (DD/I)
GR-7 Junior Officer - Trainee - Sub-Journeyman
GR-8 Journeyman - Application of technical specialty and/or
intelligence analysis know-how on a variety of projects.
GR-9 Senior Officer is either a technical specialist or a supervisor.
Work involves knowledge of difficult technical assignments in
specialty; work of others; and responsibility for improvement of
the intelligence system.
GR-10 Expert is either a supervisor with program responsibility
(Branch Chief, Deputy Division Chief) or a Staff Officer with
Office or Agency-wide purview.
This system has been designed to achieve specific goals with a
minimum of change to basic personnel and administrative procedures.
However, some Agency regulations and basic procedures will need
modification. These would include:
GR-ll Executive - Supervisor with program responsibility (division
Chief, T jor Branch Chief, etc.).
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Clandestine Operations (DD/P)
GR-7 Junior Officer - Assists Case Officers, handles routine pro-
jects under close supervision, and progresses to r::oxe sub-
stantive work.
GR-8 Journeyman - Full scope of Case Officer duties, full range of
projects, effective agent handling. Requires good Knowledge
of 4radecraft, area and language knowledge.
GR-9 Senior Officer - Handles large, difficult or extremely sensitive
projects involving thorough knowledge of tradecraft, area and
language knowledge.
Supervisory - Base Chief - Section Chief
Chief, FI, PP/Ops at medium stations
GR-10 ert - Staff Officer - Station or Base Chief
Chief, Ops - Branch or Deputy Chief
Technical Specialist - Outstanding Case Officer whose talents
are best utilized in non-administrative work.
GR-11 Executive - Station Chiefs - Senior Branch Chiefs haying
clearly defined administrative responsibility for a substantive
program. Requires ability to handle a variety of jobs in
different geographical areas.
Support (DD/s)
The principles which have been used in delineating the Group levels for
the DD/I and the DD/P will be used for the Group levels in the DDS.
(3) Conversion to the Compensation Schedule
(a) Positions: The Deputy Directors will instruct Career Service
steads and. Operating Officials under their jurisdiction to analyze
their requirements for positions in light of the simplified wage
structure for the purpose of developing and presenting realistic
staffing requirements. After coordination at the Deputy Director
level, these proposed staffing requirements will be processed in
accordance with Agency procedures and used as a basis for initial
revised Staffing Authorizations.
(b) Personnel: Personnel GS-7 and below will convert to the same
numbered group under the Revised Compensation Scale. Personnel
GS-8 through GS-15 will convert to the lowest group compatible
with their present salary range. (Refer to Annex 2)
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