NSPS organizes workforce Published Oct. 30, 2006 By Kirsten Tacker Kukini Photojournalist HICKAM AIR FORCE BASE, Hawaii -- Four hundred of Hickam's Department of Defense employees switch to the National Security Personnel System, Jan. 21. NSPS is a new management organization that is designed with tools to simplify the process for DOD promotions, rewards and compensation to employees. In the old system, raises and bonuses occurred because of seniority. Under the new system, promotions are based on the individual's performance. The NSPS is intended to be a straightforward system that permits the employee to be more mobile, utilizing four broad career groups and pay banding. Pay banding is a work level and associated pay range within a pay schedule. "Pay banding is one of the major components they'll group together," said Mike McCrary, Hickam NSPS program manager. "Doing this will eliminate 15 different pay scales within the same job and individual salaries will no longer be public knowledge." Pay banding allows DOD employees to move from one job to another while maintaining their current salary. "It is easier for people to move around within the pay band without having to process a personnel action or make a promotion," said Mr. McCrary. The NSPS will streamline personnel management, so the DOD workforce is more agile and the process is simpler. "It is a personnel system that is being designed for all DOD employees to be able to move people around more quickly, to be hired more quickly and to get through some of the processes more quickly," said Mr. McCrary. The next big component under the new approach after pay banding is pay for performance. "Now, based upon your performance appraisal, you could be given an increase in your base pay," said Mr. McCrary. Under the old system, performance awards are limited to giving the employee a check at the end of the year. This is not the case with the ability to offer a pay raise. "Now they can actually add that to your base pay," said Mr. McCrary. "There is an incentive to do well and the good performers should be able to get more money." One of the original selling points of the new approach was theoretically an employee could make the top of the pay band if they are a good performer. "However, keep in mind you are always limited to the amount of money you have in the budget," said Mr. McCrary. "There is no additional money that comes with NSPS. DOD wants it to be a pay for performance system not a seniority system." The transition into the new system is being done in segments called spirals. Hickam's spiral begins with the new year, when 400 DOD employees will make the change into the new system. "The first people in DOD to go into the NSPS went in April," said Mr. McCrary. "There is another group going in October." When NSPS was first designed it was supposed to be for all DOD employees. "Certain unions didn't want to switch to NSPS so they filed a lawsuit against it and won," said Mr. McCrary. "There will be no bargaining unit employees under NSPS which are employees that are in the union." Hickam has 1,400 DOD employees, only 400 will move into the NSPS. NSPS came about as a personnel system for the DOD based upon current world events like Base Realignment and Closure and Program Budget Decision 720. "The DOD has not changed its personnel system since 1978 and there haven't been any major changes since then," said Mr. McCrary. Billions were spent to modernize this personnel system and present a new approach for the DOD workforce. "These new modifications make for an organization that values and rewards the performance and that is what you want," said Mr. McCrary. "You don't want people who just sit there because they've been there for 20 years."