NAO 202-531A Attachment

EXAMPLE 1

A prospective Computer Specialist is eligible for GS-11/Step 8 because of HPR. Management wants to offer GS-11/Step 1 but is willing to go as high as GS-11/Step 6.

1. Determine an equitable rate.

The SPO advises management that, based upon the supply of qualified candidates and comparing this person's experience with other employees in the same unit, they should offer this candidate no higher than GS-11/Step 6.

2. Consider other constraints.

a. Because of its budget situation, management hopes that the prospect will accept a position at GS-11/Step 1.

b. Management asks the SPO to negotiate with the candidate by offering them GS-11/Step 1 but to contact them if the employee requests more than GS-11/Step 3.

c. Management knows that enough funds are available to go to GS-11/Step 6 but will allow GS-11/Step 6 only as a last resort.

3. Negotiate with the employee.

a. The SPO makes an initial offer at GS-11/Step 1.

b. The applicant counter-proposes GS-11/Step 4.

c. The SPO says that it can offer up to GS-11/Step 3 without requiring further approval.

d. The applicant decides to accept GS-11/Step 3 immediately.

4. Annotate the decision.

The SPO annotates the decision on the Standard Form (SF)-52, Request for Personnel Action.

EXAMPLE 2

A former GS-13/Step 9 Program Analyst is reinstated as a GS-9 Procurement Specialist and repromoted to GS-11, GS-12, and GS-13.

1. Determine an equitable rate for the reinstatement to GS-9.

The SPO advises management that no recruitment bonus be used and that the maximum HPR (Step 10) be offered for the reinstatement because of the employee's extensive administrative background. Management agrees.

2. Determine an equitable rate for the promotion to GS-11.

a. The SPO assesses the situation and advises management on granting HPR again. The assessment includes the employee's skills as related to the requirements of the next position, available funds, and pay comparability with other employees in the organizational unit.

b. Based upon the considerations stated in this Example, the SPO and management agree to promote the individual to GS-11/Step 10, the full HPR available.

3. Determine an equitable rate for the promotion to GS-12.

a. The SPO advises management on the minimum and maximum rates that the employee is entitled to:

1. the maximum rate the employee is entitled to is two (2) steps above the current GS-11/Step 10 which would be GS-12/Step 6. This is under the normal two (2) step promotion rule; and

2. the minimum rate possible, GS-12/Step 10 (HPR) would place the employee at a much higher rate than other employees with more skill and experience in the unit's comparable positions.

b. The SPO and management discuss the situation and determine that because of the employee's continuing contributions and progress a rate between the minimum and maximum would be an equitable pay rate. They agree on GS-12/Step 8.

4. Determine an equitable rate for the promotion to GS-13.

The employee is still at GS-12/Step 8 when eligible for promotion to GS-13. The SPO and management discuss the previous GS-13 Program Analyst requirements and find that they are not highly relevant to those of the GS-13 Procurement Specialist position. They agree that only a two (2) step promotion is appropriate. This places the employee at GS-13/Step 4 instead of the HPR of GS-13/Step 9.

EXAMPLE 3

Procedures from FPM Supplement 990-2 are used to reduce a windfall increase when a Labor Relations Specialist GS-13/Step 1 is selected for a Management Analyst GS-12/13.

1. The SPO advises management that:

a. the employee is not qualified for the Management Analyst position at the GS-13 level therefore placement must be at the GS-12 level;

b. the probable time for repromotion to GS-13 is one (1) year based upon the organization's experience. If the employee were to remain in the former Labor Relations Specialist position, the employee would likely attain Step 2 in that time; and

c. in order to bring the repromotion to GS-13 back to Step 2, the employee would have to be placed at GS-12/Step 5 and that this would result in an immediate pay reduction of about five (5) percent.

2. Management should know that:

a. if the employee accepts this position, it would cost that employee more in commuting time and expense; (This is an additional $720 per year for parking.)

b. the new position offers no increase in promotion potential above the GS-13 level; and

c. qualified candidates have been difficult to find.

3. The SPO Advises management that:

a. based on the above and after considering the equity with other employees in the organization, it should not use the FPM Supplement 990-2 Objectionable Use Rule fully, but should offer GS-12/Step 7;

b. this would result in an immediate pay gain of one-third of a GS-12 step and repromotion to GS-13/Step 3 instead of GS-13/Step 2;

c. this is appropriate because it is a small incentive that is not of windfall proportions; and that it meets the intent of FEPCA and does not cause an inequity among internal employees.

4. However, management also desires to minimize costs:

a. Management suggests that the SPO first offer the position to the employee at the original GS-12/Step 5. If the employee is unwilling to accept GS-12/Step 5, the SPO should offer no higher than one (1) additional step, GS-12/Step 6.

b. The employee accepts at GS-12/Step 6. The SPO annotates the SF-52 and provide sufficient explanation to ensure that future reviewers will find the decision to be a studied, collaborative effort and not an erroneous or an arbitrary action.