HR Update: Off-site Sales and New Employee Orientation

1. Human Resources Update Ms. Kaye Kennedy HR Operating Officer March 12, 2008

2. Off-site sales • Focus is on recruiting spouses and family members • Using critical hires for initial 30 day period • Alternatives options being explored for additional needs • HR in contact with Family Readiness POCs at specified locations • Zone Managers and Store Directors are kept in the loop

3. New Employee Orientation • Web-based Introduction • Mission • Historical Perspective • Organizational Structure Soon to be available on deca.mil, HR, Training Link

4. WEBINAR • Real-time Training sessions on employee computers via • PowerPoint • Audio

5. WEBINAR • Students ask questions through phone • Tests and responses are done on computer

6. Region East Training

7. HROD MOVE • Four HROD resources will move to Columbus to serve on DeCA team • DLA received ten candidates for Chief position to lead DeCA support • Transition schedule starts June 2008 and will continue every other month until June 2009 • First two eastern zones to transition in June 2008: Zones 21 and 23

8. NSPS • Moving forward and on schedule • OCONUS—Jan 20 • HQ, FOA and Region—Feb 17 • Store-level—Mar 16 • DeCA interim guidance completed • Compensation Guide • Staffing Guide • Currently training store-level leadership • Store-level job objectives out for review

9. NSPS Design Highlights 9

10. NSPS Design Highlights 10

11. Changes – External Recruitment 11

12. Public Notice Requirements Requirements Open to all US citizens May limit first consideration to local commuting area and other targeted recruitment sources No minimum period of time vacancies must be announced Open period based on type of position and availability of candidates 12

13. Centralized Recruitment Cell • Corporate Recruitment Campaign • Hiring All Entry-Level Managers • Store and Above-Store • Projected 80% Retirements - next 5 years • Director’s Focus: Recruitment of spouses, wounded warriors, students, etc.

14. New Appointing Authorities Time-limited appointment authorities Term appointments – up to six years Temporary appointments – up to three years Can be converted to career appointment, if criteria met Selected under competitive examining procedures Announcement contained a statement which stated that the appointment could lead to a career appointment Must have served at least two years with a Level 2 rating Converted to a career position in the same pay band for which hired 14

15. New Definitions Promotion: movement of an employee from one band to a higher band Example: Pay Band 2 to Pay Band 3 Reassignment: movement of an employee to a different position or set of duties in the same or a comparable pay band on a permanent or temporary/time-limited basis Example: Non-supervisory professional and/or analytical pay schedule to supervisory PS across corresponding pay bands (2 to 2) Reduction in Band: movement of an employee either voluntary or involuntary from one pay band to a lower pay band Example: PB 2 to PB 1 15

16. Pay Setting – You Set Pay Now! Pay setting determinations will be based on: Payroll budget – ability to pay Current salary – salary history of candidate Experience, education and training/certifications of candidate Market-sensitive data/value Long-term impact – potential for future salary growth Critical Agency Business Needs Other appropriate criteria Scarcity of qualified applicants Use of Recruitment, Relocation, or Retention Incentives (3Rs) 16

17. Three Types of Pay Equity NSPS compensation addresses Internal Pay Equity External Market Value Individual – Pay-for-performance recognizes your personal effort to mission goals 17

18. Pay Equity - Internal Base Salary is determined by: Career group Pay schedule Pay band Does not include local market supplement DoD established a method to create and adjust pay-band rate ranges Does not mean that everyone on a specific position description gets the same pay, but that there is an overall consistency between people doing like work across organizations and locations 18

19. Pay Equity – External Base Salary is negotiable and may be adjusted to reflect market conditions Must comply with NSPS Interim Guidance for Establishing Pay Determine GS-equivalent for PB position Must comply with DeCA’s pay policy 19

20. Pay Setting Approval Levels 20

21. New Hire/ReappointmentInterim Guidance Minimum Rate of Pay/Salary Offer: The lowest rate of the appropriate pay band for the occupation and duties performed Maximum Rate: The highest rate of the appropriate pay band for the occupation and duties performed 21

22. Pay Setting Quick Reference Guide New Hires Pay Band Minimum to Maximum IAW DeCA policy Promotions Increase 6% – 20% Voluntary Reassignment Discretionary (may be up to 5%) or Reduction in Band Management-Directed Discretionary (may be up to 5%) Reassignment Involuntary Reassignment Discretionary (may be down to 10%) or Reduction in Band Expiration/Termination of Re-Set to Previous Pay Level Temporary Promotion 22

23. Impact of NSPS to Employee Relations • PERFORMANCE MANAGEMENT – NSPS EMPLOYEES • Continue to Review and Measure Performance • Procedures under 5 U.S.C. 43 requiring Performance Improvement Periods (PIP’s) no longer applies • 5 U.S.C. 75 – Disciplinary and Adverse Action procedures apply • Assist Employee in Overcoming Obstacles • Counsel Employee • Progressive Discipline • PERFORMANCE MANAGEMENT – NON-NSPS EMPLOYEES • Continue to Review and Measure Performance • Procedures under 5 U.S.C. 43 requiring Performance Improvement Periods (PIP’s) apply • Counsel Employee • Performance Improvement Period • Applicable Administrative Action based on Sub-Standard Performance

24. Impact of NSPS to CCP • Conversion/Classification • GS-1144 management positions classified as pay band - YC • Titles change for GS-1144 positions • i.e., Commissary Officer changes to Supv Commissary Specialist (Store Director)

25. Impact of NSPS to CCP • Staffing 1144 Vacancies • CCP will be used to fill all NSPS and non-NSPS 1144 positions competitively • HROD will continue to handle external recruitment and bargaining unit positions at GS-8 and below • Management may continue to effect noncompetitive reassignments without use of CCP

26. Impact of NSPS to CCP • Referrals will continue to be done in the same manner • After NSPS conversion referrals will reflect new NSPS titles and pay bands. • Referrals issued prior to NSPS deployment may continue to be used • Compensation rules apply upon selection • CCP can provide applicant salary information and compensation worksheet at time of referral • May result in larger pool of employees being referred for reassignments (i.e., Pay Bands: YC-1 = GS-6 – 11 equiv; YC-2 – GS-12 – 14)

27. NSPS Rating and Rewarding The rating and rewarding phase occurs after the end of the rating cycle Employees complete their self-assessments at the end of the cycle Ratings are done immediately thereafter Pay pool panels meet (Nov-Dec) Once approved by the pay pool manager, final ratings are relayed to the employee during the appraisal conversation The payout is effective on the first full pay period in January Oct Jan Sep Rating Panels Payout 27

28. Pay Pools - Headquarters * HQ/FOA/ Region Deputy Directors ** Includes FPO Assets (66 overseas and/or CONUS Remote)

29. Pay Pools by Store Sales Band Performance Review Authority (PRA) Rick Page SB PP5 Sales Bands 12, 13 and 14 PPM: Bob Vitikacs SB PP10 Sales Band 6 PPM: Randy Chandler SB PP6 Sales Bands 10 and 11 PPM: Keith Hagenbuch SB PP11 Sales Band 5 PPM: Jay Hudson SB PP7 Sales Band 9 PPM: Chris Burns SB PP12 Sales Band 4 PPM: Julie Childrey SB PP8 Sales Band 8 PPM: DeCA East Deputy SB PP13 Sales Band 3 PPM: Janet Haase SB PP9 Sales Band 7 PPM: Bob Hayden SB PP14 Sales Bands 1 and 2 PPM: Gerry Adair

30. Pay Pools - OCONUS Non-Supv Performance Review Authority (PRA) Rick Page DeCA Europe DeCA West—Far East NS PP16 MED Zone PPM: Randy Eller NS PP19 Korea Zone— PPM: Wayne Walk NS PP17 UK/Bamberg Zone PPM: John Campbell NS PP20 Japan/Okinawa Zone PPM: Bruce Graf NS PP18 Ramstein Zone PPM: Salah Ud-din All Region’s Combined NS PP21 CMPP, CDC and Region Staff PPM: Herb Winchester, Jr.

31. Major Milestones to Mock Pay Pool Mock Pay Pools Initial Performance Plan Conversations Ongoing Performance Conversations Interim Reviews Alignment Cascade Begins Self Assessments Due Managerial Assessments Due Objectives Entered in PAA

32. Major Milestones to Pay Pool Payouts Effective Initial Performance Plan Conversations Ongoing Performance Conversations End-0f Cycle Review Ongoing Performance Conversations Annual Appraisal Conversation Self Assessments Due Objectives Adjusted as Needed Pay Out Certified Objectives Finalized Managerial Assessments Due Pay Pool Begins Deliberations