Report - Government Executive

APPENDIX G
available to all employees as soon as managers have communicated increases to their employees.
Managers find the range of guideline percentages by locating the intersection of the employee’s
fiscal year-end Guide Position (the salary’s position in the upcoming year’s pay guide) and the
rating. Although there is no specific incentive for managers or supervisors, it is understood that
managers will command higher salaries over time. Table G-1 provides a sample Merit Matrix.
Table G-1. MITRE Merit Matrix
Rating
Guide Position
Quartile 1 Quartile 2 Quartile 3 Quartile 4
1 9%-11% 6%-8% 5%-7% 4%-6%
2 4%-6% 3%-5% 1%-3% 0%or 2%
3 0% 0% 0% 0%
Full implementation of the merit pay aspects of its HR system reportedly required about five
years. 4 MITRE’s experience supports the conclusion that a performance-based compensation
system like DCIPS cannot be successfully implemented in one or two years. OUSD(I) will
likely need at least five years to adjust the design so that employees and managers understand
and accept how DCIPS provides equity for all affected employees. MITRE’s experience also
further confirms that transparency in the payout process is a critical element of success.
4 Ibid.
G-2