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Summary of Employee Conversions to the Cyber Excepted Service

Core Content

The Cyber Excepted Service (CES) was established under Section 1107 of the 2016 National Defense Authorization Act (Pub. L. 114-92) to attract and retain high-caliber personnel for the Department of Defense (DoD) cyber warfare mission. It is a distinct personnel system within the federal government, operating under Title 10 of the U.S. Code rather than Title 5, which governs the competitive service. The CES is designed to provide flexibility in recruitment, compensation, and promotion, and it is voluntary for most current employees, unlike past Title 10 personnel systems which required compulsory conversion.

Key Findings

• Employee Concerns: Many employees expressed uncertainty about the CES, particularly regarding:
  • Local Market Supplements (LMS) and Targeted Local Market Supplements (TLMS).
  • Interchange agreements for applying to non-CES positions in different organizations.
  • Approval processes for flexible pay settings.
• Career Impact Uncertainty: Employees were unsure how the CES would affect their individual career paths.
• Misconceptions: Some civilians conflated the CES with other excepted services, such as those in the Intelligence Community (IC), which have greater flexibility in hiring and firing.
• Demographics: Younger workers and those in cyber-related careers were more likely to convert to the CES.
• Conversion Rates: As of December 2019, five DoD organizations had converted to the CES, with voluntary conversion rates ranging from 13% to 63%. The DoD CIO Cybersecurity had the lowest conversion rate due to its small size and high proportion of senior personnel (mostly GS-15s).
• Voluntary vs. Mandatory Conversion: Only full organizations have been converted to the CES, not individual positions. Employees who do not convert retain their competitive service positions until they vacate them, at which point the position becomes CES. Mandatory conversions occurred in some organizations, such as FLTCYBER and USCYBERCOM.

Background

The CES is part of the excepted service, which includes the competitive service and senior executive service (SES). Unlike the competitive service, the CES does not require public job postings or OPM approval for direct hiring. It is governed by DoD Instruction 1400.25, and its compensation structure is based on the General Government (GG) pay schedule, which allows for up to 12 pay steps per grade, with two additional steps compared to the General Schedule (GS). The CES also includes local market supplements (LMS) and targeted local market supplements (TLMS) to address recruitment and retention challenges.

Conversion Process

• Voluntary Conversion Window: Employees had a 15–30-day window to decide whether to convert to the CES.
• Conversion Timeline: The time between notification and conversion decision varied, with USCYBERCOM having the longest period (over a year) due to its delayed decision.
• Conversion Information: Organizations held Q&A sessions, provided FAQs, and offered drop-in office hours to help employees understand the conversion process.
• Mandatory Conversions: Some positions were mandatorily converted, particularly those requiring unique cybersecurity skills (e.g., Cyber Schedule A employees).

Qualitative and Quantitative Analysis

• Qualitative Findings: Discussions with subject-matter experts (SMEs) and HR representatives highlighted:
  • Concerns about stovepiping into cyber-specific roles.
  • Uncertainty about career progression and future benefits.
  • Perceived irrelevance of CES benefits for those nearing retirement.
• Quantitative Findings: The analysis compared conversion rates across organizations based on pre-conversion characteristics. It found that:
  • Employees with cyber-related skills and career goals were more likely to convert.
  • Time-in-grade requirements and career status were key factors in retention within the competitive service.
  • Flexible pay options and career advancement opportunities in the CES were attractive to some.

Key Lessons and Recommendations

• Transparency: Clear communication about TLMS, interchange agreements, and pay approval processes is essential to encourage informed conversion decisions.
• Career Path Clarity: Employees need more clarity on how the CES will affect their long-term career development.
• Targeted Outreach: Organizations should focus on targeted outreach to those in cyber-related fields and younger employees.
• Interchange Agreements: The DoD is seeking to establish interchange agreements to allow easier movement between the competitive service and the CES.
• Implementation of CES: The success of future conversions may depend on how the CES is implemented and how its policies and compensation are structured to align with employee expectations.

Conclusion

The report emphasizes the importance of clear communication, career clarity, and policy alignment in promoting voluntary conversions to the CES. It also highlights the unique challenges faced by different organizations and employee groups during the conversion process, suggesting that future efforts should be tailored to address these concerns effectively.