Agencies encouraged to review, update employee awards plans
- By Sherkiya Wedgeworth
- Jul 16, 2019
The Office of Management and Budget and the Office of Personnel Management have released new guidance on how agencies should reward high performing employees.
Currently, most awards are tied to rating-based performance awards, but the agencies are asking federal leaders to “reexamine, and adjust… the balance between rating-based awards and individual contribution awards (e.g., special act awards).” The agencies want rating-based awards to be allocated in what they call “a manner that provides meaningful distinctions in performance. “
Agencies are also encouraged to review and update their Agency Workforce Fund Plans to “set forth a comprehensive strategy to develop and foster a culture of recognition, including formal and informal recognition.”
Review plans must include setting a specific dollar amount for rewards spending for the next fiscal year, align strategic goals and support organizational values (e.g., innovation, integrity, teamwork); address how the agency will strategically spend its determined amount in FY 2020 and subsequent years consistent with its broader recognition plan; and ensure use of an evidence-based approach to support issuing awards and the amount, among other tasks.
“Agencies should ensure only employees who have demonstrated the highest levels of individual performance receive the highest annual ratings of record and the highest performance awards,” the memo states.
All plans must be approved by the agency’s President’s Management Council representative and the agency’s Chief Human Capital Officer for CFO Act Agencies, and be submitted to OMB with their FY 2021 budget submission.