Federal Employees News Digest

Federal Salary Council calls for market-based compensation for feds

Based on the recommendations of the Federal Salary Council, the advisory group that makes pay recommendations to the President’s Pay Agent, two new locality pay areas have been approved, and the board also is urging Congress to make federal compensation more market-based.

“We believe it is imperative to develop performance-sensitive compensation systems that make the government more citizen-centered, results-oriented, and market-based,” according to the report recently published on the Office of Personnel Management’s website.  “We need to empower federal agencies to better manage, develop, and reward employees in order to better serve the American people,” it added.

The board approved a new Des Moines, Iowa, locality pay area, and the addition of Imperial County, Calif., to the Los Angeles locality pay area.

The Council made a total of five recommendations for changing locality pay area boundaries for 2020, including making changes to how human capital indicators are considered when deciding regions’ requests to be granted a locality pay area despite not meeting the established criteria.

HCIs “reveal extraordinary recruiting and/or retention difficulties that may not otherwise be evident from pay disparities as currently estimated or application of the criteria for areas of application, and (2) the organization(s) claiming such extraordinary difficulties can show that they persist despite the application of other applicable personnel flexibilities to address the situation,” according to the report.

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Contributors

Edward A. Zurndorfer Certified Financial Planner
Mike Causey Columnist
Tom Fox VP for Leadership and Innovation, Partnership for Public Service
Mathew B. Tully Legal Analyst

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