Federal Manager's Daily Report

One question of top interest to managers and line employees

of the Department of Homeland Security and Defense

Department is how much money those agencies will make

available for pay for performance under their revised pay

systems. Those in many other agencies also are watching

closely, due to the general assumption that DHS and DoD

will set precedent for similar performance pay arrangements

around the government.

DoD has not detailed its intentions other than to say that

it intends to put into its performance pay pool the money

from the across-the-board component of the annual federal

raise, plus the money from within-grade raises and

performance-based raises that employees otherwise would

have received. DHS similarly plans to put its within-grade,

annual and performance raise money into its pool, although

it also anticipates national raises by occupation sweetened

by locality adjustments for all employees performing at

the fully satisfactory level.

While DoD expects to carry out its new system with 300,000

employees at first, DHS will phase in its system more

gradually, due largely to pressure from employee unions

which had a much more formal role in crafting the DHS

system than the DoD system. DHS says its system at first

will affect about 7,000-8,000 employees, mainly at

headquarters and in certain infrastructure and intelligence

positions.

The first-year funding request for performance raises for

those individuals is $12.5 million. That would translate

into average increases in the range of $1,500 to $1,800. The

employees in the first phase are, on average, more highly

graded than the department-wide average.