The federal general schedule salary system no longer meets
agency needs and should be replaced, the National Academy
of Public Administration has said in a report endorsing an
integrated pay-for-performance system, a combination of pay
banding and market pay.
The Department of Defense and the Department of Homeland
Security have already been authorized to reform their
personnel systems, and along with several other agencies are
working on plans to transition to pay banding and salary
increases based on performance based pay principles, said
It said planning should begin by discussing system principles
and five years is a reasonable amount of time to transition
while continuing with the GS.
Some of the characteristics of the this system are open salary
bands that provide flexibilities lacking in the GS system,
though initially occupation grades would be aligned with
current GS grades, said the report.
Pay bands in the new system would be based on career ladders
of the occupational groups in question, each with about
three or four levels — though additional bands would exist
for certain experts or for individuals on a dual-career
ladder so as to maintain salaries at or near market levels,
It also said managers and supervisors would never be in the
same pay band as subordinates, and that senior executive
service salaries would cap pay for middle managers and
NAPA argued that the Office of Personnel Management should
oversee the new system by collecting and performing analysis
on market data, to help agencies and the Office of Management
and Budget develop salary increase amounts — so that federal
employees get paid market rates in their occupational fields.