
OPM has announced a cost-savings incentive program that encourages employees to identify and propose efficiency improvements.
Employees who submit new, actionable cost-saving proposals by October 31 will be eligible for awards equal to 5% of the annual savings generated, up to $10,000 per award. Suggested areas for savings include reducing unnecessary contracts, paying only for software licenses that are actually used, shifting certain work to in-house staff, selling unused assets, and expanding the use of technology.
“You all know the ins and outs of the agency far better than I do, so I am requesting your help to find additional opportunities,” said OPM director Scott Kupor in a blog post. “Please work with our Chief of Staff to verify the savings before taking any action.” Kupor emphasized that efficiency efforts are an ongoing process and that frontline employees are often best positioned to identify opportunities for improvement.
In one of his first messages to federal employees Kupor drew a reaction by saying that ongoing RIFs and reorganizations should not be taken personally, but should be viewed in the context of becoming more efficient. “RIFs are not personal; they’re about aligning our workforce with the mission needs of each agency and ensuring taxpayer dollars are used responsibly.” Before joining OPM, Kupor served as a managing partner at Andreessen Horowitz, the VC firm with ties to the Department of Government Efficiency, which lead the charge on aggressive cuts to the federal workforce and agency budgets.
And again, OPM created a stir with a directive on employee awards, stating that “only high performers” should be rewarded – touching on a subject that for years federal employees have viewed with skepticism, namely that rewards are directly tied to the personal relationship one has with a supervisor. That follows guidance also tying employee ratings in part to compliance with Trump Administration policies.
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