Federal Manager's Daily Report

In one of his first messages to federal employees Kapor drew a reaction by saying that ongoing RIFs and reorganizations should not be taken personally. Image: Mark Van Scyoc/Shutterstock.com

OPM has announced an internal cost-savings incentive program that encourages employees to identify and propose efficiency improvements, to “set the tone for the rest of the federal agencies in this category,” according to new agency head Scott Kupor.

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 Kupor wrote 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. Many federal employees have taken caustic statements about civil service from the OPM, OMB and DOGE personally. With widespread career uncertainty hanging over employees, one of Kupor’s challenges as the new head of the main federal workforce agency will be to read the room thoughtfully and respond to a rattled workforce.

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