Federal Manager's Daily Report

Developing a formula could be the key to making pay for

performance work, and that means a departure from relying


on a manager’s employee ratings that tend to be inconsistent

and ill suited to rewarding team-affiliation, says Steve

Nelson, Director of Policy and Evaluation at the Merit

Systems Protection Board.

Writing in the most recent Issues of Merit newsletter,

Nelson proposed developing a formula to increase basic pay

to reward organizational success and individual development,

and to compensate team members or employees who helped an

agency achieve performance goals outlined in annual

performance plans.

Singular payments could reward service on committees,

volunteerism, mentoring and initiative, removing the need

for annual ratings that almost always skew high and leave

room for only 15 percent at the top, and five percent in

the unsuccessful category. The paperwork, worry and

disagreements consume time and energy, often outweighing

whatever benefits might be achieved by recognizing that

top 15 percent, said Nelson.