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.