Federal Manager's Daily Report

The NAPA report advocating a combination of performance

based pay and pay banding states some of the general


principles underlying the system, largely based on private

sector practices and with the idea that the GS system is a


According to the report, the idea is a common set of

government-wide principles providing agencies with the

latitude to develop local salary management practices in

response to evolving market conditions to peg salaries to

prevailing market rates in non-federal sectors at least for

critical occupations.

The Office of Personnel Management would have a supervisory

role and take the lead in making these principles

operational, plan a broad basic boundary framework, and

assure that adequate salary surveys are conducted while

leaving the management and application in the hands of

agencies, said the report.

Switching to the new system should be managed as an

organization change, as it will alter agency culture, and

star employees as well as those who meet or fail to meet

expectations should be recognized meaningfully, said the


It also said salary management should largely be in the

hands of agency managers who would receive leadership and

training support within their agencies.

Responsibility should be distributed in a similar way that

corporations manage their salary systems, it said. Agencies

would need to develop policies and procedures to manage

employee salaries, as well as merit principles and according

to OPM and Office of Management and Budget guidance.

The “director of compensation” OPM has suggested creating

at each agency to handle SES performance management would

need to be expanded in the new system into a “compensation

and performance manager” for all employees. “The manager

would be responsible for the salary system, including

classification in the bands, salary decision monitoring and

performance management,” said the report.