Federal Manager's Daily Report

SEA: The risks of advancing in management continue to grow but the rewards do not keep pace. Image: Maxx-Studio/Shutterstock.com

The Senior Executives Association has called on the Biden administration to address the longstanding issue of pay compression at higher salary levels.

“Pay compression skews the risk-reward trade-off for employees advancing in their federal careers. At a certain point, the risks of advancing in management continue to grow but the rewards do not keep pace. Public service motivation is the primary incentive to enter the SES, because the financial rewards have not increased commensurate with the responsibility. That is not enough to sustain our nation’s senior career leadership cadre,” said a letter to the administration.

Those three officials constitute the President’s Pay Agent, which annually makes recommendations on federal employee pay raises to the White House, based on data from the Federal Salary Council consisting of federal union officials and pay experts.

OPM recently issued proposed rules reflecting the Pay Agent’s endorsement of creating four new localities and expanding the boundaries of most others effective in January. The SEA said that while it supports that action, “pay issues across the country will only continue to get worsen unless the executive proposes real reforms that rationalize the federal government’s various, disparate pay systems and addresses pay compression.”

The letter noted that various special pay authorities have proliferated over the years boosting pay for certain occupations as work-arounds to standard pay policies, and that recent administrations and employee organizations have called for a thorough overhaul.

Said the letter: “We urge the President’s Pay Agent to include legislative proposals to address systemic federal compensation issues such as pay compression in its report to the President. Creating new locality pay zones when systemic compensation issues holistically undermine the government’s competitive posture is akin to rearranging deck chairs on the Titanic. It is not enough.”

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