A joint OPM-OMB memo raising the dollar threshold on cash awards for federal employees below the senior level–from the prior cap of 1 percent of an agency’s aggregate salary for those positions to 1.5 percent–says that such programs “are valuable tools to help agencies reward employee performance excellence and reinforce a high performing culture that will help improve organizational effectiveness.

“Agencies should communicate to their managers and supervisors the important role that awards can have in recognizing and rewarding results and exceptional service to American citizens. Agencies should also continue to exercise the authority to provide recognition responsibly” and should comply with any bargaining obligations, it adds.

“Agencies are encouraged to support good performance management throughout the year by providing ongoing feedback and promptly and appropriately recognizing excellent achievements. The use of timely awards, such as special act awards, may improve employee engagement and contribute to a high-performing culture.”

Agencies further were encouraged to review their awards policies “to ensure they are operating awards programs that optimize employee engagement and recognition through appropriate use of the various awards authorities.”

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