Meanwhile, OPM and the Office of Management and Budget are
proposing interim rules stating the standards they will
use for certifying performance appraisal systems for
purposes of the higher SES pay cap and total compensation
cap. Under the rules, agencies would have to seek
certification by proving that their systems pass muster in
nine areas:
Alignment–Performance expectations are linked to or derived
from the agency’s mission, strategic goals, program/policy
objectives, and/or annual performance plan.
Consultation–Performance expectations are based on senior
employee involvement and input that are communicated at
the beginning of the appraisal period and appropriate
times after.
Results–Performance expectations for senior employees
apply to their respective areas of responsibility; reflect
expected agency or organizational performance; clearly
describe performance that is measurable, demonstrable,
or observable; and focus on tangible outputs, outcomes,
milestones, or other deliverables.
Balance–Performance expectations for senior employees
include appropriate measures or indicators of results;
customer/stakeholder feedback; quality, quantity,
timeliness, and cost effectiveness, as applicable; and
competencies or behaviors that contribute to and are
necessary to distinguish outstanding performance.
Assessments and guidelines–The agency head, or an
individual specifically designated for such purpose,
provides assessments of performance of the agency overall,
as well as each of its major program and functional
areas, that will serve as a basis for individual
performance evaluations, as appropriate.
Oversight–Rigorous oversight of the appraisal process is
provided by the agency head or designee.
Accountability–Senior employee ratings (as well as
subordinate employees’ performance expectations and
ratings for those with supervisory responsibilities)
appropriately reflect the employee’s performance
expectations, relevant program performance measures, and
any other relevant factors.
Performance Differentiation–(1) The appraisal system
includes a rating level that reflects outstanding
performance or, for equivalent systems that do not use
summary ratings, provides for clear differentiation of
outstanding performance, as defined in these regulations;
and (2) the appraisal process results in meaningful
distinctions in relative performance based on senior
employees’ actual performance against rigorous performance
expectations.
Pay Differentiation–Individual pay rates and pay
adjustments, as well as their overall distribution,
reflect meaningful distinctions among executives based on
their relative contribution to agency performance.
The rules also allow for a one-year provisional
certification for agencies in the process of putting in
place systems that meet those standards, with extensions
of that type of certification allowed under certain
limited circumstances.
The higher total compensation cap also will apply to
senior level and scientific or professional employees if
their appraisal systems are similarly certified.
