The Pay Agent–which consists of the heads of the Labor Department, Office
of Management and Budget and Office of Personnel Management–also repeated
the administration’s position that the pay system needs “fundamental
reforms” to move it away from the across-the-board approach to a more
targeted approach. The report said: “The Pay Agent has serious concerns
about the utility of a process that requires a single percentage adjustment
in the pay of all white-collar civilian federal employees in each locality
pay area without regard to the differing labor markets for major occupational
groups or the performance of individual employees. We believe it is
imperative to consider alternative approaches to the compensation of federal
employees that will lead to a government that is citizen-centered,
results-oriented, and market-based. We are encouraged by the discussion
resulting from the administration’s draft legislative proposal, the Working
for America Act, and we look forward to a new system that will empower
federal agencies to better manage, develop, and reward employees to better
serve the American people.” In addition to market-based pay, the Working for
America Act–which still hasn’t been introduced as proposed legislation–would
link pay more closely to performance.
