A report done for Congress on pay for performance systems in the federal government notes that some 300,000 federal employees are under such systems, which it said can be beneficial but "also may cause problems in an organization." The report from the Congressional Research Service noted, for example, that agencies including the Federal Housing Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives have credited their programs with increased retention of effective employees, increased overall productivity, cost savings and the attainment of organizational objectives. In other case, though, performance-based pay "has promoted lawsuits and mistrust of pay system administrators," CRS said, adding that adopting such systems "takes substantial time and additional financial resources at the beginning of the implementation."
