Issue Briefs

Following is a recent OPM memo from agencies regarding performance evaluations, telling agencies among other things that they should better engage the employees who are being rated in the process.

Federal agencies are expected to prioritize effective performance management in support of the President’s Management Agenda’s People & Culture initiative, which emphasizes the establishment of a high-performance culture to enable agencies to achieve their missions and to successfully manage their personnel.  While some non-Federal organizations have recently received attention for taking steps to eliminate the use of annual performance evaluations, the Federal Government remains committed to including such annual evaluations.  Apart from the fact that they are required by law, we believe they play a role in helping to deliver good performance management and accountability to the public.  Consequently, the Federal Government understands well-operated performance appraisal systems provide a solid foundation and framework to help achieve excellence in performance; however, the ultimate success of these systems depends on more than the routine and rote implementation of procedures a few times a year.  Rather, agencies need to embrace a modern philosophy we are calling “Performance Management Plus” – where the “Plus” is employee engagement.  In summary, to achieve a high-performance culture, we need to empower and encourage supervisors to engage their employees in all stages and aspects of the performance management process.

Research and data have proven that successful performance management requires continuous engagement between employees and supervisors throughout the performance appraisal period – meaningfully fulfilling the purpose of each procedural step. We know from countless studies and case histories that employees feel most empowered and enabled to succeed and grow when supervisors involve them in continuous dialogue on:  position expectations; alignment of position responsibilities and agency mission; progress toward achieving expectations; and areas of strength or needs for improvement.  Supervisors also provide support and reinforce commitment most effectively by providing the following to employees:  “light-touch check-ins” (i.e., brief but regular and meaningful communications to discuss priorities and needs); valid, regular, and timely data to provide feedback on performance progress, including varied perspectives from multiple stakeholders; and coaching and development to help employees succeed and flourish.  In fact, the Government Accountability Office (GAO) recently identified the following six practices as key drivers to employee engagement:  constructive performance conversations; career development and training opportunities; work-life balance; inclusive work environment; employee involvement; and communication from management.

The regulations upon which agencies design their own performance management systems and programs already provide for meaningful discussions through the following:  planning work and setting expectations and goals; monitoring progress and performance continually; developing an employee’s ability to perform; rating periodically to summarize performance; and rewarding performance.  We have the right tools and structure to promote merit-based management and accountability to the American people. We also need to make sure we use those tools, in the way their use was intended, to improve organizational effectiveness in the accomplishment of agency goals.

For example, I am pleased to mention a recent interagency success to improve the overall performance of the Government and to help agencies manage the performance of their senior executives.  Through a collaborative cross-agency effort, effective October 1, 2015, OPM implemented a revised Senior Executive Service (SES) Performance Appraisal System Certification Process.  This revised process will significantly streamline and improve the review and OPM certification of Federal agencies’ SES performance appraisal systems. We need to continue a Governmentwide effort to prioritize and enhance the implementation of our performance management programs to ensure we achieve our missions and best serve the public.

I encourage agencies to embrace the concept of Performance Management Plus and continue to improve the effectiveness of their performance management practices by enhancing employee engagement.

Performance Management Reminders and Guidance

Closing out the current performance appraisal period

After the end of the rating cycle, prepare a rating of record for each employee who has completed the minimum appraisal period. These written ratings, including electronic formats, should be assigned, approved and provided to employees in a timely manner, consistent with agency policy and timelines.

Ratings of record are a summation of progress updates received throughout the year and the employee should know what to expect.

Be aware of all the factors that contribute to employee performance, including employee conduct as it affects job performance.  Exercise the authority to provide additional recognition responsibly, particularly in these times of fiscal constraints. When granting rating-based performance awards or pay adjustments, make meaningful distinctions based on the ratings assigned.

Awards granted under 5 U.S.C. 45 must receive OPM approval when the amount per individual is greater than $10,000 and up to $25,000. Presidential approval is required for granting an award more than $25,000.

Document and report awards to OPM in accordance with reporting requirements found in the Guide to Human Resources Reporting and the Guide to Processing Personnel Actions available on OPM’s webpage, www.opm.gov.

Preparing for the new performance appraisal period

Conduct briefings early in the performance cycle to remind employees of the procedures, stakeholders and responsibilities included in the agency’s performance management program.

The proper development of performance plans at the beginning of the appraisal period is critical to an employee’s understanding of what is expected of him or her, and is crucial to achieving agency goals and accomplishing the agency mission. Use well-developed performance plans to let employees know what they need to accomplish and the standards that will be used to evaluate their performance.

During the appraisal period, engage with employees to provide updates on work the employee is doing, why it is important, and how it impacts the organization’s goals and objectives. Periodically review the standards and measures that will be used to assess performance, discuss updates on problems that need to be addressed and resources that are needed. Conduct ongoing dialogues that are future-focused.

In addition to the required progress reviews, hold frequent, informal feedback sessions to appraise performance; discuss changing organizational missions, goals or priorities; and examine progress toward meeting those goals and priorities.

To ensure that annual ratings are expected and never come as a surprise to an employee, provide frequent, timely, continuous touch-point discussions regarding progress toward goals.

Provide employees with information and opportunities to improve and grow throughout the performance cycle.  Provide feedback to empower employees by relating what they do to the overall mission.