Following is a summary of an OPM report on use of recruitment, retention, and relocation incentive payments, the so-called 3Rs, in 2009.
Overall, 45 Federal agencies paid 43,250 recruitment, relocation, and retention incentives worth more than $349 million, with an average incentive payment of $8,079 during calendar year 2009. This was comprised of 12,402 recruitment incentives totaling over $105 million (average payment of $8,504); 4,605 relocation incentives totaling more than $55.2 million (average payment of $12,000); 26,213 retention incentives (likely to leave the Federal service) totaling over $188 million (average payment of $7,195); and 30 retention incentives paid to an employee likely to leave for a different Federal position, worth $127,244 (average payment of $4,241). Agencies consistently reported using the incentives to accomplish strategic human resources goals.
The number of recruitment, relocation, and retention incentives increased by 9 percent, and the total amount paid increased by 22 percent between calendar years 2008 and 2009. More specifically, the number of and total amount paid for recruitment incentives during this period increased by more than 9 percent and 23 percent, respectively. The number of relocation incentives increased by over 39 percent, and the total amount paid increased by over 28 percent. The number of retention incentives paid to an employee likely to leave the Federal service increased by over 5 percent, and the total amount paid increased by over 20 percent. Retention incentives paid to employees likely to leave for another Federal position increased from one incentive in calendar year 2008 worth $1,602 to 30 incentives in calendar year 2009 worth $127,244. A trend of particular note is that Agriculture established a new group retention incentive in 2009 covering a significant number of forestry technicians that perform firefighting duties. Without this group retention incentive, the overall number of retention incentives paid in 2009 actually decreased by 2.3 percent.
To better understand these trends, OPM followed up with the agencies that had significant increases in 3Rs use in 2009. OPM also contacted the agencies with the largest increases in the number of relocation incentives paid in 2009 and the agencies that paid retention incentives to employees likely to leave for other Federal positions in 2009 for information on these trends. OPM’s findings from this follow-up are contained in this report.
While the overall number and cost of recruitment, relocation, and retention incentives increased between calendar year 2008 and 2009, the reported growth has slowed markedly since 2007. In addition, several of the top 3Rs users, including the Departments of Commerce, Energy, and State and the National Air and Space Administration (NASA), reported significant decreases in the number of 3Rs paid or a decrease in 3Rs costs in 2009.
In calendar year 2009, agencies typically paid recruitment, relocation, and retention incentives to employees in occupations critical to agency missions, such as health care, engineering, security, and information technology (IT). Agencies also used the incentives to fill positions at the grade or work levels one might expect: 50 percent of the recruitment incentives paid to General Schedule (GS) employees were used to recruit new employees into entry- and developmental-level positions (e.g., at GS-05, GS-07, and GS-09), and more than 77 percent of relocation incentives used for GS employees were paid to employees in intermediate- and upper-level positions (e.g., at GS-11, GS-12, GS-13, and GS-14). The use of retention incentives was spread over a wide range of grade or work levels, an indication that agencies are focused on making sure critical employees are retained at all work levels.
Agencies provided very positive responses regarding the effect these incentives had on recruitment and retention efforts. Most agencies reported no barriers to using these incentives. Some reported the lack of funding represented a barrier to incentive use; others also reported it would be helpful to be able to pay retention incentives to employees who are likely to leave for a different Federal agency in situations other than before the closure or relocation of an employee’s office, facility, activity, or organization.
