Frequently Asked Questions Performance Management

Informal recognition awards are a type of award that may be given to recognize performance that, taken alone, does not merit a larger award, such as cash, time-off, or an honorary award. Agencies are finding that they can effectively and efficiently achieve many of the goals of a recognition and incentive award program by providing more frequent, timely, and informal recognition of employees and group contributions. Informal recognition awards must meet the following criteria: The item must be of nominal value. The item must take an appropriate form to be used in the public sector and to be purchased with public funds.

Yes. An employee may receive both an award based on a rating of record and an award based on a specific contribution in a single year. The most important factor in deciding whether to grant multiple awards is that the total value of the awards must be commensurate with the value to the organization of the accomplishment recognized. In addition, agencies must ensure they comply with all applicable requirements, including OPM approval of awards over $10,000.

No.  Both a performance rating and a rating of record involve the evaluation of an employee's performance against all the elements and standards in the performance plan.  At any time during the appraisal period, an agency can make the determination that an employee's performance is unacceptable on one or more critical elements.  This determination is sufficient to begin the process that could lead to a performance-based action if the employee's performance fails to improve to an acceptable level.

The possible effect of performance-based additional service credit is most likely to appear in the second round of the reduction in force process, when employees exercise their bump (into positions held by employees in lower tenure groups for which they meet the basic qualification standard) and retreat (to previously held positions) rights.  Even at this stage, experience suggests that the performance-based additional service credit often has no impact on the actual final result of the reduction in force.

Yes. However, agencies must be aware there are Fair Labor Standards Act (FLSA) implications when they directly link award amounts to specific ratings. When an agency predetermines an award amount or guarantees an award payment for a specific rating, the award is considered nondiscretionary. Nondiscretionary awards must be included in total remuneration and impact the calculation of overtime payments.

There are agencies and organizations within the Federal Government that are not covered by the performance appraisal provisions in the law and regulations. However, many of them have adopted these procedures or developed their own procedures to evaluate the performance of their employees. The regulations give agencies the basic guidelines by which they can review the performance evaluations employees bring with them from other Federal organizations and determine whether they qualify as equivalent ratings of record that can then be used as the basis for assigning additional service credit in a reduction in force.

No. A rating of record does not change when an employee moves to another agency or organization, whether or not they use a different summary pattern. However, an employee will not know how many years of additional service credit will be given for a specific rating of record until an agency is getting ready to run a reduction in force.

Yes. Governmentwide awards regulations allow agencies to use the incentive awards authority to establish a referral bonus program that provides incentives to employees who bring new talent into the agency. Each agency must determine whether using referral bonuses is appropriate for their agency. If an agency decides to establish a referral bonus program, it must establish the criteria it will use to determine when an employee would receive a referral bonus. (For more information see our Criteria for Referral Bonuses.)