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May we offer a retention incentive to recruit an employee from another agency or to a job candidate when we know the candidate has a more lucrative private sector job offer?

No. An agency may not offer a retention incentive (or authorize the payment of a retention incentive) to recruit an employee from another agency or to recruit a job candidate. A retention incentive may not be offered or authorized prior to the individual's employment with the agency. (See 5 CFR 575.309(f).)

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