U.S. Office of Personnel Management www.opm.gov - Recruiting, Retaining and Honoring a World-Class Workforce to Serve the American People

Definition: The agency uses pay for performance systems, where authorized by law and regulation, to link salary levels and adjustments to an individual’s overall performance and contribution to the agency’s mission. Employees receive base salary adjustments within their assigned bands.

When the key elements of the critical success factor Pay for Performance are effectively implemented, agencies will realize:

• Effectiveness results
• Compliance result.

Select this link to view the key elements and suggested performance indicators for this critical success factor. [37 KB]

Effectiveness Results

• The pay-for-performance system, where authorized by law and regulation, is results-driven, producing a distribution of pay adjustments and bonuses based on individual contribution, organizational performance, and/or team performance.
  
  
• The pay-for-performance system, where authorized by law and regulation, ensures employee and supervisory accountability with respect to individual performance and organizational results.
  
  
• Employees' pay is linked to their performance ratings.
  
  
• Supervisors and managers make meaningful distinctions in performance ratings.

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Compliance Result

Pay adjustments, cash awards, and levels of pay based on the results of the appraisal process accurately reflect and recognize individual performance and/or contribution to the agency’s performance in accordance with the Executive Performance and Accountability Interim Rule (5 CFR 430 and 1330).

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