Performance Management Performance Management FAQs

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.)

Yes. In the Federal Government, there are four types of awards — cash awards, time off awards, honorary awards, and informal recognition awards. Agencies may use any combination of award types to reward a specific contribution.  For example, an employee might receive both a certificate and a cash award as recognition for a single contribution.  However, the overall combined value of the awards should not exceed the value to the organization of the contribution recognized. Thus, the award should be commensurate with the contribution of the employee.

No. An employee must have a "fully successful" or equivalent rating of record or higher to be eligible to receive a rating-based cash award.

No.  The Governmentwide regulations permit non-critical elements to have a greater weight in determining the final summary level.  However, if performance on any critical element is appraised as Unacceptable, a Level 1 summary must be assigned and performance on a non-critical element can not be used to raise that summary above Level 1, no matter the weight it might receive in other circumstances.

The minimum period is the shortest length of time established by the agency that an employee must perform under assigned elements and standards before a performance rating can be prepared.  The appraisal period is length of time designated by the agency (usually one year) that is the basis for the rating of record.

Yes. Regulations allow agencies to grant non-GS employees rating-based awards if the employees are covered by the awards regulations and not otherwise covered by a separate statute that authorizes rating-based awards (e.g., members of the Senior Executive Service).

Yes.  Governmentwide regulations define a rating of record as the performance rating completed at the end of the appraisal period that reflects performance over the entire period, or an off-cycle rating of record given when a within-grade increase (WGI) decision is not consistent with the employee's most recent rating of record and a more current rating of record must be prepared.  These are the only times that a rating of record can be issued.

A performance-based cash award, also commonly known as a rating-based award, is a lump-sum cash payment and requires only the most recent rating of record as the sole justification for the award. Rating-based cash awards must be based on a rating of record at the "fully successful" level (or equivalent) or higher, and rating-based awards programs, as designed and applied, must make meaningful distinctions based on levels of performance.

No. The regulations require that agency officials evaluate employee performance periodically against agency-assigned elements and standards. Since agencies cannot assign union work, this work cannot be included as elements and standards and is not subject to appraisal. As a result, employees who spend 100 percent of their time as employee representatives cannot receive a rating of record. Subsequently, since a rating of record is the basis for a performance or rating-based award, these employees are not eligible for performance awards.

An acceptable level of competence determination can be delayed for only two reasons: when an employee has not had the minimum period of time to demonstrate acceptable performance on his or her elements and standards; and when an employee is reduced in grade because of unacceptable performance to a position in which he or she is eligible for a within-grade increase or will become eligible within the minimum appraisal period.

Yes. An agency can design procedures for deriving a rating of record that assign greater weight to non-critical elements (which may be used to measure team performance and may affect the rating of record) than to critical elements.  If desired, in summarizing overall performance at or above the "Fully Successful" level, agencies can make distinctions on the basis of team performance alone.

No. OPM must review and approve the agency's appraisal system, which sets out the limits within which all the agency's programs must be developed.  OPM must approve the appraisal system before any appraisal program developed under the system can be implemented.