New Pay Rules May Motivate Workforce's Poor Performers

At two departments, Defense and Homeland Security, officials are planning to replace the General Schedule, which provides predictable pay raises, with systems that link raises to job performance and reduce employees' appeal time. At Defense and Homeland Security, the revamped personnel systems make it possible for supervisors to give little or no pay raise to poor performers or, under certain conditions, even give them a pay cut. In its letter, GAO told the House committee that various reports and surveys show agencies have been reluctant to take on problem employees for numerous reasons. Some supervisors think the rules to correct performance are too complex and take up too much time. Some feel they have not been trained in performance management. Some opt to avoid the issue because they don't like workplace confrontations. Management associations also contend that supervisors and executives risk grievances and complaints alleging discrimination from employees who try to get even and intimidate management. There's also a perception in some agencies that high-level management will not support supervisors trying to fire problem employees. GAO said that most agencies are better off if they try to address poor performance sooner rather than later. Effective management systems help supervisors provide candid and constructive feedback aimed at helping employees improve, GAO said. In addition, GAO said, agencies need to deal with problem employees while they are on probation -- usually their first year on the job -- and before they are eligible for full job protections. Defense and Homeland Security have the option of extending probation beyond the standard one-year period as part of their personnel overhauls, GAO noted. http://www.washingtonpost.com/wp-dyn/content/article/2005/07/16/AR2005071600818_pf.html

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