U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

Time-off Awards: Reviewing the Basics

Time-off awards are awards granted to employees in the form of time off from work without loss of pay or charge to leave. Agencies can use time-off awards to recognize employee accomplishments, or as incentives to achieve specific performance goals. Understanding the basics of time-off awards allows agencies to use them effectively.

• What are the bases for granting time-off awards?
• Who may receive time-off awards?
• How can agencies use time-off awards?
• What are some advantages of using time-off awards?
• What are some disadvantages?
• Are there Governmentwide limits on the amount of time off an employee may receive?
• May time-off awards be combined with other forms of awards?
• Can agencies use their own discretion when granting time-off awards?

What are the bases for granting time-off awards? Time-off awards may be granted in recognition of an individual or group superior accomplishment or other personal effort that contributes to the quality, efficiency, or economy of Government operations. Employees also may receive time-off awards in recognition of superior accomplishment as reflected in the most recent rating of record.

Who may receive time-off awards? Any Federal civilian employee may receive a time-off award, either as an individual or member of a group. Volunteers, contract employees, and members of the Military Services may not receive time-off awards.

How can agencies use time-off awards? Agencies can use time-off awards as incentives or as recognition. Incentives help focus employees on the organization's goals and often promise specific rewards to employees who significantly help to achieve them. Recognition provides after- the-fact acknowledgment to employees for their accomplishments.

What are some advantages of using time-off awards? Advantages include:

• Equity. Identical time-off awards granted to members of a team with various grade levels may be perceived as more equitable than identical cash awards or cash awards that are based on a percentage of pay.
• Value. Time-off awards may be especially valued by employees with low annual leave balances.
• Timeliness. Time-off awards can be one of the award forms most closely linked to the time of the accomplishment. For example, if agency policy allows, a supervisor could grant a willing subordinate the afternoon off after the employee completes an urgent, high-quality project.

What are some disadvantages? Disadvantages include:

• Excess Leave. Employees who have "use or lose" annual leave might not value more leave.
• Hidden Costs. Because the form of the award is time off, not cash, managers may not see the hidden costs associated with the award.
• Loss of Productivity. Productivity could be compromised because staff is away from the office using their time-off awards.

Are there Governmentwide limits on the amount of time off an employee may receive? Regulations published in 1995 gave agencies the flexibility to establish their own guidelines and limitations on how much time off is appropriate for various employee contribu tions. Agencies can also establish their own time frames for when time-off awards must be used.

May time-off awards be combined with other forms of awards? Time-off awards may be granted along with other forms of awards, as long as the total value of the award given reflects the value of the contribution being recognized. For example, an employee might receive both a one day time-off award and a $50 cash award as recognition for a single contribution, as long as the combination of the awards is suitable recognition for the value of the employee's contribution.

Can agencies use their own discretion when granting time-off awards? The use of time-off awards is not subject to many Govern mentwide regulations. Agencies can determine their own need for: a second level of management approval; limitations on the number of hours of time-off granted (per award or in total); a predetermined relationship between the level of contribution and the amount of time off awarded; and guidelines and procedures for administering and scheduling the use of time off.

For additional information, please contact us at pay-performance-policy@opm.gov or you may contact your Human Resources Office.

Originally published on June 1999