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

OPM Goals

Goal 1

Objective 3

Provide the Federal Government with a modern compensation system that is performance-oriented, market-sensitive, and assists Federal agencies in meeting their strategic goals.

The work OPM has been doing to encourage strategic management of human capital has Federal agencies poised to match successful private-sector organizations in the use of compensation as a strategic tool. This shift is already visible in a wide variety of demonstration projects and alternative personnel systems that align agency pay practices, bonuses and award programs.

But agencies operating under the General Schedule grade-and-step system run into a huge road block–the current system simply does not support strategic management very well. There is nothing strategic about lock-step advancements. The Government is burdened with an outdated compensation system that has minimal ability to encourage and reward achievement and results. It does not reflect market pay levels and its prescribed procedures effectively preclude agencies from tailoring pay programs to their specific missions and labor markets.

When all is said and done, the fact remains that right now the Federal Government is operating with a 50-year old compensation system that was custom-built for the process-obsessed age of the file clerk. Continued reliance on this antiquated system is comparable to insisting that today’s offices use carbon paper and manual typewriters.

We will work in a number of ways to improve the compensation system as reflected in our strategies.

"For too long our culture has said, ‘If it feels good, do it.’ Now America is embracing a new ethic and a new creed: ‘Let’s roll.’ In the sacrifice of soldiers, the fierce brotherhood of firefighters, and the bravery and generosity of ordinary citizens, we have glimpsed what a new culture of responsibility could look like. We want to be a nation that serves goals larger than self. We’ve been offered a unique opportunity, and we must not let this moment pass."

President George W. Bush, State of the Union Address, January 29, 2002

Strategies

• Develop options and recommendations for compensation reform based on feedback from OPM’s White Paper on Compensation.
• Develop options and recommendations for compensation reform based on evaluation results of demonstration projects.
• Focus reform efforts on performance-oriented pay and results-driven performance systems.
• Monitor and provide support for the development of reform proposals forwarded to the President and Congress.
• Develop and test interim compensation solutions to address unique situations and needs such as those in the Internal Revenue Service and in the creation of the Department of Homeland Security and the Transportation Security Administration.

Performance Indicators/Measures

The ultimate measure of success for a compensation system is the degree to which the system contributes to the recruitment and retention of a workforce that can meet the goals of Federal agencies. To establish this link between compensation and agency mission accomplishment, OPM uses data from its Central Personnel Data File on hiring and retention. In addition, OPM directly surveys its customers including, but not limited to, agency leadership, human capital professionals and employees in general, on core topics. We survey the Senior Executive Service, Human Resources Directors, Human Resources Specialists and, for the general workforce, conduct the Governmentwide Survey. A sample of survey responses are:

• Agency leadership report Federal compensation policies are flexible and manageable, allowing them to recruit and hire quality employees;
• All employees report they are held accountable for results;
• Federal employees indicate Federal compensation was one reason they chose a Federal Government job; and
• Agency leadership report Federal compensation policies are flexible and manageable, allowing them to retain high-quality employees.

 

 

Pledge to Federal Job Applicants 1. A user-friendly application process that is not unduly burdensome or time consuming. 2. Clear, understandable job announcements and instructions for applying. 3. Timely and informed responses to questions about the requirements and the process. 4. Prompt acknowledgement that their application has been received. 5. Regular updates on the status of their applications as significant decisions are reached. 6. A timely decision-making process.

Goal 1    Objective 1    Objective 2    Objective 3    Objective 4

Goal 2    Objective 1    Objective 2

Goal 3    Objective 1    Objective 2    Objective 3