According to a report from the Merit Systems Protection Board, “Pay for performance demands higher level of supervisory skill” than the traditional grade-and-step system used  in government for decades, in part because performance-based systems give more discretiion to supervisors to set pay and bonuses, the report says.

“Supervisors must treat employees fairly in terms of the assignment of work, evaluation of performance, and allocation of rewards — and they must be held accountable for their decisions,” the report says.

The Defense and Homeland Security departments plan to launch performance-based pay systems this year, and intelligence community leaders recently told their employees that they soon will be moving to design a new pay system according to The Washington Post's Stephen Barr who adds: “The Office of Management and Budget has floated a draft bill that would require pay for performance across the government.”

Let us know what you think about pay for performance.  What do you like?  What worries you?

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