Improving Performance: A Review of Pay-for-Performance Systems in the Federal Government

For more than twenty years, more rigorous management systems have been implemented throughout the federal government with varying degrees of success. Over the past ten years, many federal agencies have asked Congress for the statutory authority to implement permanent pay-for-performance systems. As part of the 2004 National Defense Authorization Act, Congress granted the Office of Personnel Management the authority to establish pay-for-performance system with the Senior Executive Service. Similarly, the Department of Defense was granted the authority to establish a pay-for-performance system known as the National Security Personnel System. Such systems exist within the Department of Treasury, National Aeronautics and Space Administration, Department of Homeland Security, and some of the intelligence community agencies. This hearing will examine a cross section of pay-for-performance programs throughout the federal government.