A pay system based on performance is starting to have a positive influence on the federal government's ability to meet human capital challenges, Linda Springer, administrator of the Office of Personnel Management, has told a hearing about the progress in senior managers’ alternative pay programs.

She cited data that agencies are granting higher performance awards and pay adjustments to their top performers from a report released July 22 on trends in pay for performance.

The results demonstrate that given time and proper implementation, performance-based pay systems can be effective for the federal workforce, she told the Senate Homeland Security and Governmental Affairs Committee's Oversight of Government Management, the Federal Workforce and the District of Columbia Subcommittee on July 22. OPM evaluates the alternative pay systems used by the Senior Executive Service and the National Security Personnel System.

“It should come as no surprise that these pay-for-performance systems are better able to recruit and retain a high-quality workforce,” she said. “I remain firmly convinced pay for performance is critical for attracting a 21st century workforce,” she said.

In a survey earlier this year of SES members, OPM found 93 percent said they believe their pay should be based on performance and 91 percent said they are held accountable for achieving results. The majority said they were satisfied with the recognition they received and that their appraisal was a fair reflection of their performance, Springer said.

The OPM trends report said although pay distinctions are made among levels of performance, only a third of SES respondents said pay and bonus distinctions are significantly different among executives. However, many of the SES members said they did not receive a summary of their agency’s SES overall performance ratings, performance awards, and pay adjustments, so they didn’t know how they individually compared against the group, the report said.