According to the 2012 Defense authorization bill passed by the House in May 2011, unsatisfactory Defense Department employees are set to lose their pay raises unless they increase their workplace efficiency.
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The Latest Pay Advance: No Automatic Pay Raises for Underperformers

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According to the 2012 Defense authorization bill passed by the House in May 2011, unsatisfactory Defense Department employees are set to lose their pay raises unless they increase their workplace efficiency. The bill, listed as HR 1540, would prohibit employees rated less than satisfactory from receiving the nationwide adjustment to General Schedule pay scales, which is usually approved by Congress. The overall goals is to step up the rigor and inspire greater performance, benefiting both Defense employees and overall Defense Department morale.

MORE TIME EQUALS MORE MILITARY PAY? THINK AGAIN

In one plan or cycle, every one, two, or three years, each grade in the GS system becomes eligible for a step increase, accompanied by a pay raise that ranges from 2.6 to 3.3 percent. Employees climb this time-based ladder until they reach their grade's top level. As a result of this fluid promotion system, few are regulated based on performance. The House Armed Services Committee reported that about 1 percent of Defense's roughly 700,000 employees rate below satisfactory, but that 1 percent still receives pay raises. The proof: only one in every 1,698 federal employees were denied a step increase and accompanying raise in 2009 due to poor performance.

OPM ANNOUNCES GREATER RIGOR IN PAY RAISES

In addition to the bill, the Office of Personnel Management (OPM) announced that employees' work will be evaluated in order to receive within-grade pay increases. This will replace the notion that promotions are treated like an automatic step. OPM Director John Berry called on agency executives to review and adjust OPM's performance management strategies and pay policies.

MILITARY AND FEDERAL EMPLOYEES MUST EARN ALL PAY RAISES

According to John Palguta, Vice President for policy at the Partnership for Public Service, the bill and announcement are wake up calls to military and federal managers. Rather than pushing employees through the ranks, poor performers will be accountable increasing their efficiency.



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