Employee A and employee B have the same grade and step but receive different ratings of record therefore the employee with the higher rating of record (Employee A) receives a larger cash award. The table below illustrates an example of how agencies might administer awards as lump-sum dollar amounts. Lump-Sum Dollar AmountĪgencies can design their awards programs so employees with higher ratings of record receive larger cash awards, as a lump-sum dollar amount, than those with lower ratings. While employee A and employee C received the same rating and the same performance award percentage, the award for employee A results in a larger dollar amount because the grade level indicates a higher level of responsibility. This approach allows agencies to take into consideration the employee's level of responsibility, which is reflected in the grade of the position. ![]() *For the purpose of this example the following values have been used: rating level 5 = 2% award, rating level 4 = 1% award, and rating level 3 = 0.5% award ![]() Employee A and employee B have the same grade and step but received different ratings of record therefore, the employee with the higher rating of record (Employee A) receives a larger percentage cash award. ![]() The table below illustrates an example of how agencies might calculate awards as a percentage of base pay. When computing a performance-based cash award as a percentage of base pay, locality pay is included because this is one of the purposes for which it is considered to be base pay. Percentage of Base PayĪgencies can design their awards programs so employees with higher ratings of record receive larger cash awards, as a percentage of base pay, than those with lower ratings. The examples use ratings given under a five-level appraisal system, with level five being the highest possible rating. The following tables illustrate two of the most commonly used approaches for calculating performance-based awards (percentage of base pay and lump-sum dollar amount). Agencies may calculate performance-based awards as a lump-sum dollar amount, a percentage of base pay, or some other method such as assigning shares to rating levels to ensure meaningful distinctions. However, if you compare those awards to the ones given in other awards pools/organizations within the agency, it is possible for an employee with a rating of "Outstanding" in one awards pool to get a lower award amount than an employee rated at a lower level in a different awards pool.Īgencies have the flexibility to design their awards programs to meet the needs of their agency and to reflect their agency cultures provided they ensure the amounts of the performance-based awards reflect meaningful distinctions in performance. (For agencies electing not to use awards pools, this would correspond to the organizational level that controls an awards budget and has authority for approving awards.) However this may not hold true when comparing employee awards across award pools/organizations.įor example, an employee in a given awards pool rated "Outstanding" should receive a larger award than employees rated at lower levels within the same awards pool. Agencies must design their performance-based cash award programs to reflect meaningful distinctions based on levels of performance to ensure employees with higher ratings of record receive larger cash awards.Įmployees within the same awards pool should receive awards reflecting meaningful distinctions based on the employee's individual rating of record. The award must be based on a rating of record of "fully successful" or equivalent or higher. Voluntary Separation Incentive PaymentsĪpproaches to Calculating Performance-Based Cash AwardsĪ performance-based cash award (commonly known as a rating-based award) recognizes an employee's performance over an entire rating period.Recruitment, Relocation & Retention Incentives.Federal Labor-Management Information System. ![]() Federal Workforce Priorities Report (FWPR).Frequently Asked Questions for Hybrid Work Environment.Diversity, Equity, Inclusion, and Accessibility.Selective Placement Program Coordinator.General Schedule Qualification Standards.General Schedule Qualification Policies.Classifying Federal Wage System Positions.
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