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Pay-for-Performance: The Keys to Making it Work

The Office of Personnel Management's (OPM) proposal to introduce pay-for-performance in the federal white-collar pay system represents a complex and sensitive cultural change. It is far more than a simple change in the policies governing salary management. The success of the new policy will depend on the effectiveness of the performance management process, and that in turn will depend on several softer, more nebulous organizational issues. Most of the issues are related to the management of that process, and the federal track record has not been good. This article discusses the key issues that can be expected to affect the transition to a pay-for-performance strategy.