Effective 13 September 2013, The U.S. Office of Personnel Management (OPM) issued final bonus and incentive regulations in hopes of improving recruitment and retention bonuses, or incentives. The desired outcome is that the newly improved incentives, which are aimed at high level positions; especially those in the fields of Defense and Information Technology (IT), will appeal to candidates who may have previously discounted federal service, and encourage them to apply.
In their own words, OPMs “Recruitment, relocation, and retention incentives (3Rs) are compensation flexibilities available to help Federal agencies recruit and retain a world-class workforce.”
According to a recent document, Pay Under the General Schedule and Recruitment, Relocation, and Retention Incentives, 49359-49364 [2013-19641], OPM proposed revising the 3Rs for a group of positions which have proven difficult to fill.
Specifically, OPM is seeking to more successfully recruit and retain professionals who will provide added value to important agency mission, project, and initiatives related to national emergency or critical management initiatives.
According to the OPM website, an agency may determine that a position is likely to be difficult to fill if the agency is likely to have difficulty recruiting candidates with the competencies (i.e., knowledge, skills, abilities, behaviors, and other characteristics) required for the position (or group of positions) in the absence of a recruitment incentive based on a consideration of the factors listed in 5 CFR 575.106(b).
An agency also may determine that a position is likely to be difficult to fill if OPM has approved the use of a direct-hire authority applicable to the position.
As written in regulation 5 CFR 575.105, OPM is seeking to improve oversight of recruitment and retention incentive determinations and add succession planning to the list of factors that an agency must consider before approving a retention incentive.
As per the guidance, the waiver allows for the bonus payments to be paid to the employee in a service period not to exceed 50 percent of the employee’s annual rate of basic pay at the beginning of the service period, multiplied by the number of years in the service period. They will be reviewed annually to be sure they are performing at a level required for their position.
OPM is also revising 5 CFR 575.109(c)(1) to clarify that an authorized agency official may request that OPM waive the 25 percent payment limitation based on a critical agency need.
In addition to the monetary incentives, relocation expenses will be paid, but only if the employee maintains residency in the new geographic area for the duration of the service agreement.
Also contained in the document are conditions which the agency may terminate the service agreement if they receive a less that “Fully Successful” rating, or if they fail to maintain residency in the new geographic are for the agreed upon duration of the agreement. And the employee must possess the competencies required for the position, and with minimal training, cost, and disruption of service to the public, is able to perform the full range of duties and responsibilities of the position at the level required for the job.
Per the guidance, recruitment incentives may not be paid to Presidential appointees; noncareer appointees in the Senior Executive Service; those in positions excepted from the competitive service by reason of their confidential, policy-determining, policy-making, or policy-advocating natures; agency heads; or those expected to receive an appointment as an agency head.
