This occasional paper examines the pros and cons of explicit pay for performance schemes for federal civil servants compared with seniority based salary systems as well as the proposals to change the general schedule system modernizing the federal government paying for performance by silvia montoya john d graham. This occasional paper examines the use of pay for performance in the federal government one of the recommendations made in 2003 by the national commission on the public ser vice also known as the volcker commission it is based on a review of theoretical literature demonstration projects and current legislation regarding pay for performance. Modernizing government for the 21st century an american budget the business of the federal government is to serve the american people in core mission areas. Pay for performance federal government is a method of employee motivation meant to improve performance in the united states federal government by offering incentives such as salary increases bonuses and benefits it is a similar concept to merit pay for public teachers and it follows basic models from performance related pay in the private sector according to recent studies however . Several trends have emerged from the federal governments experience with performance based pay systems according to alternative personnel systems in the federal government a status report on
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