Commentary

GAO Moves to Performance-Based Pay

Looks like GAO is ringing in the New Year with a performance-based pay system:

The New Year brings a new pay system for employees at the Government Accountability Office. GAO, which has been a leader in federal personnel reform and holds an exemption from most civil service rules, is introducing market sensitivity to its pay scale. The audit agency hired the global consulting firm Watson Wyatt to conduct a study of compensation for analysts and is making several changes based on those findings. This year, the GAO is guaranteeing that all employees with a “meets expectation” or higher rating will receive at least a 2.6 percent salary adjustment, as long as their pay falls within a competitive market range. All pay hikes beyond that will be tied directly to performance ratings. Watson Wyatt found that comparable employers were raising pay 2.6 percent this year.

Leonard Gilroy is Senior Managing Director of the Pension Integrity Project at Reason Foundation, a nonprofit think tank advancing free minds and free markets. The Pension Integrity Project assists policymakers and other stakeholders in designing, analyzing and implementing public sector pension reforms.