GovernmentExecutive.com

Agencies are increasingly using the incentives attached to the three R's that spell out the potential for extra earnings for federal employees -- recruitment, retention and relocation.

Last year, 47 agencies paid more than $140 million in bonuses to recruit, retain and relocate employees, according to a new report by the Office of Personnel Management. Breaking this sum down, the agencies made 3,952 recruitment payments averaging $8,325 each, 1,009 relocation incentives averaging $11,530 each and 17,830 retention payments averaging $5,388 each.

"In light of the upcoming retirement wave and the increasing competition for talent we face, it is crucial for agencies to have the necessary human capital flexibilities to attract and retain the talent they need to meet their specific agency mission," OPM Director Linda Springer said in a letter accompanying the report.

Payouts were typically tied to mission-critical occupations, such as health care, engineering, security and information technology. But agencies also used the incentives to fill positions at specific grade levels -- 53 percent were offered to entry level employees, and 80 percent of relocation incentives were paid to employees in intermediate and upper level positions, the report stated.

The Defense Department made the most extensive use of the three incentives, largely for hard-to-fill occupations and to help bridge gaps between federal and private sector salaries. The Veterans Affairs, Health and Human Services, State and Homeland Security departments followed, all citing the use of bonuses to fill mission-critical occupations and to retain employees with critical skills.

The incentives extended to pay plans beyond the General Schedule. More than 12 percent of recruitment incentives overall were paid to Defense employees in the National Security Personnel System, OPM found. NSPS employees also received more than 13 percent of relocation incentives and 11 percent of retention bonuses, the report stated.

In 2004, Congress passed a law raising the limits on how much agencies can offer individual employees in incentives. Recruitment, retention and relocation bonuses, for example, are now capped at 25 percent of an employee's annual salary multiplied by the number of years the employee pledges to serve in a position. The law also allows agencies to ask that OPM waive the cap to allow retention bonus payments of up to 50 percent of salary, if the agency cites a critical need.

Last year's payments mark a strong increase from 2005, when 34 agencies paid recruitment, retention and relocation incentives totaling more than $51 million. But OPM noted in the report that a comparison between 2006 and 2005 should not be made, largely because the new incentive authorities did not go into effect until May 2005.

While most agencies reported no barriers to using the three incentives, some listed funding as a challenge, OPM said. Some agencies also reported it would be helpful to have the flexibility to pay recruitment incentives to current federal employees from other agencies and retention incentives to employees likely to leave for other federal jobs.

2008 Health Open Season

The Office of Personnel Management announced late last month that the open season for the Federal Employee Health Benefits Program and related benefits programs will take place from Nov. 12 through Dec. 10.

OPM Director Linda Springer and program experts will discuss premium changes, benefits and innovations for 2008 at a news conference on Thursday, and Government Executive will be there to report on what she has to say. Employees can expect updated information about the programs in early November.

COMMENTS

• Wow, I hope Duke Nukem doesn't work for the government. I think honesty, integrity and service are admirable character traits (not admiral Duke) but being a government employee shouldn't necessitate working for less than you're worth or working for a discount. By the way Duke, stay off the white house lawn, Bill already left. getting From Maine Posted October 18, 2007 6:42 AM
• Anyone who knows anything about the United States Government would know that employess are NOT hired on or about their credentials or money-making abilities. With the Department of Treasury only one of 28 departments; monetary compensation SHOULD BE THE LEAST of ones concerns in regards to the departmental affiliation one has. What should be of primary concern is occupying a position of authority and performing the function efficiently and with correct protocal and procedures. The concern of profit-making in Governance is A CRIMINAL ACT; much akin to giving blow-jobs on the White House Lawn - it is unnecessary and irrelevant to the purpose of governance. Why not try getting a job a McDonalds instead. The priority of today's US Government is control of the mass populace; welfare and housing of our citizens; integration of aliens and foreigners, control and disbursement of a token-economy: currency. national defense and maintenacne of public thoroughfares. If you want employment with the US Governemht consider Integrity, Responsibility, Reliability, Justice and Honesty to be the admiral traits - if you are only interested in making a lot of money maybe you should go to Las Vegas instead. We've got 300 million people to house, cloth, feed and educate without public scandal and bad press.... Thank you, have a nice day, 1 vote, and pay yer taxes... Duke Nukem Posted September 23, 2007 3:48 PM
• I'm relatively new to the federal workforce but it's my sense there is a disconnect between OPM and HR offices at agencies. Managers at my office simply say there is no money in the budget for training and bonuses. I find that HR and managers have little accountability for improving workforce productivity. The union also does a great job discriminating against high achievers. Michael Posted September 18, 2007 1:40 PM