New rule lets agencies give bonuses to blue-collar workers

Agencies can offer recruitment and relocation bonuses and retention allowances to wage-grade employees under a new rule published by the Office of Personnel Management in the Federal Register Friday. Until now, only the OPM director could authorize bonuses for wage-grade employees upon the request of an agency head. Under the new rule, agencies now have the discretion to offer the bonuses to wage-grade employees in an effort to keep them from going to higher-paying jobs. Agencies have long had the discretion to offer lump-sum recruitment bonuses to newly appointed white-collar employees and retention bonuses to white-collar employees with high-demand skills who planned to leave the government. Many agency officials have voiced concerns over potential staffing problems in the blue-collar workforce. The demand for the new rule was emphatic. When OPM proposed it in January, one agency official asked that the final rule be issued as soon as possible so managers could use the new authority immediately to address human capital issues. The government employs about 200,000 blue-collar workers under the wage-grade pay system, according to OPM statistics. OPM is also considering a suggested rule allowing agencies to offer bonuses to employees seeking to move elsewhere in the government. Retention, recruitment and one-time relocation bonuses are capped at 25 percent of an employee's annual rate of basic pay.
Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.