Strategic Rewards

The Office of Personnel Management has begun pushing a new way of looking at compensation called "Strategic Rewards."

Under the approach, managers must consider four factors that make a difference in recruiting and retaining employees. Two of them-compensation and benefits-are more a function of the federal personnel system than of managerial prowess. But the other two-development and work environment-are within managers' control. If the government fixed its pay and benefits systems but managers didn't address development and work environment issues, then federal agencies still would have trouble holding on to good workers.

Compensation

• Base salary
  
• Other payments
  
• Variable pay
  
• Paid time off

Learning and Development

• Training
  
• Learning experiences
  
• Career paths

Benefits

• Health care
  
• Retirement
  
• Savings
  
• Other insurance

Work Environment

• Work-life balance
  
• Leadership
  
• Performance culture
  
• Organizational climate

Source: Office of Personnel Management