OPM seeks 'rigorous and realistic' executive ratings

A top Office of Personnel Management official said Thursday that federal agencies must do a more credible job of distributing performance ratings among their top executives if a new performance-based pay system for Senior Executive Service members is to succeed.

The pay-for-performance effort is "contingent on appraisal systems making meaningful distinctions" among executives' performance, said Doris Hausser, a senior adviser to OPM Director Kay Coles James.

On Wednesday, OPM Wednesday released the results of fiscal 2002 SES performance evaluations, noting that many agencies had made strides in identifying truly exceptional employees.

"A growing number of agencies have taken seriously the need to improve the distribution of SES ratings and awards," James said in a recent memorandum to agency chiefs. "The necessity for more rigorous and realistic ratings is especially clear in instances where agencies are not fulfilling their missions and reporting demonstrable results."

According to OPM data, the number of SES members rated in the top level of their evaluation system declined from 84 percent in fiscal 2001 to about 75 percent in fiscal 2002. The number of SES members who received performance awards dropped slightly, from 52 percent to 50 percent.

Hausser singled out the Energy Department for showing particular discretion. In fiscal 2001, 99 percent of SES members at Energy were in the top rating level. In fiscal 2002, however, only 18 percent were. She praised Energy officials for being "judicious" and providing "reliable, valid" ratings.

Other agencies-especially those that use a three-level rating system-did not diversify their ratings. The Office of the Secretary of Defense rated all but one of its 398 SES members at the highest possible level. The Social Security Administration rated all of its 116 SES members at the top level.

Given the diverse systems that are used to measure SES performance, Hausser said it would be tempting to propose a governmentwide rating mechanism. To try and force a "cookie cutter approach," however, would probably not work, she said.

"A performance management system needs to be owned and operated by the agency," Hausser said.