th<\/sup> century. Jobs were defined with multi-page, detailed job descriptions. Government classification systems treated jobs as if they are isolated and unrelated to agency operations. It\u2019s the definition of bureaucratic. Today, policies that support improved performance are still uncommon.<\/p>\nIn business, workforce management changes started with the 1990 recession. Corporations eliminated levels of management, flattening their organizations, to cut costs and boost quicker decisions. It empowered workers and improved performance. The decade also saw the rapid adoption of personal computers and cell phones. \u00a0Knowledge workers, primary tech specialists, got attention for the first time. It was at the end of the decade when Gallup started promoting the potential of engaged workers to perform at higher levels.<\/p>\n
In all other sectors, the best performing employees are recognized and rewarded. The best performers command better job offers and higher salaries. The best performing companies are celebrated in the media. That\u2019s also true for the best hospitals and best universities. The best places to work are recognized in virtually every industry and by the media in a number of cities.<\/p>\n
In contrast, it\u2019s rare to see the media or government leaders recognize agency or employee accomplishments. That\u2019s not a strategy for building public support.<\/p>\n
The focus in government too often continues to be on few employees who perform poorly. A recent GovExec.com column, \u201cHolding poor performers accountable can lead to better government,\u201d argued \u201cneither federal employees nor the public have confidence that poor performers in government are dealt with properly . . .\u201d That would never be a headline in business media.<\/p>\n
Empowering employees to tackle work-related problems both improves performance and increases their job satisfaction. However, it can threaten managers. Unfortunately, too many executives and managers are not open to new practices. One certainty \u2013 as with Gore and NPR, leader support would be essential.<\/p>\n
A version of the NPR Hammer Awards would be a great way to start the transition to improved results at any level of government. The costs were nominal, awards consisted of a $6 hammer, a ribbon, and a note from Vice President Gore. \u00a0The recognition associated with initial awards would make it easier for other employees to propose solutions to local operating problems.<\/p>\n
There is no reason to think a similar strategy would not generate ideas for improved results. A proven variation a decade or so ago was the Peak Academy program in Denver where training was provided to help city and county employees identify ways to improve government. Originally the Denver program involved cash \u201cgain sharing\u201d awards to enable employees to share in savings.<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ background_color=”#f7f7f4″ custom_margin=”-641px|||||” custom_padding=”0px||0px|||” global_colors_info=”{}”][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Section” _builder_version=”4.16″ custom_padding=”0px||0px|” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ use_custom_gutter=”on” gutter_width=”1″ make_equal=”on” column_padding_mobile=”on” module_class=” et_pb_row_fullwidth” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” width_tablet=”100%” width_phone=”” width_last_edited=”on|desktop” max_width=”100%” max_width_tablet=”100%” max_width_phone=”” max_width_last_edited=”on|desktop” custom_padding=”0px||0px|” make_fullwidth=”on” custom_width_px=”680px” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/www.careersingovernment.com\/tools\/wp-content\/uploads\/2025\/06\/2-5-scaled-1.jpg” alt=”Four people stand around a glass board with sticky notes, discussing ideas. One person gestures with a marker while others listen and hold papers or a laptop, reflecting a collaborative brainstorming session in the civil service.” title_text=”Four people stand around a glass board with sticky notes, discussing ideas. One person gestures with a marker while others listen and hold papers or a laptop, reflecting a collaborative brainstorming session in the civil service.” show_bottom_space=”off” force_fullwidth=”on” align_tablet=”center” align_phone=”” align_last_edited=”on|desktop” _builder_version=”4.25.1″ custom_margin=”-1px|||||” animation=”off” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ background_color=”#efefe9″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/www.careersingovernment.com\/tools\/wp-content\/uploads\/2025\/06\/3-5-scaled-1.jpg” alt=”Two darts hitting the bullseye on a dartboard, with a glowing sunset backdrop and a transparent upward bar graph and arrow\u2014symbolizing growth, civil service achievement, and success.” title_text=”Two darts hitting the bullseye on a dartboard, with a glowing sunset backdrop and a transparent upward bar graph and arrow\u2014symbolizing growth, civil service achievement, and success.” show_bottom_space=”off” force_fullwidth=”on” align_tablet=”center” align_phone=”” align_last_edited=”on|desktop” _builder_version=”4.25.1″ animation=”off” global_colors_info=”{}”][\/et_pb_image][et_pb_text disabled_on=”off|off|” _builder_version=”4.25.1″ text_font=”PT Serif||||” text_text_color=”#818178″ text_font_size=”24″ text_line_height=”1.4em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” text_orientation=”center” module_alignment=”center” custom_margin=”5.7%|10%||10%||” custom_margin_tablet=”|10%||10%” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” text_font_size_tablet=”” text_font_size_phone=”” text_font_size_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n
A notable difference between the public and private sectors is that in business it\u2019s rare to hear the word \u201caccountable.\u201d<\/p>\n
[\/et_pb_text][et_pb_text _builder_version=”4.16″ text_font=”PT Sans|on|||” text_text_color=”#888888″ text_font_size=”12″ text_letter_spacing=”2px” text_line_height=”1.2em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” text_orientation=”center” module_alignment=”center” custom_margin=”20px||20%|” custom_margin_tablet=”20px|||” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” global_colors_info=”{}”]HOWARD RISHER[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row use_custom_gutter=”on” gutter_width=”4″ column_padding_mobile=”on” custom_padding_last_edited=”on|tablet” admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” max_width=”1200px” custom_padding=”0px||0px|” custom_padding_tablet=”0px|||” custom_padding_phone=”” use_custom_width=”on” custom_width_px=”1200px” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.25.1″ text_font=”PT Serif||||” text_text_color=”#363636″ text_font_size=”20″ text_line_height=”1.4em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”19px||0px|||” custom_margin_tablet=”40px||0px|” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” text_font_size_tablet=”” text_font_size_phone=”” text_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n
Managing for Improved Performance<\/h4>\n
The Clinton administration was also responsible for the Government Performance and Results Act in 1993, which required federal agencies to define performance goals, measure results, and report progress.\u00a0 It\u2019s not clear if that was the first law focused on performance management, but it\u2019s gotten the most attention.\u00a0 Now goal setting and performance metrics are used at all levels of government.<\/p>\n
It\u2019s also relevant that goal setting \u2013 or management-by-objectives \u2013 was introduced 40 years earlier when Peter Drucker published his book The Practice of Management<\/em> in1954.<\/p>\nThe textbook planning practice is the use of SMART – S<\/strong>pecific, M<\/strong>easurable, A<\/strong>chievable, R<\/strong>elevant, and T<\/strong>ime-Bound \u2013 goals to link managers and employees with organizational goals. It enables employees to follow how they are contributing to agency results. That\u2019s likely to be a more effective motivator than the added salary dollars linked to high ratings. Tennessee\u2019s reform led by Governor Bill Haslam confirmed goal-based management can be effective in government. (2)<\/p>\nThe use of SMART goals received far more attention in the COVID crisis with millions working remotely. It\u2019s a proven answer for workers empowered to work independently. Combined with a performance data system, it\u2019s well suited to reviewing progress in reaching goals.<\/p>\n
Following Tennessee\u2019s rollout strategy, reform initiatives should plan the first year or two as a learning period to build comfort managing with team and individual goals. The first two years were focused on training both managers and employees. An added feature to consider is inviting employees to comment, possibly anonymously, on their manager\u2019s supervisory skills.<\/p>\n
In business, the typical pay package for executives and managers includes cash incentives, stated as a percentage of salary at each grade level (e.g., 20%). (3)\u00a0 At year end, awards are based on a combination of organization and individual performance. The portion based on organization results reinforces the importance of \u2018team\u2019 performance; each executive\u2019s payout is based by formula on shared metrics. (3) The practice is common in hospitals and hospital systems as well.<\/p>\n
In government, senior executive salaries are too often capped by the pay of elected officials. Federal senior executives are eligible for awards up to 20% for exceptional performance but contrary to business practice, awards are individual and subjectively decided. There is nothing, except politics, that prevents public agencies from adopting executive incentives. When the goal is improving performance, it\u2019s an idea that warrants high level discussion.<\/p>\n
When goal-based management is new, the transition should be understood and managed as culture change. That requires active leadership, a credible reason, clear goals, open communication, and an understanding of how manager-employee relationships are expected to change, with training for newly important skills.\u00a0 A successful transition rides on building the skills.<\/p>\n
In today\u2019s uncertain environment, agency and individual goals should be reviewed and possibly revised as circumstances change over the year. The goals provide focus, linking employees to progress throughout the year. It reinforces each employee\u2019s sense of accomplishment. It also enables managers to follow the performance of their people. GPRA and follow up federal laws have been silent on workforce issues, but Tennessee demonstrates performance management is central to improving government performance. (4)\u00a0<\/p>\n
Linking Pay to Performance<\/h4>\n
Tennessee successfully transitioned to pay for performance. It\u2019s certainly not the first public employer to switch to rewarding good performance. Charlotte NC was seen as a role model 30 years ago.<\/p>\n
In other sectors it\u2019s effectively the universal practice for white collar workers. Even the critics in universities understand their career success depends on performance. Across society, the recognition of the best performers is broadly accepted. It\u2019s true in sports \u2013 All Stars; in entertainment \u2013 Academy awards; and in education \u2013 Gold Stars and Honor Rolls. Parents commonly recognize and \u2018reward\u2019 their children to encourage exemplary performance.<\/p>\n
The importance of rewarding employees is evident in the sales of the book first published 30 years ago, 1001 Ways to Reward Employees<\/em>. It\u2019s now in its 58th printing and has sold over 1.7 million copies.<\/p>\nCritics have denied pay for performance is effective in government, but the research focused on work practices that would not be adopted today. Moreover, their focus was typically on employee satisfaction, which is not consistently linked to better performance. Significantly, the studies did not suggest traditional step increase systems are a better policy nor did they highlight the reasons for the failures (e.g., inadequate funding, inadequate training).<\/p>\n
Experience with implementing performance pay policies highlights a number of issues in the planning and implementation that should contribute to a successful transition.<\/p>\n
\n- Leadership and prior experience of leaders in executive roles (Tennessee\u2019s Governor Bill Haslam had executive experience in the private sector as well as two terms as Mayor of Knoxville.)<\/li>\n
- A central office or at least someone in a high-level role should be responsible for leading the transition<\/li>\n
- Announcing at the start the goals and reasons for initiating the change<\/li>\n
- Training managers at all levels in effective performance management practices<\/li>\n
- Defining a role for Employee Resource Groups to address issues that arise<\/li>\n
- Differentiating employee SMART goals by job family, career stage and experience.<\/li>\n
- Relevance of data on workforce trends (e.g., turnover, job vacancies) by occupation<\/li>\n
- The history (and any resistance) of previous policy changes affecting the civil service system<\/li>\n<\/ul>\n
The goal is a successful transition to new management practices. Both managers and employees have to accept new ways of interacting and that frequently triggers resistance. For the same reason, relying on outside \u201cexperts\u201d may not be the best strategy. Plus, they need added time to learn how an agency operates. In both colleges and hospitals, it\u2019s common to rely on employee teams in the planning and roll out of new pay systems. They take their role very seriously. Involving employees builds a sense of ownership and ongoing communication with co-workers.<\/p>\n
A notable difference between the public and private sectors is that in business it\u2019s rare to hear the word \u201caccountable.\u201d It seems that defining and agreeing on goals creates a sense of shared accountability. The linkage to pay increases (or cash incentives) confirms accountability and the consequences. Everyone knows what they are expected to accomplish, and how their performance affects their careers<\/p>\n
Research by Gallup and others makes managers key for engaging employees. Too often in the past they got the job because of their technical expertise and were not provided adequate training. To support their staff\u2019s work efforts, experts argue they should provide coaching and advice throughout the year. Year-end reviews will have fewer surprises. The growing support for pay transparency makes the justification of ratings essential.<\/p>\n
Toward that end, a strategy to enhance the credibility of performance ratings is to have a committee of peer level managers review the highest and lowest ratings. It addresses the problem of inflated ratings. The added step forces managers to be able to justify ratings. Confirming ratings reinforces the recognition.<\/p>\n
When combined with team incentives for developing solutions to workplace problems \u2013 similar to reinventing government – it creates a culture where employees are committed to good performance.<\/p>\n
(Note: An alternative, primarily for \u2018knowledge\u2019 occupations where employee goals are not a credible option (e.g., technology, science, healthcare) is basing salary increases on assessments of individual knowledge and skills \u2013 it\u2019s known as competency-based pay. That\u2019s the proven basis for managing salaries in several federal \u2018demonstration projects\u2019. It\u2019s embedded in societal norms that value expertise.)<\/p>\n
Final Thoughts<\/h4>\n
In far too many government agencies work management practices have seen minimal change in decades. Where that\u2019s true, managers and employees have established working relationships and are resistant to change. Their resistance could lock them into the past. They need to understand switching to pay for performance can be a win-win, for them and for the public.<\/p>\n
Years ago, Charlotte\u2019s HR manager, Bill Wilder, and I were speakers at two ASPA conferences on pay for performance. Each time we had overflow audiences with attendees standing along the walls.\u00a0 They came to hear how the city transitioned to pay for performance. Bill is retired now but an alternative is to have agency teams meet with states and cities that successfully switched to pay for performance. Learning first-hand what works and understanding what the new policy means to agency success is likely to be convincing.<\/p>\n
(1) The ebook I co-authored with Dr Trish Holliday, formerly Tennessee\u2019s CLO, \u201cPreparing Managers for Tomorrow’s Governme<\/em>nt,\u201d https:\/\/www.govexec.com\/assets\/preparing-managers-tomorrows-government-ge-q4-2020\/portal\/ provides a longer discussion.<\/p>\n(2) Government executive salaries are too often capped by the pay of elected officials. That\u2019s far below the pay for comparable positions in the private sector.<\/p>\n
(3) In business publications, incentives differ from bonuses, which are subjectively determined at year end.<\/p>\n
(4) The book, It\u2019s Time for High-Performance Government: Winning Strategies to Engage and Energize the Public Sector Workforce<\/em>, co-authored with William Wilder, former HR director for Charlotte, NC provides a full discussion. Charlotte was recognized for its successful pay for performance policy.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ min_height=”520.5px” custom_margin=”-17px||20px||false|false” custom_padding=”0px|0px|24.625px|0px||” global_module=”37900″ collapsed=”off” global_colors_info=”{}”][et_pb_row column_padding_mobile=”on” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” max_width=”780px” custom_padding=”0px|0px|73.90625px|0px” use_custom_width=”on” custom_width_px=”780px” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ text_font=”PT Serif||||” text_text_color=”#363636″ text_font_size=”36″ text_line_height=”1.4em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” text_orientation=”center” module_alignment=”center” custom_margin=”||70px|” text_font_size_tablet=”26″ text_font_size_phone=”” text_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n
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