OPM suggests reforms to employee compensation

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Robert Shea, principal at Grant Thornton Public Sector, discusses the federal retirement reforms suggested last week and whether they are complying with the President’s Management Agenda.


Last week, Office of Personnel Management Director Jeff Pon caused a stir by suggesting retirement and benefit cuts for federal workers during Public Service Recognition Week. Critics of the move say that it goes against the President’s Management Agenda’s “people” goals. Robert Shea, principal at Grant Thornton Public Sector, believes that these cuts were telegraphed.

 

“They forecasted they were going to propose changes to federal compensation to modernize it, align it with private sector practices. So, what they proposed is what I think they suggested in the President’s Management Agenda. What impact it will have on the performance, recruitment, retention of people remains to be seen,” said Shea.

“When you tweak the compensation policies of so many millions of people, in an election year, no less, you’re likely to get some squealing. I also think the prospects for enactment as they’ve been proposed in the past is pretty low.”