Chapter 4. Performance Awards

Introduction

The Department’s Performance Recognition System is two-tiered. It includes: 1) the use of an annual performance award to take into account an employee’s contributions to the accomplishment of organizational goals and objectives; and 2) the use of other awards available for managers to recognize specific achievements at any time during the performance cycle. This balanced approach will ensure that the awards and recognition system provides managers a comprehensive set of tools to build a new performance culture at the Department.

Definition

A performance award is a performance-based cash payment to an employee based on the employee's rating of record for the current appraisal period. The award may not exceed 20 percent of the employee's annual rate of basic pay. A performance award does not increase base pay.

Eligibility

• To qualify for a performance award, an employee must occupy a position, which is covered by the General Workforce Performance Appraisal System, on the last day of the annual appraisal cycle for which performance awards are being granted.
• When an employee changes positions within the last 120 days of the appraisal period, the employee may receive an award based on his or her interim rating (which becomes the rating of record at the end of the appraisal period) for the position held immediately before the change in position. For example, if the employee changes positions three months before the end of the appraisal period, the award is based on the nine months of the appraisal period preceding the change in position.

Determining Performance Award Amounts

Performance awards are linked directly to the summary rating score on the employee’s rating of record and are calculated as a percentage of base pay (including locality payment). When determining the appropriate performance award amount, supervisors and managers should consider an employee’s contributions to the achievement of the organization’s mission and goals.

Approval

Each operating unit must specify the delegations of authority for approval of performance awards in accordance with the overall awards delegations.

Timing

Approved performance awards must be submitted to the Servicing Human Resources Office within the time frames specified in the operating unit plan, but no later than within 90 days of the end of the appraisal cycle.

NOTE: See APPENDIX A. Guidelines for Total Award Recognition (Performance Awards and Special Acts)