What’s the best way to encourage good performance? Employers have always struggled with this question. One answer is to pay employees based on how well they perform their jobs. Many private sector employers have adopted pay-for-performance (PFP) programs, and several federal agencies have also experimented with PFP. Some federal PFP programs have operated successfully for many years; others have been more controversial. Last year, Congress terminated a PFP program at the Defense Department. Employees complained that the program was arbitrary and lacked transparency.
The image of the auditor sitting in front of a stack of spreadsheets, with a trusty calculator at the ready, is right out of central casting. So is the investigator on round-the-clock surveillance to uncover fraud or misuse of government funds.
Those techniques have their place, of course...Read More