Pay Raises Through COLA vs Performance

Home Forums Budgeting Pay Raises Through COLA vs Performance

This topic contains 4 replies, has 2 voices, and was last updated by  Mark Hammer 5 years, 3 months ago.

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  • #178329

    Ari Herzog
    Member

    What is your thought on this? Should an employee receive a pay raise because of a cost of living adjustment percentage of 1 or 2 percent, or should the person earn more money because of a positive performance evaluation?

    I’m not referring to private sector employees but the public sector whose salaries are paid directly from taxpayers and trickle down revenues.

  • #178337

    Mark Hammer
    Participant

    Using performance pay in the public sector is a bit like trying to wrestle a greased bear to the ground. If you can identify an index of “performance” that is valid and aggreeable to all, be my guest. In view of that, COLA can work very well.

  • #178335

    Henry Brown
    Participant

    If the performance evaluation system was at least somewhat objective, I would suggest that the evaluation system be the basis of the majority of raises but… Until the personality factor is removed I don’t see any way that the that a somewhat fair raises could be implemented.

    What with federal pay frozen for the past 3 years or so, the only raises which have been given out are longevity increases (also called step increases) and the rewards issued based on performance. IMO the later is driven by personalities and there is little or no accountability for who or why the rewards are given

  • #178333

    Henry Brown
    Participant

    IMO a classic case of why this would not work!

    From Federal News Radio.com

    WASHINGTON (AP) — A House committee chairman renewed his criticism Thursday of the bonuses paid to senior executives at the Veterans Affairs Department and called on the VA to recoup a nearly $63,000 bonus given to an official who oversaw a Pittsburgh hospital where an outbreak of Legionnaires’ disease killed five veterans.

    Rep. Jeff Miller, chairman of the House Committee on Veterans’ Affairs, said that giving the government’s top award for its senior professionals to VA regional director Michael Moreland showed there was no limit to the “VA’s tone deafness.” The American Legion also said the award “defies all logic.”

    “We are calling on VA to conduct a top-to-bottom review of its performance appraisal system to ensure outrageous bonus payments like this do not occur in the future,” Miller said.

    Miller, R-Fla., has been critical of late of the VA’s performance bonuses, saying that some have gone to employees and managers who have failed in their jobs.

  • #178331

    Mark Hammer
    Participant

    And a pretty good illustration of why one needs to be prudent in the choice of “performance” indicators. Sometimes the best ones are not what you did this past year, but rather what its consequence was later on.

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