Reduced number of federal officials deemed exceptional performers under OPM's final regulation
The Office of Personnel Management (OPM) has finalized a new rule to implement a "forced distribution system" for measuring the performance of Senior Executive Service (SES) members. This change aims to hold agencies and SES members to a higher standard of accountability and ensure only the truly deserving performers are rewarded.
The new rule, scheduled to be published to the Federal Register on Monday, follows the Trump administration's guidance encouraging a reduction in the number of high performers and swift discipline for poor performers. This shift comes in response to concerns that agencies may have been incentivized to give the limited spots for higher marks to political appointees rather than career SES members.
In 2023, about 96% of SES members received top ratings on their performance reviews, while less than 0.5% scored below "fully successful". The forthcoming "forced distribution" model will not have any limitations on how many SES members can receive ratings at the lower levels of 1 through 3 for their performance.
In a difference from the initial proposed regulations, OPM has now opted to exclude political appointees in the SES from the forced distribution requirements, affecting only career SES members. The Federal Ministry of the Interior (BMI) and the Federal Cabinet are organizing the upcoming adoption of new rules that will allow more stringent evaluations of senior federal officials.
The new system will limit the number of SES members agencies can rate at the top two levels (4 and 5) in the government's performance review system. OPM argues that this inflation in ratings undermines the SES appraisal system's integrity.
Previously, federal regulations prohibited agencies from creating a forced distribution system in employee performance reviews. However, OPM argues that a forced distribution system would improve culture and review accuracy, rather than detract from it.
The new rule also removes any parts of performance reviews that assessed senior executives based on diversity, equity, and inclusion. This change aligns with performance practices in the private sector, where companies have used forced distribution in their performance evaluations.
Performance award amounts "should increase significantly" for those who are still deemed top performers and those who are "truly deserving", according to OPM's recent guidance. The changes for senior executives come in response to an executive order by President Donald Trump on his first day in office, aiming to "restore accountability" to the SES.
OPM first proposed regulations in May to update the SES performance review system. In February, OPM updated SES performance standards to make adherence to the president's policies the "most critical element" of their reviews. The new final rule is part of OPM's efforts to make similar changes to performance standards for the overall federal workforce.
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