Changes to Federal Employee Performance Evaluations
According to OPM, the aim is to ensure that only top performers receive appropriate rewards, both financially and otherwise. However, the recent updates to the performance rating criteria—reflecting directives from the Trump administration—indicate that fewer employees may achieve high ratings.
As stated, agencies must secure both financial and non-monetary awards, and only those who exhibit truly exceptional performance will earn significant bonuses and salary adjustments. Ultimately, the awards will summarize employees’ annual evaluations (see chcoc.gov).
There’s a recurring issue where inflated ratings often dilute the impact of bonuses and rewards, leading to a situation where many receive recognition rather than just the most valuable employees.
This guidance aligns with changes in the award policy introduced in a memo from June that governs most federal performance rating policies. Interestingly, this memo didn’t specify a distribution model for evaluations, differing from former SES policies that used “forced distribution” to cap the number of employees rated at the highest levels. The agency emphasized the need to avoid disproportionately high ratings across employees.
In terms of performance expectations, at least one major element should correspond to the organization’s objectives or the priorities of the Trump administration.
These changes mean that starting with the closeout of the 2025 performance cycle, agencies will need to normalize ratings, resulting in fewer evaluations at levels 4 and 5.
The majority of employees assessed at Level 3 are crucial to the federal workforce, and it’s essential to reward a “fully successful” rating adequately. The goal is to create clear distinctions in rewards at all levels and to allocate the most substantial bonuses to the top performers.
Agencies are urged to be aware of the existing distrust regarding performance assessments. Supervisors have a responsibility to identify unacceptable performance through proper evaluations, increasing the rigor of assessments at both individual and organizational levels.
Some federal agencies have refused union contracts and are likely still to adhere to them.
OPM emphasizes that only “high performers” should receive awards.
There’s a quiet shift as OPM concludes its involvement in the “Five Things” report.
Data on COVID vaccinations has been removed from federal personnel records.
The impacts of job cuts in federal employment may lead to increased scrutiny.
OPM has limited the duration of paid leave for reorganizations starting next year.
Key points to consider:
- Changes in the federal application process
- Top ten incentives for federal employees
- Pre-RIF checklist for federal employees from employment lawyers
- Choosing between longer work or current FERS supplements: what’s better?
- Comparing TSP options: C Fund vs G Fund
- Guides on early retirement, acquisition, and power reduction (RIF)
Refer to the 2025 Federal Employee Handbook for more details.
