The President and Congress approved the following criteria for certifying Senior Executive Service pay-for-performance.  It serves as a guide for you to design your own agency PFP system.  (Full details at http://www.opm.gov/oca/COMPMEMO/2004/2004-13-ATT1.asp)

Note that only one of the 9 criteria relate to pay.  The rest of the criteria relates to performance evaluation and related factors.  That sends a clear message that the foundation for pay-for-performance is a solid performance evaluation system. 

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1. Alignment

   • Agency's strategic plan, annual performance plan, or applicable strategic planning document(s) to establish alignment with employee performance plans
   • Performance appraisal system description that explains how the agency links senior employee performance plans to strategic planning initiatives
   • Senior employee performance plans that show expectations are linked to strategic planning initiatives*
   • Narrative attachment that describes how the agency's senior employee performance plans link to the agency's mission and goals
2. Consultation
   • Performance appraisal system description that explains how employees are involved in developing performance plans and how performance plans are communicated to senior employees at the beginning of the appraisal period
   • Senior employee performance plans that show employees were provided their plans at the beginning of the appraisal period and show that employees were involved in developing the performance plans*
   • Narrative attachment that describes how the agency involves its employees, individually or in the aggregate, in developing employee performance plans
3. Results
   • Performance appraisal system description that explains how performance expectations are written to reflect organizational and individual results and are observable, measurable, and/or demonstrable
   • Senior employee performance plans that show expectations include organizational and individual results and requirements/standards that are observable, measurable, and/or demonstrable*
   • Narrative attachment that describes how the agency ensures expectations include organizational and individual results and are observable, measurable, and/or demonstrable
4. Balance
   • Performance appraisal system description that explains how performance expectations include balanced measures
   • Senior employee performance plans that show appropriate measures such as employee and/or customer/stakeholder feedback; quality, quantity, timeliness, and cost effectiveness; technical, leadership, and/or managerial competencies*
   • Narrative attachment that describes how the agency identifies critical competencies and behaviors for the appraisal process and how it measures or observes them
   • Narrative attachment that describes how the agency incorporates customer satisfaction and employee perspectives into its senior employee performance plans
5. Assessments and Guidelines
   • Agency head or designee's guidance to rating and reviewing officials and Performance Review Board members
6. Oversight
   • Narrative attachment that describes how the senior employee ratings and awards take into account, as appropriate, the assessment of the agency's performance
   • Documentation the agency used to assess organizational performance
7. Accountability
   • Senior employee performance plans that show how senior employees are accountable for rigorous performance management and for aligning their subordinate employees' performance plans to organizational goals*
   • Performance appraisal system description that explains how senior employees are accountable for rigorous performance management and for aligning their subordinate employees' performance plans to organizational goals
8. Performance Differentiation
   • Performance appraisal system description that provides for an outstanding summary level
   • Same documents listed under regulatory requirement #10, below
9. Pay Differentiation
   • Awards program description
   • Narrative attachment that describes how the agency determines pay adjustments
   • Same documents listed under regulatory requirement #11, below