Week 11: Cynthia... Motivation at Government Jobs.

For this week’s assignment, I talked with a friend who works for a department of the U.S. federal government.  Our topic this week addressed rewards and motivation of employees.  Jobs in government agencies present a unique study of how to motivate and engage employees, since government managers can’t offer high performing employees the stock options, and other rewards  that are found in the private sector.  I wanted to understand what keeps highly educated, intelligent and ambitious people in government jobs engaged and motivated to perform, and understand the tactics they use to motivate their employees.  (Note the person I interviewed is not a member of a public employee union.) 
Q1: In class this week, one of my readings discussed extrinsic motivation (motivation from external sources…praise, pay, reward, etc.)  How does anyone get motivated to work hard in the government–when you don't have stock options, bonus programs?  Are there extrinsic motivations?

I think most people (not all, of course) who work for the government are motivated in part by public service and the ability to work for "good" versus working for someone else's "profits."  We have seen a great deal of turnover and competition, particularly during the economic boom, with the private sector.  Government employees from our agency are always recruited by private sector companies in our field.  We can't offer stock options, bonuses, etc., but we can offer the only opportunity to work for a large agency that deals with huge private and public sector challenges… no other company in the world can match that.  The opportunity to lead and be promoted is another source of motivation.  With the majority of our workforce able to retire over the next several years, there is a tremendous opportunity for advancement if you work hard, play well with others, and show commitment. 

Q:  Do people have annual reviews … and what happens if they have a great one… are salary increases all based on years in job/pay grade?  If pay increases aren't options, are there other ways people are rewarded?

Yes.  We have a performance management and appraisal system that was instituted about 5 years ago.  Employees (and Managers) can be rated exceptional, fully successful, minimally successful or unsatisfactory.  The union contract requires that those rated exceptional be guaranteed a bonus (given out in March for the previous calendar year's performance) of at least 2.5% of their salary.  Fully successful individuals get awards on a sliding scale based on the level (within fully successful) of their rating, but only if there is money left over after giving all the Exceptional employees their awards.  Last year, all performance awards within the government were capped and not all who were eligible received awards.  

Managers must review all employees (face to face) at least three times a year:  once at the beginning of the calendar year, at the mid-year (in July), and again at the end of the year.  Salary increases also are provided to employees based on their Grade and their Step and can come either every year, every 2 years, or every 3 years depending on where the employee is step-wise within the grade (there are 10 steps).  As you progress up the steps, you have to wait the two or three years before you progress to the next step depending on what step you are moving from and to.  For example, you'll be a Grade 15, Step 8 for three years before you become a Grade 15, Step 9.  But a Grade 15, Step 1 will become a Grade 15 Step 2 in one year.  (I can explain this in greater detail if you really want to know).  Employees also get cost of living increases each year if Congress passes one -- these are usually quite small -- one to one and half percent of salary.  The last three years we have gone without a cost of living increase.  There are also career ladder positions where you come into the government at a Grade 9, but are promoted each successive year (unless you're not at least rated fully successful) to a Grade 11 and then the third year a Grade 12.

Q:  Do you have reward systems for people who perform exceptionally well?

We have minimal ability to reward employees financially.  There are strict limits on the awards you can provide employees (even trinkets) beyond what is negotiated in the Union Contract and you are forbidden from providing awards out of your own pocket, unless they are extremely small (not sure of the $$ amount, but less than $10).  This is to protect employees from being "bought off" by their manager.  In addition, managers have to purchase food, drinks, etc. for office parties (Xmas, end of year, summer picnics, birthdays) out of our own pockets.  There's no money provided for these "team" activities.  Rewards come from the perks of working in the government as I alluded to above, as well as health insurance (we still pay a portion); the thrift savings plan (gov't contributes up to 5% of your salary if you contribute that amount); guaranteed retirement (in addition to Thrift Savings) via Federal Employees Retirement Service, as well as health care insurance for life.  There is tremendous flexibility in working hours -- start times can be anywhere from 6-10 a.m. and quitting times from 2:30 - 6:30 p.m.  You can "flex" out to take care of things in the middle of the day -- an hour or two to go to the doctor and you work an extra hour or two to make up for it.  We also allow people to work at home up to two-days a week and are initiating a telework pilot program for 100 employees to work at home 100 percent of the time for three months.  You can also work 4 9-hour days a week and take off every other Friday or work 4 10-hour days a week and be off every Friday (or whatever other day you want).  And employees can work "credit hours" up to 24 hours a pay period that can be used to take time off. 

We also reward our top performers with choice assignments, such as briefing Senior Leadership, attending national conferences and presenting on the Agency's behalf, or spending up to 4 months on a detail to a different part of the Agency to allow them to experience another part of the program they might be interested in.  We also have a small pool of money that we can give out for "on the spot" activities -- awards are generally $250 or a couple days of time off.

For the government employee I interviewed, intrinsic motivation (Ryan & Deci, 2000) is central to his performance.  This individual views his job as a service, and his motivation is to continue to provide essential services.  He faces subordinates and colleagues who lack that same drive, which is challenging in an environment where traditional extrinsic motivators—bonuses, perks, etc.—are absent.  As an individual employee, he appears to have the characteristics—ability, engagement and aspiration—that mark top talent employees in the private sector (Martin & Schmidt, 2010).  

References

Ryan, R., & Deci, E. (2000). Intrinsic and extrinsic motivations: classic definitions and new directions. Contemporary Educational Psychology, 25, 54-67.
Martin, J., & Schmidt, C. (2010). How to keep your top talent. Harvard Business Review, 3-9.