Regulation establishing a cap on exceptional appraisal scores for senior government officials within the agency has beenfinalized.
The U.S. Office of Personnel Management (OPM) has finalized a rule allowing agencies to implement forced distribution systems for evaluating members of the Senior Executive Service (SES), a move that dates back to the early 2000s under the George W. Bush administration.
This new rule places more emphasis on SES performance reviews in adhering to the law and the president's policies. Under this system, no more than 30% of SES members can receive the highest performance levels of 5 ('outstanding') and 4 ('exceeds fully successful').
In 2023, data revealed that the SES was disproportionately white and male compared to the broader civil service. In response, the OPM has called on agencies to redesignate more of their SES positions as open to political appointees.
However, the rulemaking removes 'leadership effectiveness in promoting diversity, inclusion and engagement' as a criteria for rating senior executives, a move that has raised concerns about the potential impact on diversity within the SES.
The Trump administration, during its tenure, sought to make several changes to the SES, including the implementation of the forced distribution system and the removal of diversity, equity, and inclusion (DEI) activities across government. At the start of his second term, Trump issued an executive order to remove DEI activities from the government.
The rulemaking also states that agencies will no longer be able to rate most of their senior executives at the highest performance ratings, encouraging SES members to strive for increased levels of performance. Bonuses higher than 5% are reserved for those rated at levels 4 or 5.
Noncareer members of the SES can be exempted from the predetermined rating limits, a move intended to address concerns that political appointees would receive special treatment. The president also has the power to waive the 30% limit on the highest performance ratings.
For the 2023 performance cycle, about 96% of Senior Executive Service members were ranked at levels 5 and 4. Marcus Hill, president of the Senior Executives Association, believes that forced distribution is not an effective or sustainable performance management practice.
The forced distribution system would not impair performance bonuses, as agencies can grant awards equal to 5% of a senior executive's salary for receiving at least a level 3 'fully successful' rating. The president can also waive the 30% limit on the highest performance ratings.
These changes to the SES evaluation system continue to be a topic of discussion and debate, with various stakeholders expressing their views on the impact these changes may have on the diversity, performance, and overall effectiveness of the Senior Executive Service.
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