Leadership: February 19, 2005


The U.S. Department of Defense is making major changes in how it manages promotions for its 750,000 civilian employees. Raises will now be based on performance reviews, not seniority. Instead of 15 pay grades, there will be a smaller number of pay bands. Within each band there will be a wider range of compensation. The procedures used to hire new people will be streamlined, to make it easier to gear up for new projects. The major problem with the current system is that it rewards equally people who excel, or do a poor job. The current system tends to attract a lot of people who find it safer to avoid any risk. Since the Department of Defense is pushing a transformation and innovation program, it often finds civilian Department of Defense employees an obstacle to progress.


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