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Recruitment Bonuses

Description An agency may pay a lump-sum recruitment bonus of up to 25 percent of the annual rate of basic pay to an employee newly appointed to a difficult-to-fill position.

 

Covered Positions Recruitment bonuses may be paid to eligible individuals who are appointed to a General Schedule (GS) position or to another type of position for which such payments have been approved by the Office of Personnel Management (OPM). By regulation, OPM has approved coverage of certain positions, including prevailing rate (wage), senior-level and scientific or professional (SL/ST), Senior Executive Service (SES), and Executive Schedule positions (except agency heads). OPM approves other categories upon written request from the head of the employing agency.

 

Qualifying Appointments Recruitment bonuses may be paid to an employee who is "newly appointed" to the Federal Government, including an employee reappointed with a 90-day break in service. An individual who receives a temporary appointment may be eligible as long as the appointment lasts at least 6 months. (See "Service Agreement," below.)

 

Service Agreement Before receiving a recruitment bonus, an employee must sign a written agreement to complete a specified period of employment with the agency. The minimum allowed service period is 6 months.

 

Agency Plan Before paying a recruitment bonus, an agency must establish a plan that designates the officials with authority to review and approve payment of recruitment bonuses. The plan must include criteria to be met or considered in authorizing bonuses (including the amount of a bonus), procedures for paying bonuses, requirements for service agreements, and documentation and recordkeeping requirements.

 

Criteria for Approving Bonus Before the employee enters on duty, the agency must determine in writing that, in absence of the bonus, the agency would encounter difficulty in filling the position. The agency must consider the following, as applicable: the success of recent efforts to recruit candidates for similar positions, recent turnover in similar positions, labor-market factors, special qualifications needed in the position, and the practicality of using the superior qualifications appointment authority alone or in combination with a recruitment bonus.

 

Groups of Employees An agency may target groups of positions that have been difficult to fill in the past or that are likely to be difficult to fill in the future and may make the required written determination to offer a recruitment bonus on a group basis.

 

Approval Level A recruitment bonus must be approved by an agency official who is at a higher level than the official who recommended the bonus, unless there is no official at a higher level. To make a timely offer of employment, a higher level official may establish specific criteria to allow the recommending official to offer a recruitment bonus without further review or approval.

 

Payment A recruitment bonus must be calculated as a percentage of the employee's starting annual rate of basic pay (excluding locality pay) at the time of appointment, not to exceed 25 percent. The bonus is paid in a lump sum. A bonus may be paid to an individual not yet employed who has received a written offer of employment and signed a written service agreement.

 

Basic Pay A recruitment bonus is not considered part of an employee's rate of basic pay for any purpose.

 

Repayment If an employee fails to complete the agreed-upon service period, he or she must repay the portion of the bonus attributable to the uncompleted period. Exception: No repayment is required if the employee is involuntarily separated (for reasons other than misconduct or delinquency).

 

References 5 U.S.C. 5753
5 CFR part 575, subpart A

 

 

Page updated July 2001