Performance Management for Federal Employees

In this memorandum, the Office of Personnel Management (OPM) asserts its authority to approve all agencies' performance assessment systems and lays out new rules for performance reviews. The changes are significant. Among those changes are that agencies and some supervisors must make sure individuals' performance ratings are aligned with the performance of their office (which may mean that employees from underperforming offices cannot receive high marks); supervisors must be evaluated on how well they "hold employees accountable;" agencies are warned against "inflating" their employees' ratings; and financial awards are limited to certain highly rated employees. The memorandum lays out a number of ways to demote or remove employees and encourages their use, including the new probationary employee rules, the new suitability rules, Chapters 43 and 75 adverse actions, and Schedule Policy/Career "expeditious[]" removals. It also directs agencies to renegotiate Collective Bargaining Agreements (CBAs) that "inhibit" the type of performance management laid out in the memo. Normally, an agency can reopen negotiations regarding a finalized CBA only if a provision of the CBA expressly permits either party to reopen negotiations prior to its expiration. Note that Appendix 2 of this memorandum was revised on July 17, 2025, and the linked version reflects this change.