The barriers to market pay for the federal IT workforce

Howard Risher, a private consultant, was the managing consultant for the studies that led to pay reform in the Federal Employees Pay Comparability Act of 1990.

Federal technology specialists would benefit most from a market-sensitive salary system, but several barriers make that occupational group the least prepared for the change.

A central problem is the use of a single 204-page classification standard for all 75,000-plus IT specialists. That standard, along with the General Schedule salary system and the Central Personnel Data File (CPDF), are barriers to adopting a market-sensitive system.

The problems are inherent in the requirements of Title 5 of the U.S. Code, which outlines the roles of government employees. First, the GS grades force IT specialists into a rigid, multirung career ladder. Second, the classification system treats all IT jobs the same. The problems are compounded by the mandated titling system with its parenthetical phrases. Third, all of this makes any job matching with survey benchmark jobs suspect. Fourth, the GS grade structure makes it impossible to align federal salaries with pay levels in the dynamic IT talent market. Finally, the steady, predictable career progression makes it impossible for star performers to earn the rewards available in the private sector.

A market-sensitive salary system relies on tracking market trends and practices. The analyses are based on matching or comparing federal jobs and pay levels with survey jobs that involve the same basic function and skill levels. It’s a credible, transparent strategy. But it is impossible with CPDF data because the abbreviations of the parenthetical titles impede efforts to group jobs by specialty for headcounts. That is basic to market analysis. Moreover, the 11 specialty titles miss benchmark jobs common in salary surveys.

The pace of change in technology management makes it virtually impossible for the Office of Personnel Management to stay current. The standard for the 2200 occupational group is a prime example. It replaced one that was issued a decade earlier. Additional years were required to draft revisions in 2003 and 2008. Recently, OPM took 18 months to develop a laundry list of competencies for cybersecurity specialists. All of that would be alien to technology companies.

The GS system assumes that IT jobs with similar functions are basically the same. But this is a labor market that pays for individual skills, not the job description. Federal IT operations range from unique state-of-the-art systems to legacy systems that require almost-forgotten skills to maintain. Therefore, the operating environment requires a workforce with highly diverse skill sets. In a market-sensitive system, those differences would be reflected in salaries, but it’s precluded under Title 5.

In the Washington, D.C., area, the most highly regarded survey, conducted by the local human resources association, includes pay data from 341 employers, including more than 100 federal contractors. Some years ago, OPM matched federal jobs with the survey jobs, thus providing a basis for comparing pay levels. A number of the benchmark jobs are in technology.

The comparisons are striking. The lowest pay among selected federal technology jobs is 20 percent below market, while the highest is 27 percent above the market level. The comparisons are all over the place, which is not surprising because federal salaries have never been aligned with market levels.

Switching to a market-sensitive salary system would benefit both agencies and employees. The alternative is an increasingly heavy reliance on contractors to perform those jobs.

About the Author

Howard Risher is a private consultant who specializes in pay and performance.

Cyber. Covered.

Government Cyber Insider tracks the technologies, policies, threats and emerging solutions that shape the cybersecurity landscape.


Reader comments

Mon, May 9, 2011

The title of Risher's article says IT (*Information* Technology) but then the body of the article simply says "technology." But even IT professionals and publications know (I hope) there are a whole slew of technologies -- electronics technology and biotechnology to name two. So precede "technology" with "information" when your publication and its writers mean IT.

Thu, May 5, 2011

I've gotten too jaded about the IT world in the DC Beltway Bandit (spoken lovingly) community that I joined as a Contractor a decade or so ago before signing on as a Fed. I apologize for the rash generalization. While a Network Engineer is a Network Engineer regardless of whose name is on the pay check, private industry offers a chance for an exceptionally talented one to rise to higher pay faster (usually by jumping from current company to a competitor, customer or manufacturer) than the gov't because of the relatively rigid career ladder here that makes very little allowance for superior performance in the name of fairness to the masses.

Thu, May 5, 2011

When your talking about staff augmentation, contractors in CONUS get paid based of the same pay tables as Federal employees with the same or worse benefits for the same work. A network engineer is a network engineer. The contracting company is allowed to make a certain amount over cost of the contractor which makes the contractor seem more expensive looking at base salary. The contracted employee typically sees less the half the amount charged.

Thu, May 5, 2011

For me in poe dunk down in the middle of no where with LOTS of experience and skills the government was the only one offering a "Good" pay. All the other companies in town have no clue about IT or the need or even want it in their lives. SO to imply that we who work for the Government are settling on a retirment job is incorrect. For many of us it is the only source and advancement is there if you want it. The education is not but you are what you want to be in your job. For me this works and I like to think I do a really good job covering three remote offices by myself. I definately earn my GS money.

Thu, May 5, 2011

How does the author even get statistic to show "the highest is 27 percent above the market level"?? The GS paychart for the Washington DC area only goes up to $136,771 for the maximum for a GS14, step 10 and $155,500 for a GS15,step 10. Even at that level of experience private industry will pay more in normal economic times... Most IT Feds that bailed out to private sector in the Dot-Com era doubled their pay... What ever happened to the Federal "parity pay" plan that congress voted on? It was not part of the locality pay adjustments. To my recollection it supposed to add around 20% over 10 years, but I don't think it was ever applied each time the budget was done for the last 20+ years...

Show All Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group