Incentive Pay in the Civil Service

The Case of the California Job Agent

by David H. Greenberg, Albert J. Lipson, Bernard D. Rostker


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A description of a RAND-developed system to measure the job performance of a new class of state employment counselors (known as job agents) in an incentive pay plan. Mandated by the California Assembly in 1968, the RAND-developed incentive pay plan would have paid the job agent a bonus based on improvements in his client’s earnings. The environment in which the incentive plan was developed is discussed, as well as the roles of various institutions and interest groups. Exhibits show the report forms, and an appendix gives the chronology of events from 1968 until 1973-1974 when the legislature eliminated the incentive pay mandate.

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