The Office of Personnel Management (OPM) issued new guidance to agencies on pay flexibilities and programs available to help recruit and retain AI talent in the Federal government.
The Feb. 27 guidance – which was required by President Biden’s AI executive order (EO) – outlines existing authorities agencies can leverage for AI and other key technical positions, including pay flexibility, incentive pay, and leave and workforce flexibility programs.
“The guidance summarizes the flexibilities and programs available to agencies to recruit and retain AI and related talent, including information on where to find additional resources,” OPM Director Kiran Ahuja said in a memo accompanying the guidance. “These flexibilities may also be used by agencies to recruit and retain talent more broadly, and may therefore be used for other positions of need within agencies.”
“Agencies can use most of the flexibilities and authorities summarized in the [guidance] without OPM approval,” Ahjua added. “For the few flexibilities that require OPM approval – special rates, critical pay, and waivers of the recruitment, relocation, and retention incentive payment limits – we stand ready to assist agencies and respond to their requests for enhanced compensation tools.”
One flexibility the guidance highlights is that agencies can offer recruitment and relocation incentive pay for difficult-to-fill positions, which is calculated up to 25 percent of basic pay multiplied by the number of years in the service agreement (up to four years).
Additionally, agencies can offer retention incentive pay using a similar formula – up to 25 percent of basic pay for an individual or 10 percent for a group. This incentive is offered to highly qualified employees or employees filling critical roles who are likely to leave the Federal service.
For candidates or current employees with student loans, OPM said agencies can also repay federally insured student loans as a recruitment or retention incentive. Agencies can repay up to $10,000 for an employee in a calendar year and no more than a total of $60,000 for any one employee.
The guidance also points out that agencies can request OPM approval of a special rate to address staffing needs for a group or category of employees. For instance, an agency could request a special salary rate (SSR) for AI employees – similar to how the Department of Veterans Affairs (VA) requested an SSR to offer higher pay for its IT and cybersecurity employees.
OPM has already authorized a government-wide direct hire authority (DHA) for AI positions, in an effort to help with the AI hiring surge following President Biden’s AI EO. The DHA applies to several AI-focused positions, including IT specialist, computer scientist, computer engineer, and program analyst.
Agencies are now working to quickly attract and hire more AI employees. Last month, the VA announced it was making a “modest request” to bulk up its AI workforce in response to not only AI EO, but also to meet the increase of benefits applications under the PACT Act.
Additionally, the Department of Homeland Security (DHS) announced its “AI Corps” hiring campaign earlier this month, which aims to hire 50 new AI experts.