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WASHINGTON – America's new consumer watchdog agency has come up with a unique solution for its troubled employee-rating system: Give almost everyone a gold star.
The independent Consumer Financial Protection Bureau -- created under the 2010 "Dodd-Frank" financial industry overhaul to serve as a consumer watchdog -- says it's scrapping its system of employee ratings in response to concerns that it was discriminatory.
That rating system assigned workers a score of between one and five. Due to concerns with the system, everyone who scored a three or above, regardless of performance, will now be getting the top rating of five -- along with the corresponding retroactive pay raises that the top rating brings.
Those raises will likely cost more than $5 million, according to the American Banker, which first reported on the ratings troubles in a March 6 article.
Going forward, the bureau is looking at using a new two-tiered rating system for at least two years while officials evaluate the old system.
But the retroactive payments raise the possibility that workers who slacked off could be rewarded the same as top performers.
“To give an across-the-board raise slaps the face of the people who deserve it,” said Linda Swindling, author of “Stop Complainers and Energy Drainers: How to Negotiate Work Drama to Get More Done,"
The changes come after American Banker found that minority employees were likely to receive lower evaluations than their white counterparts. A 2013 internal agency report found 74.6 percent of white employees received ratings of four or five compared with 65.2 percent of Hispanics and 57.6 of black employees.
In a May 19 email sent to staff members and made available to FoxNews.com, CFPB Director Richard Cordray said the agency conducted a thorough audit of how employees were given raises.
He said “broad-based disparities” in the way employees were rated in 2012 and 2013 had been uncovered in several areas including: race/ethnicity, age, bargaining unit membership eligibility, location in the field or at headquarters, and tenure as a CFPB employee.
“These differences indicate a systemic disadvantage to various categories of employees that persisted across divisions, offices and other employee characteristics,” Cordray wrote.
The changes are being billed as a way to correct the wrongs of 2012 and 2013. Every rank-and-file CFPB worker who received a three or four summary performance rating in 2012 or 2013 under the previous program will be given raises as if they had received the highest rating at the time of evaluation. Senior management is excluded from the process.
The independent Consumer Financial Protection Bureau -- created under the 2010 "Dodd-Frank" financial industry overhaul to serve as a consumer watchdog -- says it's scrapping its system of employee ratings in response to concerns that it was discriminatory.
That rating system assigned workers a score of between one and five. Due to concerns with the system, everyone who scored a three or above, regardless of performance, will now be getting the top rating of five -- along with the corresponding retroactive pay raises that the top rating brings.
Those raises will likely cost more than $5 million, according to the American Banker, which first reported on the ratings troubles in a March 6 article.
Going forward, the bureau is looking at using a new two-tiered rating system for at least two years while officials evaluate the old system.
But the retroactive payments raise the possibility that workers who slacked off could be rewarded the same as top performers.
“To give an across-the-board raise slaps the face of the people who deserve it,” said Linda Swindling, author of “Stop Complainers and Energy Drainers: How to Negotiate Work Drama to Get More Done,"
The changes come after American Banker found that minority employees were likely to receive lower evaluations than their white counterparts. A 2013 internal agency report found 74.6 percent of white employees received ratings of four or five compared with 65.2 percent of Hispanics and 57.6 of black employees.
In a May 19 email sent to staff members and made available to FoxNews.com, CFPB Director Richard Cordray said the agency conducted a thorough audit of how employees were given raises.
He said “broad-based disparities” in the way employees were rated in 2012 and 2013 had been uncovered in several areas including: race/ethnicity, age, bargaining unit membership eligibility, location in the field or at headquarters, and tenure as a CFPB employee.
“These differences indicate a systemic disadvantage to various categories of employees that persisted across divisions, offices and other employee characteristics,” Cordray wrote.
The changes are being billed as a way to correct the wrongs of 2012 and 2013. Every rank-and-file CFPB worker who received a three or four summary performance rating in 2012 or 2013 under the previous program will be given raises as if they had received the highest rating at the time of evaluation. Senior management is excluded from the process.
