It’s about time there was an incentive for government employees that would actually make them want to ask for smaller budgets. Currently, there is very little reason for a government employee to seek out a way to make the government more efficient. I believe that the government could see a major reduction in unnecessary spending if a proper incentive is established for government employees.

The plan in a nutshell:

Create a program that allows government employees to submit proposals to a board. If the proposal is deemed to be a legitimate idea to reduce overall government spending, the employee who proposed the idea will be compensated for 2.5% of the net amount of money he or she saved taxpayers.

The program will start small in only one department and will expand if it is proven to be a cost saving program. If it is not proven to be a cost saving program, it will be terminated in 5 years. If it is cost effective and is shown to reduce costs, the program will continue to operate and will be reevaluated every 5 years.

Why this is needed:

Many government employees work diligently and efficiently. But some government employees take advantage of their employment with the government. Managers always ask for the same budget or a larger one. Managers will often run up costs so that next year they can ask for the same budget or a larger amount. In the private sector, managers receive rewards for saving their company money or being more efficient than expected. But the government provides no such incentive for employees to increase efficiency or reduce the costs for taxpayers.

This program will incentivize employees to propose ideas that reduce the ever growing costs in the government. For the first time, a government manager will have the incentive to look for areas that the government is wasting taxpayer’s money.

Requirements for a Proposal:

  • The employee submitting the proposal must have been employed for 1 year at the time of submission.
  • The proposal must save the taxpayers at least $10,000.
  • The proposal must be sent via email to the board or the board’s administrator.
  • The proposal must have a detailed explanation describing why the idea will save the taxpayers more money than it will cost.
  • The proposal must be reasonable and allow the department to continue functioning properly.
  • The proposal must include an expected range of costs that will be reduced. If the minimum of the range is not met, no award will be granted.
  • The proposal must include a reasonable standard to measure the success of the proposal at the end of the 5 year period.

Award:

  • 2.5% of the net savings over a maximum period of 5 years.
  • The award is given to the employee at the end of the 5 year period.

The Board of the Incentive Program:

There will be 7 members per board. Each board member must have at least 10 years of experience in a non-governmental role and at least 5 years of experience in one of the following fields:

  • Operations management
  • Business Statistics
  • Accounting
  • Supply Chain Management
  • Finance
  • Economics
  • Human Resources

The number of boards will expand to keep up with the number of proposals. Any boards that do not prove that they are reducing the overall costs to taxpayers within every 2.5 years will be completely abolished. The members who serve on any board that has been abolished may not serve again for 5 years.