State of Tennessee Announces Annual Performance Bonuses

On Monday, December 16, 2019, Tennessee Department of Human Resources (DOHR) announced the annual Pay for Performance (P4P) bonuses to be rewarded to state employees, based on their achievements and quality of service to Tennesseans over the past year.

Employees who achieved a performance rating of Valued, Advanced, or Outstanding for the 2018-2019 performance cycle are to receive a 3% increase in base pay, effective January 1, 2020. Employees with Advanced or Outstanding performance will receive an additional one-time cash bonus of 3% or 6% of their annual gross salary, respectively, paid on January 31, 2020.

“State employees are our greatest investment to achieve the goal of better government,” Governor Lee said. “We are proud to reward high performing employees whose work is critical to providing excellent customer service to Tennesseans.”

Tennessee’s success strategy has been tied to human capital management strategies that position state government as a go-to employer. Performance bonuses based on specific and measurable work outcomes have been paid to state employees since the passage of the Tennessee Compensation Enhancement Act of 2015. Most all of the state’s 38,000 executive branch employees having at least twelve (12) consecutive months of service are eligible for the rewards.

“Oftentimes, government is associated with antiquated employment practices; however, the State of Tennessee is committed to leading the way,” Department of Human Resources Commissioner Juan Williams said. “The state’s market and performance-based compensation model rewards excellence and helps us to compete for top talent.”

Implementing best-practice human capital management strategies has been a win for state employees and Tennessee residents. Research shows that performance pay can contribute to higher employee engagement and reduce costly turnover, ultimately benefiting tax-payers by enhancing the efficiency and effectiveness of state government.

For more information about Tennessee Department of Human Resources or to apply for careers at the State of Tennessee, visit www.tn.gov/hr.