The Merit System Principles
Keys to Managing the Federal Workforce
U.S. Merit Systems Protection Board
October 2020
Introduction
The Merit System Principles: Keys to Managing the Federal Workforce (October 2020) i
Welcome to the Federal civil service! As an agency leader, you hold an important
and visible position with great responsibility to yourself, your agency, the Federal
Government, and the American people. Whether you are new to the Federal
Government or simply moving into a new position, you will make important
decisions about leading Federal employees every day.
The U.S. Merit Systems Protection Board (MSPB) prepared this guide to help
you understand the values and requirements of Federal merit systems so you
can successfully navigate those responsibilities. Our goal is not to answer all of
your questions, but rather to help you identify issues and recognize situations
when you should seek advice from experts, such as your agency’s human
resources (HR) staff, on matters such as hiring, pay, recognition, managing
performance, employee development, and retention.
Although this booklet cannot prepare you for every challenge that you will face, it
discusses keys to managing Federal employees fairly and effectively and
identifies resources that can help you implement the merit system principles
(MSPs) and avoid prohibited personnel practices (PPPs).
Contents
This guide provides:
1. Highlights from the history of the Federal civil service;
2. A set of questions and answers about the MSPs;
3. An overview of each MSP; and
4. References for additional information.
In Closing
The MSPs allow agency leaders substantial discretion—but they also mandate
accountability for exercising that discretion wisely. By accepting a leadership
position in the Federal civil service, you have committed to abide by the MSPs
and to avoid and prevent PPPs.
Thank you for taking the time to read this guide to the MSPs.
U.S. Merit Systems Protection Board
The mission of the U.S. Merit Systems Protection Board is to protect the
merit system principles and promote an effective Federal workforce free of
prohibited personnel practices.
A Brief History of the Federal Civil Service
The Merit System Principles: Keys to Managing the Federal Workforce (October 2020) 1
Federal employment originated in a “spoils system” in which hiring and firing of
Federal Government workers was based on political loyalties. Over time,
dissatisfaction increased with the inefficiency of Federal employment based on
political patronage, which valued connections over competence and produced
staffing upheavals with each change in Administration. Ultimately, the
assassination of President Garfield by a disgruntled job seeker persuaded
Congress that change was necessary.
The Pendleton Act of 1883 ended the practice of awarding Federal jobs on the
basis of political affiliation or personal relationships and shifted Federal
employment criteria to merit for the vast majority of Federal positions. However,
the Pendleton Act did not address terminations. Therefore, it did nothing to
ensure that removals were purely due to poor performance or misconduct or to
protect Federal employees from removal for disclosing wrongdoing within their
agencies. To address this need, in 1912, Congress enacted the Lloyd-LaFollette
Act, which stated that removal actions must be for merit-based reasons and not
inappropriate causes, such as whistleblowing.
By the late 1970s, concerns were increasing that fairness within the merit system
was being undermined and that personnel rules intended to preserve merit had
become so numerous and complex that they impeded agency ability to effectively
manage employees and remove poor performers. Therefore, Congress pursued
reforms that would both enhance managers’ ability to wisely manage while
preserving the principles of merit and fairness and the legal and constitutional
rights of Federal employees and applicants.
The result was the Civil Service Reform Act (CSRA) of 1978 and related
Reorganization Plans, which accomplished several goals.
• To clarify expectations for the management of the Federal workforce, the
CSRA established in law the MSPs and the PPPs, reinforcing or building on
previous legislation.
• To balance system flexibility with system integrity, and to protect MSPs and
prevent PPPs, the CSRA divided civil service responsibilities among several
agencies, including MSPB (which initially included the U.S. Office of Special
Counsel) and the U.S. Office of Personnel Management.
• To promote efficiency and effectiveness, CSRA provided that personnel
authority would be exercised by individual agencies. Therefore, the primary
responsibility for avoiding PPPs—and attaining the ideals of the MSPs—lies
with employing agencies and their leaders.
What are the MSPs and PPPs?
The Merit System Principles: Keys to Managing the Federal Workforce (October 2020) 2
The merit system principles (MSPs) are nine basic standards that govern the
management of the executive branch workforce and serve as the foundation of
the Federal civil service. The prohibited personnel practices (PPPs) are fourteen
actions that are forbidden for employees who have the authority to make
personnel decisions. Together, the MSPs and PPPs establish how the Federal
workforce should be managed.
What are the general themes of the MSPs and PPPs?
• Fairness—treating employees fairly in all aspects of their employment.
• Protection—refraining from misuse of authority and protecting employees
from harm, such as reprisal for the exercise of a legally protected right.
• Stewardship—managing employees in the short-term and long-term public
interest.
Who is responsible for upholding the MSPs and avoiding PPPs?
All Federal employees are responsible. However, some employees have special
responsibility:
• Agency leaders, as decision-makers and role models for the values distilled
in the MSPs and PPPs;
• Supervisors, managers, and executives, as the officials who make decisions
directly affecting the hiring, working conditions, utilization, and retention of
Federal employees; and
• HR staff, as advisors on personnel authorities and how to exercise them.
What are the potential consequences of not supporting the MSPs?
MSPB research shows that actual or perceived failure to abide by the MSPs can
lead to—
• Decreased individual and organizational performance;
• Increased Equal Employment Opportunity (EEO) complaints; and
• Increased intention to leave the agency.
When Federal laws are violated, agencies may be subject to investigation,
litigation, and enforcement, which can result in corrective action and payment of
compensatory damages. Also, any employee responsible for the violation of an
MSP or the commission of a PPP may be subject to loss of authority, discipline
or removal, and fines.
MSP1: Recruitment, Selection, and Advancement
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“Recruitment should be from qualified individuals from appropriate sources in an
endeavor to achieve a work force from all segments of society, and selection and
advancement should be determined solely on the basis of relative ability,
knowledge, and skills, after fair and open competition which assures that all
receive equal opportunity.”
Purpose of MSP 1
• Focuses on attaining a well-qualified and representative workforce through
open recruitment and fair, job-related assessment of applicants.
• Builds upon the Pendleton Act of 1883, which requires hiring and promotion
based on qualifications such as knowledge, skills, and ability—not political or
personal connections.
• Affirms the importance of basing decisions on merit and avoiding
discrimination on the bases of race, color, religion, sex, and national origin
(echoing Title VII of the Civil Rights Act of 1964 and related laws).
Actions to Take
• Identify talent needs through job and workforce analyses.
• Actively seek diverse groups of prospective applicants through
knowledgeable recruiters.
• Announce vacancies through a variety of media.
• Use an appropriate mix of hiring authorities.
• Clearly describe the qualifications required to perform the job.
• Establish job-related and measurable selection criteria.
• Use assessments that are structured, valid and reliable.
• Identify and address barriers to open competition and equal opportunity.
Actions to Avoid
• Automatically hiring to refill vacancies without conducting an analysis of
needed competencies.
• Only posting vacancy announcements on USAJOBS.
• Relying exclusively or excessively on one or very few hiring authorities.
• Restricting competition through narrowly-focused recruitment or
unreasonable application procedures.
MSP 2: Equity
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“All employees and applicants for employment should receive fair and equitable
treatment in all aspects of personnel management without regard to political
affiliation, race, color, religion, national origin, sex, marital status, age, or
handicapping condition, and with proper regard for their privacy and
constitutional rights.”
Purpose of MSP 2
• Mandates fair treatment and nondiscrimination throughout the full range of
employment decisions, such as recruitment and hiring, training and
development, performance management, cash awards, pay increases, and
retention and removal.
• Affirms that employees and applicants for employment are entitled to
protections of the U.S. Constitution and the Privacy Act. For example,
Federal employees maintain freedom of speech rights under the First
Amendment, although they must respect some limitations, such as Hatch Act
prohibitions against political campaigning (as covered in MSP 8 and PPP 3).
Actions to Take
• Select supervisors with strong skills in managing people and sufficient
technical competence.
• Train supervisors and hold them accountable for their workforce
management decisions.
• Treat employees fairly in all aspects of their work life.
• Require merit-based decisions.
• Exercise transparency to the greatest extent practical.
• Analyze data to assess representation and employee perceptions, such as
the Equal Employment Opportunity Commission’s Management Directive
715 reports, survey results, and trends in complaint filing and resolution.
Actions to Avoid
• Selecting supervisors based on personal connections or technical
competence rather than supervisory ability.
• Basing personnel decisions on factors other than merit.
• Overlooking or disregarding data that provides insight into the workforce.
MSP 3: Compensation
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“Equal pay should be provided for work of equal value, with appropriate
consideration of both national and local rates paid by employers in the private
sector, and appropriate incentives and recognition should be provided for
excellence in performance.”
Purpose of MSP 3
• Affirms a commitment to equity in both pay and performance recognition, to
promote fairness and recruitment and retention of a diverse and competent
workforce.
• Envisions pay that is both competitive and commensurate with non-Federal
employers.
• Requires agencies to formally define, identify, and recognize “excellence in
performance.”
A Closer Look: Common Pay Practices and Flexibilities in Federal Merit Systems
• Pay grades and salary ranges based on systematic evaluation of a position’s duties,
responsibilities, and qualification requirements, consistent with the Classification Act
of 1949.
• Methods to maintain acceptably competitive salaries, such as locality pay, special
salary rates, recruitment bonuses, and retention allowances.
• Performance appraisal systems, such as those under 5 U.S.C. 4302, that require
agencies to establish standards, define levels of performance, and periodically rate
employee performance.
• Options for recognizing high performance, such as pay increases, cash awards,
time off, and nonmonetary recognition.
Actions to Take
• Ensure that positions are accurately described and properly classified.
• Discuss factors that determine salary with HR staff.
• Use the performance management process to monitor and document
performance.
• Plan and budget for employee recognition and provide recognition
when deserved.
Actions to Avoid
• Basing pay and award decisions on factors other than merit.
• Allowing pay increases or awards to become automatic.
• Failing to recognize excellent performance.
MSP 4: Conduct
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“All employees should maintain high standards of integrity, conduct, and concern
for the public interest.”
Purpose of MSP 4
• Sets the expectation that Federal employees demonstrate exemplary
integrity and conduct to maintain the public’s trust and honor their obligations
to serve the public.
A Closer Look: Setting and Enforcing Standards of Conduct
• The Principles of Ethical Conduct (5 C.F.R. Part 2635.101) describe standards of
conduct that apply to all Federal employees. For example, the first principle states:
“Public service is a public trust, requiring employees to place loyalty to the
Constitution, the laws, and ethical principles above private gain.”
• Federal agencies may develop supplemental standards of conduct tailored to their
individual requirements. Agency practices for addressing misconduct are governed
by civil service law and regulation (e.g., 5 U.S.C. § 7513(b)(1) and 5 C.F.R.
§ 752.604(d)) or agency-specific provisions.
Actions to Take
• Hire employees with integrity.
• Conduct careful assessments, such as reference checks—but consider only
job-related information (as stated in PPP 2).
• Be mindful of challenges to uncovering integrity issues (such as a lack of
transparency and “clean record” agreements).
• Appropriately utilize the probationary period.
• Act swiftly to address risks and problems.
• Encourage employees to report wrongdoing that they observe (also in
MSP 9).
Actions to Avoid
• Making hiring decisions with insufficient information.
• Avoiding or postponing action on potential integrity problems.
• Ignoring or punishing those who report wrongdoing.
MSP 5: Utilization
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“The Federal work force should be used efficiently and effectively.”
Purpose of MSP 5
• Requires a balance between operational needs and obligations to
employees.
• Sets a standard for day-to-day management of the workforce, beyond the
specific HR policies and practices addressed by other MSPs.
• Necessitates supervisors who support and implement all of the MSPs, to
attain a high-performing Federal workforce that serves the public interest.
A Closer Look: “Efficient and Effective” and “Fair”
An agency level perspective on the efficient and effective utilization of the workforce
includes having the appropriate level of staffing and managing the workforce within
allocated funding levels.
However, efficiency and effectiveness are not just about the number or cost of
employees. Long-term efficiency and effectiveness are undermined if agency leaders
focus too narrowly on fiscal matters or short-term results at the expense of people.
Inattention to fair treatment harms not only current and prospective employees, but also
organizational outcomes and the public that the organization serves.
Actions to Take
• Recognize the critical role of supervisors.
• Select and train supervisors who are willing and able to implement all of
the MSPs.
• Conduct succession planning to prepare a diverse candidate pool for future
leadership roles.
• Weigh the positive and negative outcomes of various strategies to manage
staffing levels.
• Use staffing strategies geared to anticipated changes in the level or
nature of work.
• Understand the importance of employee engagement to organizational
outcomes.
Actions to Avoid
• Selecting supervisors based on personal connections or technical skills.
• Considering only organizational needs or only employee needs.
MSP 6: Retention
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“Employees should be retained on the basis of the adequacy of their
performance, inadequate performance should be corrected, and employees
should be separated who cannot or will not improve their performance to meet
required standards.”
Purpose of MSP 6
• Directs agencies to identify and address poor performance.
• Authorizes action, including removal, while emphasizing correction over
punishment.
A Closer Look: Addressing Poor Performance in the Civil Service
Title 5 of United States Code, the civil service law covering most Federal employees,
has two chapters (Chapter 43 and Chapter 75) that authorize removal or demotion for
unacceptable performance. Both chapters require similar steps, but their standards of
evidence and procedures differ.
Chapter 43 requires the agency to meet the standard of “substantial” evidence, while
Chapter 75 imposes a higher standard of “preponderant” evidence.
Chapter 43 requires the agency to provide the employee an opportunity to demonstrate
acceptable performance, which is not required under Chapter 75. However, an action
taken under Chapter 43 cannot be mitigated (reduced) by MSPB, while a penalty under
Chapter 75, such as removal, can.
In accord with the constitutional due process requirements under the Fifth Amendment,
Title 5 provides procedural rights and the right to appeal the action to a neutral third
party—MSPB. This ensures that employees will receive a fair hearing and promotes
confidence in the integrity of the process and outcome.
In summary, an agency can indeed remove a Federal employee for poor
performance—but the agency must follow procedures and develop evidence to ensure
the removal has a legitimate basis and is not politically motivated.
Actions to Take
• Communicate performance requirements clearly, review progress regularly,
and provide constructive feedback and coaching.
• Evaluate options for remedying poor performance—and act.
• Understand and observe due process requirements, to treat employees fairly
and ensure that any adverse action taken can be defended.
Actions to Avoid
• Avoiding or postponing appropriate action to address poor performance.
MSP 7: Employee Training and Development
The Merit System Principles: Keys to Managing the Federal Workforce (October 2020) 9
“Employees should be provided effective education and training in cases in which
such education and training would result in better organizational and individual
performance.”
Purpose of MSP 7
• Directs agencies to invest time and money into training and development
opportunities to promote employee performance and retention.
• Establishes the dual goals of improving individual and organizational
performance.
A Closer Look: Employee Education and Training as an Investment
Agencies should make and honor a commitment to employee development even during
stringent budgets, because an investment in employees can—
• Provide an excellent return on investment in improved individual and organizational
performance;
• Help employees gain the skills needed to adapt and excel as their work
environments and responsibilities become increasingly complex; and
• Aid employee motivation and retention by making employees feel valued and
providing an opportunity to enhance knowledge and abilities.
Actions to Take
• Provide resources and opportunities for employees to improve their
performance.
• Prioritize training by identifying critical competencies for individual
employees, teams, and the organization in the short and long term.
• Discuss with employees their interests in training and developmental
opportunities.
• Consider the relative value of selecting for versus training for competencies,
recognizing that some competencies are more trainable than others.
• Create an organizational culture that supports ongoing learning.
• Ensure supervisors, managers and executives receive appropriate training.
Actions to Avoid
• Funding training that lacks a clear link to individual and organizational
development.
• Reducing training as a cost-cutting measure (trading short-term gain for
long-term pain).
MSP 8: Neutrality
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“Employees should be—
(A) protected against arbitrary action, personal favoritism, or coercion for partisan
political purposes, and
(B) prohibited from using their official authority or influence for the purpose of
interfering with or affecting the result of an election or a nomination for election.”
Purpose of MSP 8
• States that Federal employees cannot be treated arbitrarily, in contrast to an
“at-will” system that permits termination without cause.
• Prevents personnel actions for reasons that are contrary to the public
interest, such as firing a career employee to create a vacancy for a personal
friend or political crony.
• Bars Federal employees from using their authority or office to influence
nominations and elections, to promote and preserve a politically neutral
career civil service.
A Closer Look: The Hatch Act
The prohibition of Subsection B of MSP 8 is enforced primarily through the 1939 Act to
Prevent Pernicious Political Activity, as amended, which is more commonly known as
the “Hatch Act.” The Hatch Act, which is enforced by the U.S. Office of Special
Counsel, limits the political activities of Federal employees to protect them from political
coercion and to prevent the politicization of the career civil service.
Actions to Take
• Demonstrate zero tolerance for partisan political coercion and discrimination.
• Base personnel decisions on organizational needs and job requirements
rather than personal preferences.
• Carefully select and train supervisors and hold them accountable.
• Practice transparency.
• Seek and utilize the expertise of HR staff.
Actions to Avoid
• Making decisions based on personal or political relationships rather than
merit.
• Using one’s position or authority to try to influence the outcome of an
election.
MSP 9: Public Interest
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“Employees should be protected against reprisal for the lawful disclosure of
information which the employees reasonably believe evidences—
(A) a violation of any law, rule, or regulation, or
(B) mismanagement, a gross waste of funds, an abuse of authority, or a
substantial and specific danger to public health or safety.”
Purpose of MSP 9
• Establishes that Federal employees should be protected against reprisal
when they disclose wrongful conduct.
A Closer Look: What is Whistleblowing?
Whistleblowing occurs when an employee has a reasonable belief of and makes a
specific and detailed allegation of wrongdoing, such as a violation of law, rule or
regulation, gross mismanagement, a gross waste of funds, an abuse of authority, or a
“substantial and specific danger” to public health or safety.
Federal employees who blow the whistle serve both the Federal Government and the
public interest by reporting wrongdoing that involves breaking laws, wasting money or
endangering the well-being of others. Fear of reprisal has a chilling effect on
employees’ willingness and ability to report wrongdoing and voice concerns.
Congress passed the Whistleblower Protection Act of 1989 and the Whistleblower
Protection Enhancement Act of 2012 to expand the circumstances under which a
disclosure would constitute a protected activity. Additionally, the Notification and
Federal Employee Antidiscrimination and Retaliation Act of 2002 (No FEAR Act)
requires agencies to notify employees annually about their rights under the
antidiscrimination and whistleblower laws and to provide training every two years.
Actions to Take
• Protect employees against reprisal for whistleblowing.
• Demonstrate zero tolerance for retaliation.
• Carefully select and train supervisors and hold them accountable.
• Practice transparency.
• Seek and utilize the expertise of HR staff.
Actions to Avoid
• Penalizing employees for exercising their rights.
• Responding to problems in a way that discourages employees from voicing
concerns.
What More Can You Do to Support the MSPs?
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Actions
• Learn more about the MSPs, PPPs and related laws.
• Ensure that employees (including HR staff) receive adequate training to fully
understand merit system principles and requirements.
• Require that new supervisors are trained on the MSPs and PPPs as soon as
they are selected.
• Institute refresher training for supervisors and managers on a regular basis
(at least every two years) to reinforce expectations for merit-based decisions
and address any changes in laws, regulations, or policies.
• Consult with HR staff or others with relevant expertise to identify and
evaluate options to achieve the desired merit-based goals.
• Do not establish practices or request actions that violate MSPs or result in
PPPs.
• Select subordinates who are committed to upholding the MSPs.
• Hold supervisors, managers and executives accountable for adhering to the
MSPs and avoiding PPPs.
• Educate employees regarding their rights and responsibilities and ensure
that they are aware of procedures for redress.
Additional Resources
• www.mspb.gov/studies – Includes over 100 MSPB reports, such as The
Merit System Principles: Guiding the Fair and Equitable Management of the
Federal Workforce; the Issues of Merit newsletter; and other resources.
• www.osc.gov – Provides an overview of the PPPs and their enforcement,
copies of congressional reports and testimony, and other relevant
information.
• www.opm.gov – Provides information on HR policies for the Federal
Government.
• www.oge.gov – Provides information on the executive branch ethics
program, which is intended to prevent and resolve conflicts of interest.
• www.eeoc.gov – Features information on the Federal EEO complaint
process, relevant reports, and information on Federal discrimination laws.
The Merit System Principles
Adapted from Title 5, United States Code, Section 2301(b).
The Merit System Principles: Keys to Managing the Federal Workforce (October 2020) 13
#
Merit System Principle
1
Recruit qualified individuals from all segments of society;
conduct fair and open competition; select and advance
employees based solely on merit.
2
Treat employees and applicants fairly and equitably, with
proper regard for their privacy and constitutional rights.
3
Provide equal pay for work of equal value and recognize
excellent performance.
4
Maintain high standards of integrity, conduct, and
concern for the public interest.
5
Manage employees efficiently and effectively.
6
Address inadequate performance fairly and decisively
and separate poor performers, as appropriate.
7
Educate and train employees to improve individual and
organizational performance.
8
Protect employees against favoritism, political coercion
and arbitrary action and prohibit abuse of authority.
9
Protect employees against reprisal for the lawful
disclosure of information that is reasonably believed to
evidence: (1) a violation of any law, rule, or regulation; or
(2) mismanagement, a gross waste of funds, an abuse of
authority, or a substantial and specific danger to public
health or safety.
The MSPB report The Merit System Principles: Guiding the Fair and Effective
Management of the Federal Workforce (September 2016), available at
www.mspb.gov/studies, provides the full text of each MSP with an explanation of its intent,
a discussion of Federal employee perceptions of adherence to the principle, related MSPB
findings and recommendations, and a brief discussion of illustrative MSPB cases.
The Prohibited Personnel Practices
Adapted from Title 5, United States Code, Section 2302(b).
The Merit System Principles: Keys to Managing the Federal Workforce (October 2020) 14
An employee who may take, influence, or recommend a personnel action
may not—
#
Prohibited Personnel Practice
1
Discriminate on any protected basis, such as race, color, religion,
sex, national origin, age, disability, marital status, or political
affiliation.
2
Consider any reference or recommendation for employment that is
not directly related to skills of the candidate and the job to be
performed.
3
Coerce political activity or base a personnel action on political activity
or inactivity.
4
Obstruct any person’s right to compete for employment.
5
Influence any person to withdraw from competition.
6
Give an unauthorized employment advantage to improve or injure
any person’s employment prospects.
7
Hire, promote, or advocate for the employment or advancement of a
relative.
8
Retaliate or threaten retaliation against a whistleblower.
9
Retaliate or threaten retaliation for engaging in protected activity
such as filing a complaint or appeal.
10
Discriminate on the basis of conduct that does not adversely affect
job performance.
11
Take, fail to take, or influence a personnel action that violates any
veterans’ preference requirement.
12
Take or fail to take a personnel action in violation of a law, rule or
regulation that concerns the merit system principles.
13
Impose a nondisclosure agreement or policy that doesn’t allow
whistleblowing.
14
Access medical records to commit another PPP.
