OPM's New Reduction in Force Rules Emphasize Performance, Raising Concerns for Federal Employee Morale
The U.S. Office of Personnel Management (OPM) is implementing new rules for reductions in force (RIFs) that will take effect on September 2, 2026. These updated regulations place a significantly greater emphasis on employee performance when determining retention standing during RIFs. Under the new framework, an employee's three most recent performance ratings from the applicable four-year period will be used to calculate performance credit. This means that federal employees with stronger recent performance records may have a higher retention standing, even if they have fewer years of federal service. This shift aims to prioritize merit in workforce reductions. However, this change is anticipated to affect employee well-being, morale, and workplace culture, as it introduces increased pressure around performance ratings and potential anxiety among the federal workforce. Federal HR leaders are advised to prepare for these changes by communicating clearly, training managers for difficult conversations, and pre... 
