Widespread Discrimination Forces Agency to Create New Pass-Fail Performance Rating System

From: Government Executive

By Eric Katz

The Consumer Financial Protection Bureau will launch a new, simplified employee evaluation system after internal audits corroborated allegations that the old system was subject to systemic biases and prejudices.

CFPB will move to a two-tier performance management structure, essentially creating “pass-fail” grading. An internal report earlier this month revealed “broad-based, statistically significant disparities for employees based on a wide range of characteristics,” including race, ethnicity, age, union membership, location, pay rate and tenure.

The announcement, made in an agency-wide email from CFPB Director Richard Cordray, came after a House hearing on the discrimination and on the heels of a follow-up review by the same congressional panel. CFPB negotiated the new system with the National Treasury Employees Union, which represents most of the agency’s workforce.

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