Going for the Gold

Abstract

Four years ago, following low customer service ratings from an independent national survey, the Network II Veterans Administration (VA) hospital group in upstate New York took the first step on a journey that would turn this flagging group of five hospitals into a flagship for the whole agency. "Innovation in government requires involvement, patience, and creativity," say the authors, "but federal agencies must proceed with caution." Unlike private sector organizations, employees of government agencies work within regulations and guidelines governing civil service, and these limitations must be considered when proposing any alternative rewards design plan. By thoughtfully addressing the challenges involved, here is how one public sector agency has been able to use alternative rewards with excellent results.