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When Agencies Cap “5s”: The Hidden Risks of Forced Performance Ratings

federal employment mindfulness at work mspb appeals performance ratings workplace fairness Dec 16, 2025

For many federal employees, a performance year ends with a quiet shock: strong feedback all year, solid results, and then a rating capped at a “3” because the office “can’t give too many 5s.” That feeling—that the rules shifted under your feet—is not imagined. It reflects a growing tension between how federal performance systems are designed and how some agencies are choosing to apply them.

Why Forced Distribution Conflicts With Federal Rules

Federal performance systems are built around individualized evaluation. Ratings are supposed to measure how an employee performed against written elements and standards—not against coworkers and not against an informal quota. When management “normalizes” scores to hit a distribution curve, that approach borrows from private-sector stack ranking models that federal law never adopted. The legal issue is not the number itself; it is whether the rating truly reflects documented performance or an invisible recalibration decision.

Why a “3” Can Still Hurt in Practice

On paper, a “3” often means “fully successful.” In theory, that should be neutral. In real life, it rarely is. Ratings influence awards, promotion competitiveness, developmental opportunities, and how an employee is perceived when leadership changes. A drop driven by recalibration—rather than performance—can quietly limit future options. That is why employees react so strongly: the impact is cumulative, even when the label sounds benign.

The Trust Problem No One Names Out Loud

When supervisors are pressured to meet a distribution, employees are left asking an uncomfortable question: was the rating based on the work, or on the curve? That uncertainty erodes trust. Research on forced distribution systems consistently shows higher perceptions of unfairness, reduced collaboration, and increased internal competition. High performers, in particular, are more likely to disengage or leave when recognition is capped. Microsoft’s eventual abandonment of stack ranking after years of backlash is a well-known example.

What to Ask—Calmly and Strategically

When told “everyone is getting a 3” or “we had too many top ratings last year,” that is a cue to ask for specifics. A grounded, professional question sounds like this: Which elements or standards were not met at the higher level, and what concrete examples support that conclusion? Two red flags to watch for are vague explanations untethered to written standards and moving goalposts late in the year after months of positive feedback.

How to Protect Yourself Without Escalating Conflict

Power comes from documentation, not confrontation. Keep copies of performance plans, key work product, and written feedback showing outcomes and praise. Maintain a simple timeline. This is especially important for employees already in higher-risk contexts—EEO activity, whistleblowing, conflict with management, or probationary status—where performance narratives can accelerate quickly. Early advice often helps clarify options before a rating hardens into a record.

For readers seeking deeper, step-by-step guidance on navigating federal performance and discipline issues, additional resources are available through Southworth PC’s Power Hub membership.

Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.

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