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Why Forced Bell Curves Fail Federal Performance Management

federal employment merit system mspb appeals performance management workplace culture Aug 12, 2025
 

Federal performance isn’t a classroom test or a corporate sales contest—it’s complex, interdependent work that often requires everyone performing well at once. Forced distribution, sometimes called the “bell curve” or “stack ranking,” assumes talent naturally falls into fixed percentages of high, average, and low performers. But in reality, strong teams can have no weak links, and struggling teams can have more than one person who needs help. Mandating a curve misclassifies talent and punishes cohesive, high-performing groups. Even companies once famous for stack ranking, like GE and Microsoft, have abandoned it after finding it damaged performance and morale.

 

Collaboration Suffers Under Forced Ranking

In both research and practice, forced ranking systems erode collaboration. When your gain depends on a colleague’s loss, you’re more likely to hoard information than share it. Harvard Business Review has warned that curves “kill collaboration,” and that’s especially destructive in government, where mission success depends on knowledge-sharing across IT, policy, HR, finance, and operations. Turning teammates into competitors weakens the very networks needed to deliver complex programs.

 

The Wrong Incentives Take Root

Economic and organizational studies show that rank-based rewards increase the risk of sabotage, gaming the system, and unethical shortcuts. In high-stakes, rank-driven environments, employees may focus on “winning” the performance scoreboard instead of advancing the agency’s mission. This is particularly dangerous in public service, where trust, ethics, and careful risk management are vital.

 

Morale and Retention Decline

Psychological research shows that heavy reliance on performance-contingent rewards can undermine intrinsic motivation—especially in meaningful, complex work like federal service. Perceptions of unfairness in ratings are tied to counterproductive behavior and higher turnover. By contrast, companies that have replaced annual ratings with continuous, coaching-based feedback models—such as Adobe—have reported major gains in engagement and reduced attrition by as much as 30%.

 

High Cost, Low Value

The administrative burden of forced distribution is enormous. One Harvard Business Review case study estimated that a single firm spent 80,000 manager hours annually on review mechanics alone—time that could have been spent coaching staff, improving systems, or serving taxpayers. That’s a poor return on investment for any organization, but especially for agencies under tight budget and staffing constraints.

 

Better Alternatives Exist

If the government truly wants better results, retention, and innovation, it should invest in systems that coach employees, measure actual outcomes, and reward shared wins—not in zero-sum ranking games that manufacture “losers.” The merit system was designed to recognize and promote genuine performance, not to fit employees into an arbitrary distribution. Forcing curves undermines both the spirit and the effectiveness of public service.

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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