Federal Employee Engagement: The Motivating Potential of Job Characteristics and Rewards is based on a 2010 MSPB survey of about 42,000 Federal employees regarding their motivation and engagement in the performance of their work. Federal employee motivation matters to both Federal agencies and the American people, because Federal employees who report high levels of motivation are more likely to perform at a higher level than their less-motivated coworkers. Consequently, understanding and sustaining employee motivation is critical to effective and efficient Government, especially in the current fiscal climate. The study found that Federal agencies can make better use of rewards flexibilities by seeking insight into what employees' value and crafting rewards around them. We found that most Federal employees valued interesting and meaningful work more highly than they did cash awards or bonuses. This report identifies job characteristics and rewards that can increase or reduce motivation, and outlines steps that agencies and managers can take to enhance employee motivation and organizational performance.