In 1881 this system changed from the Spoils System to the Merit System. This occurred after a president Charles Guiteau was assassinated because one of his supporters did not receive a job. The Merit System requires that each applicant take a competitive exam, and whoever is most qualified and receives the highest score on the exam will be hired. Now-a-days, 85 to 90 percent of federal employees must take this exam. The benefits of this is that it allows qualified individuals to receive a position instead of whoever the president decides to appoint. It also gives opposed party members equal opportunity to receive a job. The Merit System also allows the government to remain stable by not dismissing employees when a new president is elected. Finally, this prevents supporters from thinking that they deserve a federal job.
I believe that the Merit System is still active in the federal and local government. If you support the president or local elected official they will recommend you for the position or usually make sure obtain a job. A while ago, Obama gave jobs to several supporters who had donated large sums of money to help him during his election. Mainly of his supporters received well paying, higher positions in the government. This proves that spoils system is still around today, but is just not as prominent as it once was.
Source:
http://www.washingtonpost.com/politics/the-influence-industry-obama-gives-administration-jobs-to-some-big-fundraisers/2012/03/06/gIQA9y3txR_story.html?hpid=z2