[Federal Register Volume 81, Number 25 (Monday, February 8, 2016)]
[Proposed Rules]
[Pages 6469-6475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02112]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR PART 250
RIN 3206-AL98
Personnel Management in Agencies
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management is issuing proposed
regulations that introduce updated systems and regulatory definitions
for managing human resources in the Federal Government. The rulemaking
also proposes to reduce and clarify the reporting procedures that
agencies are required to follow, creates a data-driven review process
(HRStat); and describes workforce planning methods that agencies are
required to follow.
Additionally, the proposed regulation aligns Strategic Human
Capital Management to the Government Performance and Results Act
Modernization Act of 2010 (Pub. L. 111-352). It also sets forth the new
Human Capital Framework (HCF), which replaces the Human Capital
Assessment Accountability Framework (HCAAF).
DATES: Comments must be received on or before April 8, 2016.
ADDRESSES: You may submit comments, identified by RIN number 3206-AL98,
using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
Mail: Veronica Villalobos, Principal Deputy Associate Director,
Employee Services, Office of Personnel Management, Room 7460, 1900 E
Street NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: For information contact Jan Chisolm-
King by email at [email protected] or by telephone at (202)
606-1958.
SUPPLEMENTARY INFORMATION: The Office of Personnel Management (OPM) is
issuing proposed regulations to revise 5 CFR part 250, subpart B,
Strategic Human Capital Management and 5 CFR part 250, subpart C,
Employee Surveys.
5 CFR part 250, subpart B, implements the requirements of 5 U.S.C.
1103(c) and the Chief Human Capital Officers Act (CHCO Act). Section
1103(c)(1) requires OPM to design a set of systems, including
appropriate metrics, for assessing the management of human capital by
Federal agencies and to define those systems in regulation. Section
1103(c)(2) requires OPM to define the systems in regulations and
include standards addressing a series of specified topics. Subpart B of
part 250 of title 5, Code of Federal Regulations, contains those
regulations. Subpart B also provides an avenue for Chief Human Capital
Officers (CHCOs) to carry out their required functions under 5 U.S.C.
1402(a).
Current regulations implement 5 U.S.C. 1103(c) by adopting the
systems currently comprising the Human Capital Assessment and
Accountability Framework (HCAAF) to constitute the systems required by
5 U.S.C. 1103(c)(1) and to provide the systems definitions and
standards required by 5 U.S.C. 1103(c)(2). The HCAAF is a framework
that integrates four human capital systems--Strategic Planning and
Alignment, Talent Management, Performance Culture, and Evaluation.
These systems define practices for the effective and efficient
management of human capital and support the steps involved in the
planning and goal setting, implementation, and evaluation of human
capital policies, programs, and initiatives in the Federal Government.
Proposed August 2011 Regulations
In August, 2011, OPM issued proposed regulations (FR Doc No: 2011-
19844) that sought to make several changes to the regulatory
definitions related to the strategic management of human capital. The
current regulations implement 5 U.S.C. 1103(c) by adopting the systems
comprising the Human Capital Assessment and Accountability Framework
(HCAAF) to constitute the systems required by 5 U.S.C. 1103(c)(1) and
to provide the systems definitions and standards required by 5 U.S.C.
1103(c)(2). Having the HCAAF written into regulation makes it difficult
to keep current. OPM concluded in 2011, as it does again today, that it
would be more effective to provide definitions in the regulations that
establish broad, overarching concepts, and to treat some of the system-
specific material in the framework as guidance that is subject to
change as Federal human capital management evolves. This removal of the
HCAAF from the stated regulation into guidance would allow OPM to
refresh aspects of the framework, without requiring a change to the
specific regulations, thereby encouraging flexibility and adaptability.
An additional change in the earlier proposal was the elimination of the
requirement for the Strategic Human Capital Plan (SHCP) and Human
Capital Management Report (HCMR) to reduce the burden of reporting
requirements for the agencies.
In addition, the earlier proposed regulation would have clarified
requirements imposed by two separate legal authorities. In the past,
there was some confusion regarding whether agencies must establish
separate accountability systems in order to satisfy the statutory
requirements of 5 U.S.C. 1103(c)(2)(F) and any requirement OPM
previously imposed under Civil Service Rule X (5 CFR 10.2). The
proposed regulations were expected to make clear that the requirements
of these two legal authorities are satisfied by the establishment of
the Human Capital Accountability System (HCAS) set forth in section
250.205 of the proposed regulation.
Recent Developments
OPM did not make the proposed regulation final because of several
developments that required additional changes to what had been written
in the proposed regulation. One major change was the enactment of the
Government Performance and Results Act Modernization Act of 2010 (Pub.
L. 111-352), and the issuance of the Diversity and Inclusion Executive
Order (E.O. 13583).
The Government Performance and Results Act (GPRA) Modernization Act
(GPRAMA)
Before the enactment of GPRAMA, agencies were required to develop
Strategic Human Capital Plans that identified human capital (HC)
strategies and resources that support agency missions and strategic
goals. Under GPRAMA, agency strategic HC plans are no longer required;
however, agencies must now integrate the human capital strategies and
resources within their agency strategic plan. Human Capital Management
Reports (HCMRs) also were eliminated. Implementation guidance for
GPRAMA states that CHCOs will address in their Annual Performance Plan,
``how performance
[[Page 6470]]
goals are to be achieved with respect to training, skills, and other HC
resources required to meet those performance goals'' (Pub. L. 111-352).
This information was previously reported in the agency HCMR. OPM is
now introducing a requirement that agencies develop a process to
monitor how the design and implementation of their respective human
capital policies and programs support an agency's mission and strategic
goals. Thus, the Annual Performance Plan and annual Human Capital
Operation Plan (HCOP) will eliminate the requirement currently stated
in section 250.203 to maintain a human capital plan.
In addition, the Diversity and Inclusion Executive Order supports
the elimination of the SHCP and the HCMR through its emphasis on report
consolidation--
review applicable directives to agencies related to the development
or submission of agency human capital and other workforce plans and
reports in connection with recruitment, hiring, promotion,
retention, professional development, and training policies and
practices, and develop a strategy for consolidating such agency
plans and reports where appropriate and permitted by law (E.O.
13583, Sec. 2(b)(ii))
HCAAF Revitalization
A third reason that OPM did not make the proposed regulation final
was because at the same time new regulations and executive orders were
being proposed, OPM launched an initiative called Human Capital
Assessment and Accountability Framework (HCAAF) Revitalization. The
intent of the initiative was to update the set of systems and standards
that have direct impact on how agencies carry out the planning,
implementation, and evaluation of their HC initiatives/programs. The
HCAAF Revitalization initiative identified innovative approaches that
will help ensure that the framework continues to add value to Federal
human capital professionals and program managers. As part of this
revitalization effort, OPM conducted a thorough analysis of the current
HCAAF framework, including a review of the initial goals and objectives
of the framework, its flexibility, and how effectively it has been used
in the current Federal environment, and identification of
implementation challenges. Data on the current HCAAF and how it is used
was obtained through the following venues:
Interviews conducted with a wide range of subject matter
experts (SMEs) knowledgeable about the HCAAF;
administration of a questionnaire to human resources
directors and program managers throughout the Federal Government;
reviews of relevant documentation/literature provided by
OPM, academic, and practitioner communities; and
a roundtable meeting of noted human capital practitioners
and experts from public and private sectors.
Based on this exhaustive review, OPM concluded that it would be
more effective to discharge its obligations under 5 U.S.C. 1103(c)(2)
by developing a Human Capital Framework (HCF) that is composed of four
systems--Strategic Planning and Alignment, Performance Culture, Talent
Management, and Evaluation.
New Human Capital Framework
The Human Capital Framework (HCF) is a framework that integrates
four human capital systems--Strategic Planning and Alignment, Talent
Management, Performance Culture, and Evaluation. These systems define
good practices for effective and efficient human capital management and
support the steps involved in the planning and goal setting,
implementation, and evaluation of human capital initiatives in the
Federal Government.
The proposed framework contains standards and focus areas. A
standard is a consistent practice within human capital management in
which agencies strive towards in each of the four HCF systems. The
standards ensure that an agency's human capital management strategies,
plans, and practices: (1) Are integrated with strategic plans, annual
performance plans and goals, and other relevant budget, and acquisition
plans; (2) contain measurable and observable performance targets; (3)
are communicated in an open and transparent manner to facilitate cross-
agency collaboration to achieve mission objectives; and (4) inform the
development of human capital management priority goals for the Federal
Government. The introduction of standards and monitoring of how they
are implemented fosters an environment to establish progress measures.
Focus areas are sound approaches that further define the system and
must be integrated within agency strategic plans, annual performance
plans and goals that contain measurable and observable performance
targets and are communicated in an open and transparent manner to
facilitate cross-agency collaboration to achieve mission objectives.
Finally, the proposed framework will include resources that can
assist in the development, implementation, and monitoring of sound
strategic human capital practices.
Proposed Regulation
OPM is now issuing proposed regulations to revise 5 CFR part 250,
subpart B, Strategic Human Capital Management. The proposed regulation
will:
Revise definitions to better align with statute.
Implement 5 U.S.C 1103 by adopting the proposed new
systems as required by 5 U.S.C. 1103(c)(1) and the proposed new
systems, definitions, and standards as required by 5 U.S.C. 1103(c)(2).
This new framework will integrate four human capital systems--Strategic
Planning and Alignment, Performance Culture, Talent Management, and
Evaluation. We expect that the new systems and system definitions will
facilitate more effective alignment of human capital programs with
agency mission objectives.
Define the new systems and include the new standards as
required by 5 U.S.C. 1103(c)(2) as a set of overarching concepts in
regulation to be supplemented with details in guidance. OPM continues
to believe that, under the current regulation, the incorporation of the
full text of the HCAAF to satisfy the 5 U.S.C. 1103(c)(2) requirements
has proven to undermine the original concept of the HCAAF with respect
to flexibility and adaptability. The original HCAAF document was
integrated several years ago into a web-based Resource Center that was
updated based on feedback, analysis, and emerging agency practices and
results. Once the entire text of the HCAAF was brought into regulation,
it became difficult to keep current. OPM concluded that it would be
more effective to discharge its obligations under 5 U.S.C. 1103(c)(2)
by providing definitions in the regulations that establish broad,
overarching concepts, and treating the specific material in the HCAAF
as guidance that can be updated, as appropriate, as Federal human
capital management evolves. This will allow OPM to refresh some aspects
of the framework without requiring a change to the specific regulations
thus encouraging flexibility and adaptability.
Create the Human Capital Strategic Review (HCSR) process.
The HCSRs will:
[cir] Enable OPM and agencies to monitor progress with achieving
organizational outcomes by the presentation of synthesized evidence and
information (indicators, evaluations/audits, and HRStat reviews);
[[Page 6471]]
[cir] provide OPM with the opportunity to identify cross-cutting
themes to position OPM to develop governmentwide policies and
strategies;
[cir] afford agencies with the opportunity to receive feedback from
OPM to improve strategies and evaluation processes; and
[cir] identify opportunities for improvement that will enable
decision making that leads to the prioritization of resources.
Institutionalize a human capital performance improvement
process, referred to as ``HRStat'' that identifies, measures, and
analyzes human capital data to improve human capital outcomes. HRStat,
a data-driven review process, will drive performance and alignment of
achieving human capital goals related to the agency mission.
Define the annual Human Capital Operation Plan, which
supports an Agency Performance Plan.
Restructure the requirements of Subpart B of Part 250 for
agencies by removing the regulatory requirement for the HCMR. OPM
proposes to monitor agency outcomes in human capital management through
the Human Capital Evaluation Framework.
Introduce workforce planning methods agencies are required
to follow.
Ensure consistency by clearly defining key human capital
management terms.
The purpose of these proposed changes is to focus the regulations
on the specific requirements that are the most significant for
establishing and maintaining efficient and effective human capital
management systems now and into the future, while providing agencies
with flexibility in determining how they will accomplish their human
capital activities.
Employee Survey Enhancements
5 CFR part 250, subpart C, implements the requirements of section
1128 of the National Defense Authorization Act for Fiscal Year 2004
(Pub. L. 108-136, sec.1128, codified at 5 U.S.C. 7101 note). Section
1128 of Public Law. 108-136 requires each Executive agency to conduct
an annual survey of its employees to assess leadership and management
practices that contribute to agency performance and employee
satisfaction as it relates to five enumerated areas of work life. The
law also requires OPM to ``issue regulations prescribing survey
questions that should appear on all agency surveys.'' In addition, the
law requires agencies to make the survey results available to the
public and post the results on their Web sites, unless the head of the
agency determines that doing so would jeopardize or negatively impact
national security.
Survey Background
OPM issued a final regulation (5 CFR part 250, subpart C) including
45 specific survey questions on August 24, 2006. The requirement was
for agencies to conduct an annual survey (``Annual Employee Survey'')
with prescribed questions beginning in calendar year 2007. OPM's
centralized Federal Employee Viewpoint Survey (FEVS) administration
includes these survey questions. When the FEVS is administered
governmentwide the burden for individual agencies to administer its own
survey is alleviated. To modernize the survey, OPM is issuing proposed
regulations to revise 5 CFR part 250, subpart C, Employee Surveys. The
proposed regulation will:
Reduce the number of specifically prescribed questions in
the regulation:
A critical review of the FEVS questions currently in regulation was
conducted by: (1) A cross-governmental agency task force convened by
OPM (2011); and (2) by university researchers and published in the
Public Administration Review (PAR) (Fernandez, Resh, Moldogaziev, and
Oberfield, 2015) for the purpose of reviewing and revising the current
questions. These reviews led to the formation of a group of OPM
psychologists tasked with addressing these recommendations to further
advance the survey program.
The cross-governmental agency task force, made up of survey experts
from several agencies (e.g., ODNI, DOD, OMB, DOI, VA) reviewed the FEVS
through a stepwise process of data analysis, stakeholder engagement,
solicitation of expert opinion and input from OMB and recommended a
concise subset of questions critical to the intent of the original
statute.
The PAR article, which reviewed more than 40 research articles
based on FEVS data, indicates the validity of the FEVS would largely
benefit from a revision to include stronger, relevant and unambiguous
questions as well as questions that capture a single concept. The study
also addressed the notion that in a revision of survey questions, the
selection of relevant concepts and proper instrumentation should be
grounded in a thorough review of the literature and sound theoretical
reasoning.
The group of OPM psychologists analyzed and confirmed the external
recommendations and proposed a final set of 11 questions that were
selected based on adherence to and measurement of the areas in statute.
The identified questions exhibit appropriate properties as metrics as
reflected through psychometric analysis; and are clear and unambiguous
in nature. These independent efforts support the inclusion of the set
of questions proposed in this regulation. OPM will address specific
item concerns at the conclusion of the open comment period.
Modify the definitions of the terms used in the questions
in regulation. Definitions were modified and clarified in response to
comments received during the course of FEVS administration from (1)
survey respondents, (2) agency leaders, and (3) the Senior Executive
Association; and
Modify the requirement for notification to OPM. Process
improvements achieved by technical advances eliminate the regulatory
need for agencies to submit data to OPM as OPM can readily access data
from posts of agency results to their Web sites as required under Sec.
250.303(a).
Executive Order 13563 and Executive Order 12866, Regulatory Review
The Office of Management and Budget has reviewed this proposed rule
in accordance with E.O. 13563 and 12866.
Paperwork Reduction Act
This document does not contain proposed information collection
requirements subject to the Paperwork Reduction Act of 1995 (Pub. L.
104-13).
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
apply only to Federal agencies and employees.
List of Subjects in 5 CFR Part 250
Authority for personnel actions in agencies, Employee surveys,
Strategic human capital management.
Office of Personnel Management.
Beth F. Cobert,
Acting Director.
Accordingly, OPM is proposing to amend title 5, Code of Federal
Regulations, as follows:
PART 250--PERSONNEL MANAGEMENT IN AGENCIES
Subpart B--Strategic Human Capital Management
0
1. Subpart B is revised to read as follows:
Subpart B--Strategic Human Capital Management
Sec.
250.201 Coverage and purpose.
[[Page 6472]]
250.202 Definitions.
250.203 Strategic human capital management.
250.204 Agency roles and responsibilities.
250.205 Metrics.
250.206 Consequences of improper agency actions.
Subpart B--Strategic Human Capital Management
Authority: 5 U.S.C. 105; 5 U.S.C. 1103 (a)(7), (c)(1), and
(c)(2); 5 U.S.C. 1401; 5 U.S.C. 1402(a); 31 U.S.C. 1115(a)(3); 31
U.S.C. 1115(f); 31 U.S.C. 1116(d)(5); Public Law 103-62; Public Law
107-296; Public Law 108-136, 1128; Public Law 111-352; 5 C.F.R 10.2;
FR Doc No: 2011-19844; E.O. 13583; E.O. 13583, Sec 2(b)(ii)
Sec. 250.201 Coverage and purpose.
Pursuant to 5 U.S.C. 1103(c), this subpart defines a set of
systems, including standards and metrics, for assessing the management
of human capital by Federal agencies. These regulations apply to all
Executive agencies as defined in 5 U.S.C. 105 and support the
performance planning and reporting that is required by sections
1115(a)(3) and (f) and 1116(d)(5) of title 31, United States Code.
Sec. 250.202 Definitions.
Chief Human Capital Officer (CHCO) is the agency's senior leader
whose primary duty is to:
(1) Advise and assist the head of the agency and other agency
officials in carrying out the agency's responsibilities for selecting,
developing, training, and managing a high-quality, productive workforce
in accordance with merit system principles; and
(2) Implement the rules and regulations of the President, the
Office of Personnel Management (OPM), and the laws governing the civil
service within the agency.
CHCO agency is an Executive agency, as defined by 5 U.S.C. 105,
which is required by 5 U.S.C. 1401 to appoint a CHCO.
Director of OPM is, among other things, the President's advisor on
actions that may be taken to promote an efficient civil service and a
systematic application of the merit system principles, including
recommending policies relating to the selection, promotion, transfer,
performance, pay, conditions of service, tenure, and separation of
employees. The Director of OPM provides governmentwide leadership and
direction in the strategic management of the Federal workforce.
Evaluation system is an agency's overarching system for evaluating
the results of all human capital planning to inform the agency's
continuous process improvement efforts. This system also is used for
ensuring compliance with all applicable statutes, rules, regulations,
and agency policies.
Federal Workforce Strategic Priorities Report is a strategic human
capital report, published by OPM by the first Monday in February of any
year in which the term of the President commences. The report
communicates key governmentwide human capital priorities and suggested
strategies. The report informs agency strategic and human capital
planning.
Focus areas are areas that agencies and human capital practitioners
must focus on to achieve a system's standard.
HRStat is a strategic human capital performance evaluation process
that identifies, measures, and analyzes human capital data to inform
the impact of agency human capital on organizational results and to
improve human capital outcomes. HRStat is a component of an agency's
strategic planning and alignment, and evaluation systems that are part
of the Human Capital Framework..
Human Capital Evaluation Framework underlies the three human
capital evaluation mechanisms (e.g., HRStat, Audits, and Human Capital
Strategic Reviews) to create a central evaluation framework that
integrates the outcomes from each to provide OPM and agencies with an
understanding of how human capital policies and programs are supporting
missions.
Human Capital Framework (HCF) provides comprehensive guidance on
the principles of strategic human capital management in the Federal
Government. The framework provides direction on human capital planning,
implementation, and evaluation in the Federal environment.
Human Capital Operation Plan (HCOP) is an agency's annual human
capital implementation document, which describes how an agency will
support the human capital elements stated within its Annual Performance
Plan (APP). Program specific workforce investments and strategies
(e.g., hiring, closing skills gaps, etc.) should be incorporated into
the APPs as appropriate. The HCOP should clearly execute each of the
four systems of the HCF. The HC Strategy, HCOP, and HCSR should align
with GPRAMA annual performance plans and timelines.
Human Capital Strategic Review (HCSR) is OPM's annual review of an
agency's design and implementation of its HCOP, independent audit, and
HRStat programs to support mission accomplishment and human capital
outcomes.
Independent audit program is a component of an agency's evaluation
system designed to review all human capital management systems and
select human resources transactions to ensure efficiency,
effectiveness, and legal and regulatory compliance.
Skills gap is a variance between the current and projected
workforce size and skills needed to ensure an agency has a cadre of
talent available to meet its mission, and make progress towards its
goals and objectives.
Standard is a consistent practice within human capital management
in which agencies strive towards in each of the four HCF systems. The
standards ensure that an agency's human capital management strategies,
plans, and practices:
(1) Are integrated with strategic plans, annual performance plans
and goals, and other relevant budget, finance, and acquisition plans;
(2) Contain measurable and observable performance targets;
(3) Are communicated in an open and transparent manner to
facilitate cross-agency collaboration to achieve mission objectives;
and
(4) Inform the development of human capital management priority
goals for the Federal Government.
Sec. 250.203 Strategic human capital management systems and
standards.
Strategic human capital management systems, standards, and focus
areas are defined within the Human Capital Framework (HCF). The four
systems described below provide definitions and standards for human
capital planning, implementation, and evaluation. OPM may augment the
definitions and standards set forth in this section with additional
focus areas that the Director of OPM will publish in such form as the
Director determines appropriate. The HCF systems and standards are:
(a) Strategic planning and alignment. A system that ensures agency
human capital programs are aligned with agency mission, goals, and
objectives through analysis, planning, investment, and measurement. The
standards for the strategic planning and alignment system require an
agency to ensure an agency's human capital management strategies,
plans, and practices--
(1) Integrate strategic plans, annual performance plans and goals,
and other relevant budget, finance, and acquisition plans;
(2) Contain measurable and observable performance targets; and
(3) Communicate in an open and transparent manner to facilitate
cross-agency collaboration to achieve mission objectives.
[[Page 6473]]
(b) Talent management. A system that promotes a high-performing
workforce, identifies and closes skills gaps, and implements and
maintains programs to attract, acquire, develop, promote, and retain
quality and diverse talent. The standards for the Talent Management
system require an agency to--
(1) Plan for and manage current and future workforce needs;
(2) Design, develop, and implement proven strategies and techniques
and practices to attract, hire, develop, and retain talent; and
(3) Make progress toward closing any knowledge, skill, and
competency gaps throughout the agency.
(c) Performance culture. A system that engages, develops, and
inspires a diverse, high-performing workforce by creating,
implementing, and maintaining effective performance management
strategies, practices, and activities that support mission objectives.
The standards for the performance culture system require an agency to
have--
(1) Strategies and processes to foster a culture of engagement and
collaboration;
(2) A diverse, results-oriented, high-performing workforce; and
(3) A performance management system that differentiates levels of
performance of staff, provides regular feedback, and links individual
performance to organizational goals.
(d) Evaluation. A system that contributes to agency performance by
monitoring and evaluating outcomes of its human capital management
strategies, policies, programs, and activities by meeting the following
standards--
(1) Ensuring compliance with merit system principles; and
(2) Identifying, implementing, and monitoring process improvements.
Sec. 250.204 Agency roles and responsibilities.
(a) An agency must use the systems and standards established in
this part, and any metrics that OPM subsequently provides in guidance,
to plan, implement, evaluate and improve human capital policies and
programs. These policies and programs must--
(1) Align with Executive branch policies and priorities, as well as
with individual agency missions, goals, and strategic objectives.
Agencies must align their human capital management strategies to
support the Federal Workforce Strategic Priorities Report, agency
strategic plan, agency performance plan, and budgets prepared under OMB
Circular A-11;
(2) Be based on comprehensive workforce planning and analysis;
(3) Monitor and address skills gaps within governmentwide and
agency-specific mission critical occupations by using comprehensive
data analytic methods and gap closure strategies;
(4) Recruit, hire, develop, and retain an effective workforce,
especially in the agency's mission-critical occupations;
(5) Ensure leadership continuity by implementing and evaluating
recruitment, development, and succession plans for leadership
positions;
(6) Implement a knowledge management process to ensure continuity
in knowledge sharing among employees at all levels within the
organization;
(7) Sustain an agency culture that engages employees by defining,
valuing, eliciting, and rewarding high performance; and
(8) Hold the agency head, executives, managers, human capital
officers, and human capital staff accountable for efficient and
effective strategic human capital management, in accordance with merit
system principles.
(b) Each agency must meet the statutory requirements of the
Government Performance and Results Act Modernization Act (GPRAMA) by
including within the Annual Performance Plan (APP) human capital
practices that are aligned to the APP. The human capital portion of the
APP must include performance goals and indicators. Guidance on
preparing the human capital portions of an agency's APP can be found in
OMB Circular A-11, part 6, section 200.
(c) An agency's Deputy Secretary, or equivalent, is responsible for
ensuring that the agency's strategic plan includes a description of the
operational processes, skills and technology, and human capital
information required to achieve the agency's goals and objectives.
Specifically, the Deputy Secretary, or equivalent will--
(1) Allocate resources;
(2) Ensure the agency incorporates applicable priorities identified
within the Federal Workforce Strategic Priorities Report and is working
to close governmentwide and agency-specific skills gaps; and
(3) Participate with the senior management team in their agency's
(at a minimum) quarterly HRStat reviews.
(d) Each agency must develop an annual Human Capital Operation Plan
(HCOP) in support of the Federal human capital assessment and agency
APP, to be reviewed annually, and updated if needed, as part of the
agency's efforts to improve its human capital processes. The HCOP must
demonstrate how an agency's human capital implementation strategies
will meet an agency's mission and strategic goals (e.g., human capital
policies, goals, objectives, and day-to-day operational needs). The
HCOP will be made available to OPM upon request. Guidance on preparing
the human capital portions of an agency's APP can be found in OMB
Circular A-11, part 6, section 200. The HCOP must--
(i) Be established through the coordination of a working group that
is led by the agency's Chief Human Capital Officer and which should
include the agency's Chief Operating Officer (COO), Performance
Improvement Officer (PIO), Chief Information Officer (CIO), Chief
Financial Officer (CFO), and Equal Employment Opportunity (EEO)
Director to ensure that budget, technology, and performance processes
are integrated to support human capital strategies and outcomes;
(ii) Support the design and implementation of the human capital
strategy by approving the agency four-year annual Human Capital
Operation Plan (AHCOP);
(iii) Be used to inform the development of an agency's strategic
plan, because an agency's human capital can affect whether or not a
strategy or strategic goal is achieved;
(iv) Explicitly describe the agency-specific skill and competency
gaps that must be closed through the use of agency selected human
capital strategies;
(v) Include annual human capital performance goals and measures
that will support the evaluation of the agency's human capital
strategies, through HRStat reviews, and that are aligned to support
mission accomplishment;
(vi) Reflect the systems and standards defined in 250.203 above,
consistent with their agency strategic plan and annual performance
plan, to address strategic human capital priorities and goals; and
(vii) Address the governmentwide priorities identified in the
Federal Workforce Strategic Priorities Report.
(e) Each agency must participate with OPM in a Human Capital
Strategic Review (HCSR). The HCSR will be conducted during the
evaluation phase and OPM will issue guidance about the HCSR
requirements.
(f) The Chief Human Capital Officer must design, implement and
monitor agency human capital policies and programs that--
(i) Ensure human capital activities support merit system
principles;
(ii) Use the OPM designated method to identify governmentwide and
agency-specific skills gaps;
[[Page 6474]]
(iii) Demonstrate how the agency is using the principles within the
Human Capital Framework (HCF) to address strategic human capital
priorities and goals;
(iv) Use the HRStat reviews, in coordination with the agency
Performance Improvement Officer (PIO), to assess the agency's progress
toward meeting its strategic and performance goals;
(v) Implement the HRStat Maturity guidelines specified by OPM;
(vi) Use HRStat reviews to evaluate their agency's progress;
(vii) Establish and maintain an Evaluation System to evaluate human
capital outcomes that is--
(A) Formal and documented; and
(B) Approved by OPM;
(viii) Maintain an independent audit program, subject to full OPM
participation and evaluation, to review periodically all human capital
management systems and the agency's human resources transactions to
ensure legal and regulatory compliance. An agency must--
(A) Take corrective action to eliminate deficiencies identified by
OPM, or through the independent audit, and to improve its human capital
management programs and its human resources processes and practices;
and
(B) Based on OPM or independent audit findings, issue a report to
its leadership and OPM containing the analysis, results, and corrective
actions taken; and
(ix) Improve strategic human capital management by adjusting
strategies and practices, as appropriate, after assessing the results
of performance goals, indicators, and business analytics.
(g) The agency's human capital policies and programs must support
the implementation and monitoring of the governmentwide Strategic Human
Capital Strategy, which is published by OPM every four years, and--
(1) Improve strategic human capital management by using performance
goals, indicators, and business analytics to assess results of the
human capital management strategies planned and implemented;
(2) Ensure human capital activities support merit systems
principles;
(3) Adjust human capital management strategies and practices in
response to outcomes identified during quarterly data-driven reviews of
human capital performance to improve organizational processes; and
(4) Use the governmentwide and agency-specific human capital
strategies to inform resource requests (e.g., staff full-time
equivalents, training, analytical software, etc.) into the agency's
annual budget process.
Sec. 250.205 System metrics.
OPM reserves the right to provide additional guidance regarding
metrics as the need arises.
Sec. 250.206 Consequences of improper agency actions.
If OPM finds that an agency has taken an action contrary to a law,
rule, regulation, or standard that OPM administers, OPM may require the
agency to take corrective action. OPM may suspend or revoke a
delegation agreement established under 5 U.S.C. 1104(a)(2) at any time
if it determines that the agency is not adhering to the provisions of
the agreement. OPM may suspend or withdraw any authority granted under
this chapter to an agency, including any authority granted by
delegation agreement, when OPM finds that the agency has not complied
with qualification standards OPM has issued, instructions OPM has
published, or the regulations in this chapter. OPM also may suspend or
withdraw these authorities when it determines that doing so is in the
interest of the civil service for any other reason.
Subpart C--Employee Surveys
0
2. Subpart C is revised to read as follows:
Subpart C--Employee Surveys
Sec.
250.301 Definitions.
250.302 Survey requirements.
250.303 Availability of results.
Subpart C--Employee Surveys
Authority: 5 U.S.C. 105; 5 U.S.C. 7101 note; Public Law 108-136
Sec. 250.301 Definitions.
Agency means an Executive agency, as defined in 5 U.S.C. 105.
Senior leaders are the heads of departments/agencies and their
immediate leadership team responsible for directing the policies and
priorities of the department/agency. May hold either a political or
career appointment and is typically a member of the senior executive
service.
Managers are those in management positions who typically supervise
one or more supervisors.
Supervisors are first-line supervisors typically responsible for
employees' performance appraisals and leave approval. Does not
supervise other supervisors.
Sec. 250.302 Survey requirements.
(a) Each executive agency must conduct an annual survey of its
employees to assess topics outlined in the National Defense
Authorization Act for Fiscal Year 2004, Pub. L. 108-136, sec.1128,
codified at 5 U.S.C. 7101.
(b) Each executive agency may include additional survey questions
unique to the agency in addition to the employee survey questions
prescribed by OPM under paragraph (c) of this section.
(c) The 11 prescribed survey questions are listed in the following
table:
------------------------------------------------------------------------
------------------------------------------------------------------------
(1) Leadership and Management practices that contribute to agency
performance
------------------------------------------------------------------------
My work unit has the job-relevant skills
necessary to accomplish organizational
goals.
Managers communicate the goals of the
organization.
------------------------------------------------------------------------
(2) Employee Satisfaction with--
------------------------------------------------------------------------
(i).......................... Leadership Policies and Practices
How satisfied are you with your
involvement in decisions that affect
your work?
How satisfied are you with the
information you receive from management
on what's going on in your organization?
(ii)......................... Work Environment
The people I work with cooperate to get
the job done.
My workload is reasonable.
(iii)........................ Rewards and Recognition
In my work unit, differences in
performance are recognized in a
meaningful way.
How satisfied are you with the
recognition you receive for doing a good
job?
(iv)......................... Opportunities for professional
development and growth
I am given a real opportunity to improve
my skills in my organization.
My talents are used well in the
workplace.
[[Page 6475]]
(v).......................... Opportunity to contribute to achieving
organizational mission
I know how my work relates to the
agency's goals.
------------------------------------------------------------------------
Sec. 250.303 Availability of results.
(a) Each agency will make the results of its annual survey
available to the public and post the results on its Web site unless the
agency head determines that doing so would jeopardize or negatively
impact national security. The posted survey results will include the
following:
(1) The agency's evaluation of its survey results;
(2) How the survey was conducted;
(3) Description of the employee sample, unless all employees are
surveyed;
(4) The survey questions and response choices with the prescribed
questions identified;
(5) The number of employees surveyed and number of employees who
completed the survey; and
(6) The number of respondents for each survey question and each
response choice.
(b) Data must be collected by December 31 of each calendar year.
Each agency must post the beginning and ending dates of its employee
survey and either the survey results described in paragraph (a) of this
section, or a statement noting the decision not to post, no later than
120 days after the agency completes survey administration. OPM may
extend this date under unusual circumstances.
[FR Doc. 2016-02112 Filed 2-5-16; 8:45 am]
BILLING CODE 6325-39-P