Human Capital: Greater Focus on Results in Telework Programs	 
Needed (12-JUN-07, GAO-07-1002T).				 
                                                                 
Telework continues to receive attention within Congress and	 
federal agencies as a human capital strategy that offers various 
flexibilities to both employers and employees, including the	 
capacity to continue operations during emergency events, as well 
as benefits to society, such as decreased energy use and	 
pollution. This statement highlights some of GAO's prior work on 
federal telework programs, including key practices for successful
implementation of telework initiatives, identified in a 2003 GAO 
report and a 2005 GAO analysis of telework program definitions	 
and methods in five federal agencies. In addition, the statement 
discusses GAO observations on the Telework Enhancement Act of	 
2007, S. 1000.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-1002T					        
    ACCNO:   A70597						        
  TITLE:     Human Capital: Greater Focus on Results in Telework      
Programs Needed 						 
     DATE:   06/12/2007 
  SUBJECT:   Data collection					 
	     Federal agencies					 
	     Human capital					 
	     Legislation					 
	     Program evaluation 				 
	     Program management 				 
	     Reporting requirements				 
	     Telecommuting					 
	     Program goals or objectives			 
	     Program implementation				 

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GAO-07-1002T

   

     * [1]Congress Has Established a Statutory Framework to Promote Ag
     * [2]Better Performance Measures and Program Evaluations Could Im
     * [3]The Telework Enhancement Act of 2007, S. 1000, Addresses Key
     * [4]Contacts and Acknowledgements
     * [5]Appendix I: Key Telework Practices for Implementation of Suc

          * [6]Order by Mail or Phone

Testimony

Before the Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia, Committee on Homeland Security
and Governmental Affairs, U.S. Senate

United States Government Accountability Office

GAO

For Release on Delivery
Expected at 2:30 p.m. EDT
Tuesday, June 12, 2007

HUMAN CAPITAL

Greater Focus on Results in Telework Programs Needed

Statement of Bernice Steinhardt
Director, Strategic Issues

GAO-07-1002T

Mr. Chairman and Members of the Subcommittee:

I am pleased to be here today to discuss our observations of federal
telework policies based on our past work and to provide additional
observations that relate to the provisions of S. 1000, the Telework
Enhancement Act of 2007. Telework is a human capital strategy which offers
flexibilities to both employers and employees. It is increasingly
recognized as an important means to achieving a number of federal efforts,
including effective strategic human capital management of the federal
workforce, and a greater capability to continue operations during
emergency events, as well as affording environmental, energy, and other
benefits to society.

Congress has demonstrated its keen interest in promoting the use of
telework in the federal government by establishing a wide-ranging
statutory framework. This framework has included provisions directed at
increasing employee eligibility for telework, requiring reporting and
evaluation of telework implementation, establishing agency telework
coordinators to lead the program, setting goals for the application of
telework provisions to the federal workforce, and even withholding funds
from some agencies that fail to show progress. S. 1000 is intended to
advance this framework and the implementation of telework programs and to
increase the eligibility of federal employees for telework as well as its
use.

My statement today will describe first the statutory framework that drives
the agency telework programs and processes. We will also share
observations from our past work that relate to agency telework
methodologies, as well as our views of the specific legislation under
consideration. And finally, we will offer some suggested next steps to
advance the purposes of the bill.

My comments are based on previously issued GAO reports that were developed
in accordance with generally accepted government auditing standards.

Congress Has Established a Statutory Framework to Promote Agency Telework
Programs and Increase Employee Participation

Through a number of legislative actions, Congress has indicated its desire
that agencies create telework programs to accomplish a number of positive
outcomes. These actions have included recognizing the need for program
leadership within the agencies; encouraging agencies to think broadly in
setting eligibility requirements; requiring that employees be allowed, if
eligible, to participate in telework, and requiring tracking and reporting
of program results. Some legislative actions have provided for funding to
assist agencies in implementing programs, while other appropriations acts
withheld appropriated funds until the covered agencies certified that
telecommuting opportunities were made available to 100 percent of each
agency's eligible workforce. The Telework Enhancement Act of 2007, S.
1000, continues the efforts of Congress to achieve greater participation.

The most significant congressional action related to telework was the
enactment of Section 359 of Public Law No. 106-346 in October 2000, which
provides the current mandate for telework in the executive branch of the
federal government by requiring each executive agency to establish a
policy under which eligible employees may participate in telework to the
maximum extent possible without diminishing employee performance. The
conference report language further explained that an eligible employee is
any satisfactorily performing employee of the agency whose job may
typically be performed at least one day per week by teleworking. In
addition, the conference report required the Office of Personnel
Management (OPM) to evaluate the effectiveness of the program and report
to Congress.

The legislative framework has provided both the General Services
Administration (GSA) and OPM with lead roles for the governmentwide
telework initiative, to provide services and resources to support and
encourage telework, including providing guidance to agencies in developing
their program procedures.1 In addition, Congress required certain agencies
to designate telework coordinators to be responsible for overseeing the
implementation of telework programs and serve as points of contact on such
programs for the Committees on Appropriations.

1GAO reported that the efforts of OPM and GSA, with lead roles in
implementation of telework in the federal government, had not been well
coordinated and, in response, the two agencies took a number of actions to
improve coordination, including developing and signing a joint memorandum
of understanding. GAO, Human Capital: Key Practices to Increasing Federal
Telework, [7]GAO-04-950T (Washington, D.C.: July 8, 2004).

GSA and OPM provide services and resources to support the governmentwide
telework implementation. OPM publishes telework guidance, which it
recently updated, and works with the agency telework coordinators to guide
implementation of the programs and annually report the results achieved.
GSA offers a variety of services to support telework, including developing
policy concerning alternative workplaces, managing the federal telework
centers, maintaining the mail list server for telework coordinators, and
offering technical support, consultation, research, and development to its
customers. Jointly, OPM and GSA manage the federal Web site for telework,
which was designed to provide information and guidance. The site provides
access for employees, managers, and telework coordinators to a range of
information related to telework, including announcements, guides, laws,
and available training.

Although agency telework policies meet common requirements and often share
some common characteristics, each agency is responsible for developing its
own policy to fit its mission and culture. According to OPM, most agencies
have specified occupations that are eligible for telework and most apply
employee performance-related criteria in considering authorizing telework
participation. In addition, OPM guidance states that eligible employees
should sign an employee telework agreement and be approved to participate
by their managers. The particular considerations in regard to these
requirements and procedures will differ among agencies.

Better Performance Measures and Program Evaluations Could Improve the Assessment
of Telework in the Federal Government

In our 2003 study of telework in the federal government,2 we identified 25
key practices that federal agencies should implement in developing their
telework programs. A full list of the key practices appears in appendix I.
Among those were several practices closely aligned with managing for
program results, including:

           o developing a business case for implementing a telework program;

           o establishing measurable telework program goals;

           o establishing processes, procedures, and/or a tracking system to
           collect data to evaluate the telework program; and

           o identifying problems and/or issues with the telework program and
           making appropriate adjustments.
			  
2GAO, Human Capital: Further Guidance, Assistance, and Coordination Can
Improve Federal Telework Efforts, [15]GAO-03-679 (Washington, D.C.: July
18, 2003).			  

           Yet, in our assessment of the extent to which four agencies--the
           Department of Education, GSA, OPM, and the Department of Veterans
           Affairs--followed the 25 key practices, we found these four
           practices to be among the least employed.

           In discussing the business case key practice in our 2003 study, we
           cited the International Telework Association and Council, which
           had stated that successful and supported telework programs exist
           in organizations that understand why telework is important to them
           and what specific advantages can be gained through implementation
           of a telework program. A business case analysis of telework can
           ensure that an agency's telework program is closely aligned with
           its own strategic objectives and goals. Such an approach can be
           effective in engaging management on the benefits of telework to
           the organization. For example, making a case for telework as a
           part of an agency's Continuity of Operations (COOP) plan can help
           organizations understand why they support telework, address
           relevant issues, minimize business risk, and make the investment
           when it supports their objectives. Through business case analysis,
           organizations have been able to identify cost reductions in the
           telework office environment that offset additional costs incurred
           in implementing telework and the most attractive approach to
           telework implementation. None of the four agencies we reviewed,
           however, had effectively implemented this practice.

           Moreover, none of the four agencies had established measurable
           telework program goals. As we noted in our report, OPM's May 2003
           telework guide3 discussed the importance of establishing program
           goals and objectives for telework that could be used in conducting
           program evaluations for telework in such areas as productivity,
           operating costs, employee morale, recruitment, and retention.
           However, even where measurement data are collected, they are
           incomplete or inconsistent among agencies, making comparisons
           meaningless. For example, in our 2005 report of telework programs
           in five agencies--the Departments of State, Justice, and Commerce;
           the Small Business Administration; and the Securities and Exchange
           Commission--measuring eligibility was problematic.4 Three of the
           agencies excluded employees in certain types of positions (e.g.,
           those having positions where they handle classified information)
           when counting and reporting the number of eligible employees,
           while two of the agencies included all employees in any type of
           position when counting and reporting the number of eligible
           employees, even those otherwise precluded from participating.
			  
3U.S. Office of Personnel Management, Telework: A Management Priority--A
Guide for Managers, Supervisors, and Telework Coordinators (Washington,
D.C.: May 2003).			  

           With regard to the third key practice aligned with managing for
           results--establishing processes, procedures and/or a tracking
           system to collect data to evaluate the telework program--in our
           2003 review we found that none of the four agencies studied were
           doing a survey specifically related to telework or had a tracking
           system that provided accurate participation rates and other
           information about teleworkers and the program. At that time, we
           observed that lack of such information not only impeded the
           agencies in identifying problems or issues related to their
           programs but also prevented them from providing OPM and Congress
           with complete and accurate data. Also, in our 2005 study at five
           agencies, we found that four of the five agencies measured
           participation in telework on the basis of their potential to
           telework rather than their actual usage. The fifth agency reported
           the number of participants based on a survey of supervisors who
           were expected to track teleworkers. According to OPM, most
           agencies report participation based on telework agreements, which
           can include both those for employees teleworking on a continuing
           basis as well as those for episodic telework. None of the five
           agencies we looked at had the capability to track who was actually
           teleworking or how frequently, despite the fact that the fiscal
           year 2005 consolidated appropriations act covering those agencies
           required each of them to provide a quarterly report to Congress on
           the status of its telework program, including the number of
           federal employees participating in its program. At that time, two
           of the five agencies said they were in the process of implementing
           time and attendance systems that could track telework
           participation, but had not yet fully implemented them. The other
           three agencies said that they did not have time and attendance
           systems with the capacity to track telework.
			  
4GAO, Agency Telework Methodologies: Departments of Commerce, Justice,
State, the Small Business Administration, and the Securities and Exchange
Commission, [16]GAO-05-1055R (Washington, D.C.: Sept . 27, 2005).

           Based on our findings, the following language was included for
           those five agencies in their fiscal year 2006 appropriations act's
           conference report:

           "The conferees are troubled that many of the agencies' telework
           programs do not even have a standardized manner in which to report
           participation. The conferees expect each of these agencies to
           implement time and attendance systems that will allow more
           accurate reporting."

           Despite this language, officials at four of the five agencies said
           that they have not yet developed such systems and are still
           measuring participation as they did in 2005. For the fifth
           agency--the Department of Justice (DOJ)--an official told us that
           the department has now implemented a Web-based time and attendance
           system in most bureaus and that this system allows DOJ to track
           actual telework participation in those bureaus. According to this
           official, the Federal Bureau of Investigation is the major
           exception, but DOJ is working towards having all bureaus use this
           system.

           As for the fourth key practice closely related to managing for
           program results--identifying problems and/or issues with the
           telework program and making appropriate adjustments--none of the
           four agencies we reviewed for our 2003 study had fully implemented
           this practice and one of the four had taken no steps to do so
           despite the importance of using data to evaluate and improve
           telework programs. An OPM official told us, for example, that she
           did not use the telework data she collected to identify issues
           with the program; instead, she relied on employees to bring
           problems to her attention.

           To help agencies better manage for results through telework
           programs, in our 2005 study, we said that Congress should
           determine ways to promote more consistent definitions and measures
           related to telework. In particular, we suggested that Congress
           might want to have OPM, working through the Chief Human Capital
           Officers Council, develop a set of terms, definitions, and
           measures that would allow for a more meaningful assessment of
           progress in agency telework programs. Some information could be
           improved by more consistent definitions, such as eligibility. Some
           information may take additional effort to collect, for example, on
           actual usage of telework. Some of this information may already be
           available through existing sources. The Federal Human Capital
           Survey, for example, which is administered biennially, asks
           federal employees about their satisfaction with telework. In the
           latest survey, only 22 percent indicated they were satisfied or
           very satisfied, while 44 percent indicated they had no basis to
           judge--certainly there seems to be room for improvement there. In
           any case, OPM and the Chief Human Capital Officers Council are
           well-situated to sort through these issues and consider what
           information would be most useful. The council and OPM could also
           work together on strategies for agencies to use the information
           for program improvements, including benchmarking.
			  
			  The Telework Enhancement Act of 2007, S. 1000, Addresses Key
			  Telework Issues, but Some Provisions Merit Additional Consideration

           S. 1000 is intended to enhance the existing legislative framework
           and provides that all employees of executive agencies are eligible
           for telework except in some circumstances related to an employee's
           duties and functions. In addition, the bill addresses the coverage
           of employees in the legislative and judicial branches and provides
           that within 1 year from the date of enactment, policies shall be
           established to allow such employees, unless otherwise excluded, to
           participate in telework to the maximum extent possible without
           diminishing employee performance or legislative or judicial branch
           operations. The bill further recognizes the importance of
           leadership in promoting an agency's telework program by requiring
           the appointment of a senior-level management official to perform
           several functions to promote and enhance telework opportunities.

           We have several observations to offer on the bill. As we have
           discussed with your staff, we have specific concerns about section
           5 of the bill, which would require GAO to establish and implement
           a rating system for agency compliance with and participation in
           telework initiatives and report the results. For executive branch
           agencies, we believe this function is more appropriately placed
           with OPM. A GAO rating system that does not have the benefit of a
           full GAO evaluation of the underlying information would raise
           concerns that our independence is compromised if we were asked at
           a future time to evaluate telework programs in the federal
           government. Accordingly, we have provided Committee staff with
           substitute language that would place these rating and report
           functions in OPM, the agency that is currently responsible for
           reporting on most telework activities and participation in the
           executive branch. Our substitute language would have the
           Comptroller General instead provide his views on the OPM report to
           the Senate Committee on Homeland Security and Governmental Affairs
           and the House Committee on Oversight and Government Reform within
           6 months of the report.

           We would also like to bring several other issues to your
           attention. The bill would extend coverage of these telework
           initiatives to the legislative and judicial branches. We suggest
           substituting a reference to "the head of each legislative branch
           entity" in sections 2(c)(3) and 4(a) of the bill so that the heads
           of the Library of Congress, the Government Printing Office, and
           GAO, for example, would be responsible for developing agency
           policies on telework, determining which employees are eligible for
           telework, and designating senior-level employees to serve as
           telework managing officers. This approach would be consistent with
           the coverage of the executive branch under the bill where the head
           of each agency would perform similar functions.

           With regard to the bill's requirement to appoint a telework
           managing officer in each executive branch agency, it is not clear
           how that employee's duties would relate to the duties of the
           agency officials currently designated as telework coordinators
           pursuant to the provisions of section 627 of Public Law No.
           108-199. Another provision of the bill would define telework as
           occurring on at least 2 business days per week, leaving unclear
           how this would relate to the broader definitions of telework
           currently defined in existing legislation and OPM guidance, which
           includes episodic or occasional instances. It is also unclear
           whether the bill intends to allow agencies to consider employee
           performance in making telework eligibility decisions. Current
           legislation and agency practice requires employees to be
           performing satisfactorily.

           The bill also provides for "productivity awards" for teleworking
           employees, but it is not clear whether nonteleworking employees
           would also be eligible to receive productivity awards and would be
           evaluated on the same performance standards. We would note that
           one of the key practices identified in our 2003 report was
           ensuring that the same performance standards are used to evaluate
           both teleworkers and nonteleworkers. The perception that care had
           not been taken to establish fair and equitable eligibility
           criteria could present performance and morale issues. Finally, the
           bill includes among the duties of the telework managing officer
           assisting the head of the agency in designating employees to
           telework in order to continue agency operations in the event of a
           major disaster as defined under the Stafford Act, 42 U.S.C. S
           5122. We would note, however, that telework can be effective in a
           variety of emergency conditions not limited to those emergencies
           defined under the Stafford Act. For example, we reported that
           GAO's telework capability was significant to assisting the House
           of Representatives and minimizing the disruption to its own
           operations when anthrax bacteria were released on Capitol Hill in
           2001.5

5GAO, Human Capital: Opportunities to Improve Federal Continuity Planning
Guidance, [17]GAO-04-384 (Washington, D.C.: April 20, 2004).

           In conclusion, telework is a key strategy to accomplish a variety
           of federal purposes. Telework is an investment in both an
           organization's people and the agency's capacity to perform its
           mission. We continue to believe that OPM and the Chief Human
           Capital Officers Council are well-positioned to help agencies
           better manage for results through telework. Mr. Chairman and
           members of the subcommittee, this completes my statement. I would
           be pleased to respond to any questions that you might have.
			  
			  Contacts and Acknowledgements

           For further information on this testimony, please contact Bernice
           Steinhardt, Director, Strategic Issues, (202) 512-6806 or at
           [8]steinhardtb@gao.gov . Individuals making key contributions to
           this testimony include William J. Doherty, Joyce D. Corry, Allen
           Lomax, and Michael Volpe.
			  
			  Appendix I: Key Telework Practices for Implementation of Successful
           Federal Telework Programs
			  
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www.gao.gov/cgi-bin/getrpt? [18]GAO-07-1002T .

To view the full product, including the scope

and methodology, click on the link above.

For more information, contact Bernice Steinhardt at (202) 512-6806 or
steinhardtb@gao.gov.

Highlights of [19]GAO-07-1002T , a testimony before the Subcommittee on
Oversight of Government Management, the Federal Workforce, and the
District of Columbia, Committee on Homeland Security and Governmental
Affairs, U.S. Senate

June 12, 2007

HUMAN CAPITAL

Greater Focus on Results in Telework Programs Needed

Telework continues to receive attention within Congress and federal
agencies as a human capital strategy that offers various flexibilities to
both employers and employees, including the capacity to continue
operations during emergency events, as well as benefits to society, such
as decreased energy use and pollution.

This statement highlights some of GAO's prior work on federal telework
programs, including key practices for successful implementation of
telework initiatives, identified in a 2003 GAO report and a 2005 GAO
analysis of telework program definitions and methods in five federal
agencies. In addition, the statement discusses GAO observations on the
Telework Enhancement Act of 2007, S. 1000.

[20]What GAO Recommends

This statement makes no new recommendations but reiterates that Congress
should determine ways to promote more consistent telework definitions and
measures. In particular, Congress might want to have the Office of
Personnel Management (OPM) and the Chief Human Capital Officers Council
develop definitions and measures that would allow for a more meaningful
assessment of progress in agency telework programs.

Through a number of legislative actions, Congress has indicated its desire
that agencies create telework programs to accomplish a number of positive
outcomes. Many of the current federal programs were developed in response
to a 2000 law that required each executive branch agency to establish a
telework policy under which eligible employees may participate in
telecommuting to the maximum extent possible without diminishing employee
performance. The legislative framework has provided the OPM and the
General Services Administration (GSA) with lead roles for the
governmentwide telework initiative, providing services and resources to
support and encourage telework. Although agency telework policies meet
common requirements and often share characteristics, each agency is
responsible for developing its own policy to fit its mission and culture.

In a 2003 report, GAO identified a number of key practices that federal
agencies should implement in developing their telework programs. Four of
these were closely aligned with managing for program results: (1)
developing a business case for telework, (2) establishing measurable
telework program goals, (3) establishing systems to collect data for
telework program evaluation, and (4) identifying problems and making
appropriate adjustments. None of the four agencies we reviewed, however,
had effectively implemented any of these practices. In a related review of
five other agencies in 2005, GAO reported that none of the agencies had
the capability to track who was actually teleworking or how frequently,
relying mostly on the number of telework agreements as the measure of
program participation.

S. 1000 is intended to enhance the existing legislative framework and
provides that all employees of the executive, judicial, and legislative
branches are eligible for telework except in some circumstances related to
an employee's duties and functions. The bill also recognizes the
importance of leadership in promoting an agency's telework program by
requiring the appointment of a senior-level management official to perform
several functions to promote and enhance telework opportunities. GAO's
statement suggests changes to the assignment of responsibilities for
rating and reporting along with changes to make the responsibilities for
heads of agency and entities in the legislative and judicial branches more
consistent with those of executive branch officials. The statement also
points out several provisions of S. 1000 that are not clear in relation to
existing legislation.

References

Visible links
7. http://www.gao.gov/cgi-bin/getrpt?GAO-04-950T
8. mailto:steinhardtb@gao.gov
9. http://www.gao.gov/
  10. http://www.gao.gov/
  11. http://www.gao.gov/fraudnet/fraudnet.htm
  12. mailto:fraudnet@gao.gov
  13. mailto:JarmonG@gao.gov
  14. mailto:AndersonP1@gao.gov
  15. http://www.gao.gov/cgi-bin/getrpt?GAO-03-679
  16. http://www.gao.gov/cgi-bin/getrpt?GAO-05-1055R
  17. http://www.gao.gov/cgi-bin/getrpt?GAO-04-384
  18. http://www.gao.gov/cgi-bin/getrpt?GAO-07-1002T
  19. http://www.gao.gov/cgi-bin/getrpt?GAO-07-1002T
*** End of document. ***