Human Capital: Federal Workforce Challenges in the 21st Century
(06-MAR-07, GAO-07-556T).
The federal government is facing new and more complex challenges
in the 21st century because of long-term fiscal constraints,
changing demographics, evolving governance models, and other
factors. Strategic human capital management, which remains on
GAO's high-risk list, must be the centerpiece of any serious
change management and transformation effort to meet these
challenges. However, federal agencies do not consistently have
the modern, effective, economical, and efficient human capital
programs, policies, and procedures needed to succeed in their
transformation efforts. In addition, the Office of Personnel
Management (OPM) must have the capacity to successfully guide
human capital transformations. This testimony, based on a large
body of GAO work over many years, focuses on strategic human
capital management challenges that many federal agencies continue
to face.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-07-556T
ACCNO: A66484
TITLE: Human Capital: Federal Workforce Challenges in the 21st
Century
DATE: 03/06/2007
SUBJECT: Agency missions
Employee retention
Employees
Federal agency reorganization
Hiring policies
Human capital
Human capital management
Human capital planning
Performance management
Policy evaluation
Retirement
Staff utilization
Strategic planning
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GAO-07-556T
* [1]Sustained Leadership Is Essential to Successful Transformati
* [2]Strategic Human Capital Planning Is Critical to Agencies' Tr
* [3]Acquiring, Developing, and Retaining Talent Remains a Federa
* [4]Results-Oriented Organizational Culture Is Key to High-Perfo
* [5]Contact and Acknowledgments
* [6]Order by Mail or Phone
Testimony
Before the Subcommittee on Financial Services and General Government,
Committee on Appropriations, House of Representatives
United States Government Accountability Office
GAO
For Release on Delivery Expected at 10:00 a.m. EDT
Tuesday, March 6, 2007
HUMAN CAPITAL
Federal Workforce Challenges in the 21st Century
Statement of J. Christopher Mihm
Managing Director, Strategic Issues
GAO-07-556T
Chairman Serrano and Members of the Subcommittee:
Thank you for the opportunity to be here today to discuss challenges in
the management of today's federal workforce. Driven by long-term fiscal
constraints, changing demographics, evolving governance models, and other
factors, the federal government is facing new and more complex challenges
in the 21st century and federal agencies must transform their
organizations to meet these challenges. Strategic human capital management
must be the centerpiece of any serious change management strategy. In
2001, we identified human capital management as a governmentwide high-risk
area because federal agencies lacked a strategic approach to human capital
management that integrated human capital efforts with their missions and
program goals.^1 Although progress has been made, the area remains on our
most recent high-risk list because there is still the need for a
governmentwide framework to advance human capital reform. This framework
is essential to avoid further fragmentation within the civil service,
ensure management flexibility as appropriate, allow a reasonable degree of
consistency, provide adequate safeguards, and maintain a level playing
field among agencies competing for talent.^2
Federal agencies do not always have the right people in the right jobs at
the right time to meet the challenges they face. Today and in the near
term, the federal government is facing a retirement wave and with it the
loss of leadership and institutional knowledge at all levels. Agencies not
only face a fiercely competitive market for talent but hiring is also
affected by uncompetitive salaries in some critical occupations and
lengthy hiring processes. Federal employees also operate in a culture
where there is often not a clear line of sight between individual effort
and organization results. Of particular concern, federal agencies do not
consistently have the modern, effective, economical, and efficient human
capital programs, policies, and procedures they need to succeed in their
transformation efforts. As the government's human capital leader, the
Office of Personnel Management (OPM) has a key role in helping executive
branch agencies build the needed infrastructure to support their
transformation efforts. At the request of the Chairman and Ranking
Minority Member of the Senate Committee on Homeland Security and
Governmental Affairs and the Chairman and Ranking Minority Member of the
Subcommittee on Oversight of Government Management, the Federal Workforce,
and the District of Columbia, Senate Committee on Homeland Security and
Governmental Affairs, we are undertaking a body of work examining OPM's
internal capacity to lead and implement governmentwide human capital
reform.
^1GAO, High-Risk Series: An Update, [7]GAO-01-263 (Washington, D.C.:
January 2001).
^2GAO, High-Risk Series: An Update, [8]GAO-07-310 (Washington, D.C.:
January 2007).
My remarks today, based on a large body of GAO work over many years, will
focus on the strategic human capital management challenges that agencies
continue to face in four key areas:
o Leadership: Top leadership in the agencies must provide the
committed and inspired attention needed to address human capital
and related organization transformation issues. In addition, OPM,
as the government's human capital leader, must have the internal
capacity to lead agencies' efforts.
o Strategic Human Capital Planning: Agencies' human capital
planning efforts need to be fully integrated with mission and
critical program goals. Too often, agencies do not have the
components of strategic human capital planning needed to address
their current and emerging challenges.
o Acquiring, Developing, and Retaining Talent: Augmented efforts
are needed to improve recruiting, hiring, professional
development, and retention strategies to ensure that agencies have
the needed talent. Agencies need to ensure that they are using
flexibilities available to them to recruit and hire top talent and
to address the current and emerging demographic challenges facing
the government.
o Results-Oriented Organizational Cultures: Organizational
cultures need to promote high performance and accountability and
empower and include employees in setting and accomplishing
programmatic goals. In many cases, the federal government has not
transformed how it classifies, compensates, develops, and
motivates its employees to achieve maximum results within
available resources and existing authorities. Congress has
recently taken important steps in this direction by providing the
Departments of Defense (DOD) and Homeland Security (DHS) with
authorities intended to help them manage their people more
strategically.
Agencies not only face these challenges in moving forward but do
so during a period of likely sustained budget constraints.
However, budget constraints should not be viewed as an
insurmountable obstacle to needed human capital reform. Rather,
tighter budgets will require agencies to plan their
transformations more strategically, prioritize their needs,
evaluate results, allocate their resources more carefully, and
react to workforce challenges more expeditiously in order to
achieve their missions economically, efficiently, and effectively.
Although human capital reforms often require an investment of
budgetary resources, many of these costs are one-time in nature
that can pay future dividends through more efficient agency
operations. In the current fiscal environment, Congress will need
to scrutinize agencies' transformation plans, capabilities, and
measurable results to make informed funding decisions.
Sustained Leadership Is Essential to Successful Transformations
Leadership in agencies across the federal government is essential
to providing the accountable, committed, consistent, and sustained
attention needed to address human capital and related organization
transformation issues. Leaders must not only embrace reform, they
must integrate the human capital function into their agencies'
core planning and business activities. Senior executive leadership
is especially key today as the federal government faces
significant reform challenges. OPM's 2006 Federal Human Capital
Survey (FHCS) results showed that the government needs to
establish a more effective leadership corps.^3 For example,
slightly less than half of employees responding to the survey
reported a high level of respect for their senior leaders or are
satisfied with the information they receive from management on
what is going on in the organization. Similarly, only 38 percent
of respondents agreed or strongly agreed with the statement that
leaders in their organization generate high levels of motivation
and commitment in the workforce. This represents little change
from the 2004 survey when 37 percent of respondents had positive
responses to this question. However, a majority of respondents, 58
percent, agreed or strongly agreed that managers communicate the
goals and priorities of the organization. This level of response
is essentially the same as the 2004 survey when 59 percent of
respondents provided a positive response to this item.
OPM plays a key role in fostering and guiding improvements in all
areas of strategic human capital management in the executive
branch. As part of its key leadership role, OPM can assist--and as
appropriate, require--the building of the infrastructures within
agencies needed to successfully implement and sustain human
capital reforms and related initiatives. OPM can do this in part
by encouraging continuous improvement and providing appropriate
assistance to support agencies' efforts. For example, OPM has
exerted human capital leadership through its Human Capital
Scorecard of the President's Management Agenda to assist agencies
in improving strategic management of their human capital. Also,
OPM has developed the governmentwide FHCS to assist agencies and
OPM in better understanding specific and governmentwide agency
workforce management conditions and practices in the areas of
leadership, performance culture, and talent. Most recently, OPM
began a television campaign to promote federal employment and has
undertaken a greater focus on succession planning to respond to
the forthcoming federal retirement wave.
However, in leading governmentwide human capital reform, OPM has
itself faced challenges in its capacity to assist, guide, and
certify agencies' readiness to implement reforms. We recently
reported that OPM has made commendable efforts in transforming
itself from less a rulemaker, enforcer, and independent agent to
more a consultant, toolmaker and strategic partner in leading and
supporting executive agencies' human capital management systems.^4
We also reported on OPM's leadership of transformation efforts.
Using the new senior executive performance-based pay system and
other recent human capital reform initiatives as a model for
understanding OPM's capacity to lead and implement future human
capital reforms, we identified seven key lessons learned, which
are (1) ensure internal OPM capacity to lead and implement reform,
(2) ensure that executive branch agencies' infrastructures support
reform, (3) collaborate with the Chief Human Capital Officer
(CHCO) council, (4) develop clear and timely guidance, (5) share
best practices, (6) solicit and incorporate feedback, and (7)
track progress to ensure accountability. In addition to the
lessons learned that can be applied to future human capital
reforms, we recommended, among other things, that OPM (1) improve
its capacity for future reforms by reexamining its own agencywide
skills and (2) address issues specific to senior executive pay
systems, such as sharing best practices and tracking progress
towards goals. OPM has said that it has made progress toward
achieving its operational and strategic goals.^5
Equally important is OPM's leadership in federal workforce
diversity and oversight of merit system principles. In our review
of how OPM and the Equal Employment Opportunity Commission (EEOC)
carry out their mutually shared responsibilities for helping to
assure a fair, inclusive, and nondiscriminatory federal workplace,
we found limited coordination between the two agencies in policy
and oversight matters.^6 The lack of a strategic partnership
between the two agencies and an insufficient understanding of
their mutual roles, authority, and responsibilities can result in
a lost opportunity to realize consistency, efficiency, and public
value in federal equal employment opportunity and workplace
diversity human capital management practices. We recommended that
OPM and EEOC regularly coordinate in carrying out their
responsibilities under the equal employment opportunity policy
framework and seek opportunities for streamlining like reporting
requirements. Both agencies acknowledged that their collaborative
efforts could be strengthened but took exception to the
recommendation to streamline requirements. We continue to believe
in the value of more collaboration. As of August of last year, the
two agencies had begun discussions on ways to increase
coordination.
Strategic Human Capital Planning Is Critical to Agencies�
Transformation
Strategic human capital planning is the centerpiece of federal
agencies' efforts to transform their organizations to meet the
governance challenges of the 21st century. Generally, strategic
workforce planning addresses two critical needs: (1) aligning an
organization's human capital program with its current and emerging
mission and programmatic goals and (2) developing long-term
strategies for acquiring, developing, motivating, and retaining
staff to achieve programmatic goals. The long-term fiscal outlook
and challenges to governance in the 21st century are prompting
fundamental reexaminations of what government does, how it does
it, and who does it. Strategic human capital planning that is
integrated with broader organizational strategic planning is
critical to ensuring agencies have the talent they need for future
challenges.
An agency's strategic human capital plan should address the
demographic trends that the agency faces with its workforce,
especially pending retirements. In 2006, OPM reported that
approximately 60 percent of the government's 1.6 million
white-collar employees and 90 percent of about 6,000 federal
executives will be eligible for retirement over the next 10 years.
We have found that leading organizations go beyond a succession
planning approach that focuses on simply replacing individuals and
engage in broad, integrated succession planning and management
efforts that focus on strengthening both current and future
organizational capacity to obtain or develop the knowledge,
skills, and abilities they need to meet their missions.^7 For
example, about one third of the Nuclear Regulatory Commission's
(NRC) workforce with mission-critical skills will be eligible to
retire by 2010.^8 At the same time, NRC's workforce needs to
expand because NRC expects to receive applications for new nuclear
power reactors beginning in October 2007. Although there is room
for further improvement, we found that NRC's human capital
planning framework is generally aligned with its strategic goals
and coherently identifies the activities needed to achieve a
diverse, skilled workforce and an infrastructure that fully
supports the agency's mission and goals. The agency's framework
included using its human capital authorities, developing a
critical skills and gaps inventory tool, and using targets and
measures to monitor the composition of its hires and separations.
NRC has been effective in recruiting, developing, and retaining a
critically skilled workforce, though it is unclear if this trend
will continue in the next few years.
We also have reported in recent years on a number of human capital
issues that have hampered the Department of State's ability to
carry out U.S. foreign policy priorities and objectives,
particularly at posts central to the war on terror.^9 For example,
the department initiated a number of efforts to improve its
foreign language capabilities. However, it has not systematically
evaluated the effectiveness of these efforts, and it continues to
experience difficulties filling its language-designated positions
with language proficient staff. We reported that these gaps in
language proficiency can adversely affect the department's ability
to communicate with foreign audiences and execute critical duties.
Another example of the government's strategic human capital
planning challenges involves its acquisition workforce. The
government increasingly relies on contractors for roles and
missions previously performed by government employees. Acquisition
of products and services from contractors consumes about a quarter
of discretionary spending governmentwide and is a key function in
many federal agencies. We reported in 2003 that because of a more
sophisticated business environment, most acquisition professionals
would need to acquire a new set of skills focusing on business
management.^10 In a forum hosted by the Comptroller General in
July 2006, acquisition experts reported that agency leaders have
not recognized or elevated the importance of the acquisition
profession within their organizations, and a strategic approach
has not been taken across government or within agencies to focus
on workforce challenges, such as creating a positive image
essential to successfully recruit and retain a new generation of
talented acquisition professionals.^11
Acquiring, Developing, and Retaining Talent Remains a Federal
Workforce Challenge
Faced with a workforce that is becoming more retirement-eligible
and finding gaps in talent because of changes in the knowledge,
skills, and competencies in occupations needed to meet their
missions, agencies need to strengthen their efforts and use of
available flexibilities to acquire, develop, motivate, and retain
talent.
A chronic complaint about the federal hiring process is its
lengthy procedures, which puts the federal government at a
competitive disadvantage. In recent years, Congress, OPM, and
agencies have taken significant steps to streamline the hiring
process. For example, Congress has provided agencies with
flexibilities such as the use of categorical rating and exemptions
from the pay and classification restrictions of the General
Schedule. OPM's efforts included improvements to the USAJOBS Web
site as well as other measures, such as job fairs and television
commercials, to make the public more aware of the work federal
employees do. OPM has also established a model 45-day hiring
program--the time-to-hire period from the date a vacancy
announcement closes to the date a job offer is extended. In
addition, OPM has developed a Hiring Tool Kit on its website to
help agencies improve their hiring processes. Moreover, OPM
assists agencies on the use of student employment program
flexibilities, which can expedite the hiring process and lead to
noncompetitive conversion to permanent employment. Our work,
however, has found that agencies' use of the tools and
flexibilities that Congress has provided has been uneven.^12 OPM
has made some progress in assessing how agencies are using their
hiring flexibilities and authorities. For example, in January of
this year, we reported that OPM began working with a contractor in
2005 to review hiring flexibilities and authorities to determine
which ones are used and not used, who is using them, and when and
how they are being used.^13 As a result of its work with the
contractor, OPM plans to survey eight CHCO Council agencies to
evaluate the use and effectiveness of hiring authorities and
flexibilities and use the results to improve policies in these
areas. This is a positive step on OPM's part as we continue to
believe that more needs to be done to provide information to help
agencies meet these human capital needs.
Developing and maintaining workforces that reflect all segments of
society and our nation's diversity is a key part of agencies'
recruitment challenge. For example, the National Aeronautics and
Space Administration (NASA) said it must compete with the private
sector for the pool of Hispanics qualified for aerospace
engineering positions, which is often attracted by more-lucrative
employment opportunities in the private sector in more preferable
locations.^14 To address the situation, part of NASA's strategy in
recruiting Hispanics focuses on increasing educational attainment,
beginning in kindergarten and continuing into college and graduate
school, with the goal of attracting students into the NASA
workforce and aerospace community. NASA centers sponsor, and its
employees participate in, mentoring, tutoring, and other programs
to encourage Hispanic and other students to pursue careers in
science, engineering, technology, and math. NASA also developed a
scholarship program designed to stimulate a continued interest in
science, technology, engineering, and mathematics. Another example
is the U.S. Air Force "Grow Your Own" aircraft maintenance program
at three of its Texas bases. In partnership with
vocational-technical schools, the program includes both on-the-job
training and classroom education to provide a pool of trained
candidates, including Hispanics, to replace retiring federal
civilian aircraft maintenance workers.
In addition to hiring, agencies need to have effective training
and development programs to address gaps in the skills and
competencies that they identified in their workforces. We have
issued guidance that introduces a framework, consisting of a set
of principles and key questions that federal agencies can use to
ensure that their training and development investments are
targeted strategically and are not wasted on efforts that are
irrelevant, duplicative, or ineffective.^15 Training and
developing new and current staff to fill new and different roles
will play a crucial part in the federal government's endeavors to
meet its transformation challenges. Of some concern, however, is
the 2006 FHCS, which showed about half, or 54 percent, of
respondents were very satisfied or satisfied with the training
they receive on their current jobs, little change from the 2004
survey, which showed 55 percent had positive responses to this
question.
Results-Oriented Organizational Culture Is Key to High-Performing
Agencies
High-performing organizations have found that to successfully
transform themselves they must often fundamentally change their
cultures so that they are more results-oriented, customer-focused,
and collaborative in nature. An effective performance management
system is critical to achieving this vital cultural
transformation. Effective performance management systems are not
merely used for once- or twice-yearly individual expectation
setting and rating processes, but are tools to help the
organization manage on a day-to-day basis. These systems are used
to achieve results, accelerate change, and facilitate two-way
communication throughout the year so that discussions about
individual and organizational performance are integrated and
ongoing. Moreover, leading public sector organizations both in the
United States and abroad create a clear linkage--line of
sight--between individual performance and organizational success
and, thus, transform their cultures to be more results-oriented,
customer-focused, and collaborative in nature.^16
The government's senior executives need to lead the way in
transforming their agencies' cultures. Credible performance
management systems that align individual, team, and unit
performance with organizational results can help manage and direct
this process. The performance-based pay system that Congress
established in November 2003 for members of the senior executive
service (SES) seeks to provide a clear and direct linkage between
performance and pay for the government's senior executives and is
an important step toward governmentwide transformation.^17 Under
this performance based pay system, senior executives no longer
receive annual across-the-board pay increases or locality-pay
adjustments. Executive branch agencies are to now base pay
adjustments for senior executives on individual performance and
contributions to agency performance through an evaluation of their
skills, qualifications, or competencies as well their current
responsibilities.^18
Just as it has for senior executives, the federal government needs
to fundamentally rethink its current approach to paying
nonexecutive employees by better linking their pay to individual
and organizational performance. Today's jobs in knowledge-based
organizations require a much broader array of tasks that may cross
the narrow and rigid boundaries of job classifications of the
General Schedule system. Since being exempted from the General
Schedule system, DOD and DHS have been moving toward occupational
clusters and pay bands that better define occupations and
facilitate movement toward performance management systems that
create a line of sight between performance and organizational
results, make meaningful differences in performance, and
appropriately reward those who perform at the highest levels.
The results of the 2006 FHCS underscore the need for serious
attention to the way federal employees are assessed and
compensated. About a third, or 34 percent, of the respondents
strongly agreed or agreed with the statement that promotions in
their work units are based on merit. When respondents were asked
if pay raises in their work units depend on how well employees
perform their jobs, only 22 percent responded positively. These
responses are consistent with past survey results. Further,
somewhat less than a third of the survey respondents had a
positive response to the question about whether their leadership
and management recognized differences in performance in a
meaningful way. High-performing organizations have found that
actively involving employees and key stakeholders, such as unions
and other employee associations, helps gain ownership of new
performance management systems and improves employees' confidence
and belief in the fairness of the systems. In addition, adequate
safeguards need to be built into the performance management system
to ensure fairness and to guard against abuse. Using safeguards,
such as having an independent entity conduct reasonableness
reviews of performance management decisions can help allay
concerns and build a fair, credible, and transparent system.
In summary, Mr. Chairman, we need to continue to move forward with
appropriate human capital reforms. But how reform is done, when it
is done, and the basis on which it is done can make all the
difference in whether such efforts are successful. Before
implementing significant human capital reforms, especially reforms
that make stronger links between employee pay and performance,
executive branch agencies should follow a phased approach that
meets a "show me" test. That is, each agency should be authorized
to implement reform only after it has shown that it has met
certain conditions, including having the institutional
infrastructure to effectively and fairly implement any new
authorities.
Mr. Chairman and Members of the Subcommittee, this completes my
prepared statement. I would be pleased to respond to any questions
you or others may have at this time.
Contact and Acknowledgments
For further information regarding this statement, please contact
J. Christopher Mihm, Managing Director, Strategic Issues, at (202)
512-6806, or [email protected]. Individuals making key contributions
to this testimony include Anthony P. Lofaro, Assistant Director;
Ami J. Ballenger; Thomas M. Beall; Crystal M. Bernard; William
Doherty; Karin K. Fangman; and Anthony R. Patterson.
^3Office of Personnel Management, 2006 Federal Human Capital Survey:
Results from the 2006 Federal Human Capital Survey (Washington, D.C.: Jan.
17, 2007). The survey involved a sample of full-time, permanent employees
from agencies making up 97 percent of the executive branch workforce, with
the results generalizable to the population covered by the survey.
^4GAO, Office of Personnel Management: Key Lessons Learned to Date for
Strengthening Capacity to Lead and Implement Human Capital Reforms,
[15]GAO-07-90 (Washington, D.C.: Jan. 19, 2007).
^5 [16]GAO-07-90 .
^6GAO, Equal Employment Opportunity: Improved Coordination Needed between
EEOC and OPM in Leading Federal Workplace EEO, [17]GAO-06-214 (Washington,
D.C.: June 16, 2006).
^7GAO, Human Capital: Succession Planning and Management Is Critical
Driver of Organizational Transformation, [18]GAO-04-127T (Washington,
D.C.: Oct. 1, 2003).
^8GAO, Human Capital: Retirements and Anticipated New Reactor Applications
Will Challenge NRC's Workforce, [19]GAO-07-105 (Washington, D.C.: Jan. 17,
2007).
^9GAO, Department of State: Staffing and Foreign Language Shortfalls
Persist Despite Initiatives to Address Gaps, [20]GAO-06-894 (Washington,
D.C.: Aug. 4, 2006).
^10GAO, Acquisition Workforce: Status of Agency Efforts to Address Future
Needs, [21]GAO-03-55 (Washington, D.C.: Jan. 17, 2003).
^11GAO, Highlights of a GAO Forum: Federal Acquisition Challenges and
Opportunities in the 21st Century, [22]GAO-07-45SP (Washington, D.C.: Oct.
6, 2006).
^12GAO, Human Capital: Increasing Agencies' Use of New Hiring
Flexibilities, [23]GAO-04-959T (Washington, D.C.: July 13, 2004).
^13 [24]GAO-07-90 .
^14GAO, The Federal Workforce: Additional Insights Could Enhance Agency
Efforts Related to Hispanic Representation, [25]GAO-06-832 (Washington,
D.C.: Aug. 17, 2006).
^15GAO, Human Capital: A Guide for Assessing Strategic Training and
Development Efforts in the Federal Government, [26]GAO-04-546G
(Washington, D.C.: Mar. 1, 2004).
^16GAO, Results-Oriented Cultures: Creating a Clear Linkage between
Individual Performance and Organizational Success, [27]GAO-03-488
(Washington, D.C.: Mar. 14, 2003).
^17Pub. L. No. 108-136, S 1125, 117 Stat. 1392, 1638 (Nov. 24, 2003).
^18GAO, Human Capital: Aligning Senior Executives' Performance with
Organizational Results Is an Important Step Toward Governmentwide
Transformation, [28]GAO-06-1125T (Washington, D.C.: Sept. 26, 2006).
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Highlights of [30]GAO-07-556T , a testimony before the Subcommittee on
Financial Services and General Government, Committee on Appropriations,
House of Representatives
March 6, 2007
HUMAN CAPITAL
Federal Workforce Challenges in the 21st Century
The federal government is facing new and more complex challenges in the
21st century because of long-term fiscal constraints, changing
demographics, evolving governance models, and other factors. Strategic
human capital management, which remains on GAO's high-risk list, must be
the centerpiece of any serious change management and transformation effort
to meet these challenges. However, federal agencies do not consistently
have the modern, effective, economical, and efficient human capital
programs, policies, and procedures needed to succeed in their
transformation efforts. In addition, the Office of Personnel Management
(OPM) must have the capacity to successfully guide human capital
transformations. This testimony, based on a large body of GAO work over
many years, focuses on strategic human capital management challenges that
many federal agencies continue to face.
[31]What GAO Recommends
This testimony underscores recommendations made to OPM in January 2007 to
improve its capacity for future reforms. OPM has said it has made progress
toward achieving its operational and strategic goals. In addition, this
testimony serves as a guide to Congress as it scrutinizes agencies'
transformation plans, capabilities, and measurable results to make
informed funding decisions during a period of likely sustained budget
constraints.
Federal agencies continue to face strategic human capital challenges in:
Leadership: Top leadership in agencies across the federal government must
provide committed and inspired attention needed to address human capital
and related organizational transformation issues. However, slightly less
than half of respondents to the 2006 Federal Human Capital Survey reported
a high level of respect for senior leaders while only 38 percent agreed or
strongly agreed that leaders in their organizations generate high levels
of motivation and commitment in the workforce.
Strategic Human Capital Planning: Strategic human capital planning that is
integrated with broader organizational strategic planning is critical to
ensuring agencies have the talent they need for future challenges,
especially as the federal government faces a retirement wave. Too often,
agencies do not have the components of strategic human capital planning
needed to address their current and emerging human capital challenges.
Acquiring, Developing, and Retaining Talent: Faced with a workforce that
is becoming more retirement eligible and finding gaps in talent, agencies
need to strengthen their efforts and use of available flexibilities to
acquire, develop, motivate, and retain talent. Agencies are not uniformly
using available flexibilities to recruit and hire top talent and to
address the current and emerging demographic challenges facing the
government.
Results-Oriented Organizational Culture: Leading organizations create a
clear linkage--"line of sight"--between individual performance and
organizational success and, thus, transform their cultures to be more
results-oriented, customer-focused, and collaborative. However, in many
cases, the federal government does not have these linkages and has not
transformed how it classifies, compensates, develops, and motivates its
employees to achieve maximum results within available resources and
existing authorities.
Agencies are facing strategic human capital challenges in a period of
likely sustained budget constraints. Budget constraints will require
agencies to plan their transformations more strategically, prioritize
their needs, evaluate results, allocate their resources more carefully,
and react to workforce challenges more expeditiously in order to achieve
their missions economically, efficiently, and effectively.
OPM will continue to play a key role in fostering and guiding strategic
human capital management improvements in the executive branch and in
helping agencies meet transformation challenges. Although making
commendable efforts in transforming itself to more a consultant,
toolmaker, and strategic partner in leading and supporting agencies' human
capital management systems, OPM has itself faced challenges in its
capacity to assist, guide, and certify agencies' readiness to implement
reforms.
References
Visible links
7. http://www.gao.gov/cgi-bin/getrpt?GAO-01-263
8. http://www.gao.gov/cgi-bin/getrpt?GAO-07-310
15. http://www.gao.gov/cgi-bin/getrpt?GAO-07-90
16. http://www.gao.gov/cgi-bin/getrpt?GAO-07-90
17. http://www.gao.gov/cgi-bin/getrpt?GAO-06-214
18. http://www.gao.gov/cgi-bin/getrpt?GAO-04-127T
19. http://www.gao.gov/cgi-bin/getrpt?GAO-07-105
20. http://www.gao.gov/cgi-bin/getrpt?GAO-06-894
21. http://www.gao.gov/cgi-bin/getrpt?GAO-03-55
22. http://www.gao.gov/cgi-bin/getrpt?GAO-07-45SP
23. http://www.gao.gov/cgi-bin/getrpt?GAO-04-959T
24. http://www.gao.gov/cgi-bin/getrpt?GAO-07-90
25. http://www.gao.gov/cgi-bin/getrpt?GAO-06-832
26. http://www.gao.gov/cgi-bin/getrpt?GAO-04-546G
27. http://www.gao.gov/cgi-bin/getrpt?GAO-03-488
28. http://www.gao.gov/cgi-bin/getrpt?GAO-06-1125T
30. http://www.gao.gov/cgi-bin/getrpt?GAO-07-556T
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