Human Capital: Telework Programs Need Clear Goals and Reliable	 
Data (06-NOV-07, GAO-08-261T).					 
                                                                 
Telework continues to receive attention within Congress and	 
federal agencies as a human capital strategy that offers various 
flexibilities to both employers and employees. Increasingly	 
recognized as an important means to achieving a number of federal
goals, telework offers greater capability to continue operations 
during emergency events, as well as affording environmental,	 
energy, and other benefits to society. 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. It also notes more recent work where agency	 
officials cite their telework programs as yielding benefits. As  
GAO has previously recommended, 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.	 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-261T					        
    ACCNO:   A78008						        
  TITLE:     Human Capital: Telework Programs Need Clear Goals and    
Reliable Data							 
     DATE:   11/06/2007 
  SUBJECT:   Data collection					 
	     Data integrity					 
	     Employees						 
	     Executive agencies 				 
	     Federal agencies					 
	     Federal employees					 
	     Human capital					 
	     Program evaluation 				 
	     Program management 				 
	     Requirements definition				 
	     Telecommuting					 
	     Government agency oversight			 
	     Program goals or objectives			 

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GAO-08-261T

   

     * [1]Congress Has Established a Statutory Framework to Promote Ag
     * [2]Better Performance Measures and Program Evaluations Could Im
     * [3]Contacts and Acknowledgments
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Testimony

Before the Subcommittee on Federal Workforce, Postal Service, and the
District of Columbia, Committee on Oversight and Government Reform, House
of Representatives

United States Government Accountability Office

GAO

For Release on Delivery
Expected at 10:00 a.m. EST
Tuesday, November 6, 2007

HUMAN CAPITAL

Telework Programs Need Clear Goals and Reliable Data

Statement of Bernice Steinhardt, Director
Strategic Issues

GAO-08-261T

Mr. Chairman and Members of the Subcommittee:

I am pleased to be here today to discuss our observations of federal
telework programs based on our past work, particularly those practices
that are closely aligned with managing for program results. Telework 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. However, in the absence of clear program goals
and reliable data, agencies cannot identify problems or issues with their
programs and cannot develop and implement changes necessary to improve
their success.

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 application of
telework provisions to the federal workforce, and even withholding funds
from some agencies that fail to show progress.

My statement today will describe first, the statutory framework that
drives the agency telework programs and processes. I will also share
observations from our past work that pertain to four key practices related
to managing for results and our findings regarding the extent to which
agencies have implemented them.

My comments are based on previously issued GAO reports that were developed
in accordance with generally accepted government auditing standards. 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. It also notes more recent work where agency officials cite their
telework programs as yielding benefits.

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 most significant congressional action related to telework was the
enactment of Sec. 359 of Pub. L. 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.In this
law, Congress required each executive branch agency to establish a
telework policy under which eligible employees of the agency 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 1 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 a telework coordinator to be responsible for overseeing the
implementation of telework programs and serve as a point 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, [17]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 concerning 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. 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, or a tracking system to
           collect data to evaluate the telework program; and

           o identifying problems or issues with the telework program and
           making appropriate adjustments.
			  
2GAO, Human Capital: Further Guidance, Assistance, and Coordination Can
Improve Federal Telework Effort, [18]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.

           None of the four agencies we reviewed had effectively developed a
           business case analysis for implementing their telework programs.
           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. According to OPM,3 telework is of
           particular interest for its advantages in the following areas:

           o Recruiting and retaining the best possible
           workforce--particularly newer workers who have high expectations
           of a technologically forward-thinking workplace and any worker who
           values work/life balance.

           o Helping employees manage long commutes and other work/life
           issues that, if not addressed, can reduce their effectiveness or
           lead to employees leaving federal employment.

           o Reducing traffic congestion, emissions, and infrastructure
           effect in urban areas, thereby improving the environment.

           o Saving taxpayer dollars by decreasing government real estate
           costs.

           o Ensuring continuity of essential government functions in the
           event of national or local emergencies.

           In addition, some federal agency telework policies suggest other
           potential advantages. For example, the Department of Defense's
           telework policy includes enhancing the department's efforts to
           employ and accommodate people with disabilities as a purpose of
           its program. The Department of State's policy notes that programs
           may be used to increase productivity. As another example, the U.S.
           Department of Agriculture credits telework with having a positive
           effect on sick leave usage and workers compensation.
			  
3U.S. Office of Personnel Management, A Guide to Telework in the Federal
Government (Washington, D.C.: Aug. 3, 2006).

           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. Making a business case for telework 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.

           We have recently noted instances where agency officials cited
           their telework programs as yielding some of the benefits listed
           above. For example, in a 2007 report on the U.S. Patent and
           Trademark Office (USPTO), we reported that, according to USPTO
           management officials, one of the three most effective retention
           incentives and flexibilities is the opportunity to work from
           remote locations.4 In fiscal year 2006, approximately 20 percent
           of patent examiners participated in the agency's telework program,
           which allows patent examiners to conduct some or all of their work
           away from their official duty station 1 or more days per week. In
           addition, USPTO reported in June 2007 that approximately 910
           patent examiners relinquished their office space to work from home
           4 days per week. The agency believes its decision to incorporate
           telework as a corporate business strategy and for human capital
           flexibility will help recruitment and retention of its workforce,
           reduce traffic congestion in the national capital region, and, in
           a very competitive job market, enable the USPTO to hire
           approximately 6,000 new patent examiners over the next 5 years. As
           another example, in a 2007 report on the Nuclear Regulatory
           Commission (NRC), we noted that most NRC managers we interviewed
           and surveyed considered telework and flexible work schedule
           arrangements to be very to extremely valuable in recruiting,
           hiring, and retaining NRC personnel and would be at least as
           valuable in the next few years.5
			  
4GAO, U.S. Patent and Trademark Office: Hiring Efforts Are Not Sufficient
to Reduce the Patent Application Backlog, [19]GAO-07-1102 (Washington,
D.C.: Sept. 4, 2007).

5GAO, Human Capital: Retirements and Anticipated New Reactor Applications
Will Challenge NRC's Workforce, [20]GAO-07-105 (Washington, D.C.: Jan. 17,
2007).

           With regard to the second key practice aligned with managing for
           results, none of the four agencies had established measurable
           telework program goals. As we noted in our report, OPM's May 2003
           telework guide6 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.7 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.

           With regard to the third key practice--establishing processes,
           procedures, 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. In
           addition, in our 2005 study at five agencies, we found that four
           of the five agencies measured participation in telework based on
           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 quarterly reports
           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.
			  
6U.S. Office of Personnel Management, Telework: A Management Priority--A
Guide for Managers, Supervisors, and Telework Coordinators (Washington,
D.C.: May 2003).

7GAO, Agency Telework Methodologies: Departments of Commerce, Justice,
State, the Small Business Administration, and the Securities and Exchange
Commission, [21]GAO-05-1055R (Washington, D.C.: Sept. 27, 2005).

           Based on our findings, the conference report for the fiscal year
           2006 Appropriations Act that covered these agencies included the
           following language for them:

           "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, four of the five agencies have not yet
           developed such systems and are still measuring participation as
           they did in 2005. In the fifth agency--the Department of
           Justice--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 the department to track actual
           telework participation in those bureaus. The Federal Bureau of
           Investigation (FBI) was the major exception. This fiscal year,
           however, the FBI began a pilot of a time and attendance
           application that will also have the ability to track telework.
           Upon completion of the pilot, the official said that all of the
           Department of Justice bureaus would have the ability to track
           telework.

           As for the fourth key practice closely related to managing for
           program results--identifying problems 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 their
           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 had 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 (CHCO) Council, develop a set of terms, definitions, and
           measures that would allow for a more meaningful assessment of
           progress in agency telework programs. Program management and
           oversight could be improved by more consistent definitions, such
           as eligibility. Some information may take additional effort to
           collect, as for example, on actual usage of telework. Other
           valuable 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, among other things. 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 agency CHCO Council are well situated to
           sort through these issues and consider what information would be
           most useful. The CHCO Council and OPM could also work together on
           strategies for agencies to use the information for program
           improvements, including benchmarking.

           In conclusion, telework is a key strategy to accomplish a variety
           of federal goals. Telework is an investment in both an
           organization's people and the agency's capacity to perform its
           mission. We continue to believe that more fully implementing the
           practices related to managing for program results will
           significantly contribute to improving the success of federal
           telework programs.

           Mr. Chairman and members of the subcommittee, this completes my
           statement. I would be pleased to respond to any questions that you
           may have.
			  
			  Contacts and Acknowledgments

           For further information on this testimony, please contact Bernice
           Steinhardt, Director, Strategic Issues, at (202) 512-6806 or
           [email protected]. Contact points for our Offices of
           Congressional Relations and Public Affairs may be found on the
           last page of this
           testimony. Individuals making key contributions to this testimony
           include William J. Doherty, Assistant Director; Joyce D. Corry;
           and Judith C. Kordahl.

(450636)

This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.

To view the full product, including the scope
and methodology, click on [22]GAO-08-261T .

For more information, contact Bernice Steinhardt at (202) 512-6806 or
[email protected].

Highlights of [23]GAO-08-261T , a testimony before the Subcommittee on
Federal Workforce, Postal Service, and the District of Columbia, Committee
on Oversight and Government Reform, House of Representatives

November6, 2007

HUMAN CAPITAL

Telework Programs Need Clear Goals and Reliable Data

Telework continues to receive attention within Congress and federal
agencies as a human capital strategy that offers various flexibilities to
both employers and employees. Increasingly recognized as an important
means to achieving a number of federal goals, telework offers greater
capability to continue operations during emergency events, as well as
affording environmental, energy, and other benefits to society.

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. It also notes more recent work where agency officials cite their
telework programs as yielding benefits.

As GAO has previously recommended, 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 OPM and the General
Services Administration 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 capacity to track who was actually teleworking or how frequently,
relying mostly on the number of telework agreements as the measure of
program participation.

Consistent definitions and measures related to telework would help
agencies better manage for results through their telework programs. For
example, program management and oversight could be improved by more
consistent definitions, such as eligibility. Some information may take
additional efforts to collect, for example, on actual usage of telework
rather than employees' potential to telework. However, other valuable
information may already be available through existing sources, such as the
Federal Human Capital Survey. The survey--which is administered
biennially--asks federal employees about their satisfaction with telework,
among other things. 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.

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References

Visible links
  17. http://www.gao.gov/cgi-bin/getrpt?GAO-04-950T
  18. http://www.gao.gov/cgi-bin/getrpt?GAO-03-679
  19. http://www.gao.gov/cgi-bin/getrpt?GAO-07-1102
  20. http://www.gao.gov/cgi-bin/getrpt?GAO-07-105
  21. http://www.gao.gov/cgi-bin/getrpt?GAO-05-1055R
  22. http://www.gao.gov/cgi-bin/getrpt?GAO-08-261T
  23. http://www.gao.gov/cgi-bin/getrpt?GAO-08-261T
  24. http://www.gao.gov/
  25. http://www.gao.gov/
  26. http://www.gao.gov/fraudnet/fraudnet.htm
  27. mailto:[email protected]
  28. mailto:[email protected]
  29. mailto:[email protected]
*** End of document. ***