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 <subject>Federal employees</subject>
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 <title>Human Capital: Taking Steps to Meet Current and Emerging Human Capital Challenges</title>
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<abstract>This testimony discusses GAO&apos;s three-stage approach for
addressing the federal government&apos;s human capital challenges.	 
First, agencies must take all administrative steps available to  
them under current laws and regulations to manage their people	 
for results. While much of what agencies need to accomplish these
steps is already available to them, they will need the sustained 
commitment from top management and the support from both the	 
Office of Management and Budget and the Office of Personnel	 
Management to do so. Second, the Administration and Congress	 
should pursue selected legislative opportunities to put new tools
and flexibilities in place that will help agencies attract,	 
motivate, and retain employees--both overall and, especially, in 
connection with critical occupations. Third, all interested	 
parties should work together to determine the nature and extent  
of more comprehensive human capital (or civil service) reforms	 
that should be enacted over time. These reforms should include	 
placing greater emphasis on skills, knowledge, and performance in
connection with federal employment and compensation decisions,	 
rather than the passage of time and rate of inflation, as is	 
often the case today.</abstract>
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<note>Testimony</note>
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