Human Capital
Federal Workforce Challenges in the 21st Century Gao ID: GAO-07-556T March 6, 2007The 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.
Federal agencies continue to face strategic human capital challenges in several areas. 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. (4) 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.
GAO-07-556T, Human Capital: Federal Workforce Challenges in the 21st Century
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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:
GAO Highlights:
Highlights of GAO-07-556T, a testimony before the Subcommittee on
Financial Services and General Government, Committee on Appropriations,
House of Representatives
Why GAO Did This Study:
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.
What GAO Found:
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.
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.
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-556T].
To view the full product, including the scope and methodology, click on
the link above. For more information, contact J. Christopher Mihm at
(202) 512-6806 or mihmj@gao.gov.
[end of section]
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.[Footnote 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.[Footnote 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.
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:
* 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.
* 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.
* 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.
* 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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.[Footnote 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 mihmj@gao.gov. 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.
FOOTNOTES
[1] GAO, High-Risk Series: An Update, GAO-01-263 (Washington, D.C.:
January 2001).
[2] GAO, High-Risk Series: An Update, GAO-07-310 (Washington, D.C.:
January 2007).
[3] Office 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.
[4] GAO, Office of Personnel Management: Key Lessons Learned to Date
for Strengthening Capacity to Lead and Implement Human Capital Reforms,
GAO-07-90 (Washington, D.C.: Jan. 19, 2007).
[5] GAO-07-90.
[6] GAO, Equal Employment Opportunity: Improved Coordination Needed
between EEOC and OPM in Leading Federal Workplace EEO, GAO-06-214
(Washington, D.C.: June 16, 2006).
[7] GAO, Human Capital: Succession Planning and Management Is Critical
Driver of Organizational Transformation, GAO-04-127T (Washington, D.C.:
Oct. 1, 2003).
[8] GAO, Human Capital: Retirements and Anticipated New Reactor
Applications Will Challenge NRC's Workforce, GAO-07-105 (Washington,
D.C.: Jan. 17, 2007).
[9] GAO, Department of State: Staffing and Foreign Language Shortfalls
Persist Despite Initiatives to Address Gaps, GAO-06-894 (Washington,
D.C.: Aug. 4, 2006).
[10] GAO, Acquisition Workforce: Status of Agency Efforts to Address
Future Needs, GAO-03-55 (Washington, D.C.: Jan. 17, 2003).
[11] GAO, Highlights of a GAO Forum: Federal Acquisition Challenges and
Opportunities in the 21st Century, GAO-07-45SP (Washington, D.C.: Oct.
6, 2006).
[12] GAO, Human Capital: Increasing Agencies' Use of New Hiring
Flexibilities, GAO-04-959T (Washington, D.C.: July 13, 2004).
[13] GAO-07-90.
[14] GAO, The Federal Workforce: Additional Insights Could Enhance
Agency Efforts Related to Hispanic Representation, GAO-06-832
(Washington, D.C.: Aug. 17, 2006).
[15] GAO, Human Capital: A Guide for Assessing Strategic Training and
Development Efforts in the Federal Government, GAO-04-546G (Washington,
D.C.: Mar. 1, 2004).
[16] GAO, Results-Oriented Cultures: Creating a Clear Linkage between
Individual Performance and Organizational Success, GAO-03-488
(Washington, D.C.: Mar. 14, 2003).
[17] Pub. L. No. 108-136, § 1125, 117 Stat. 1392, 1638 (Nov. 24, 2003).
[18] GAO, Human Capital: Aligning Senior Executives' Performance with
Organizational Results Is an Important Step Toward Governmentwide
Transformation, GAO-06-1125T (Washington, D.C.: Sept. 26, 2006).
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