Human Capital
Greater Focus on Results in Telework Programs Needed Gao ID: GAO-07-1002T June 12, 2007Telework continues to receive attention within Congress and federal agencies as a human capital strategy that offers various flexibilities to both employers and employees, including the capacity to continue operations during emergency events, as well as benefits to society, such as decreased energy use and pollution. This statement highlights some of GAO's prior work on federal telework programs, including key practices for successful implementation of telework initiatives, identified in a 2003 GAO report and a 2005 GAO analysis of telework program definitions and methods in five federal agencies. In addition, the statement discusses GAO observations on the Telework Enhancement Act of 2007, S. 1000.
Through a number of legislative actions, Congress has indicated its desire that agencies create telework programs to accomplish a number of positive outcomes. Many of the current federal programs were developed in response to a 2000 law that required each executive branch agency to establish a telework policy under which eligible employees may participate in telecommuting to the maximum extent possible without diminishing employee performance. The legislative framework has provided the OPM and the General Services Administration (GSA) with lead roles for the governmentwide telework initiative, providing services and resources to support and encourage telework. Although agency telework policies meet common requirements and often share characteristics, each agency is responsible for developing its own policy to fit its mission and culture. In a 2003 report, GAO identified a number of key practices that federal agencies should implement in developing their telework programs. Four of these were closely aligned with managing for program results: (1) developing a business case for telework, (2) establishing measurable telework program goals, (3) establishing systems to collect data for telework program evaluation, and (4) identifying problems and making appropriate adjustments. None of the four agencies we reviewed, however, had effectively implemented any of these practices. In a related review of five other agencies in 2005, GAO reported that none of the agencies had the capability to track who was actually teleworking or how frequently, relying mostly on the number of telework agreements as the measure of program participation. S. 1000 is intended to enhance the existing legislative framework and provides that all employees of the executive, judicial, and legislative branches are eligible for telework except in some circumstances related to an employee's duties and functions. The bill also recognizes the importance of leadership in promoting an agency's telework program by requiring the appointment of a senior-level management official to perform several functions to promote and enhance telework opportunities. GAO's statement suggests changes to the assignment of responsibilities for rating and reporting along with changes to make the responsibilities for heads of agency and entities in the legislative and judicial branches more consistent with those of executive branch officials. The statement also points out several provisions of S. 1000 that are not clear in relation to existing legislation.
GAO-07-1002T, Human Capital: Greater Focus on Results in Telework Programs Needed
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Testimony:
Before the Subcommittee on Oversight of Government Management, the
Federal Workforce, and the District of Columbia, Committee on Homeland
Security and Governmental Affairs, U.S. Senate:
United States Government Accountability Office:
GAO:
For Release on Delivery Expected at 2:30 p.m. EDT:
Tuesday, June 12, 2007:
Human Capital:
Greater Focus on Results in Telework Programs Needed:
Statement of Bernice Steinhardt:
Director, Strategic Issues:
GAO-07-1002T:
GAO Highlights:
Highlights of GAO-07-1002T, a testimony before the Subcommittee on
Oversight of Government Management, the Federal Workforce, and the
District of Columbia, Committee on Homeland Security and Governmental
Affairs, U.S. Senate
Why GAO Did This Study:
Telework continues to receive attention within Congress and federal
agencies as a human capital strategy that offers various flexibilities
to both employers and employees, including the capacity to continue
operations during emergency events, as well as benefits to society,
such as decreased energy use and pollution.
This statement highlights some of GAO‘s prior work on federal telework
programs, including key practices for successful implementation of
telework initiatives, identified in a 2003 GAO report and a 2005 GAO
analysis of telework program definitions and methods in five federal
agencies. In addition, the statement discusses GAO observations on the
Telework Enhancement Act of 2007, S. 1000.
What GAO Found:
Through a number of legislative actions, Congress has indicated its
desire that agencies create telework programs to accomplish a number of
positive outcomes. Many of the current federal programs were developed
in response to a 2000 law that required each executive branch agency to
establish a telework policy under which eligible employees may
participate in telecommuting to the maximum extent possible without
diminishing employee performance. The legislative framework has
provided the OPM and the General Services Administration (GSA) with
lead roles for the governmentwide telework initiative, providing
services and resources to support and encourage telework. Although
agency telework policies meet common requirements and often share
characteristics, each agency is responsible for developing its own
policy to fit its mission and culture.
In a 2003 report, GAO identified a number of key practices that federal
agencies should implement in developing their telework programs. Four
of these were closely aligned with managing for program results: (1)
developing a business case for telework, (2) establishing measurable
telework program goals, (3) establishing systems to collect data for
telework program evaluation, and (4) identifying problems and making
appropriate adjustments. None of the four agencies we reviewed,
however, had effectively implemented any of these practices. In a
related review of five other agencies in 2005, GAO reported that none
of the agencies had the capability to track who was actually
teleworking or how frequently, relying mostly on the number of telework
agreements as the measure of program participation.
S. 1000 is intended to enhance the existing legislative framework and
provides that all employees of the executive, judicial, and legislative
branches are eligible for telework except in some circumstances related
to an employee‘s duties and functions. The bill also recognizes the
importance of leadership in promoting an agency‘s telework program by
requiring the appointment of a senior-level management official to
perform several functions to promote and enhance telework
opportunities. GAO's statement suggests changes to the assignment of
responsibilities for rating and reporting along with changes to make
the responsibilities for heads of agency and entities in the
legislative and judicial branches more consistent with those of
executive branch officials. The statement also points out several
provisions of S. 1000 that are not clear in relation to existing
legislation.
What GAO Recommends:
This statement makes no new recommendations but reiterates that
Congress should determine ways to promote more consistent telework
definitions and measures. In particular, Congress might want to have
the Office of Personnel Management (OPM) and the Chief Human Capital
Officers Council develop definitions and measures that would allow for
a more meaningful assessment of progress in agency telework programs.
[hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-1002T].
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Bernice Steinhardt at
(202) 512-6806 or steinhardtb@gao.gov.
[End of section]
Mr. Chairman and Members of the Subcommittee:
I am pleased to be here today to discuss our observations of federal
telework policies based on our past work and to provide additional
observations that relate to the provisions of S. 1000, the Telework
Enhancement Act of 2007. Telework is a human capital strategy which
offers flexibilities to both employers and employees. It is
increasingly recognized as an important means to achieving a number of
federal efforts, including effective strategic human capital management
of the federal workforce, and a greater capability to continue
operations during emergency events, as well as affording environmental,
energy, and other benefits to society.
Congress has demonstrated its keen interest in promoting the use of
telework in the federal government by establishing a wide-ranging
statutory framework. This framework has included provisions directed at
increasing employee eligibility for telework, requiring reporting and
evaluation of telework implementation, establishing agency telework
coordinators to lead the program, setting goals for the application of
telework provisions to the federal workforce, and even withholding
funds from some agencies that fail to show progress. S. 1000 is
intended to advance this framework and the implementation of telework
programs and to increase the eligibility of federal employees for
telework as well as its use.
My statement today will describe first the statutory framework that
drives the agency telework programs and processes. We will also share
observations from our past work that relate to agency telework
methodologies, as well as our views of the specific legislation under
consideration. And finally, we will offer some suggested next steps to
advance the purposes of the bill.
My comments are based on previously issued GAO reports that were
developed in accordance with generally accepted government auditing
standards.
Congress Has Established a Statutory Framework to Promote Agency
Telework Programs and Increase Employee Participation:
Through a number of legislative actions, Congress has indicated its
desire that agencies create telework programs to accomplish a number of
positive outcomes. These actions have included recognizing the need for
program leadership within the agencies; encouraging agencies to think
broadly in setting eligibility requirements; requiring that employees
be allowed, if eligible, to participate in telework, and requiring
tracking and reporting of program results. Some legislative actions
have provided for funding to assist agencies in implementing programs,
while other appropriations acts withheld appropriated funds until the
covered agencies certified that telecommuting opportunities were made
available to 100 percent of each agency's eligible workforce. The
Telework Enhancement Act of 2007, S. 1000, continues the efforts of
Congress to achieve greater participation.
The most significant congressional action related to telework was the
enactment of Section 359 of Public Law No. 106-346 in October 2000,
which provides the current mandate for telework in the executive branch
of the federal government by requiring each executive agency to
establish a policy under which eligible employees may participate in
telework to the maximum extent possible without diminishing employee
performance. The conference report language further explained that an
eligible employee is any satisfactorily performing employee of the
agency whose job may typically be performed at least one day per week
by teleworking. In addition, the conference report required the Office
of Personnel Management (OPM) to evaluate the effectiveness of the
program and report to Congress.
The legislative framework has provided both the General Services
Administration (GSA) and OPM with lead roles for the governmentwide
telework initiative, to provide services and resources to support and
encourage telework, including providing guidance to agencies in
developing their program procedures.[Footnote 1] In addition, Congress
required certain agencies to designate telework coordinators to be
responsible for overseeing the implementation of telework programs and
serve as points of contact on such programs for the Committees on
Appropriations.
GSA and OPM provide services and resources to support the
governmentwide telework implementation. OPM publishes telework
guidance, which it recently updated, and works with the agency telework
coordinators to guide implementation of the programs and annually
report the results achieved. GSA offers a variety of services to
support telework, including developing policy concerning alternative
workplaces, managing the federal telework centers, maintaining the mail
list server for telework coordinators, and offering technical support,
consultation, research, and development to its customers. Jointly, OPM
and GSA manage the federal Web site for telework, which was designed to
provide information and guidance. The site provides access for
employees, managers, and telework coordinators to a range of
information related to telework, including announcements, guides, laws,
and available training.
Although agency telework policies meet common requirements and often
share some common characteristics, each agency is responsible for
developing its own policy to fit its mission and culture. According to
OPM, most agencies have specified occupations that are eligible for
telework and most apply employee performance-related criteria in
considering authorizing telework participation. In addition, OPM
guidance states that eligible employees should sign an employee
telework agreement and be approved to participate by their managers.
The particular considerations in regard to these requirements and
procedures will differ among agencies.
Better Performance Measures and Program Evaluations Could Improve the
Assessment of Telework in the Federal Government:
In our 2003 study of telework in the federal government,[Footnote 2] we
identified 25 key practices that federal agencies should implement in
developing their telework programs. A full list of the key practices
appears in appendix I. Among those were several practices closely
aligned with managing for program results, including:
* developing a business case for implementing a telework program;
* establishing measurable telework program goals;
* establishing processes, procedures, and/or a tracking system to
collect data to evaluate the telework program; and:
* identifying problems and/or issues with the telework program and
making appropriate adjustments.
Yet, in our assessment of the extent to which four agencies--the
Department of Education, GSA, OPM, and the Department of Veterans
Affairs--followed the 25 key practices, we found these four practices
to be among the least employed.
In discussing the business case key practice in our 2003 study, we
cited the International Telework Association and Council, which had
stated that successful and supported telework programs exist in
organizations that understand why telework is important to them and
what specific advantages can be gained through implementation of a
telework program. A business case analysis of telework can ensure that
an agency's telework program is closely aligned with its own strategic
objectives and goals. Such an approach can be effective in engaging
management on the benefits of telework to the organization. For
example, making a case for telework as a part of an agency's Continuity
of Operations (COOP) plan can help organizations understand why they
support telework, address relevant issues, minimize business risk, and
make the investment when it supports their objectives. Through business
case analysis, organizations have been able to identify cost reductions
in the telework office environment that offset additional costs
incurred in implementing telework and the most attractive approach to
telework implementation. None of the four agencies we reviewed,
however, had effectively implemented this practice.
Moreover, none of the four agencies had established measurable telework
program goals. As we noted in our report, OPM's May 2003 telework
guide[Footnote 3] 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.[Footnote 4] Three of the agencies excluded
employees in certain types of positions (e.g., those having positions
where they handle classified information) when counting and reporting
the number of eligible employees, while two of the agencies included
all employees in any type of position when counting and reporting the
number of eligible employees, even those otherwise precluded from
participating.
With regard to the third key practice aligned with managing for
results--establishing processes, procedures and/or a tracking system to
collect data to evaluate the telework program--in our 2003 review we
found that none of the four agencies studied were doing a survey
specifically related to telework or had a tracking system that provided
accurate participation rates and other information about teleworkers
and the program. At that time, we observed that lack of such
information not only impeded the agencies in identifying problems or
issues related to their programs but also prevented them from providing
OPM and Congress with complete and accurate data. Also, in our 2005
study at five agencies, we found that four of the five agencies
measured participation in telework on the basis of their potential to
telework rather than their actual usage. The fifth agency reported the
number of participants based on a survey of supervisors who were
expected to track teleworkers. According to OPM, most agencies report
participation based on telework agreements, which can include both
those for employees teleworking on a continuing basis as well as those
for episodic telework. None of the five agencies we looked at had the
capability to track who was actually teleworking or how frequently,
despite the fact that the fiscal year 2005 consolidated appropriations
act covering those agencies required each of them to provide a
quarterly report to Congress on the status of its telework program,
including the number of federal employees participating in its program.
At that time, two of the five agencies said they were in the process of
implementing time and attendance systems that could track telework
participation, but had not yet fully implemented them. The other three
agencies said that they did not have time and attendance systems with
the capacity to track telework.
Based on our findings, the following language was included for those
five agencies in their fiscal year 2006 appropriations act's conference
report:
"The conferees are troubled that many of the agencies' telework
programs do not even have a standardized manner in which to report
participation. The conferees expect each of these agencies to implement
time and attendance systems that will allow more accurate reporting."
Despite this language, officials at four of the five agencies said that
they have not yet developed such systems and are still measuring
participation as they did in 2005. For the fifth agency--the Department
of Justice (DOJ)--an official told us that the department has now
implemented a Web-based time and attendance system in most bureaus and
that this system allows DOJ to track actual telework participation in
those bureaus. According to this official, the Federal Bureau of
Investigation is the major exception, but DOJ is working towards having
all bureaus use this system.
As for the fourth key practice closely related to managing for program
results--identifying problems and/or issues with the telework program
and making appropriate adjustments--none of the four agencies we
reviewed for our 2003 study had fully implemented this practice and one
of the four had taken no steps to do so despite the importance of using
data to evaluate and improve telework programs. An OPM official told
us, for example, that she did not use the telework data she collected
to identify issues with the program; instead, she relied on employees
to bring problems to her attention.
To help agencies better manage for results through telework programs,
in our 2005 study, we said that Congress should determine ways to
promote more consistent definitions and measures related to telework.
In particular, we suggested that Congress might want to have OPM,
working through the Chief Human Capital Officers Council, develop a set
of terms, definitions, and measures that would allow for a more
meaningful assessment of progress in agency telework programs. Some
information could be improved by more consistent definitions, such as
eligibility. Some information may take additional effort to collect,
for example, on actual usage of telework. Some of this information may
already be available through existing sources. The Federal Human
Capital Survey, for example, which is administered biennially, asks
federal employees about their satisfaction with telework. In the latest
survey, only 22 percent indicated they were satisfied or very
satisfied, while 44 percent indicated they had no basis to judge--
certainly there seems to be room for improvement there. In any case,
OPM and the Chief Human Capital Officers Council are well-situated to
sort through these issues and consider what information would be most
useful. The council and OPM could also work together on strategies for
agencies to use the information for program improvements, including
benchmarking.
The Telework Enhancement Act of 2007, S. 1000, Addresses Key Telework
Issues, but Some Provisions Merit Additional Consideration:
S. 1000 is intended to enhance the existing legislative framework and
provides that all employees of executive agencies are eligible for
telework except in some circumstances related to an employee's duties
and functions. In addition, the bill addresses the coverage of
employees in the legislative and judicial branches and provides that
within 1 year from the date of enactment, policies shall be established
to allow such employees, unless otherwise excluded, to participate in
telework to the maximum extent possible without diminishing employee
performance or legislative or judicial branch operations. The bill
further recognizes the importance of leadership in promoting an
agency's telework program by requiring the appointment of a senior-
level management official to perform several functions to promote and
enhance telework opportunities.
We have several observations to offer on the bill. As we have discussed
with your staff, we have specific concerns about section 5 of the bill,
which would require GAO to establish and implement a rating system for
agency compliance with and participation in telework initiatives and
report the results. For executive branch agencies, we believe this
function is more appropriately placed with OPM. A GAO rating system
that does not have the benefit of a full GAO evaluation of the
underlying information would raise concerns that our independence is
compromised if we were asked at a future time to evaluate telework
programs in the federal government. Accordingly, we have provided
Committee staff with substitute language that would place these rating
and report functions in OPM, the agency that is currently responsible
for reporting on most telework activities and participation in the
executive branch. Our substitute language would have the Comptroller
General instead provide his views on the OPM report to the Senate
Committee on Homeland Security and Governmental Affairs and the House
Committee on Oversight and Government Reform within 6 months of the
report.
We would also like to bring several other issues to your attention. The
bill would extend coverage of these telework initiatives to the
legislative and judicial branches. We suggest substituting a reference
to "the head of each legislative branch entity" in sections 2(c)(3) and
4(a) of the bill so that the heads of the Library of Congress, the
Government Printing Office, and GAO, for example, would be responsible
for developing agency policies on telework, determining which employees
are eligible for telework, and designating senior-level employees to
serve as telework managing officers. This approach would be consistent
with the coverage of the executive branch under the bill where the head
of each agency would perform similar functions.
With regard to the bill's requirement to appoint a telework managing
officer in each executive branch agency, it is not clear how that
employee's duties would relate to the duties of the agency officials
currently designated as telework coordinators pursuant to the
provisions of section 627 of Public Law No. 108-199. Another provision
of the bill would define telework as occurring on at least 2 business
days per week, leaving unclear how this would relate to the broader
definitions of telework currently defined in existing legislation and
OPM guidance, which includes episodic or occasional instances. It is
also unclear whether the bill intends to allow agencies to consider
employee performance in making telework eligibility decisions. Current
legislation and agency practice requires employees to be performing
satisfactorily.
The bill also provides for "productivity awards" for teleworking
employees, but it is not clear whether nonteleworking employees would
also be eligible to receive productivity awards and would be evaluated
on the same performance standards. We would note that one of the key
practices identified in our 2003 report was ensuring that the same
performance standards are used to evaluate both teleworkers and
nonteleworkers. The perception that care had not been taken to
establish fair and equitable eligibility criteria could present
performance and morale issues. Finally, the bill includes among the
duties of the telework managing officer assisting the head of the
agency in designating employees to telework in order to continue agency
operations in the event of a major disaster as defined under the
Stafford Act, 42 U.S.C. § 5122. We would note, however, that telework
can be effective in a variety of emergency conditions not limited to
those emergencies defined under the Stafford Act. For example, we
reported that GAO's telework capability was significant to assisting
the House of Representatives and minimizing the disruption to its own
operations when anthrax bacteria were released on Capitol Hill in
2001.[Footnote 5]
In conclusion, telework is a key strategy to accomplish a variety of
federal purposes. Telework is an investment in both an organization's
people and the agency's capacity to perform its mission. We continue to
believe that OPM and the Chief Human Capital Officers Council are well-
positioned to help agencies better manage for results through telework.
Mr. Chairman and members of the subcommittee, this completes my
statement. I would be pleased to respond to any questions that you
might have.
Contacts and Acknowledgements:
Fore further information on this testimony, please contact Bernice
Steinhardt, Director, Strategic Issues, (202) 512-6806 or at
steinhardtb@gao.gov. Individuals making key contributions to this
testimony include William J. Doherty, Joyce D. Corry, Allen Lomax, and
Michael Volpe.
[End of section]
Appendix I: Key Telework Practices for Implementation of Successful
Federal Telework Programs:
[See PDF for Image]
Source: GAO analysis of telework-related literature and guidelines.
[End of figure]
FOOTNOTES
[1] GAO 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, GAO-04-950T (Washington, D.C.: July 8,
2004).
[2] GAO, Human Capital: Further Guidance, Assistance, and Coordination
Can Improve Federal Telework Efforts, GAO-03-679 (Washington, D.C.:
July 18, 2003).
[3] U.S. Office of Personnel Management, Telework: A Management
Priority--A Guide for Managers, Supervisors, and Telework Coordinators
(Washington, D.C.: May 2003).
[4] GAO, Agency Telework Methodologies: Departments of Commerce,
Justice, State, the Small Business Administration, and the Securities
and Exchange Commission, GAO-05-1055R (Washington, D.C.: Sept . 27,
2005).
[5] GAO, Human Capital: Opportunities to Improve Federal Continuity
Planning Guidance, GAO-04-384 (Washington, D.C.: April 20, 2004).
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