The NFC, an entity of the Agriculture Department, is a shared services provider, handling payroll for some 650,000 federal employees. Image: Mega Pixel/Shutterstock.com
One of the two main federal payroll services provider needs “urgent” attention after years of “inadequate investment in its people (leadership and staff), technology, physical facilities, and financial support,” says a report from the National Academy of Public Administration.
The NFC, an entity of the Agriculture Department, is a shared services provider, handling payroll for some 650,000 federal employees across some 170 departments and agencies. DoD operates one for its own civilian and military personnel, and there are smaller ones operated by Interior, Treasury and GSA.
In a report requested by the Agriculture Department, the Academy said the “NFC’s future is at risk without prompt action. Should NFC fail, the consequences would be felt immediately . . . It is unthinkable that the US government could find itself in a position where it could not pay a sizeable portion of the federal workforce —but it could happen, at least in the short term.”
“No other organization currently exists that can readily absorb NFC’s customers, each with their own specialized and tailored procedures and requirements. Transitioning to a different provider would likely be a costly, complex, and time-consuming process for customers, even if there were ready options available. Therefore, stabilizing NFC to safeguard its ability to continue to provide services is an urgent priority,” it added.
It said the NFC’s information technology needs to be modernized, since its “antiquated IT systems and inefficient manual processes have degraded customer service, impeded efficiency, demoralized the workforce; increased the potential for errors, and created a rising risk of a service impairment, disruption, or possible cyber event.”
However, it added, the NFC is limited in obtaining the needed money, since “appropriations rules and practical considerations together constrain the amount of fees NFC can charge its customers, who have their own budget constraints.”
It also called for attention to the employee issues, including shortages of employees with the needed technical skills and overall “low morale, overwork, and poor work-life balance.” Problems include “lack of steady leadership, decreased staffing levels, loss of institutional knowledge, antiquated systems, bureaucratic processes, retirement eligibility of many staff, and deficient workspaces.”
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