Following is the section of a recent report by the council of agency IGs on common problems across federal agencies that focuses on personnel issues.
The human capital management challenge includes TMPC challenges related to recruiting, managing, developing, and optimizing agency human resources. Human capital management is a significant challenge that impacts the ability of federal agencies to meet their performance goals and to execute their missions efficiently. Consistent with the findings of the IG community, GAO has identified strategic human capital management within the federal government as a high-risk area since 2001.
Key Areas of Concern
Key areas of concern include inadequate funding and staffing; recruiting, training, and retaining qualified staff; agency cultures that negatively impact the agency’s mission; and the impact of the lack of succession planning and high employee turnover.
Funding and Staffing
The lack of adequate, predictable funding and staffing can negatively affect an agency’s ability to meet its mission. Further, the necessity of operating under Continuing Resolutions and complying with hiring freezes result in budget uncertainties, delayed hiring actions, and overworked agency staffs. The National Labor Relations Board (NLRB) OIG reported that reduced or flat appropriations and the loss of key personnel through retirements directly affects the NLRB’s ability to maintain a stable and productive workforce. Similarly, the U.S. AbilityOne Commission (AbilityOne) OIG reported that AbilityOne does not have adequate staffing and resources to effectively execute its responsibilities and sustain its mission. AbilityOne OIG further reported that its agency faces challenges as it operates with a staff of less than 31 people responsible for administering a $3 billion program with locations in all 50 states, Puerto Rico, and Guam.
Recruiting, Training, and Retaining Qualified Staff
Several Inspectors General reported on the difficulties their agencies face in recruiting, training, and retaining qualified staff, including challenges in attracting and retaining a highly skilled cybersecurity workforce and in training acquisition personnel. The DOD OIG reported that DOD, the nation’s largest employer with over 2.1 million military and 800,000 civilian employees, faces challenges maintaining a force with the right mix of skills and experience for an ever-changing, globally deployed force. DOD OIG also reported that the lack of funding or time for training presents a serious concern for the military’s ability to remain a ready force. DHS OIG noted challenges in recruiting and hiring law enforcement officers. In its TMPC report, the SEC OIG cited a GAO report that found SEC’s hiring specialists may not have the skills necessary to hire and promote the most qualified applicants. The State OIG concluded that inexperienced staff, insufficient training, staffing gaps, and frequent turnover contributed to the Department’s other management and performance challenges.
Agency Cultures that Negatively Impact Mission
For the purposes of this report, we define an agency’s culture as the system of shared expectations, values, and beliefs that govern how employees behave. Many OIGs reported that their agencies faced challenges related to their agency’s culture, including ethical lapses, lack of accountability, lack of fiscal responsibility, lack of transparency and communication, resistance to change, and low morale. For example, the DOI OIG stated that DOI continues to face challenges in holding its employees, including senior officials, to the highest standards of ethical conduct, ensuring that the consequences of wrongdoing are clearly understood, taking decisive actions to address unacceptable behavior, and providing relevant ethics training to all employees. The SEC OIG TMPC report cited a recent GAO report that found that although employee views of SEC’s organizational culture had generally improved, SEC still operates in a compartmentalized way with little communication and collaboration between divisions.
Succession Planning and Turnover
Agencies without institutionalized succession planning systems in place are at a disadvantage and lack “feeder” systems to identify high-performing employees who may succeed in senior leadership positions. In addition, high turnover rates create sustained financial costs for agencies competing for the best talent in a tight national labor market. The National Science Foundation (NSF) OIG reported that because NSF supplements its staff by using professionals from other organizations in rotational assignments for periods of up to four years, NSF experiences frequent turnover in staff, especially in leadership positions. According to its OIG, the Peace Corps experiences challenges associated with the statutorily-mandated five-year term limit for nearly all Peace Corp staff. As a result of the 5-year limit, the annual turnover is between 25 percent and 38 percent. This high rate of turnover accounted for approximately 60 percent of $20.7 million in total turnover costs over a 5-year period (2005 to 2009). The Peace Corps OIG noted that the high turnover negatively affects the agency’s ability to maintain high quality volunteer support and improve its core business functions. Additionally, high turnover contributes to insufficient institutional memory.
