	Background

The Department of State is the lead agency in formulating and  implementing U.S. foreign policy. About 65 percent of Foreign Service employees serve overseas. The department has  implemented new incentives to address the chronic mid-level shortfalls at  hardship posts; however, since implementing these incentives, State has  not yet evaluated their effectiveness. In our review, we found that mid- level staffing gaps persist; bids for mid-level positions at hardship posts  have not increased significantly since we reported in 2002; and positions  normally held by mid-level officers are typically staffed by junior officers,  sometimes on their first assignment, with few mid-level officers to provide  supervision or guidance. State Has Made Progress in Increasing Its Foreign Language Capabilities, but Significant Language Gaps Remain

State has made several efforts in recent years to enhance its foreign  language capabilities, in particular by increasing the number of its  language-designated positions and its efforts to recruit and hire staff with  foreign language skills, as well as by creating additional language  requirements and incentives for staff. The skills gap was even greater  at some critical posts; for example, 59 percent in Cairo, Egypt; and 60  percent in Sana’a, Yemen. State’s Assignment and Promotion System May Hinder Efforts to Improve Its Foreign Language Capability

Several FSOs we met with said they believe State’s current assignment and  promotion system may hinder officers’ ability to enhance and maintain  their language skills over time, as well as State’s ability to take advantage  of those skills and the investment it makes in training. There is also a perception among  some officers that spending too much time in one region can lead to being  labeled as too narrowly specialized, which could adversely impact the  officers’ career. Without taking a risk-based approach to the allocation of these limited  resources, these gaps will continue to compromise State’s ability to carry  out its foreign policy objectives and execute critical mission functions,  including reaching out to foreign audiences in regions of critical  importance to the war on terror. Recommendations for Executive Action

To enhance staffing levels and skills at hardship posts as well as the  language proficiency of FSOs and other staff, this report recommends that  the Secretary of State take the following five actions:    Consider using directed assignments, as necessary, using a risk-based  approach, to fill critical positions with fully qualified officers who have the  skills and experience necessary to effectively manage and supervise  essential mission functions at hardship posts;   Systematically evaluate the effectiveness of the department’s incentive  programs for hardship post assignments, establishing specific indicators of  progress and adjusting the use of the incentives based on this analysis;   Consider an assignment system that allows for longer tours, consecutive  assignments in certain countries, and more regional specialization in  certain areas, in order to hone officers’ skills in certain superhard  languages and better leverage the investment State makes in language  training;   Systematically evaluate the effectiveness of its efforts to improve the  language proficiency of its FSOs and specialists, establishing specific  indicators of progress in filling language gaps and adjusting its efforts,  accordingly; and   Conduct a risk assessment of critical language needs in regions and  countries of strategic importance, make realistic projections of the staff  time and related training float necessary to adequately train personnel to  meet those needs, and target its limited resources for language training, as  needed, to fill these critical gaps. State described a  number of programs that it has initiated to address staffing and foreign  language shortfalls. GAO Comments

1. 2. However, State continues to fill language-designated  positions with staff who do not meet the language requirement.
Why GAO Did This Study

GAO has 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. In 2002, State implemented the Diplomatic Readiness Initiative (DRI) to address shortfalls in the number and skills of State employees. This report discusses State's progress in (1) addressing staffing shortfalls since the implementation of DRI and (2) filling gaps in the language proficiency of foreign service officers and other staff. To accomplish these objectives, GAO analyzed staffing and language data and met with State officials.

What GAO Found

State has made progress in addressing staffing shortages since implementing the DRI. However, the initiative did not fully meet its goals, and mid-level vacancies remain a problem at many posts, including some critical to the war on terror. State implemented various incentives to attract more mid-level officers to these locations, including offering extra pay to officers who serve an additional year at certain posts. However, it has not evaluated the effectiveness of these incentives and continues to have difficulties attracting qualified applicants. Mid-level positions at many posts are staffed by junior officers who lack experience, have minimal guidance, and are not as well-equipped to handle crises as more seasoned officers. This experience gap can severely compromise the department's readiness to carry out foreign policy objectives and execute critical post-level duties. State has made progress in increasing its foreign language capabilities, but serious language gaps remain. State initiated a number of efforts to improve its foreign language capabilities. However, it has not evaluated the effectiveness of these efforts, and it continues to experience difficulties filling its language-designated positions with language proficient staff. Almost one third of the staff in these positions do not meet the language requirements. The percentage is much higher at certain critical posts--for example, 60 percent in Sana'a, Yemen. Several factors--including the perception that spending too much time in one region may hinder officers' and specialists' promotion potential--may discourage employees from bidding on positions where they could enhance and maintain their language skills over time and limit State's ability to take advantage of those skills and the investment it makes in training. Gaps in language proficiency can adversely impact State's ability to communicate with foreign audiences and execute critical duties.