Most Agencies Did Not Follow the Government-wide Downward Trend and Maintained or Improved Engagement Levels

The recent government-wide average decline in the EEI masks the fact  that the majority of federal agencies sustained and a few increased EEI  levels during the same period. From 2006 through 2014, government- wide EEI levels increased to an estimated high of 67 percent in 2011 and  then declined to an estimated 63 percent in 2014, as shown in figure 1. Leadership Component of the EEI Consistently Scores the Lowest

Of the three components that comprise the EEI, employees’ perceptions  of leaders consistently received the lowest score, and at times was about  20 percentage points lower than the other components. For results of our analysis of employee  population groups, see appendix II. We found that having  constructive performance conversations was the strongest driver of the  EEI. These quarterly performance conversations are  guided by a set of specific topics that supervisors and employees  developed together to ensure that employees receive consistent and  regular constructive feedback and coaching. OPM Has Created Tools and Resources to Improve Engagement, but They Fall Short of Supporting a Holistic Approach to Improving Engagement and Linking to Performance

		Limitations in Data Analysis and Reporting Hinder Agencies’ Ability to Target Resources and Assess Progress

OPM provides a number of tools and resources to support agencies’  efforts to use EEI data to identify areas that need improvement, as shown  in table 2. However, by not determining  which FEVS questions are associated with higher EEI levels, OPM is  missing an opportunity to assist agencies in targeting their engagement  resources. However, OPM does not report whether changes in agency EEI scores  are statistically significant—that is, whether the change is meaningful and  not due to random chance. OPM Has Efforts to Identify and Share Promising Practices Underway But Needs More Focus on Linking Engagement and Performance

As agencies move from analyzing data to developing strategies to  improving engagement and linking it to organizational performance, the  specific strategies and lessons learned from the experiences of other  agencies can be beneficial to those who may be seeking information  related to improving employee engagement and performance. Recommendations for Executive Action

In furtherance of its role to support agencies’ efforts to improve employee  engagement and performance, we recommend that the Director of OPM  take the following three actions:  1. 3. In written comments, which are reproduced in appendix V, OPM  concurred with our first recommendation and partially concurred with our  second and third recommendations. However, until such information is shared with the larger federal  community and includes models for linking engagement to mission  accomplishment, we continue to believe that OPM should take additional  actions to assist agencies in leveraging their lessons learned, as we  recommended. Appendix I: Data Preparation and Calculation of the Employee Engagement Index

To determine the trends in employee engagement as measured by the  Office of Personnel Management (OPM) Federal Employee Viewpoint  Survey (FEVS) and identify key practices to improve employee  engagement we analyzed (1) employee engagement index scores (EEI)  from 2006 to 2014 and (2) the extent to which selected 2014 FEVS  questions predicted EEI scores. The EEI consists of three  components—leaders lead, supervisors, and intrinsic work experience.
Why GAO Did This Study

Research on both private- and public-sector organizations has found that increased levels of engagement—generally defined as the sense of purpose and commitment employees feel toward their employer and its mission—can lead to better organizational performance.
GAO was asked to review recent trends in federal employee engagement and steps OPM and agencies are taking to improve it. Among other things, this report: (1) describes trends in employee engagement from 2006 through 2014, (2) identifies practices in improving employee engagement, and (3) evaluates OPM's tools and resources to support employee engagement.
To meet these objectives, GAO analyzed responses to FEVS questions from 2006 through 2014, conducted a regression analysis, and reviewed OPM documents and interviewed OPM and other agency officials.

What GAO Found

From 2006 through 2014, government-wide engagement levels—as measured by the Office of Personnel Management's (OPM) Employee Engagement Index (EEI)—increased to an estimated high of 67 percent in 2011 and then declined to an estimated 63 percent in 2014. This decline is attributable to several large agencies—including the Department of Defense—bringing down the government-wide average. The government-wide decline masks the fact that the majority of federal agencies either sustained or increased EEI levels during the period. Of the three components that comprise the EEI—employees' perceptions of agency leaders, supervisors, and their intrinsic work experience—perceptions of leaders consistently received the lowest score.
GAO's regression analysis of selected Federal Employee Viewpoint Survey (FEVS) questions identified six practices as key drivers of the EEI (see table), with constructive performance conversations being the strongest.
For example, at one agency, supervisors and employees developed a set of topics for quarterly performance conversations to ensure that employees receive consistent and regular constructive feedback and coaching.
OPM developed resources to help agencies use EEI data to strengthen employee engagement but fell short of supporting a holistic approach to improving engagement and linking to performance. For example, OPM does not report whether annual EEI changes are statistically significant—that is, whether the changes were meaningful or due to random chance. Likewise, OPM does not analyze which FEVS questions are associated with higher EEI scores. This information would help agencies better focus their efforts to improve engagement and target resources. Further, OPM has provided limited examples or lessons learned on linking engagement to agency performance, which agencies will need to inform their next survey cycle.

What GAO Recommends

GAO recommends that the Director of OPM take the following three actions: (1) report annually on drivers of the EEI, (2) provide information on statistically significant changes in EEI scores, and (3) share examples and lessons learned to improve engagement and link engagement to performance in time to inform results of the next survey cycle. OPM concurred with the first recommendation and partially concurred with the second and third recommendations. GAO continues to believe that additional action on these recommendations is needed as discussed in the report.