Among the conditions State uses to determine hardship pay are poor medical facilities,substandard schools for children, severe climate, high crime, political instability, and physical isolation. Recently, State has begun recognizing the lack of spousal employment opportunities as another factor in determining hardship. Our discussions with former and current ambassadors, senior post officials, and the regional bureaus indicate that this is a widespread problem that weakens diplomatic programs and management controls and impedes posts’ ability to carry out U.S. foreign policy objectives effectively. While Foreign Service employees are expected to be available to serve worldwide, few bid on positions at some hardship posts, and very few— excluding junior officers, whose assignments are directed—are forced to take assignments they have not bid on. Without a comprehensive, strategic approach to marshaling and managing State’s human capital, there is little assurance that State will be able to place the right people in the right posts at the right time. Recommendations for Executive Action

In light of our findings that State’s assignment system has not been effective in addressing staffing requirements at hardship posts, including many of strategic importance, we recommend that the Secretary of State: improve personnel and assignment data so that they will (1) allow State to fully assess its human capital capabilities and limitations and enhance the department’s workforce planning efforts, and (2) enable State to take a fact-based, performance-oriented approach to human capital management that would involve analyzing bidding and assignment data to determine its success in addressing staffing needs at all posts, including hardship posts and posts of strategic importance to the United States; rigorously and systematically determine priority positions that must be filled worldwide as well as positions that will not be filled during each assignments cycle, based on the relative strategic importance of posts and positions and realistic assumptions of available staff resources;   consider a targeted hiring strategy, with measurable goals, designed to specifically address critical shortfalls, such as employees who are proficient in certain foreign languages; are interested in those particular positions, functional specialties, or career tracks that are in short supply; and are interested in serving in hardship locations; and   develop a package of incentives and implement appropriate actions to steer employees toward serving at hardship posts. Our recommendations, if implemented, would help ensure that the staffing needs of hardship posts, including those critical to U.S. interests, are met. Hardship Burden

To measure how the hardship burden is shared by Foreign Service employees (fig.
What GAO Found

Foreign service employees often experience difficult environmental and living conditions while assigned to U.S. embassies and consulates that are designated as "hardship posts." These conditions include inadequate medical facilities, few opportunities for spousal employment, poor schools, high levels of crime, and severe climate. Because the State Department is understaffed, both in terms of the number and types of employees, it is difficult to ensure that it has the right people in the right place at the right time. The impact of these staffing shortfalls is felt most strongly at hardship posts, some of which are of strategic importance to the United States. As a result, diplomatic programs and management controls at hardship posts could be vulnerable and the posts' ability to carry out U.S. foreign policy objectives effectively could be weakened. State's assignment system is not effectively meeting the staffing needs of hardship posts. Although American Foreign Service employees are obligated to serve anywhere in the world, State rarely directs employees to serve in locations for which they have not shown interest by bidding on a position. Because few employees bid on these positions, State has difficulty filling them.