The Homeland Security Act of 2002 contained new hiring flexibilities that  could help agencies in expediting and controlling their hiring processes—  category rating and direct-hire authority. Under this procedure,  an agency manager can select any job candidate placed in a best-qualified  category rather than being limited to three candidates under the “rule of  three.”  Direct-hire authority allows an agency to appoint individuals to  positions without adherence to certain competitive examination  requirements when OPM determines that there is a severe shortage of  candidates or a critical hiring need. Some of the barriers they identified included  (1) the lack of OPM guidance for using the flexibilities, (2) the lack of  agency policies and procedures for using the flexibilities, (3) the lack of  flexibility in OPM rules and regulations, and (4) concern about possible  inconsistencies in the implementation of the flexibilities within the  department or agency. As with category rating, OPM has provided agencies with guidance on the  use of direct-hire authority in their hiring processes. Conclusions

Congress, OPM, and agencies have recognized the need to improve the  federal hiring process and have initiated numerous efforts to address key  problem areas. The federal government is now facing one of the most transformational  changes to the civil service in half a century, which is reflected in the new  personnel systems for DHS and DOD and in new hiring flexibilities  provided to all agencies. Today’s challenge is to define the appropriate  roles and day-to-day working relationships for OPM and individual  agencies as they collaborate on developing innovative and more effective  hiring systems. As a follow- up to that report, Jo Ann Davis, Chairwoman of the Subcommittee on Civil Service and  Agency Organization, Committee on Government Reform, U.S. House of Representatives,  has requested that we update the status of ongoing efforts related to the federal hiring  process by determining   1)  the status of the Office of Personnel Management’s (OPM) efforts to help improve the  federal hiring process, and  2)  the extent to which federal agencies are using new hiring flexibilities authorized by  the Homeland Security Act of 2002. This survey is part of our effort to collect information from members of the Chief Human  Capital Officer (CHCO) Council with regard to these matters.
Why GAO Did This Study

Improving the federal hiring process is critical given the increasing number of new hires expected in the next few years. Congress asked GAO to report on the (1) status of recent efforts to help improve the federal hiring process and (2) extent to which federal agencies are using two new hiring flexibilities--category rating and direct-hire authority. Category rating permits an agency to select any job candidate placed in a best-qualified category. Direct-hire authority allows an agency to appoint individuals to positions without adherence to certain competitive examination requirements when there is a severe shortage of qualified candidates or a critical hiring need.

What GAO Found

Congress, the Office of Personnel Management (OPM), and agencies have recognized that federal hiring has needed reform, and they have undertaken various efforts to do so. In particular, Congress has provided agencies with additional hiring flexibilities, OPM has taken significant steps to modernize job vacancy announcements and develop the government's recruiting Web site, and most agencies are continuing to automate parts of their hiring processes. Still, problems remain with a job classification process that many view as antiquated, and there is a need for improved tools to assess the qualifications of job candidates. On the basis of our survey of members of the interagency Chief Human Capital Officers (CHCO) Council, agencies appear to be making limited use of two new hiring flexibilities that could help agencies in expediting and controlling their hiring processes. Frequently cited barriers to using the new hiring flexibilities included (1) the lack of OPM guidance for using the flexibilities, (2) the lack of agency policies and procedures for using the flexibilities, (3) the lack of flexibility in OPM rules and regulations, and (4) concern about possible inconsistencies in the implementation of the flexibilities within the department or agency. The federal government is now facing one of the most transformational changes to the civil service in half a century. Today's challenge is to define the appropriate roles and day-to-day working relationships for OPM and individual agencies as they collaborate on developing innovative and more effective hiring systems.