	Background

Mission-critical skills gaps within specific federal agencies as well as  across the federal workforce pose a high risk to the nation because they  impede the government from cost effectively serving the public and  achieving results. We also noted that  further progress in closing skills gaps will depend on, among other things,  the extent to which OPM develops a predictive capacity to identify newly  emerging skills gaps beyond those areas already identified. Lessons Learned From Initial Efforts to Close Mission-Critical Skills Gaps Could Strengthen Future Approaches

		Working Group’s Effort Yields Three Key Lessons for Identifying Skills Gaps

Based on its deliberations from September 2011 through March 2012, the  CHCO Council Working Group (Working Group) identified skills gaps in  six government-wide, mission-critical occupations (MCO): cybersecurity,  auditor, human resources specialist, contract specialist, economist, and  the STEM family. Although this effort was an important step forward, because of various  methodological shortcomings, the Working Group did not address a more  comprehensive list of mission-critical skills gaps. Specifically, the Working Group’s experience underscores the importance  of (1) using a robust, data-driven approach to identify potential MCOs  early in the process; (2) prioritizing occupations using criteria that  consider programmatic impact; and (3) consulting with subject matter  experts and other stakeholders prior to identifying MCOs. Since 2011, our work has identified skills gaps in nearly two dozen  occupations across the government. In some cases, such as  cybersecurity, the gaps we identified were affecting multiple agencies and  were consistent with the Working Group’s findings. In December 2013, we found that a decline in  telecommunication expertise across multiple agencies compounded  the General Services Administration’s (GSA) challenges in  transitioning those agencies to a new network of telecommunications  services, contributing to delays and cost overruns of 44 percent. OPM’s Efforts to Predict Emerging Mission-Critical Skills Gaps Are in the Early Planning Stages

		OPM Plans to Strengthen the Methodology Used to Identify Emerging Skills Gaps

The interagency working group that identified the list of skills gaps in six  government-wide mission-critical occupations (MCO) was re-named the  Federal Agency Skills Team (FAST). In the first year, OPM officials  stated that FAST intends to meet regularly until it identifies a new set of  government-wide skills gaps, which OPM officials expect will occur by  June 2015. This could allow for more discretion to address occupations  with the potential for significant programmatic impacts even though an  absolute majority of agencies may not have skills gaps in those areas. According to an OPM official, federal agencies’ ability to  assess workforce competencies varies, which makes collection of  government-wide data on competency gaps difficult. Therefore, as OPM  develops its process for using EHRI to collect agencies’ skills gaps data,  it will be important for OPM to also work with agency CHCOs to bolster  the ability of agencies to assess workforce competencies by sharing  competency surveys, lessons learned, and other tools and resources— and to ensure that such information can be stored in the EHRI database  for government-wide workforce analysis. OPM and Selected Agencies Could Improve Efforts to Address Skills Gaps by Strengthening Data-Driven Reviews

		OPM Developed HRstat Data-Driven Reviews to Help Agencies Regularly Track Their Progress in Achieving Their Human Resources Goals

Data-driven reviews—commonly referred to as “stat” meetings—are  regularly scheduled, structured meetings used by organizations to review  performance metrics with department or program personnel to drive  progress on agency priorities and goals. Realizing this, OPM has established an interagency working group known  as FAST, which is responsible for identifying and addressing current and  emerging skills gaps. To ensure that OPM builds the predictive capacity to identify emerging  skills gaps across the government—including the ability to collect and use  reliable information on the competencies of the federal workforce for  government-wide workforce analysis—we recommend that the Director of  OPM take the following two actions:
Establish a schedule specifying when OPM will modify its EHRI  database to capture staffing data that it currently collects from  agencies through its annual workforce data reporting process. To help agencies and OPM better monitor progress toward closing skills  gaps within agencies and government-wide, we recommend that the  Director of OPM:
Work with the CHCO Council to develop a core set of metrics that all  agencies should use as part of their HRstat data-driven reviews. Appendix I: Objectives, Scope, and Methodology

This report assesses (1) lessons learned from initial efforts to close  critical skills gaps and how they can inform future initiatives, (2) what  progress the Office of Personnel Management (OPM) has made in  building a predictive capacity to identify future mission-critical skills gaps,  and (3) how OPM and agencies are using HRstat to identify and close  skills gaps. To assess how OPM and agencies are using HRstat to identify and close  skills gaps, we selected a nongeneralizable sample of three agencies— the Departments of Commerce and Energy, and the U.S. Agency for  International Development—from among the 24 agencies that had at  least begun implementing HRstat at the time of our review.
Why GAO Did This Study

Mission-critical skills gaps both within federal agencies and across the federal workforce pose a high risk to the nation because they impede the government from cost-effectively serving the public and achieving results.
GAO was asked to review progress OPM has made in closing government-wide skills gaps, achieving its cross-agency priority goal, and additional steps needed to better identify and address skills gaps. This report assesses (1) lessons learned from initial efforts to close critical skills gaps and how they can inform future initiatives, (2) what progress OPM has made in building a predictive capacity to identify future mission-critical skills gaps, and (3) how OPM and agencies are using HRstat to identify and close skills gaps. To address these objectives, GAO reviewed documentation; interviewed OPM officials; and reviewed the implementation of HRstat meetings at Commerce, DOE, and USAID.

What GAO Found

Lessons learned from initial efforts to try to close skills gaps could strengthen future approaches. For example, the Chief Human Capital Officer (CHCO) Council Working Group (Working Group) identified skills gaps in six government-wide occupations, such as cybersecurity and auditors. Although this effort was an important step forward, GAO's work has identified skills gaps in nearly two dozen occupations with significant programmatic impact. In some cases, such as cybersecurity, the skills gaps GAO identified were consistent with the Working Group's findings. But GAO's work has also identified additional skills gaps. For example, a decline in telecommunication expertise at multiple agencies contributed to delays and cost overruns of 44 percent when those agencies were transitioning to a new network of telecommunications services. The Working Group did not address a more comprehensive list of skills gaps because of various methodological shortcomings that included insufficient analysis of workforce data early in the process. In 2015, the Office of Personnel Management (OPM) and the CHCO Council plan to identify and address a new set of government-wide skills gaps. It will be important that key lessons learned from the initial efforts to identify skills gaps inform this next round of work, including the need to (1) use a data-driven approach early in the process, (2) prioritize occupations using criteria that consider programmatic impact, and (3) consult with subject matter experts and other stakeholders prior to the identification of skills gaps in occupations.
Key features of OPM's efforts to predict emerging skills gaps are in the early planning stages. GAO has previously reported that further progress in closing skills gaps will depend on, among other things, the extent to which OPM develops a capacity to predict emerging skills gaps beyond those areas already identified. A re-named interagency group, known as the Federal Agency Skills Team, plans to strengthen the methodology used to identify emerging skills gaps. Additionally, OPM officials are discussing plans to modify OPM's workforce database to capture government-wide staffing data. However, OPM will need to establish a schedule for modifying this database to ensure its implementation. OPM officials also stated that because agencies' capacity to assess workforce competencies varies, OPM does not have government-wide data on competency gaps, which is needed to identify emerging cross-agency skills gaps. In conjunction with agencies' CHCOs, OPM will need to strengthen agencies' ability to assess their competency needs that are critical to successfully achieving their mission and goals.
OPM and selected agencies that GAO reviewed—the Departments of Commerce (Commerce) and Energy (DOE), and the U.S. Agency for International Development (USAID)—could improve efforts to address skills gaps by strengthening their use of quarterly data-driven reviews, known as HRstat meetings. Specifically, the metrics used by the selected agencies during their HRstat meetings vary from agency to agency, making it difficult for OPM to assess agencies' progress in closing skills gaps government-wide. Although it is important for agencies to have their own HRstat metrics, OPM should work with the CHCO Council to develop a core set of HRstat metrics that all agencies use so that OPM may have the ability to analyze skills gap data across the government.

What GAO Recommends

GAO recommends that OPM (1) strengthen its methodology for identifying and addressing skills gaps, (2) establish a schedule and process for collecting government-wide staffing and competency data, and (3) develop a core set of metrics for use in agencies' HRstat reviews. OPM generally concurred with the first and third recommendations but did not concur with the second recommendation because of funding implications. GAO acknowledges there may be funding constraints; however, GAO's recommendation may help OPM address these constraints.