Compensation Was the Primary Reason Staff Had Left or Were Considering Leaving SEC

Current and former staff indicated that compensation was the most  important reason to leave or consider leaving SEC, followed by  opportunities for advancement, the amount of uncompensated overtime,  and the quality of administrative support, that are discussed later in this  report. SEC Has Placed Greater Emphasis on Compensation-Based Programs Than on Noncompensation Flexibilities

In response to the high turnover rates among attorneys, accountants, and  examiners, SEC has focused largely on compensation-based programs to  recruit, retain, and motivate staff. SEC also uses recruitment bonuses more frequently than other government  agencies. For example, SEC could offer  higher rating-based performance awards. SEC Has Taken Steps to Address Strategic Human Capital Management but Faces Challenges

The high turnover rate among attorneys, accountants, and examiners has  forced SEC management to focus greater attention on strategic human  capital management issues. SEC has taken several positive steps to  strategically align its core mission with its ability to recruit and retain  qualified employees, including improving its recruitment program and  adding a new human capital goal to its performance plan. Conclusions

SEC’s human capital management practices have been shaped largely by  the need to confront a growing staffing crisis that threatens to impair the  agency’s ability to carry out its mission. Our survey results showed that  inadequate compensation is the primary reason that employees leave the  agency. A. Office of Municipal Securities ............................................................0 .......
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Why GAO Did This Study

The U.S. Securities and Exchange Commission's (SEC) human capital management practices have been shaped largely by a growing staffing crisis that threatens to undermine the agency's ability to carry out its mission. GAO surveyed current and former SEC attorneys, accountants, and examiners to determine what factors influenced turnover, satisfaction, and morale among SEC staff.

What GAO Found

GAO found that inadequate compensation is the primary reason that employees leave the agency. But staff raised other issues that warrant attention, including limited opportunities for advancement, the amount of uncompensated overtime, and the quality of administrative support services. In response to the high turnover rates, SEC has placed greater emphasis on compensation-based human capital programs, including compensation-based flexibilities and performance awards. Although SEC uses compensation-based flexibilities to a greater extent than do other government agencies, the Office of Personnel Management believes it could do more. SEC has taken several steps to focus more attention on strategic human capital management but faces continuing challenges. In April 2001, SEC integrated its human capital strategies with it's core business practices by adding a human capital goal to its 2002 Annual Performance Plan. SEC has also developed an extensive recruiting program for attorneys.