	Background

USAID is the lead U.S. agency for administering humanitarian and  economic assistance to about 160 countries. USAID’s Changing Workforce Affects Ability to Deliver Foreign Assistance

USAID has changed from an agency of U.S. direct-hires that largely  provided direct, hands-on implementation of development projects to one  that manages and oversees the activities of contractors and grantees. In addition, 37 positions remain  vacant, and opportunities for training and mentoring staff are limited,  sometimes forcing the placement of staff who may lack essential skills and  experience. USAID also lacks a “surge” capacity to help it deal with  emerging crises and changing strategic priorities. As a result, several  human capital vulnerabilities have surfaced but have not been  systematically addressed. Involvement of Agency Leaders, Employees, and Stakeholders in Strategic Workforce Planning Is Limited

USAID’s senior management is developing a human capital strategy to  respond to the President’s Management Agenda, but it has not identified  how it will significantly involve employees and other stakeholders in  developing and communicating the workforce strategies that result from  its efforts. However, USAID has not developed a workforce plan for its civil service  staff—a factor noted by OMB in its Presidential Management Agenda  “scorecard” of USAID’s human capital management efforts. USAID also has not yet developed workforce plans for its personal  services contractors, who make up the majority of its workforce, although  USAID plans to do so in response to a recommendation by its Inspector  General. Since 1992, the number of U.S. direct-hire staff has decreased by  37 percent, but the number of countries with USAID programs has almost  doubled. With fewer and less experienced U.S. direct-hire staff managing increasing  levels of foreign assistance in more countries, along with expected  increases in program funds for Afghanistan and Iraq, significant funding  increases for the global initiative to fight human immunodeficiency  virus/acquired immune deficiency, and potential USAID involvement in the  Millennium Challenge Account, USAID’s ability to provide oversight over  its foreign assistance activities and pursue U.S. foreign policy objectives is  becoming increasingly difficult. Because USAID has not adopted a  strategic approach to workforce planning and management, it cannot  ensure that it has addressed these challenges appropriately and identified  the right skill mix and competencies needed to carry out its development  assistance programs. link workforce planning to the agency’s  mission. hired and what should be contracted. Agency’s program budget increased, but  its workforce decreased for 10 years. USAID has significant barriers to  workforce planning. Develop and implement a comprehensive  changing.
Why GAO Did This Study

The U.S. Agency for International Development (USAID) oversees humanitarian and economic assistance--an integral part of the U.S. global security strategy--to more than 160 countries. GAO recommended in 1993 that USAID develop a comprehensive workforce plan; however, human capital management continues to be a high-risk area for the agency. GAO was asked to examine how changes in USAID's workforce over the past 10 years have affected the agency's ability to deliver foreign aid and to assess its progress in implementing a strategic workforce planning system.

What GAO Found

USAID has evolved from an agency in which U.S. direct-hire staff directly implemented development projects to one in which U.S. direct-hire staff oversee the activities of contractors and grantees. Since 1992, the number of USAID U.S. direct-hire staff declined by 37 percent, but the number of countries with USAID programs almost doubled and, over the last 2 years, program funding increased more than 50 percent. As a result of these and other changes in its workforce and its mostly ad-hoc approach to workforce planning, USAID faces several human capital vulnerabilities. For example, attrition of experienced foreign service officers and inadequate training and mentoring have sometimes led to the deployment of staff who lack essential skills and experience. The agency also lacks a "surge capacity" to respond to evolving foreign policy priorities and emerging crises. With fewer and less experienced staff managing more programs in more countries, USAID's ability to oversee the delivery of foreign assistance is becoming increasingly difficult. USAID has taken steps toward developing a workforce planning and human capital management system that should enable the agency to meet its challenges and achieve its mission in response to the President's Management Agenda, but it needs to do more. For example, USAID has begun its workforce analysis but it has not yet conducted a comprehensive assessment of the skills and competencies of its current workforce and has not yet included its civil service and contracted employees in its workforce planning efforts. Because USAID has not adopted a strategic approach to workforce planning, it cannot ensure that it has addressed its workforce challenges appropriately and identified the right skill mix to carry out its assistance programs.