Between 1998 and 2001, VBA hired about 2,000 new examiners (see figure  1). Attrition At VBA Is Higher For Newly Hired Examiners Than For The Agency Overall

In fiscal year 2000, the attrition rate for new examiners at VBA was about  15 percent, more than twice as high as the 6 percent rate for all employees  who left that year. About 15 percent of the new examiners hired in fiscal  year 2000 left the agency within 1 year of being hired. According to human capital experts, in general, new employees tend to  leave at higher rates than all other employees. However, for all new federal employees—those hired  in fiscal year 1998, 1999, and 2000—as many as 17 percent left within 12  months of being hired. Using this method, VBA reported attrition rates similar to  those found by GAO. VBA Lacks Adequate Data On Reasons Employees Leave And Analysis Of Staff Attrition

While VBA has descriptive data on how employees separate from the  agency (whether through resignation, termination, retirement, or transfer),  it does not have adequate analytic data on the reasons why employees,  particularly new employees, leave the agency. VBA collects some data on  the reasons for attrition in exit interviews. However, these data are not  systematically collected in a consistent manner and not compiled or  analyzed. Furthermore, VBA has not performed the types of analysis on its  data that would help the agency determine whether it can reduce its  attrition rate. VBA Collects Some Data on Types of Separations, but Data on Reasons Are Limited

While VBA systematically collects descriptive data on how employees  leave the agency, the data on the reasons employees leave is not  systematically collected or analyzed. While VBA conducts exit interviews to collect information on the reasons  employees resign, it does not have a standard process for these interviews,  nor are they conducted consistently for all separating employees,  according to VBA officials. Review of attrition data at certain regional offices. VBA has begun to address some of the findings from these special studies  or reports. While one of VBA’s special reports did some broad  comparisons of VBA’s attrition to the attrition at other federal agencies,  VBA has not compared, as we have done, the attrition of newly hired  examiners to the attrition of employees in other parts of the federal  government with comparable job series. Obtaining better attrition data and conducting adequate analysis of  attrition and the reasons for attrition could help VBA target future  recruitment efforts and minimize attrition. Understanding the  reasons for attrition could help the agency minimize the investment in  training lost when a new employee leaves.
Why GAO Did This Study

By the year 2006, the Veterans Benefits Administration (VBA) projects it will lose a significant portion of its mission-critical workforce to retirement. Since fiscal year 1998, VBA has hired over 2,000 new employees to begin to fill this expected gap. GAO was asked to review, with particular attention for new employees, (1) the attrition rate at VBA and the soundness of its methods for calculating attrition and (2) whether VBA has adequate data to effectively analyze the reasons for attrition. To answer these questions, we obtained and analyzed attrition data from VBA's Office of Human Resources, calculated attrition rates for VBA and other federal agencies using a government-wide database on federal employment, and interviewed VBA officials about their efforts to measure attrition and determine why new employees leave.

What GAO Found

About 15 percent of new examiners hired in fiscal year 2000 left VBA within 12 months of their hiring date, more than double the 6 percent rate of all VBA employees who left in fiscal year 2000. In general, new hire attrition tends to exceed the rate for all other employees, and VBA's 15 percent rate is similar to the attrition rate for all new federal employees hired between fiscal years 1998 and 2000, when as many as 17 percent left within 12 months of being hired. VBA does not have adequate data on the reasons why employees, particularly new employees, choose to leave the agency. VBA has descriptive data on how employees leave the agency (whether through resignation, retirement, or transfer), but VBA does not have comprehensive data on the reasons employees resign. While VBA collects some data on the reasons for attrition in exit interviews, these data are limited because exit interviews are not conducted consistently, and the data from these interviews are not compiled and analyzed. Without such data, VBA cannot determine ways to address the reasons employees are leaving. Furthermore, VBA has not performed analysis to determine whether it can reduce its staff attrition. Improved collection and analysis of attrition data, including data on the reasons for attrition, could help the agency minimize the lost investment in training, particularly when new employees resign. A forthcoming report will explore options for improving VBA's collection and analysis of attrition data.