Agencies Relied on 20 Authorities for Over 90 Percent of New Hires in Fiscal Year 2014

Our analysis of OPM data found that overall, agencies used a relatively  small number of hiring authorities to fill nearly all of the vacancies in 2014,  and a large number of hiring authorities to fill the small proportion of  positions that remained. Specifically, we found that agencies used 105  hiring authority codes for 196,226 new appointments in fiscal year 2014. 1). While the Title 5 competitive  examining hiring authority—has been the traditional method for federal  hiring—was the single most used hiring authority in fiscal year 2014, it  accounted for less than a quarter of all new appointments government- wide. These authorities are to be used as a supplement to, not a  substitute for, the competitive hiring process. Three Selected Agencies and OPM Need to Better Assess the Effectiveness of Hiring Authorities to Strengthen Hiring Efforts

		Selected Agencies and OPM Do Not Measure the Effectiveness of Individual Hiring Authorities in Meeting Agencies’ Needs

In our 2002 report, we found that to address their human capital  challenges, it is important for agencies to assess and determine which  human capital flexibilities, including hiring authorities, are the most  appropriate and effective for managing their workforces. Indeed, OPM officials said they do not know  if agencies rely on a small number of authorities because agencies are  unfamiliar with other authorities, or if they have found other authorities to  be less effective in meeting their needs. By analyzing the effectiveness of hiring  authorities, OPM and agencies could identify improvements that could be  used to refine those procedures. Second, Congress and OPM could  provide more agencies access to specific authorities found to be highly  effective. Officials said the  campaign will feature a series of multi-agency, in-person discussions  about hiring and assessment policies and corresponding guidance led by  OPM and OMB officials. OPM’s Hiring Excellence Campaign is designed to bring together agency  hiring specialists and hiring managers to discuss hiring tools and  opportunities for improving the hiring process, and therefore could help  agencies make better use of available hiring authorities. Given the  similarities between the Hiring Excellence Campaign and OPM’s prior  efforts to improve federal hiring, it will also be important for OPM to  ensure that the campaign leverages these prior initiatives, incorporates  relevant lessons learned, if any, and ensures there is no unnecessary  overlap or duplication with other efforts to improve federal hiring. A critical first step in understanding if and which authorities are meeting  agency needs is for OPM and agencies to analyze if and how specific  authorities contribute to the effectiveness of the hiring process. 2. 3. At that time, we will send copies to the appropriate  congressional committees, the Director of the Office of Personnel  Management, and other interested parties. Appendix I: Objectives, Scope, and Methodology

This report examines: (1) the hiring authorities agencies used in fiscal  year 2014 (the most recent year for available data when we began our  review), (2) the extent to which selected agencies and OPM assessed the  effectiveness of hiring authorities used for selected occupations in helping  meet hiring needs, and (3) how OPM ensured that agencies have the  assistance and information needed to use the hiring authorities  effectively. For example, we reviewed OPM time-to-hire data government-wide and  by agency.
Why GAO Did This Study

Federal agencies face human capital challenges as a large percentage of employees become eligible to retire and agencies compete with the private sector for critical skills. To acquire needed talent, agencies need a hiring process that is applicant friendly, flexible, and meets policy requirements, such as hiring on the basis of merit.
GAO was asked to review the extent to which federal hiring authorities were meeting agency needs. This report examines (1) the hiring authorities agencies used in fiscal year 2014 (the most recent data at the time of the review), (2) the extent to which case study agencies and OPM assessed the effectiveness of hiring authorities, and (3) how OPM ensured that agencies understood how to use hiring authorities effectively.
To meet these objectives, GAO analyzed OPM data and documents, and interviewed OPM and officials from three agencies selected on the basis of recent high hiring levels in critical skill occupations.

What GAO Found

A hiring authority is the law, executive order, or regulation that allows an agency to hire a person into the federal civil service. Of the 105 hiring authorities used in fiscal year 2014, agencies relied on 20 for 91 percent of the 196,226 new appointments made that year. Office of Personnel Management (OPM) officials said they do not know if agencies rely on a small number of authorities because agencies are unfamiliar with other authorities, or if they have found other authorities to be less effective. The competitive examining hiring authority, generally seen as the traditional method for federal hiring, was the single most used authority in fiscal year 2014, but accounted for less than 25 percent of all new appointments.
Agencies Relied on 20 Hiring Authorities for Nearly All New Hires in Fiscal Year 2014
While OPM—the agency responsible for overseeing the delegated hiring authority and managing federal civilian personnel data—tracks data on agency time-to-hire, manager and applicant survey results, and compliance audits to assess the hiring process, this information is not used by OPM or agencies to analyze the effectiveness of hiring authorities. As a result, OPM and agencies do not know if authorities are meeting their intended purposes. By analyzing hiring authorities, OPM and agencies could identify improvements that could be used to refine authorities, expand access to specific authorities found to be highly efficient and effective, and eliminate those found to be less effective.
OPM's Hiring Excellence Campaign consists of a number of multi-agency, in-person events and is OPM's latest initiative designed to address long-standing challenges with federal hiring. OPM officials described the objectives, strategies, and measures by which the campaign will be measured and sustained. Going forward it will be important for OPM to sustain the campaign's efforts and incorporate lessons learned, if any, from similar prior or existing efforts to improve federal hiring.

What GAO Recommends

GAO recommends that the Director of OPM, working with agencies, strengthen hiring efforts by (1) analyzing the extent to which federal hiring authorities are meeting agencies' needs; (2) using this information to explore opportunities to refine, eliminate, or expand authorities as needed, and (3) sustain the Hiring Excellence Campaign's efforts to improve agency hiring and leverage prior initiatives, as appropriate. OPM generally concurred with these recommendations.