Performance management. Employee engagement. Key Talent Management Strategies Can Help OPM and Agencies Better Manage the Current and Future Workforce

In light of trends discussed, we identified actionable strategies that  agencies may be able to use to effectively manage the future federal  workforce in key talent management areas (see table 1). Align Human Capital Strategy with Current and Future Mission Requirements

Why Is Aligning Human Capital Strategies  Important? With  shifting attitudes toward work, technological advances, and increased  reliance on nonfederal partners, agencies need to assess whether there  are gaps in existing and future skills and competencies. In January 2015, we recommended that OPM (1) work with the CHCO  Council to develop a core set of metrics that all agencies should use to  close mission-critical skills gaps, among other HR goals; and (2)  coordinate with the interagency working group that identified the list of  skills gaps to explore the feasibility of collecting necessary information  during a CHCO-led review of HR goals. Acquire and Assign Talent

Why Is Acquiring and Assigning Talent  Important? To ensure agencies have the capacity to  address evolving mission requirements,  agencies will need to compete with other  sectors to acquire top talent, as well as have  the flexibility to reassign existing talent to  where they are most needed. These challenges include a lengthy hiring process and negative  perceptions of government. Cultivate a diverse talent pipeline. Agencies can overcome these timing challenges by recruiting  continuously and starting the hiring process early in the school year. OPM agreed with our recommendation and has made progress in these areas, although more work is needed. While federal  agencies may struggle to offer competitive  compensation for highly skilled workers given  fiscal constraints, leveraging existing  incentives such as work-life balance programs  can help agencies to better compete for top  talent even in labor markets where federal pay  may not be competitive. Employee engagement— generally defined  as the sense of purpose and commitment  employees feel toward their employer and its  mission—is important because engaged  employees are more innovative, more  productive, more committed, more satisfied,  and less likely to leave, according to OPM. OPM provided technical comments, which we incorporated  as appropriate. Appendix I: Objectives, Scope, and Methodology

In this report, we identify (1) key trends affecting federal work and  workers, and (2) key talent management strategies agencies can employ  to achieve a high-performing federal workforce, given those trends. Objective 1

To identify key trends in the workforce and workplace, we analyzed data  from the U.S. Bureau of Labor Statistics (BLS) Current Population Survey  (CPS) and Federal Procurement Data System – Next Generation,  reviewed our prior work, and reviewed reports from OPM and selected  think tanks and consulting firms. We  interviewed human capital experts, federal employee and management  groups, and held moderated group interviews with agency Chief Human  Capital Officers (CHCO). Interviews with private organizations and foreign governments. In our report, we included  examples of human capital practices that managers and officials told us  were helpful to improving their organization, and that could feasibly be  implemented within the federal government.
Why GAO Did This Study

Much has changed since the federal government's employment policies were designed generations ago. Without careful attention to strategic human capital management, the federal government may continue to struggle to compete for workers with the skills needed to address the nation's social, economic, and security challenges.
GAO was asked to review issues related to the future of federal work and the workforce. This report identifies: (1) key trends affecting federal work and workers, and (2) key talent management strategies for achieving a high-performing workforce, given those trends.
GAO analyzed data from OPM and the Bureau of Labor Statistics, and reviewed reports from GAO, OPM, and selected think tanks. GAO also held group interviews with agency Chief Human Capital Officers, and interviewed human capital experts and representatives of federal labor unions, managers, and executives. Additionally, GAO spoke with private consulting firms and foreign governments regarding human capital strategies that officials said were helpful to improving their organizations.

What GAO Found

Federal work is changing amid demographic and technological trends (see figure below).
Given these trends, key talent management strategies can help agencies better manage the current and future workforce. These strategies are all within agencies' existing authorities:
Align human capital strategy with current and future mission requirements. With shifting attitudes toward work, technological advances, and increased reliance on nonfederal partners, agencies need to identify the knowledge and skills necessary to respond to current and future demands. Key practices include identifying and assessing existing skills, competencies, and skills gaps.
Acquire and assign talent. To ensure agencies have the talent capacity to address evolving mission requirements and negative perceptions of federal work (e.g., that it is too bureaucratic), agencies can cultivate a diverse talent pipeline, highlight their respective missions, recruit early in the school year, support rotations, and assign talent where needed.
Incentivize and compensate employees. While federal agencies may struggle to offer competitive pay in certain labor markets, they can leverage existing incentives that appeal to workers' desire to set a schedule and to work in locations that provide work-life balance.
Engage employees. Engaged employees are more productive and less likely to leave, according to the Office of Personnel Management (OPM). Agencies can better ensure their workforces are engaged by managing employee performance, involving employees in decisions, and developing employees.

What GAO Recommends

GAO has open recommendations to OPM related to key talent management strategies, including developing a core set of metrics that agencies should use to close mission-critical skills gaps. OPM agreed with most of these recommendations and has made some progress, but additional actions are needed. OPM provided technical comments, which GAO incorporated as appropriate.