GAO: Oversight needed for better management of military personnel

The Defense Department has developed an overall human capital management strategy, but the agency needs to establish an oversight plan to ensure that ideas in the strategy are aligned and implemented, according to a new General Accounting Office report.

In April 2002, Pentagon officials released two plans outlining the agency's priorities for military personnel and strategies for improving service members' quality of life, according to GAO, which examined the two plans in its report "Military Personnel: Oversight Process Needed to Help Maintain Momentum of DoD's Strategic Human Capital Planning" (GAO-03-237).

"The two plans constitute a positive step forward in DoD's strategic management of the military workforce," the report said.

According to the report, the Defense Department's plan, "A New Social Compact: A Reciprocal Partnership Between the Department of Defense, Service Members and Families," outlines the Pentagon's vision for military personnel benefits such as child and youth services, health care, housing, spouse employment and recreation.

"The 'Social Compact' indicates that benefits are important [in] alleviating some of the hardships of military life and emphasizes that providing consistent, high-quality benefits that meet the needs of service members and their families can yield a committed and long-term workforce," the report said.

Similarly, the "Military Personnel Human Resource Strategic Plan" recognizes that benefits are an important element to retaining and recruiting members of the military and includes several ideas that could lead to changes in the pay and benefits system, such as alternatives to the military retirement system, GAO concluded. But, while the two plans are a step in the right direction, neither one addresses two factors GAO has identified as critical for managing human capital successfully, the watchdog agency said.

"The plans do not specifically address how DoD will integrate and align benefits and other human capital approaches to meet is overall organizational goals," the report said. "Effective organizations integrate human capital approaches as key strategic elements."

More importantly, the Defense Department has no process in place for overseeing the implementation of its human capital plans, according to the report.

"An oversight process also could help DoD officials maintain the momentum of their strategic human capital planning efforts," the report suggested.

GAO recommended that David Chu, undersecretary of Defense for personnel and readiness, establish an oversight process to consolidate the two plans and create a performance-based human capital management plan.

In a written response, Chu agreed with GAO's findings and said the agency would adopt the recommendation.