MSPB urges agencies to improve workforce management, accountability

Federal agencies must tie workforce planning to overall mission and make managers more accountable for agency performance to avoid a human capital crisis, according to a new report from the Merit Systems Protection Board.

The General Accounting Office estimates that more than 15 percent of the federal workforce will retire in the next five years. According to MSPB's report "Making the Public Service Work-Recommendations for Change," the potential brain drain could drastically hinder the government's ability to serve the public.

"Many of those who will retire are seasoned employees who will take with them the kind of knowledge and expertise the government will need to capture and retain after they retire," the report said.

Agencies also need to consider that the workplace of yesterday may not be the best fit for younger employees, MSPB said. Convoluted hiring authorities, poor assessment tools, and an incomprehensible hiring process undermines effective workforce management, the report said.

"Federal agencies need new ways to deal with a diverse workforce if they are to attract, motivate and retain employees at both ends of the spectrum, as well as those in between," the report said.

MSPB also said that the federal government should limit the number of special hiring authorities and get rid of the "rule of three," a law that requires managers to hire new employees for competitive service jobs from among the three most eligible candidates.

"Agencies don't have sufficient tools to help them reshape their workforces without penalizing either the organization or the individuals whose competencies no longer match those needed by the organization," said MSPB, which recommended more use of internship programs to recruit young people and part-time scheduling to help keep potential retirees in the fold.

Poor managers and those without sufficient resources are another reason for the government's human capital woes, MSPB said. "Even if agencies acquire the right people, managers often lack the competencies, tools, resources or authority to compensate, reward and develop employee behaviors and performance that support mission accomplishment," the report said. The report recommended that the government simplify the job classification system; introduce pay-banding, which replaces narrow General Schedule pay categories with wider, more flexible pay scales; and change the way in which managers are chosen. MSPB also advised the government to set up supervisory and managerial mentoring programs and make managers more accountable for agency performance.

"Management responsibilities often are not accompanied by the necessary authority and accountability measures that would ensure that managers actually meet their management responsibilities," the report said. "It is not surprising that many managers and supervisors don't feel full ownership of the results of their management decisions."

MSPB acknowledged that other factors contributing to the human capital crisis-such as shifting missions, evolving technology and an aging workforce-might be beyond the government's reach. But changes in policies and the management process are tools well within it, the report said.

The board recommended appointing chief human capital officers at agencies and giving the Office of Personnel Management the resources it needs to develop and implement changes in laws and regulations governing human capital management.

"Incremental improvements have been made in recent years, but they are not enough," the report said. "It is time to make bold and sweeping changes to the systems and structures of the public service and to the practice of human capital management."