Move over performance measurement and financial management reform, the next hot topic for federal agencies is human capital management, according to the General Accounting Office.
While federal financial, information technology and performance issues have all been addressed by Congress, strategic human capital management has yet to be explored, GAO concluded in a new report, "Human Capital: A Self-Assessment Checklist for Agency Leaders (GGD-99-179)."
"Employees traditionally have been viewed through the budgetary lens, and therefore they have often been seen as costs to be cut rather than as assets to be appreciated," the report said.
The report outlines steps managers can take to assess their own human resources systems even in the absence of legislative change. Before beginning a self-assessment, however, managers need to understand two underlying principles of human capital management, GAO said. First, employees should be viewed as assets. Second, they should be an integral part of the agency's mission.
"An agency's people define its character and its capacity to perform," the report said.
According to GAO, strategic planning, which includes defining and organization's mission, goals and core values, should be the first element of a human capital management framework. "The effect should be in the best collective interests of employer and employees alike," the report said.
Once a vision for the future is established, the following factors need to be addressed, GAO said:
- Organizational alignment
- Leadership
- Talent
- Performance culture
Organizational alignment means that human capital management becomes part of an agency's everyday business routine. In addition to budgeting and procurement, agencies should include human capital in their planning. For example, agencies should have a list of current and future skill needs and gaps as well as industry benchmarks for skills, education levels and demographic trends to use as a basis for comparison, the report said.
Leadership is key to making everyone at the agency feel like part of a team, GAO said. Performance standards can be incorporated into SES contracts and agencies should use leadership standards based on industry benchmarks when making hiring and executive development decisions.
Talent management involves the process of recruiting, hiring, developing and retaining employees. Recruitment and hiring plans should be documented and linked to needed skills. Agencies should also take the time to create individual development plans for employees at all levels. Training and professional development should be not only encouraged, but rewarded, the report said.
Finally, agencies should strive to create a high-performance environment "in which honest two-way communications and fairness are a hallmark, perceptions of unfairness are minimized, and workplace disputes are resolved by fair and efficient means," GAO said.
Each of the five elements of GAO's framework provides questions managers can ask themselves about their agencies to get a better understanding of where they stand in human capital management. A list of useful measures, such as attrition rates, skills inventory, percentage of operating budget spent on recruitment and more is included in the report.
GAO considers its self-assessment a starting point for more discussion and ideas. Comments or questions should be directed to GAO's Nancy R. Kingsbury at kingsburyn.ggd@gao.gov.
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