Strategic Human Capital Management

Why It's High Risk

The federal government's long-standing lack of a consistent approach to human capital management prompted GAO to add strategic human capital management as a high-risk area in 2001. It remains high risk because of a continuing need for a governmentwide framework to advance human capital reform. This framework is key in avoiding further fragmentation within the civil service, allowing management flexibility as appropriate while ensuring a reasonable degree of consistency, providing adequate safeguards, and maintaining a level playing field among agencies competing for talent.

^ Back to topWhat We Found

Congress and the executive branch have taken steps to address the federal government's human capital shortfalls. Nonetheless, strategic human capital management remains a critical element in 18 of the 31 high-risk areas. Ample opportunities exist for agencies to improve their strategic human capital management and for OPM's continued leadership in fostering and guiding improvements in four key areas:

• Leadership: Top leadership in agencies across the federal government must provide committed and inspired attention needed to address human capital and related organizational transformation issues.
• Strategic human capital planning: Strategic human capital planning that is integrated with broader organizational strategic planning is critical to ensuring agencies have the talent and skill mix they need to address their current and emerging challenges.
• Acquiring, developing, and retaining talent: Faced with a workforce that is becoming more retirement eligible and finding gaps in talent, agencies need to strengthen their efforts and use of available flexibilities to acquire, develop, motivate, and retain talent.
• Results-oriented organizational culture: Leading organizations create a clear linkage—"line of sight"—between individual performance and organizational success and, thus, transform their workplaces and cultures to be more results-oriented, customer-focused, collaborative, diverse, and inclusive.

OPM and federal agencies should be held accountable for the ongoing monitoring and refinement of human capital approaches to recruit, hire, develop, motivate, and retain a capable and committed federal workforce. With continued commitment and strong leadership, the federal government can be an employer of choice.

^ Back to topWhat Needs to Be Done

GAO has suggested that until a governmentwide framework to advance human capital reform is in place, agencies still need to take actions to help address these complex challenges:

• Top agency leaders must commit to addressing human capital and related organizational transformation issues;

  Highlights of GAO-07-556T (PDF)

• Human capital planning efforts need to be fully integrated with mission and critical program goals;

  Highlights of GAO-04-39 (PDF), Highlights of GAO-07-556T (PDF), Highlights of GAO-08-762T (PDF)

• Continued efforts are needed to improve recruiting, hiring, professional development, and retention strategies to ensure agencies have needed talent; and

  Highlights of GAO-06-894 (PDF), Highlights of GAO-07-556T (PDF), Highlights of GAO-08-908T (PDF)

• Organizational cultures need to promote high performance and accountability, empower and include employees in setting and accomplishing programmatic goals, and ensure diversity at all levels of the workforce.

  Highlights of GAO-05-90 (PDF)

^ Back to topKey Reports

Equal Employment Opportunity: DHS Has Opportunities to Better Identify and Address Barriers to EEO in Its Workforce

GAO-09-639, August 31, 2009

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 31 pages)   Accessible Text   Recommendations (HTML)

Human Capital: Diversity in the Federal SES and Processes for Selecting New Executives

GAO-09-110, November 26, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 79 pages)   Accessible Text

Results Oriented Management: Opportunities Exist for Refining the Oversight and Implementation of the Senior Executive Performance-Based Pay System

GAO-09-82, November 21, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 57 pages)   Accessible Text   Recommendations (HTML)

Human Capital: DOD Needs to Improve Implementation of and Address Employee Concerns about Its National Security Personnel System

GAO-08-773, September 10, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 84 pages)   Accessible Text   Recommendations (HTML)

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