Human Capital: Major Human Capital Challenges at the Departments of Defense and State

This testimony discusses the human capital issues facing the Department of Defense (DOD) and the Department of State. The issues confronting the two agencies do not fundamentally differ from those facing other federal agencies. In the wake of extensive downsizing during the last decade, agency workforces are experiencing significant imbalances in terms of shape, skills, and retirement eligibility, with the likelihood of a huge ware of retirements during the next few years and a resulting decline in the ability to accomplish agency missions. Although both DOD and State have begun to address their human capital issues, GAO identified several areas in which additional efforts are needed. DOD and State must step up their efforts to identify current and future workforce needs, assess where they are relative to those needs, and develop strategies for addressing any related gaps. Such efforts should address workforce shape, skills, knowledge, and succession planning.