Federal Downsizing: Better Workforce and Strategic Planning Could Have Made Buyouts More Effective
GGD-96-62
Published: Aug 26, 1996. Publicly Released: Aug 26, 1996.
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Highlights
Pursuant to a congressional request, GAO reviewed several issues related to the federal employee buyout program, focusing on: (1) whether the Federal Workforce Restructuring Act's downsizing goals are being achieved; (2) whether agencies' use of buyouts reflects National Performance Review (NPR) downsizing goals; (3) the demographic results of the buyouts; and (4) how agencies view buyouts as a downsizing tool.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| To ensure the most cost-effective use of any future buyouts and to help mitigate the adverse effects that can result from poorly planned downsizing, Congress, in reviewing H.R. 2751 or other legislation that would grant buyout authority to agencies, may wish to consider requiring agencies to do strategic and workforce planning as a prerequisite for receiving buyout authority and to implement downsizing consistent with the results of their planning efforts. To the extent possible, priority should be given to retaining those employees possessing the knowledge and skills necessary to accomplish the agency's work. | Provisions for strategic and workforce planning were written into the governmentwide buyout authority (P.L. 104-208) as well as several pieces of agency specific buyout legislation. | |
| To ensure the most cost-effective use of any future buyouts and to help mitigate the adverse effects that can result from poorly planned downsizing, Congress, in reviewing H.R. 2751 or other legislation that would grant buyout authority to agencies, may wish to consider ensuring that consideration of any buyout legislation is completed quickly and that buyouts, if approved, occur shortly thereafter. This will help reduce the number of employees who might delay their retirements and other types of separations in the expectation of receiving a buyout. | The governmentwide non-Defense agency buyout authority (P.L. 104-208) was considered quickly. Further, it was enacted September 30, 1996, and gave agencies the authority to begin offering buyouts the next day. | |
| To ensure the most cost-effective use of any future buyouts and to help mitigate the adverse effects that can result from poorly planned downsizing, Congress, in reviewing H.R. 2751 or other legislation that would grant buyout authority to agencies, may wish to consider clarifying the kinds of procurement actions (e.g., new contracts, task orders, modifications, etc.) that would be subject to the cost comparison requirement. | The buyout legislation approved by Congress following GAO's report typically did not generally contain any provisions on agencies' use of contractors to replace employees who took buyouts. |
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Topics
Early retirementEmployee buyoutsEmployment of minoritiesFederal downsizingFederal personnel lawPersonnel managementProposed legislationReductions in forceStaff utilizationStrategic planningWomen