Message from the Director

As Director of the U.S. Office of Personnel Management (OPM), I’m pleased to present OPM’s Fiscal Year (FY) 2023 Agency Human Capital Review (HCR). This document reviews the design and implementation of 24 Federal agencies’ Human Capital Operating Plan, Independent Audit Program, and HRStat programs, providing HR leaders with a snapshot of current risks, barriers, and successful practices to help them reach their goals.

The HCR helps ensure agency human capital strategies enhance performance as intended. This review also combines the data and knowledge of agency leaders with OPM’s policy expertise to refine HR solutions. During HCR discussions, OPM identified trends, challenges, and potential leading practices used by several agencies.

The FY 2023 Human Capital Review covers four government-wide topics:

1. Workforce planning and analysis
2. Implementation of Executive Order 14035 (Advancing Diversity, Equity, Inclusion, and Accessibility)
3. Evaluation system development
4. Innovation

In addition, agencies submitted their own HCR agenda items, including data-driven decision making, HR as a strategic partner, evaluation techniques, and workforce planning.

I’m pleased to share that progress was made in each of the critical areas OPM reviewed. All agencies have developed DEIA strategic plans and advanced toward their goals. Agencies are also using workforce planning methods to mitigate skills gaps. While the rigor, depth, and breadth vary by agency, there is an overall recognition that enterprise-wide workforce planning is critical, and that OPM’s Workforce Planning Guide is a helpful support. I am also encouraged that many agencies rely on OPM’s data dashboards to track key metrics like the OPM Federal Employee Viewpoint Survey data, DEIA, attrition, and time to hire.

The Federal workforce continues to serve the American people with unwavering dedication. OPM is proud to support our Federal workforce with personnel policies, programs, and benefits that ensure the Federal government remains a model employer for the nation.

Kiran Ahuja
Director
U.S. Office of Personnel Management

Introduction

Human Capital Reviews (HCRs) are annual, evidence-based reviews conducted between the Office of Personnel Management (OPM) and Chief Financial Officer (CFO) Act agencies that allow agency human capital leaders to discuss the implementation and execution of human capital goals, including risks, barriers, and successful practices. These reviews serve as an opportunity for OPM to provide feedback and share best practices with agencies while identifying cross-cutting human capital challenges.

Overview

In March, April, and May 2023, OPM completed HCRs with all 24 CFO Act agencies for Fiscal Year 2023 (FY2023). Through HCR discussions and related recent engagements, OPM identified trends, challenges, leading practices, and in some cases, what agencies would like to see OPM provide in the future. The results of the discussions and engagements are organized by the four Government-wide topics: 

1. Workforce Planning and Analysis
2. Diversity, Equity, Inclusion, and Accessibility (DEIA)
3. Evaluation System Development
4. Innovation

Additionally, OPM invited agencies to submit their own HCR agenda items.  Major topic areas included data driven decision-making, DEIA, evaluation, human capital best practices and knowledge sharing, human capital as a strategic partner, learning, organizational development, performance culture, recruitment and outreach, and workforce planning.

Workforce Planning and Analysis

Trends

While almost every agency reports engaging in workforce planning activities, the rigor, depth, and breadth of reported activities varies among CFO Act agencies. Overall, agencies are aware of the importance of enterprise-wide workforce planning, and most felt the OPM-issued Workforce Planning Guide to support these efforts was useful. Many would like additional support from OPM in the form of automated tools and guidance on short- and long-range planning. During the FY2023 HCRs, we observed an increased understanding of the critical importance that workforce planning serves for effective human capital management. We also observed increased attention on workforce planning as an essential programmatic activity - as opposed to a collateral duty or “nice-to-have but not required” effort.

We are beginning to see the strategic use of Human Capital Operating Plans (HCOPs), and efforts are being made to continue, and in some cases, restart HRStat quarterly data-driven reviews. Agencies recognize the usefulness of data visualization in HRStat data-driven reviews and in continuous improvement efforts. When agencies use the HCOP and HRStat strategically, it facilitates the accomplishment of human capital goals and strategic objectives.

Challenges

Enterprise-wide workforce planning is more difficult in decentralized agencies with multiple components. Common workforce planning or succession planning barriers reported include: (1) lack of staff with the right skill sets/expertise in workforce planning, and (2) lack of structure, coordination, or clarity around roles and responsibilities across levels of the organization (HQ or CHCO office versus offices/divisions).

Lack of tools, funding, consistent methodology, and/or guidance to embed workforce planning into business processes at those different levels is an issue. Some agencies lack clear plans to evaluate their strategies, monitor progress, and ensure their targets and milestones are met. However, agencies can utilize the tools, resources, guides, and frameworks OPM provides to support the development of these plans. Additionally, agencies noted that ensuring the onboarding experience is consistent among employees, particularly in large agencies with dispersed workforces when the agency has limited technology, is an ongoing challenge.

Agency Requests for OPM

Agencies made several requests of OPM for support with workforce planning efforts. Some requests include: (a) more assistance to hiring managers on job analysis and classification, (b) a Hiring Manager Guide, and (c) additional automated workforce planning tools. In recent months, OPM issued general and technical competences for certain fields such as AI (“The AI in Government Act of 2020 – Artificial Intelligence Competencies” in July 2023), and have issued position coding guidance and competency models for fields like Program and Project Management (August 2023) and Program Evaluation (November 2023).

OPM has made great strides in providing agencies access to data, through the development of Time to Hire (T2H) and attrition dashboards. However, agencies are interested in OPM providing greater analysis on these data sets and recommendations or benchmarks. One recommendation was to create a government wide student intern announcement to allow for sharing certificates and assessment tools to streamline hiring of interns. Multiple agencies also asked for additional training and tools for HR Specialists and managers on effective workforce planning and analysis. Overall, agencies welcome greater guidance on mentorships, competency assessments, and how to use hiring flexibilities.

Solutions

Currently, OPM is reinvigorating efforts in workforce planning technical assistance, including launching a “Future of the Workforce Team.” The first phase includes OPM’s launch of the Workforce Planning Guide and a follow-up introductory webinar, along with analysis of information collected from the HCRs and feedback from the introductory webinar to identify initial agency challenge areas (for example, leadership buy-in, data analysis, and working with multiple components). 

The Future of the Workforce Team will focus their second phase on application of workforce planning to address agency challenge areas. This will include exploring strategies to increase support for agency workforce planning needs, providing direct technical assistance to agencies in response to their requests, and establishing a workforce planning community of practice. This community will give agencies additional opportunities to share leading practices, tools, and techniques and to explore the future vision for workforce planning. 

Early Career Talent

Trends

All agencies understand the benefit and importance of utilizing internships and other early career talent programs as a way to bring in different perspectives, while creating a stream of talented and diverse employees with new skill sets. Agencies are increasingly interested  in using early career talent programs to help open paths to employment and opportunities for all. Moreover, agencies are also shifting from unpaid to paid programs as well as reconsidering compensation practices that provide for fair and  equal opportunity. Agencies provided positive feedback to OPM regarding its actions to increase early career talent. These actions included the issuance of the OPM/OMB joint guidance on promoting Internships, Fellowships and other Early Career Programs to help agencies efforts to increase their use of these programs, as well as OPM’s proposed revisions to the Pathways regulations (further discussed below).

Challenges

Growing early career talent across government is a challenge especially when agencies have been impacted by staff losses over the last three years. Agencies would like to broaden the knowledge and expertise of their workforce, but must balance this with more immediate mission goals. This impacts the ability to bring on early career talent. Many agencies utilize workforce planning to allocate mission critical positions to  early career talent, but often first recruit for more senior level staff who can “hit the ground running.” The current Pathways Program has created some difficulties for agencies and lacks flexibility to allow for targeted recruitment. Agencies also faced challenges with funding, mentoring interns, and tracking unpaid interns. In August 2023, OPM published a notice of proposed rulemaking (NPRM) that would update the Pathways regulations in order to better enable the Federal government to compete with other sectors for early career talent. This is the first update to the regulation since they were issued in 2012, and the updates reflect the changing skills and interests of the early career workforce, and lessons learned since the Pathways regulations were issued. Questions also arose on how to identify ways to implement registered and certified Apprenticeship Programs to create opportunities for those accepted into a rigorous apprenticeship program, but unable to afford post-secondary education.

Agency Requests of OPM

The Department of Labor requested to explore with OPM, proposed regulatory changes to the Pathways Programs and identifying ways to include registered and certified Apprenticeship Programs to create opportunities for those who are accepted into a strenuous apprenticeship program but may not be able to afford to go to a post-secondary school. 

The Department of Treasury requested a list of promising practices to increase early career talent as well as to partner with OPM to create cohorts for interns to assist in establishing relationships with peers. 

The Department of Veterans’ Affairs (VA) asked for OPM to assist with gathering leading practices to centralize funding and hiring for early career talent, particularly for large geographically dispersed agencies. 

Lastly, the VA and other agencies inquired about OPM pursuing a legislative fix to increase the hiring caps for the College Graduate and Post Secondary hiring authorities.

Diversity, Equity, Inclusion, and Accessibility

Trends

All agencies developed and communicated DEIA strategic plans and are making progress toward their goals. Successful agency DEIA efforts involve wide-reaching communication and collaboration efforts. Many agencies are incorporating DEIA outcomes into performance standards for managers, supervisors, and executives to enhance accountability. Agencies also report progress promoting DEIA within their culture by focusing on employee engagement and facilitating conversations related to DEIA. Most agencies report an increased focus on attracting early career talent with an emphasis on outreach to Minority Serving Institutions (MSIs). Agencies report an increase in the use of dashboards to enhance frequency and timeliness of workforce data reporting and to track progress of DEIA initiatives.

Challenges

The sustainability of DEIA programs is in question due to a lack of dedicated funding, vacant Chief Diversity Officer (CDO) positions, understaffed DEIA offices, and dispersion of DEIA work, goals, and roles. Other challenges include the insularity of some agency cultures or the widespread geographic dispersion of their workforce. In some cases, there is a lack of coordination on DEIA efforts across agency subcomponents. Analysis of agency demographic data is needed to assess progress, evaluate root causes, and build evidence on key questions regarding DEIA initiatives, but access to and the capacity to use that data is currently a challenge.

Agency Requests for OPM

Agencies requested OPM provide additional education and awareness about the meaning of DEIA. Agencies stated they would benefit from additional clarity on roles and objectives among DEIA stakeholders. Agencies expressed a need for updated data standards related to race and national origin and information about expanding EHRI data categories to include sexual orientation and gender identity. Agencies would like guidance from OPM on how to analyze their applicant flow data and guidance on how to conduct pay equity studies. Agencies also requested DEIA job series with defined competencies to aid in recruitment and asked OPM for clear guidance on how to report progress on their DEIA strategic plans.

Evaluation System Development

Trends

An agency’s evaluation system contributes to organizational performance as a mechanism for monitoring and evaluating outcomes of its human capital management strategies, policies, programs, and activities. In the second quarter of FY22, OPM assessed the 24 CFO Act agencies’ evaluation systems against the standards developed to reflect requirements of 5 CFR 250 Subpart B. Written feedback was provided, including action items to help agencies mature their evaluation systems. In response to OPM feedback, 22 of the 24 CFO Act agencies submitted maturity advancement plans for improving their evaluation systems and are in the early stages of implementation.

During HCR discussions, OPM found a solid understanding across agency leadership that a robust evaluation system contributes to organizational performance as a mechanism for monitoring and evaluating the outcomes of human capital strategies, policies, programs, and activities.  OPM identified a significant increase in reported agency interest in and use of data analytics to track progress and inform decision making (e.g., dashboard visualization) compared to a previous HCRs and evaluation system assessments.  Additionally, across agencies OPM tracked a slight overall increase in Independent Audit Program (IAP) activity (e.g., evaluations conducted, reports issued) as well as IAP findings and recommendations being shared (e.g., to inform human capital stakeholders and agency polices, strategies, and plans such as a Human Capital Operating Plan).  Finally, agencies indicated greater awareness of how strategic and evaluation system elements defined in 5 CFR 250 Subpart B (i.e., HCOP, HRStat, and IAP) with accompanying OPM policy and guidance work in concert to help agencies better manage human capital, a positive trend.

Challenges

Limited resources are the single greatest challenge agencies face as they work to mature their evaluation system.  Turnover – both in agency executive leadership and staff at the operational level – delay some agencies’ progress in advancing their system.  Turnover negatively impacts agencies’ ability to build capacity within their staff to conduct assessments of all HCF systems, and in a few cases, there is a lack of commitment from agency leadership.

Agency Requests for OPM

Enterprise Human Resources Integration (EHRI) Data Warehouse is a powerful and rich government wide personnel action data source which, as discussed by OPM during HCRs, provides agencies with useful points of perspective and comparisons using external agency personnel data.  EHRI data can be used to inform an array of evaluation system activities (e.g., from IAP evaluation analyses to strategic goal setting and recurring data-driven decision-making needs of leadership).  Agencies requested assistance in making it easier to use EHRI data sets by improving agency-facing data source awareness and the data customer experience (e.g., outreach, training, accessibility, useability). 

Agencies appreciated OPM’s recent actions to articulate a clear vision for the use of human capital data and to spotlight how human capital data can be activated into useful data products.  One example discussed was the OPM Data Strategy, focusing on data in federal human capital management with associated strategies (e.g., establishment of a CHCO Council Human Capital Data Working Group, Federal Human Capital Data Analytics Community of Practice, etc.).  Another example discussed was OPM’s development of public-facing dashboards focused on FEVS, DEIA, Cyber Workforce, and Hiring Satisfaction. 

Agencies expressed interest in additional information sharing opportunities with other agencies (e.g., evaluation system maturation interagency workshop opportunities similar to those hosted by OPM in FY22; simple peer-to-peer contacts; new communities of practice) on a wide array of topics – including learning from agencies where OPM’s FY22 evaluation system assessment identified higher evaluation system maturity levels. 

Innovation

Trends

One characteristic OPM identified during the HCRs is that innovative agencies engage stakeholders across their networks, scale practices, and incorporate data. Most agencies have a common desire to maximize the use of data through dashboards and integrated datasets. In addition, use of automation to increase efficiency and effectiveness of human capital management is on the rise, and several agencies are implementing new HR service delivery models, which include employee self-service. 

Challenges

The greatest challenge to innovation is limited financial and/or human resources, which restrict agencies’ capacity to explore opportunities and scale innovations. In addition, while the need to automate and make better use of data is widely felt, agencies are hampered by disparate systems and lack of centralized data governance.

Agency Requests for OPM

Agencies expressed a need to invest in vetting or development of automated tools and data sources to promote access and consistency government wide. Additionally, they are seeking more information (performance capability, IT systems, etc.) on Shared Service Providers (SSPs) to help make informed decisions about vendors. Agencies would also like OPM to collect and share innovative and leading practices regularly and widely with stakeholders.

Leading Practices

Resources

• 5 CFR Part 250 Subpart B – Strategic Human Capital Management
• Human Capital Framework (HCF)
• OPM EHRI Data Warehouse
• OPM Data Strategy
• Public Facing Dashboards
• OPM Data Portal
• OPM Government-wide DEIA Annual Report (2022)
• Human Capital Operating Plan (HCOP)
• HRStat
• Human Capital Reviews (HCRs)
• OPM Workforce Planning Guide (2022)
• Issuance of Regulations on the Fair Chance to Compete for Jobs Act of 2019
• Launch of OPM’s Structured Resume Review Training