GAO Highlights OPM's Outstanding Issues in Hiring, Performance Management

The Government Accountability Office (GAO) issued an update to its priority open recommendations for the Office of Personnel Management (OPM). The updated report outlines 15 of the 68 open recommendations issued by the watchdog.

GAO’s “priority open recommendations” are highlighted for agency-head attention because they could “save large amounts of money; improve congressional and/or executive branch decision-making on major issues; eliminate mismanagement, fraud, and abuse; or ensure that programs comply with laws and funds are legally spent, among other benefits.” Since July 2021, OPM has implemented two of GAO’s 14 priority recommendations. GAO added two recommendations since then, leaving OPM with 15 open priority recommendations.

Among the GAO recommendations to OPM having a direct impact on the federal government are (1) improving the federal classification system; (2) making hiring authorities more effective; (3) improving payroll data; (4) addressing employee misconduct and improving performance management; and (5) strengthening IT security and management.

Federal Classification

The federal community has long criticized the General Schedule (GS) as it fails to reflect the changing nature of government work. GAO recommends OPM could better position itself to help ensure that the federal classification system keeps pace with the evolving duties by aligning the GS system’s design and implementation with that of a modern, effective classification system.

The Federal Managers Association (FMA) has continuously advocated for significant GS reforms to address systemic issues in the federal workforce, as have other federal manager and executive professional associations.

“As we have stated and testified over the years, FMA’s focus has included pay for performance and a pay system that reflects the needs of the present federal workforce,” noted the organization in a recent FEDforum article. “[E]nsuring departments and agencies have maximum flexibility to compete with the private sector to attract the best and the brightest to answer the call of a career in public service.”

Hiring Authorities

GAO recommends reforming the hiring process to be more effective. According to GAO, federal agencies must ensure they have the talent they need to accomplish their missions by having a recruitment process that is applicant-friendly, flexible, and meets policy requirements, including hiring on merit. OPM could enhance the federal hiring process and strengthen its ability to compete in the labor market by refining, consolidating, or expanding hiring authorities.

Payroll Data

Among OPM’s responsibilities is supporting the human capital management activities of federal agencies, including ensuring that agencies have the data necessary to make staffing and resource decisions. To support these efforts, OPM uses the Enterprise Human Resources Integration (EHRI) system.

GAO recommends increasing the availability and reliability of EHRI payroll data to support OPM’s strategic and open data initiatives, while enhancing the analysis by leveraging other EHRI data.

Employee Misconduct, Performance Management

OPM is tasked with ensuring agencies have the tools and guidance they need to effectively address misconduct and maximize employee productivity. Through more effective guidance from OPM, GAO suggested agencies would be able to address employee misconduct and maximize productivity.

Further, GAO found managing employee performance has been a government-wide issue since the beginning of the modern civil service, and numerous reforms have been implemented. Still, a lack of effective performance management threatens agencies’ ability to retain top talent and address increasingly complex and evolving mission challenges.

It is the aim of the Senior Executives Association (SEA) to continue discussions on civil service modernization to address institutional difficulties.

“As the leading voice for integrity among the federal career executive corps, SEA actively supports highly qualified, accountable, and focused leadership in the federal government to ensure agencies meet their missions,” SEA stated this week. “The first step forward must be to strengthen career leadership. In the absence of change, federal employees' satisfaction and engagement will only continue to decrease as the federal government faces significant risks from this neglect.”

To assist agencies’ performance management decision-making, GAO recommends OPM develop and implement a mechanism for agencies to share information and identify and share emerging research and innovations.

IT Security & Management

As the chief human resources agency and personnel policy manager for the federal government, OPM gathers and preserves large volumes of personal information. To ensure that OPM can protect and manage sensitive information effectively, the watchdog believes it is crucial the agency establishes a process for conducting cybersecurity risk assessments.

The report also notes that much of the GAO High Risk List areas of concern have a direct impact on OPM, including (1) the government-wide personnel security clearance process, (2) ensuring the cybersecurity of the nation, (3) improving the management of IT acquisitions and operations, and (4) managing federal real property.

“We urge your attention to the OPM and other government-wide high-risk issues as they relate to OPM. Progress on high-risk issues has been possible through the concerted actions and efforts of Congress, the Office of Management and Budget (OMB), and the leadership and staff in agencies, including within OPM. In March 2022, we issued a report on key practices to successfully address high-risk areas, which can be a helpful resource as your agency continues to make progress to address high-risk issues,” the report said.