Last year, the Office of Management and Budget announced a “reset” on how government agencies manage workplaces. It may be hard to believe, but the civil service system has remained largely unchanged today since its introduction in 1948 (aside from the introduction of local allowances). Now, with mass retirements, a dramatically changed labor market, and serious staffing issues in several government agencies, change is definitely warranted. We are seeing similar changes in the private sector, led by an expanded role for human resources. This supports strengthening the federal workforce, a top priority on the President's management agenda. Change is necessary, perhaps essential, given what is being called the “new world of work.”
The catalyst for change in the private sector was the coronavirus crisis. Layoffs and business closures, followed by remote working, have changed the working environment more than at any time in decades. The sudden change in workers' daily lives has also changed their job expectations. Employers in all sectors, here and in other developed countries, are finding it difficult to fill critical vacancies.
Shortages are worsening and impacting the delivery of vital public services. The IRS's failure to fill thousands of tax preparation positions is striking. This is therefore an issue that must be addressed at the highest level. Pew research shows that public trust in government is steadily declining, making it important for leaders to focus on maintaining performance levels. But a long-term labor shortage makes that increasingly unlikely.
Until now, the lack of human resources has not been a widespread problem within the government. However, according to recent reports, that is no longer true. In addition to the IRS, several other agencies are also reporting staffing shortages. The Bureau of Prisons is reporting chronic staffing shortages, the Social Security Administration is experiencing “historic staffing shortages,” and the Department of Veterans Affairs is reporting a “surge in positions with significant shortages.” ” last week of washington post It said there was a “workforce crisis”.
State and local government agencies are also seeing an increase in job openings. Staffing issues in law enforcement, public health, and public education have made headlines across the country.
Tight labor market is a problem
Labor shortages are not a new problem. It started after the Great Recession and has steadily gotten worse. This is due to her two demographic trends that are affecting the economies of all developed countries: aging populations and smaller families. The birth rate is steadily declining. Fewer young people are starting their careers. Importantly, 30% of the US population is over the age of 55. An “excess” of 3 million workers left their jobs during the pandemic.
According to data from the Bureau of Labor Statistics, there are more job openings than job seekers. Not so long ago, for every vacancy he had three unemployed people. There were 900,000 job openings at all levels of government in January. The total for December 2010 was 428,000.
The aging of the population is also reflected in the federal workforce. Since 2010, the number of federal employees 55 and older has increased by nearly 100,000, from 537,000 to 630,000. There are less than 200,000 people under the age of 30.
Government workforce planning is complicated by two obvious issues. First, there are some occupations for which demand is rising but for which the trained supply is insufficient to meet the nation's needs. Doctors and nurses are typical examples. There is also a shortage of public health workers. Government employs professionals in approximately 350 occupations, making workforce planning much more complex than business.
Planning is further complicated by the large number of locations where federal employees are based. The coronavirus and the rising cost of living in major cities are driving young workers away from cities like New York and Chicago. Pittsburgh and Nashville are reported to be the favorites. Some local economies are growing and employers are offering attractive career opportunities. Others don't. Congress partially addressed this difference when regional pay was adopted in 1990. But now, with thousands of federal employees paying special rates, a “one-size-fits-all” general schedule is proving to be no longer the answer.
Traditional thinking has given us the answer that if employers are having trouble attracting or retaining workers, wages will go up. Now, an employer's reputation, remote work opportunities, flexible work schedules, and non-monetary benefits are also important. Websites like Glassdoor have a wealth of employer information. A dissatisfied employee can easily move on to a new job. His recent GAO report on staffing issues at the Transportation Security Administration revealed that pay is not the only issue.
Notably, reports on the issue of agency workers do not focus on labor market issues or the current problem of worker shortages. There was a time when agencies simply posted job openings on usajobs.com and waited for applicants. Obviously, that's not good practice today.
Solving the problem starts with understanding what is happening in the labor market. These include local business closures and layoffs, demographic trends, and the number of graduates from local universities. These are all related to workforce planning. Data analysis here helps understand local employment and turnover experiences.
Expanding the role of HR
Historically, HR departments have been limited to “behind the scenes” administrative roles, but that is rapidly changing, at least in the private sector. forbes Here's what has recently come to light:
“Gone are the days when the core work of HR professionals focused solely on welcoming new staff and ensuring a safe and fair working environment. They are also in a unique position to redefine how CEOs view their businesses and their employees. At the heart of this fresh perspective is simply It’s not just about giving HR a leadership seat; it requires a careful rethinking of HR’s fundamental role within the organization.”
Decades of research has shown that successful companies have highly engaged and dedicated employees. Gallup and the Great Places to Work Institute focus on this. Human resources professionals play a leading role in building a great workplace. COVID-19 has elevated and expanded the role of human resources. McKinsey recently published a discussion on the “New Operating Model for HR.” Deloitte discusses “HR transformation”.Perhaps the best discussion was elsewhere forbes Columns “1. Employees first – always” and “2. HR innovation is critical.”
The many very different agencies of government resemble conglomerates. GE is (or was) a well-known conglomerate (currently split into three companies). In companies like GE, the corporate human resources department is limited to managing executive pay and company-wide benefits, but employee management is delegated to subsidiaries. The government's workforce issues are far more complex than those of any company, including GE. As such, it is entirely appropriate and necessary to hold agencies and their HR offices accountable for the creation and management of all aspects of talent.
No business has more diverse and complex workforce challenges than government agencies. Nor do businesses have to deal with complex regulations governing how employees are managed. Efforts to change have historically been resisted and blocked.
I hope this time it will be different. One recently introduced tool that may help signal the need for change is HR analytics, a data-driven approach to understanding the “people problem” and supporting business decision-making. is the use of. His GAO report on TSA staffing issues is an example of what could be. In fact, this is nothing new, statistical analysis was first used in comparative values and now in stock research in the 1980s.
Analysis that combines employee data with turnover and termination data provides insight into future staffing issues. That information forms the basis for workforce planning.
An emerging issue that is noticeably missing from employee reports is the recognition that employee engagement is related to agency performance. Since the enactment of laws such as the Government Performance and Results Act, the press has remained silent about the importance of workers. They somehow exist in another world. Workforce management is also not covered in public administration graduate programs.
The recent OPM directive shows that that is changing. The word “performance” appears more than 300 times in his 2023 annual performance report for OPM and a message from the agency's director, Kiran Ahuja. This shift is reflected in OMB's Jason Miller's recent statement, “When we invest in our people, we invest in America,” calling workers “the government's most important asset” and building It lists a number of “workforce investments and policies” that should be made. A fully productive workforce.
Governments differ from businesses in fundamental ways. Technology will soon replace government work, but personal contact and interaction with the public will always be at the heart of much government work. Knowing the factors that drive employee performance is critical, and this varies from agency to agency. Relevant evidence-based analysis can help you understand an employee's concerns, such as reasons for leaving or promoting her DEI in the workplace. Human resources analytics is the answer to building the workforce that government agencies need.
