Roadmap for Renewing Our Federal Government

The government’s 1949 pay and classification system was designed for clerical workers, not today’s highly professional, specialized civil service. To meet today’s hiring and retention needs, Congress should create a modern, occupation-based, market-sensitive pay system. While the government, in most cases, will not be able to match private sector salaries, it will be better positioned to fill critical skill gaps—in cyber and STEM positions, for example—under a system that allows agencies more flexibility in setting pay.

The talent is out there, and government’s mission remains more compelling than ever, but agencies are losing out on bringing in a new, diverse and qualified generation into public service because the federal hiring system isn’t nimble enough to compete with the private sector.

Talent exchanges can strengthen agency workforces, support mission-critical work and lead to better collaboration among agencies and with the private sector.  More could be done to remove barriers to their effectiveness – for example, Congress could amend the Intergovernmental Personnel Act to allow for-profit entities to participate in IPA-enabled talent exchanges involving select agencies and mission-critical occupations on a permanent or pilot basis.

Congressional oversight will foster accountability, transparency and knowledge-sharing with the goal of improving diversity, equity and inclusion across government. Taking steps to ensure workforce diversity by focusing on the recruiting, hiring, career mobility, training and development of groups with less-than-expected participation rates in federal occupations will also help government better serve people with a wide variety of needs and backgrounds.

Through strategic priorities, like those typically outlined in the President’s Management Agenda, the administration can seize the opportunity to introduce workforce reforms, match or exceed employee engagement in the private sector, and establish government as an employer of choice in the post-pandemic era that offers best-in-class flexibilities.

Government will never attract top talent and meet its workforce needs if it doesn’t simplify the federal hiring process, employ private sector best practices and make a concerted appeal to bring young people into government.

A commitment to improving workforce diversity, equity and inclusion must be in the DNA of every department and agency in the federal government. This goal will be more attainable if agencies share information about best practices, challenges and strategies.

Our current federal personnel system is geared to the model of the lifetime federal employee, and while some federal employees do stay on the job for a career, the government should have flexibility to bring in talented individuals who are willing to serve for shorter durations. This is especially important since younger workers increasingly want more mobility in their careers.

Agencies need well-trained and well-resourced HR offices, aided by effective technologies and processes, to effectively recruit, develop and retain talent. Chief human capital officers should have a voice in strategic and budget decisions so that workforce needs and capabilities are considered. But hiring shouldn’t be left to HR alone. Involving subject matter experts in the resume review and candidate assessment processes will lead to a more targeted list of qualified candidates for positions.

The government has a retention problem. Of the full-time employees under 30 who voluntarily quit federal service in 2019, more than 73% did so with less than two years of tenure. It’s not enough to improve hiring processes without also focusing on retaining employees. Agencies should have clear performance metrics related to employee development and do more to capture data on why people leave government so that steps can be taken to address retention issues.

Data shows that people of color and women are well-represented in entry-level federal positions across government, but many lack a career path beyond the GS-13 level, which is designated as the first mid-career grade. Agencies can improve diversity among mid- and senior-level federal employees by being more intentional in developing career paths and providing growth opportunities for those who seek them, particularly when individuals come from groups that are underrepresented in government’s leadership ranks.