# March 31, 2004

# 

# INSPECTION MEMORANDUM

**To:** Phil Maestri

Director, Management Improvement Team

> Office of Deputy Secretary

**From:** Cathy H. Lewis

Assistant Inspector General

Evaluation, Inspection and Management Services

# Subject: Review of MIT Action Item Number 169 (ED/OIG I13E0003)

This memorandum provides the results of our inspection of one Action
Plan item from the Department of Education's (Department's) Blueprint
for Management Excellence. We will be examining approximately 20 Action
Plan items with two objectives in mind, determining if: 1) the item was
completed as described; and, 2) the item helps meet the stated Blueprint
objective. In this report, we examined item number 169 (completed on
9/16/02), concerning the publication of special hiring authorities.

## 

## Background:

The action required by item number 169 was to:

> **Publicize special hiring authorities (*e.g.,* outstanding scholars,
> PMIs, excepted service) and encourage managers to use these
> authorities.**

The comments field on this item states, "Completed -- 9/16/02."

On September 16, 2002, OM posted a Recruitment Tools brochure on
ConnectED that "provides an overview of special appointing and
compensation authorities that are available." For this review, we
focused on the use by Principal Offices of two hiring
flexibilities---the Outstanding Scholar program and the President's
Management Intern (PMI) program.

**Objective 1: Was the item completed as described?**

OM created and issued a Recruitment Tools brochure containing
information on special hiring authorities, including, but not limited
to, the Outstanding Scholar Program, Presidential Management Interns
(PMIs), student loan repayment and the excepted service. The brochure
offers an overview of the many flexibilities available to the
Department. It does not include information about the additional costs
associated with some of the programs. For example, there is a short
description of what the PMI program is. However, it does not mention the
\$4800 fee that has to be paid to the PMI Office at the Office of
Personnel Management within 30 days of the PMI appointment.

OM announced and published its Recruitment Tools brochure on ConnectED
on September 16, 2002. On that same date, OM emailed the Principal
Offices, encouraging them to distribute the brochure to all the
managers, become familiar with the options and use the flexibilities to
"attract and retain highly qualified employees."

OIG interviewed twelve Principal Offices to assess their familiarity
with the special hiring authorities. In general, there was a sense that
the PMI program was well managed and that the head of the program did a
good job of disseminating information about the program and upcoming
fairs.

**Objective 2: As completed, do the actions taken help the Department
towards its stated Blueprint Objective?**

The intention of this Blueprint Action Item was to publicize and
encourage the use of special hiring authorities and, in that respect,
help the Department to improve the strategic management of its human
capital. While the Department generally did a good job of sharing
information with Principal Offices about the special hiring authorities,
it could do a more effective job of facilitating and encouraging their
use.

There has been no apparent increase in the use of either flexibility
over the past year. According to the Director of Human Resource
Services, OM has "not seen any appreciable increase in the use of these
flexibilities...probably due to lack of funds." However, in our
interviews only one Principal Office mentioned that lack of funds were a
problem.

Of the twelve Principal Offices interviewed about their use of the two
above-mentioned hiring flexibilities, only five had hired Outstanding
Scholars (3) or PMIs (4) in the past year. The reasons for the lack of
use of these flexibilities varied widely. Some reasons cited for not
hiring under these flexibilities included: a focus on hiring senior
level people in positions vacated by retirement, a lack of hiring in
general, a concentration on hiring internal employees, the length of
process and lack of encouragement by OM staff to use the Outstanding
Scholar flexibility, and the use of other recruiting processes (such as
Schedule A, Schedule B, consultants). Only one Principal Office felt
*encouraged* to use these flexibilities, especially PMI.

**[Departmental Response]{.underline}**

We provided the MIT with a draft report. OM initiated a survey to the
Executive Officers and some managers on January 29, 2004 to identify
barriers to the use of special recruitment and compensation tools. OM
will report its findings to the EMT. A copy of MIT's response is
attached.

**[OIG Response]{.underline}**

We have accepted the above action, withdrawn our recommendation that OM
survey Executive Officers and consider this report closed.

February 13, 2004

To: Cathy H. Lewis

Assistant Inspector General

Evaluation, Inspection and Management Services

From: Phillip Maestri, Director

Management Improvement Team

Subject: Draft Inspection Memorandum (January 6, 2004)

Review of MIT Action Item Number 169 (ED/OIG I13E0003)

"Publicize special hiring authorities and encourage managers to use
them"

Thank you for the opportunity to review and comment on a draft version
of this inspection memorandum.

### Comments on Background and Findings

Consistent with the MIT documentation, the draft memo indicates that
action taken completed the action item.

The MIT recognizes that there has not been a formal assessment or
evaluation of the impact of the activities. Such rigorous assessment of
the impact of human resource activities was not built into the
*Blueprint.* The OIG memo raises the question: why do offices chose to
use hiring authorities, such as the PMI and Outstanding Scholar
programs, to the extent they currently do?

### Developments since the completion 

The Office of Management developed a survey to help identify barriers to
using special hiring and compensation flexibilities. The memo was
distributed January 29, 2004 to executive officers and selected senior
executives who OM identified as "key informants" with specific
experience with or insight into the use special hiring and compensation
tools. Responses were due to OM by February 6, 2004. OM will report its
findings to the EMT.

### Response to recommendations

Recommendation: *"OM should meet with or survey Executive Officers to
identify impediments to the use of these tools and, to the extent cost
is a determined to be a deterrent, identify how the Department can
address this issue.*" OM has already initiated such a survey.