**Human Resources Division**

**Farm & Foreign Agricultural Services**

**STRATEGIC MANAGEMENT of HUMAN CAPITAL**

**FY05 - Third Quarter Report**

**Outcome Strategies and Performance Measure Trend Analysis**

**08/09/05**

**STRATEGIC MANAGEMENT of HUMAN CAPITAL**

**3Q FY05 Highlights**

**Strategy One: IMPROVE ALIGNMENT OF HUMAN CAPITAL INITIATIVE TO AGENCY
MISSION AND GOALS**

-   FFAS HR has completed 21 of 42 (50%) of its Human Capital Management
    Annual Performance Plans (HCMAAP) that directly support the
    programmatic goals of the agencies. An increase of 12% over last
    quarter and 5% over last year at this time. More notably:

    -   Completed the HR COOP delegation of authority to KC HRO
        supporting the recent FEMA and DHS initiatives to ensure
        continuity of operations in the event of emergencies.

    -   A mobility clause has been added to the vacancy announcements
        for Farm Loan Managers (a mission critical occupation), ensuring
        hiring and deployment flexibilities to support effective
        operations.

**Strategy Two: SUPPORT WORKFORCE PLANNING & DEPLOYMENT**

-   The Human Capital Management data continues to be added to the
    internet in order to provide a data and knowledge source for Agency
    employees. HR has increased its web based HR Service Functions by
    29% FYTD, an 18% increase over last quarter. Some of these included
    a Safety & Health link and a New Employee Orientation Checklist for
    managers.

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-   The estimated reduction rate in skills gaps in Mission Critical
    Occupations is 30.6% FYTD, a 16.8% increase over last quarter. This
    rate is based on the increase of training instances over the FY04
    baseline of MCO related training programs completed (1754 instances
    in FY04 to 2680 instances FYTD). This trend indicates that
    participation of MCOs in training is increasing, thus their skills
    gaps are closing.

-   The estimated reduction rate in skills gaps in SES leadership
    competencies is 33% FYTD, an increase of 12.4% over last quarter.
    This is determined by the increase of GS 14/15 training instances
    over the FY04 baseline (121 instances in FY04 to 175 FYTD). This
    trend indicates that incumbent leaders are participating in training
    interventions to enhance their skills, thus closing their skills
    gaps while building 'bench strength' for succession and leadership
    continuity.

**Strategy Three: IMPROVE THE ACQUISITION AND UTILIZATION OF TALENT**

-   The 'quality of new hires' index continues to reflect above average
    satisfaction ratings (4.35 on a scale of 5.00) from managers
    regarding the degree of competencies (skills, knowledge and
    abilities) new employees are demonstrating after 90 days on the job.
    This indicates positive selection criteria are being utilized by HR
    and the manager, resulting in a higher quality or competent
    candidate.

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-   As part of the overall Retention Strategy, exiting employees
    continue to rate the organization as a "good place to work". FYTD,
    78% (39 of 50), down from 86.4% last quarter FYTD, of the employees
    who participated in the exit interview process indicated that their
    agency is a "good place to work". Therefore, in order to retain some
    of these employees, specific organizational strategies, e.g.,
    leadership training, employee orientation, etc., should be
    considered to maximize retention of high performers.

-   Processing time to fill FFAS vacancies averaged 67.9 calendar days,
    an improvement of 2.6 days over last quarter and a 21.1 day
    improvement FYTD. This is 7 days below the HRD target of 75 days.
    The reduction is attributable to an increase of the HR employee
    proficiencies using the automated staffing processes and by more
    timely hiring decisions by managers.

-   Also, FFAS continues to be below the government-wide OPM measure of
    45 work days (measured by days from vacancy closure date to date
    manager makes a selection). FFAS's reported time for the third
    quarter is 34.6 work days which reduces the FYTD average to 31.9
    work days up slightly from 30.5 work days last quarter. This
    represents 10.4 work days below the OPM target. The improvement is
    attributable to continued efficiencies in certificate preparation
    time and the time the manager takes to select a candidate from the
    certificate of qualified applicants and notify HR.

-   Workforce diversity of new hires is measured against a new
    benchmark, the 2004 FEORP -- RCLF, effective 3^rd^ quarter FY05. The
    changes in these targets are:

    -   Women from 45.5% to 50.5%

    -   Black from 7.6% to 9.7%

    -   Hispanic from 5.9% to 10.0%

    -   Asian / American Islander from 2.9% to 4.6%

    -   American Indian / Aleutian from 0.5% to 1.1%

-   Against these revised targets, FSA exceeded the hiring statistics
    for Women, Black and American Indian/Alaskan representative groups
    FYTD by 13%, 1% and 0.8% respectively. The Hispanic group hire rate
    is 5.7% of all new hires, 4.3% below target and the Asian/American
    Islander group hiring rate is 3.2%, 1.4% below target. This
    demonstrates a positive return on the recruitment strategies,
    especially maximizing the benefits of the MANRRS initiative and
    other recruitment strategies.

-   In terms of diversity hiring into management positions (GS13/14/15),
    Women, Black and American Indians / Aleutian representative groups
    continue to exceed the targets by 21%, 4.5% and 13.2% respectively.
    Hispanics and Asian Americans continue to show a challenge with no
    new hires in the management ranks FYTD. The positive trends indicate
    the ability of the agency to leverage diversity in the
    accomplishment of its programmatic goals.

**Strategy Four: SUSTAIN LEARNING ENVIRONMENT AND LEADERSHIP
CONTINUITY**

-   Fundamental analysis of Knowledge Management (KM) Strategies or
    Systems implemented leveled off this quarter still doubling our KM
    strategies over last year's baseline. The results indicate that
    progressive attention is given to the importance of institutional
    information sharing.

> *NOTE: Best practices regarding KM are currently under review by HRD
> which may alter how this particular measure is tracked and presented.*

-   In terms of Leadership Succession, the number of employees
    (instances) who completed leadership training courses increased some
    32% (81 to 107 instances) from the previous quarter, and 62% FYTD.
    This represents an increase in the potential 'back-up pool' ratio
    for the total number of leadership positions in the Mission Area.
    The 'back-up pool' ratio increased from **.08:1 to 0.11:1**. This
    remains well below the target of 3 to 1 (the ideal number of
    employees 'leadership-ready' trained to every leader. Despite the
    fractional numbers, the trend indicates that the agencies are
    continuing to support the development of employees and leadership
    succession plans.

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-   The Employee Development Rate of all mission critical occupations
    and leadership positions (3251) increased by 11.65% over the
    previous quarter and 37.03% FYTD. This increase indicates that about
    1 of 3 employees in the 27 Mission Critical Occupations and 12
    Leadership Occupations with continuity challenges (identified in the
    FY04-08 FFAS Workforce Analysis); continue to participate in
    competency/skill development activities.

> *NOTE: After the AgLearn tracking capabilities are assured, extensive
> increases in all related measures are anticipated. The AgLearn
> administration team has been requested to ensure effective data
> collection.*

**Strategy Five: IMPROVE THE RESULTS-DRIVEN PERFORMANCE CULTURE**

-   FFAS has linked approximately 97% of employee performance plans to
    the Agencies' goals to date. Management in both RMA and FAS
    indicated that nearly 100% of their agency employees are linked. FSA
    has only a few more state offices to certify 100%. Not only do this
    certification rate meet the Departmental (yellow score) milestone,
    but the OMB Human Capital Management Standard of Success as well.
    FFAS HR will continue this effort to meet its long term goal to link
    100% of the employees to their agency's mission, goals and outcomes,
    a link vital to enhancing a performance culture.

-   Employees who have received a form of recognition for demonstrating
    high performance levels has increased to 12.8% FYTD, up 2.2% over
    last quarter. This trend indicates that managers are continually
    reinforcing the positive contributions of their employees, a proven
    retention factor.

-   The overall Mission Area workforce diversity (all groups) increased
    slightly to 19.9% and the percentage of women in the Mission Area
    increased 0.6% (from 55.1% to 55.7%). This measure demonstrates the
    organizations continuing effort to leverage diversity in the
    accomplishment of its missions.

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