**Human Resources Division**

**Farm & Foreign Agricultural Services**

**STRATEGIC MANAGEMENT of HUMAN CAPITAL**

**FY05 - Fourth Quarter Report**

**Outcome Strategies and Performance Measure Trend Analysis**

**10/21/05**

**STRATEGIC MANAGEMENT of HUMAN CAPITAL**

**4Q FY05 Highlights**

**USDA/FFAS (FAS, FSA, RMA) Human Capital Plan Status**

**Performance Indicator Trend Analysis**

# A. Strategic Workforce Planning and Alignment (Goal 1 - USDA, Goals 1 & 2 - FFAS)

-   FFAS HR has completed 29 of 42 (69%) of its Human Capital Management
    Annual Performance Plans (HCMAAP) that directly support the
    programmatic goals of the agencies. An increase of 19% over last
    quarter and 1% over last year at this time. More notable
    accomplishments included:

    -   Completed the development and FY06 implementation of a
        multi-level performance appraisal system to support USDA/OPM
        results-oriented performance culture.

    -   Institutionalized the National Society for Minorities in
        Agriculture Natural Resources and Related Sciences (MANRRS)
        organization to augment the FFAS Diversity Recruitment
        strategies.

-   Continued to add Human Capital Management data to the HR internet in
    order to provide data, institutional knowledge, and a service source
    for Agency employees. HR has increased its web based HR Service
    Functions by 39% FYTD, a 10% increase over last quarter. Some of
    these included a Retirement Calendar link and the VSIP/VERA
    (buy-out/early-out) information.

```{=html}
<!-- -->
```
-   The estimated reduction rate in skills gaps in Mission Critical
    Occupations is 62.6% FYTD, a 32.0% 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 3242 instances FYTD). This trend indicates that
    participation of MCOs in training is increasing, thus their skills
    gaps are closing. Also, the skill gaps (as defined by OHCM) for all
    mission critical occupations, especially the 1165 occupational
    series remain below 3% (vacancy rate).

-   The estimated reduction rate in skills gaps in SES leadership
    competencies is 56.2% FYTD, an increase of 11.6% over last quarter.
    This is determined by the increase of GS 14/15 training instances
    over the FY04 baseline (121 instances in FY04 to 189 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' or a 'talent pool' for
    succession and leadership continuity.

**B. Learning and Leadership Development (Goal 2 - USDA, Goal 4 -
FFAS)**

-   Fundamental analysis of Knowledge Management (KM) Strategies or
    Systems implemented increased slightly this quarter. This is
    attributed to the HR Director's sharing with staff and incorporating
    to FY06 HCM initiatives the Agencies' Deputy Directors' major
    requests and needs for FY06. These FYTD results indicate that
    progressive attention has been given to the importance of
    institutional information sharing.

> *NOTE: Best practices regarding KM are currently under review by HRD
> that 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
    39% (107 to 149 instances) from the previous quarter, and 81% 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 **.11:1 to 0.15:1**. This
    remains well below the target of 3 to 1 (the ideal number of
    employees 'leadership-ready' trained to every leader, a.k.a. Talent
    Pool or Bench Strength. Despite the fractional numbers, the trend
    indicates that the agencies are continuing to support the
    development of employees and leadership succession plans.

```{=html}
<!-- -->
```
-   The Employee Development Rate of all mission critical occupations
    and leadership positions (3251) increased by 20.8% over the previous
    quarter and 57.9% FYTD. This increase indicates that about 1 of 2
    employees in the Mission Critical Occupations and Leadership
    Occupations with succession/continuity challenges (as 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.

**C. Recruitment and Retention (Goal 3 - USDA, Goal 3 - FFAS)**

-   The 'quality of new hires' index continues to reflect above average
    satisfaction ratings (4.45 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 HRD
    and the hiring manager, resulting in a higher quality, competent and
    performing candidate/employee.

```{=html}
<!-- -->
```
-   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) 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 the 244 FFAS vacancies averaged 65.9 days,
    an improvement of 2.0 days over last quarter and a 23.1 day
    improvement FYTD. This is 9 days below the (internal) 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 the date
    the hiring manager makes a selection). FFAS's reported time for the
    fourth quarter is 43.1 work days that brings the FYTD average to
    34.7 work days up slightly from 31.9 work days last quarter. This
    still represents 10.3 work days **under the OPM target** and 6.7
    work days above the USDA target of 28 workdays. Overall improvement
    is attributable to continued efficiencies in certificate preparation
    time and the time the hiring manager takes to select a candidate
    from the certificate of qualified applicants and then notify HR.

-   Workforce diversity of new hires is now measured against OPM's 2004
    FEORP -- RCLF. The Relative Civilian Labor Force changes are:

    -   Women from 45.5% to 50.5% (increased by 5.0%)

    -   Black from 7.6% to 9.7% (increased by 2.1%)

    -   Hispanic from 5.9% to 10.0% (increased by 4.1%)

    -   Asian / American Islander from 2.9% to 4.6% (increased by 1.7%)

    -   American Indian / Aleutian from 0.5% to 1.1% (increased by 0.6%)

-   Based on OHCM provided data (10/10/05), FSA exceeded the hiring
    statistics for Women, Black and American Indian/Alaskan
    representative groups FYTD by 14.5%, 2.3% and 0.2% respectively. The
    Hispanic group hire rate is 4.9% of all new hires, 4.1% below target
    and the Asian/American Islander group hiring rate is 2.7%, 1.9%
    below target. This demonstrates a positive return on the recruitment
    strategies, especially maximizing the benefits of the MANRRS
    initiative and the collaboration with the Office of Civil Rights.

-   In terms of diversity hiring FYTD into FSA management positions
    (GS13/14/15), Women, Black and American Indians / Aleutian
    representative groups continue to exceed the targets by 13%, 17% and
    8% 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. They also
    indicate a need to focus its recruitment plans in FY06 more towards
    Asian and American Indian candidate pools.

**D. Performance Culture (Goal 4 - USDA, Goal 5 - FFAS)**

-   FFAS has linked 100% of employee performance plans to the Agencies'
    goals to date. Not only does this certification rate meet the
    Departmental (yellow score) milestone, but the OMB Human Capital
    Management Standard of Success (green score) as well.

-   Employees who have received a form of recognition for demonstrating
    high performance levels has increased to 16.4% FYTD, up 3.6% 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) decreased
    slightly from 19.9% to 19.8%; and the percentage of women in the
    Mission Area increased 0.4% (from 55.7% to 55.3%). This measure
    demonstrates the organizations continuing effort to leverage and
    sustain diversity in the accomplishment of its missions.

Date: 11/17/05

Prepared and submitted to USDA/OHCM by:

Joe Migyanka (202-418-9083) Human Capital Management, HRD

![](media/image1.wmf){width="9.1375in" height="6.559027777777778in"}

![](media/image2.wmf){width="8.908333333333333in" height="6.48125in"}