**GAO-05-320T**                      Published: Feb 10, 2005. Publicly Released: Feb 10, 2005.                  

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## Highlights

At the center of any agency transformation, such as the one envisioned for the Department of Homeland Security (DHS), are the people who will make it happen. Thus, strategic human capital management at DHS can help it marshal, manage, and maintain the people and skills needed to meet its critical mission. Congress provided DHS with significant flexibility to design a modern human capital management system. DHS and the Office of Personnel Management (OPM) have now jointly released the final regulations on DHS's new human capital system. Last year, with the release of the proposed regulations, GAO observed that many of the basic principles underlying the regulations were consistent with proven approaches to strategic human capital management and deserved serious consideration. However, some parts of the human capital system raised questions for DHS, OPM, and Congress to consider in the areas of pay and performance management, adverse actions and appeals, and labor management relations. GAO also identified multiple implementation challenges for DHS once the final regulations for the new system were issued. This testimony provides preliminary observations on selected provisions of the final regulations.

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## Topics

Human Capital

Agency evaluationAgency missionsHomeland securityCompensationCritical infrastructureFederal agency reorganizationFederal employeesHuman capitalHuman capital managementInternal controlsPay bandsPay for performancePerformance appraisalPerformance managementPerformance measuresPersonnel managementStaff utilizationStrategic planning