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[Senate Report 110-523]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 1100
110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-523

======================================================================

                FEDERAL SUPERVISOR TRAINING ACT OF 2007

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                 S. 967

TO AMEND CHAPTER 41 OF TITLE 5, UNITED STATES CODE, TO PROVIDE FOR THE 
    ESTABLISHMENT AND AUTHORIZATION OF FUNDING FOR CERTAIN TRAINING 
             PROGRAMS FOR SUPERVISORS OF FEDERAL EMPLOYEES

               November 19, 2008.--Ordered to be printed

        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

               JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan                 SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii              TED STEVENS, Alaska
THOMAS R. CARPER, Delaware           GEORGE V. VOINOVICH, Ohio
MARK L. PRYOR, Arkansas              NORM COLEMAN, Minnesota
MARY L. LANDRIEU, Louisiana          TOM COBURN, Oklahoma
BARACK OBAMA, Illinois               PETE V. DOMENICI, New Mexico
CLAIRE McCASKILL, Missouri           JOHN WARNER, Virginia
JON TESTER, Montana                  JOHN E. SUNUNU, New Hampshire

                  Michael L. Alexander, Staff Director
                     Kevin J. Landy, Chief Counsel
                   Lawrence B. Novey, Senior Counsel
   Thomas J.R. Richards, Professional Staff Member, Subcommittee on 
  Oversight of Government Management, the Federal Workforce, and the 
                          District of Columbia
     Brandon L. Milhorn, Minority Staff Director and Chief Counsel
        Amanda Wood, Minority Director for Governmental Affairs
    Jennifer A. Hemingway, Minority Staff Director, Subcommittee on 
  Oversight of Government Management, the Federal Workforce, and the 
                          District of Columbia
                  Trina Driessnack Tyrer, Chief Clerk

                            C O N T E N T S

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for Legislation..............................1
III. Legislative History..............................................6
 IV. Section-by-Section Analysis......................................7
  V. Estimated Cost of Legislation....................................8
 VI. Evaluation of Regulatory Impact.................................10
VII. Changes in Existing Law.........................................10

                                                      Calendar No. 1100
110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-523

======================================================================

 
                FEDERAL SUPERVISOR TRAINING ACT OF 2007

                                _______
                                

               November 19, 2008.--Ordered to be printed

                                _______
                                

Mr. Lieberman, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 967]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 967) to amend 
chapter 41 of title 5, United States Code, to provide for the 
establishment and authorization of funding for certain training 
programs for supervisors of Federal employees, having 
considered the same, reports favorably thereon with amendments 
and recommends that the bill, as amended, do pass.

                         I. Purpose and Summary

    S. 967, the Federal Supervisor Training Act, requires 
agencies to increase the amount and quality of leadership 
training provided to supervisors, with the goal of improving 
the overall effectiveness and efficiency in the federal 
government. The bill requires mandatory training for federal 
supervisors every three years on effective supervision, 
including how to improve employee performance, manage poor-
performing employees, and protect employees' rights.

                II. Background and Need for Legislation

    The quality of employee supervision has a profound effect 
on the success of federal agencies. Numerous studies show that 
there is a strong relationship between effective supervision 
and high performance of individual work groups and that 
supervisory management is an important determinant of 
performance for federal agencies overall.\1\ Conversely, the 
price to federal agencies of poor supervision can be 
enormous.\2\ Weak supervisors not only cause job performance to 
suffer, but also harm morale and drive good employees away, 
adding to recruitment and training costs.\3\ And supervisory 
behavior affects the number of complaints and grievances, which 
can impose large costs and burdens on agencies to resolve.\4\
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    \1\See James Thompson, Training Supervisors to Be Leaders: A 
Missing Element in Efforts to Improve Federal Performance, Partnership 
for Public Service (June 2007), at page 3; Gene A. Brewer, ``In the Eye 
of the Storm: Frontline Supervisors and Federal Agency Performance,'' 
Journal of Public Administration Research and Theory, Vol. 15, No. 4 
(2005), pages 505-527; Report to the Partnership for Public Service, 
Can We Really Manage? Understanding Supervision and its Importance in 
Government, by Erin M. O'Driscoll and Andrew J. Whitehouse (April 5, 
2005).
    \2\See Report by the Human Resources Management Panel of the 
National Academy of Public Administration (NAPA), First Line 
Supervisors in Federal Service: Selection, Development and Management, 
(February 2003) (hereinafter referred to as the ``NAPA report'').
    \3\Id. Studies have found that poor supervisors or managers are the 
most common reason employees leave a position. See U.S. Merit Systems 
Protection Board (MSPB), Office of Policy Evaluation, Making the Public 
Service Work: Recommendations for Change (September 3, 2002), at page 
12 (hereinafter referred to as ``MSPB recommendations'').
    \4\See NAPA report, note 2 above, at page 4.
---------------------------------------------------------------------------
    The importance of maintaining a cadre of skilled and 
effective supervisors in the federal government will only 
increase. The U.S. Office of Personnel Management (OPM) 
estimates that, over the course of the next ten years, 60 
percent of the 1.9 million member federal workforce will be 
eligible for retirement, and it is expected that 40 percent of 
those employees will retire.\5\ This potentially high attrition 
rate is forcing agencies to prepare for a mass exodus of 
talent, skills, and institutional knowledge. To cultivate new 
leaders, federal agencies not only must develop strategic 
succession plans and implement vigorous recruitment efforts to 
attract the best and the brightest--but must also foster the 
supervisory talent of the federal workforce.
---------------------------------------------------------------------------
    \5\U.S. Office of Personnel Management (OPM), Congressional Budget 
Justification, Performance Budget, Fiscal Year 2009 (submitted February 
4, 2008).
---------------------------------------------------------------------------
    Successful supervisors require strong interpersonal as well 
as technical skills.\6\ For example, good supervisors mediate 
between higher level managers and lower level staff, clearly 
articulating organizational goals and setting fair performance 
standards. They communicate well with their staff, giving 
advice, identifying developmental needs, and serving as 
mentors. Supervisors should also promote teamwork and address 
any work-related conflicts in the work group. Supervisors set 
the tone for a professional work environment, and a positive 
work environment can lead to a more efficient and effective 
workforce.
---------------------------------------------------------------------------
    \6\See, generally, the references cited in note 1 above.
---------------------------------------------------------------------------
    Despite the vital importance of having supervisors with 
effective leadership skills, federal agencies have been found 
to be weak in this area.\7\ Studies show that this deficiency 
arises in part because supervisors are frequently selected for 
their technical expertise, rather than based on an assessment 
of their ability to manage people.\8\ And this weakness is 
compounded by the failure of many agencies to have 
comprehensive managerial development and succession plans, 
including training.\9\
---------------------------------------------------------------------------
    \7\See MSPB recommendations, note 3 above, at page 12.
    \8\Id.
    \9\Id.
---------------------------------------------------------------------------
    The Committee therefore believes that, as a key part of the 
federal government's efforts to enlarge and maintain its cadre 
of successful supervisors, agencies should strengthen their 
training programs in supervisory skills. Several studies have 
found that current leadership development of first-line 
supervisors is insufficient and have concluded that agencies 
should ensure that all supervisors receive the training they 
need in managerial and leadership skills.\10\ For example, 
according to the Human Resources Panel of the National Academy 
of Public Administration,
---------------------------------------------------------------------------
    \10\MSPB recommendations, note 3 above, at pages vi, 13; Thompson, 
report published by the Partnership for Public Service, note 1 above, 
at page 13; NAPA report, note 2 above, at page 35.

          Federal agencies need to do a better job of 
        developing and training supervisors. While some have 
        successful training programs, it is uncommon for first-
        line supervisory training to be part of an agency's 
        comprehensive leader development program.\11\
---------------------------------------------------------------------------
    \11\NAPA report, note 2 above, at page 3.

    Moreover, federal employees generally believe that they 
need more training to do their jobs well, and, with respect to 
managers specifically, one in three believe that more training 
would help them perform their job duties better.\12\ In 
testimony before the this Committee's Subcommittee on Oversight 
of Government Management, the Federal Workforce, and the 
District of Columbia, managers have stated that there is not 
enough of a commitment by their agencies to provide management 
training.\13\ Managers also testified that when budgets are 
tight, training is one of the first discretionary spending 
items to be cut.\14\
---------------------------------------------------------------------------
    \12\See OPM, 2006 Federal Human Capital Survey (May 31, 2006); 
MSPB, Accomplishing Our Mission: Results of the Merit Principles Survey 
2005 (February 2007).
    \13\Testimony of Mr. Darryl Perkinson, National President, Federal 
Managers Association, at a hearing entitled ``Enhancing Employee 
Performance: A Hearing on Pending Legislation'' before this Committee's 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia, 10th Congress, 2d Session, 
June 29, 2006, S. Hrg. 109-709 (hereinafter referred to as ``Enhancing 
Employee Performance hearing'').
    \14\Id.
---------------------------------------------------------------------------
    The private sector is making important investments in 
manager training. In 2007, businesses spent approximately $12 
billion on management and supervisory training--the largest 
category of training provided in the private sector--due, in 
part, to the aging of the workforce and the need for succession 
planning.\15\ These factors are at play in the federal 
government as well, and, like the private sector, the federal 
government should make a substantial investment in training of 
supervisors.
---------------------------------------------------------------------------
    \15\``Training 2007 Industry Report,'' Training (November/December 
2007). That report explained: ``Management and supervisory training 
receives a great deal of funding due, in part, to the aging of the 
workforce. With large numbers of retirements looming, companies are 
focused on succession planning,'' at page 11.
---------------------------------------------------------------------------
    Managers need proper training on how to motivate, evaluate, 
and manage employees. Such training should include not only 
classroom work, but also experienced managers and supervisors 
can share their knowledge with those younger less experienced 
managers and supervisors through mentorship and coaching 
programs, and improve overall motivation and understanding of 
the organization's mission.\16\
---------------------------------------------------------------------------
    \16\Jim Mahlmann, ``Ensuring Strong Leadership through Mentorship 
and Coaching,'' The Federal Manager, Vol. XXVII, Iss. II (Spring 2007).
---------------------------------------------------------------------------
    Moreover, especially in the government, managers need 
training in more than general supervisory skills; they also 
need to be trained specifically on employee rights and 
protections, prohibited personnel practices, and ways to 
address hostile work environments. Colleen Kelley, National 
President of the National Treasury Employees Union, emphasized 
this point in her testimony before the Subcommittee, and 
concluded--

          A key way to lessen discrimination in the federal 
        workplace and ensure workplace fairness is for proper 
        supervisor training so that they fully understand the 
        duties and obligations they have.\17\
---------------------------------------------------------------------------
    \17\Testimony of Ms. Colleen Kelley, National President, National 
Treasury Employees Union, at Enhancing Employee Performance hearing, 
note 13 above.

    The Committee believes that S. 967 will help to address 
these deficiencies in supervisory training within the federal 
government, by requiring enhancement in both the quality 
andquantity of such training. Federal agencies are currently required 
to have a management training program, which supervisors are supposed 
to complete within the first three years of becoming a supervisor.\18\ 
The Committee believes that three years is too long for a new 
supervisor to be responsible for managing employees without being 
specifically trained on how to manage. Furthermore, the Committee is 
concerned that there does not appear to be any systematic process by 
which current supervisors will pass along their knowledge of management 
practices and supervisory skills to younger employees interested in 
becoming managers. To address these two issues, S. 967 requires 
training within the first year of an employee becoming a manager and 
establishes a mentoring program under which experienced managers will 
be paired with younger managers for professional development.
---------------------------------------------------------------------------
    \18\5 C.F.R. Sec. 410.
---------------------------------------------------------------------------
    The subject matter of the training under this legislation 
covers the interpersonal and managerial skills used in carrying 
out the functions of a supervisor, including establishing 
employee goals and appraising performance, mentoring and 
motivating employees, and managing employees with unacceptable 
performance. Moreover, S. 967 specifically mandates training 
relating to prohibitions against unlawful discrimination, 
whistleblower protections, and the procedures and processes to 
enforce employee rights in the federal government.
    Another current challenge for supervisors is that 
sufficient supervisory training is not required and is often 
not available. After initial training, no further management 
training is required. While some agencies will provide 
management training, tight budgets often restrict the agencies' 
ability to provide such training. Furthermore, there has been 
no clear reporting from agencies on the amount of dollars being 
spent on supervisory training and the number of managers and 
supervisors being provided ongoing management training. The 
Committee believes that S. 967 responds to these existing 
deficiencies, by requiring supervisors to undergo training 
every three years, and by requiring agencies to submit annual 
reports to OPM on their progress implementing the supervisor 
training requirements.
    In addition to requiring more frequent training, S. 967 
requires that the training be interactive and instructor-based. 
According to the OPM's 2006 Human Capital Survey, nearly 90 
percent of managers and supervisors found in-classroom training 
to be effective.\19\ This represents the highest-rated method 
of training according to federal workers. However, in-classroom 
training may not always be the most efficient, effective, and 
cost effective. It is not the Committee's intention to limit 
training to a classroom or preclude computer-based training, 
online training, teleconference training, or other efficient 
and effective methods of training. Internet and computer-based 
training can be effective methods of training and agencies 
should explore these options in providing supervisor training. 
However, the Committee does believes that there should be a 
designated instructor for any training, so that the trainee can 
ask questions and be provided some interaction to better retain 
the material. The Committee encourages OPM and agencies to use 
all available training techniques, while ensuring that each 
course has a designated instructor for the trainee to address 
any questions or further discussions on the concepts raised in 
the training.
---------------------------------------------------------------------------
    \19\OPM, note 11 above.
---------------------------------------------------------------------------
    To help ensure the quality and consistency of federal 
supervisory training, the bill requires OPM to provide 
government-wide regulations establishing supervisory training 
standards and measurements for training effectiveness. As the 
federal agency responsible for human resources policy, OPM has 
the expertise and jurisdiction to aid other agencies in the 
development and implementation of supervisory training 
programs. While it is fully expected that each agency will 
provide supervisory training that includes content that is 
particular to that agency's culture and mission, the Committee 
believes OPM should be a vital resource in that process by 
issuing regulations regarding overall supervisory training 
standards.
    The increased training under this bill will raise agencies' 
training budgets, but the Committee believes that the benefits 
of increased supervisory training will be well worth the cost. 
The current spending on supervisor training programs is unknown 
in the federal government, so the increase required by this 
legislation cannot be estimated with certainty. Acknowledging 
such uncertainties, the Congressional Budget Office (CBO) has 
estimated that the cost of S. 967 will be approximately $295 
million over 5 years.\20\
---------------------------------------------------------------------------
    \20\Congressional Budget Office (CBO) Cost Estimate, S. 967, 
Federal Supervisor Training Act of 2007 (September 12, 2007). 
Acknowledging the uncertainties, ``CBO estimates that implementing S. 
967 would cost $55 million in 2008 and $295 million over the 2008-2012 
period,'' at page 1.
---------------------------------------------------------------------------
    These increased costs of training should be offset by 
substantial savings, because enhanced management will lead to 
improvements in efficiency and performance of the agencies. 
This has been the experience in the private sector, where 
supervisory training has been found to contribute to the bottom 
line:

          Our Study demonstrates an important correlation 
        between management development and profitability; 
        namely, organizations with a higher percentage of 
        middle managers and the appropriate percentage of staff 
        participating in management development report higher 
        profits per FTE [full time equivalent employee].\21\
---------------------------------------------------------------------------
    \21\IBM Business Consulting Services, The Capability Within, The 
Global Human Capital Study 2005 (2005), at page 18.

    There is every reason to expect that, as in the private 
sector, improved supervisory training in the federal government 
will yield substantial net benefits. As a recent report 
published by the Partnership for Public Service explained, the 
case for enhanced leadership development training for 
supervisors can be made at several levels, including ``the 
business level.'' The methodology for assessing the dollar 
impact of leadership training is not very far along, but the 
report states that ``quantitative and qualitative work that has 
been done and the opinions of those most closely associated 
with these programs point to a highly favorable return on 
investment.''\22\
---------------------------------------------------------------------------
    \22\Thompson, report published by the Partnership for Public 
Service, note 1 above, at page 19.
---------------------------------------------------------------------------
    Morever, agencies may expect especially tangible savings to 
result from training for managers and supervisors that equips 
them to deal better with problem employees without inviting 
legal complaints. This aspect of supervisor training was 
emphasized in a letter from the Senior Executives Association 
to the Subcommittee Chairman:

          The proliferation of EEO complaints and the 
        complexity of the rules surrounding whistleblower 
        reprisal cases often make managers reluctant to deal 
        effectively and quickly with poor performers and 
        employee misconduct. Giving managers the training they 
        need to deal with problem employees in a manner that is 
        both swift and appropriate will save the government 
        funds by avoiding EEO and other complaints from 
        employees, as well as ensuring managers remove poor 
        performers rather than avoiding dealing with the 
        problem and thereby keeping them on the payroll. We 
        believe that the cost of this training will be more 
        than offset by savings from the resulting decrease in 
        complaints, appeals and grievances, as well as 
        increases in the effectiveness of government 
        agencies.\23\
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    \23\Letter from Senior Executives Association President Carol A. 
Bonosaro and General Counsel William L. Bransford to Senator Daniel K. 
Akaka regarding S. 967 and the Fiscal Benefits of Training Supervisors, 
June 12, 2007.

    Finally, it is worth considering the persuasive statement 
of the human resources director of a large defense agency, who 
emphasized the ethical, as well as the practical, reasons why 
---------------------------------------------------------------------------
improved supervisory training is warranted:

          It's the right thing to do to give people leaders who 
        can help them perform. The right thing to do and the 
        good business decision happen to be the same thing. We 
        see an enormous pay-off out of this.\24\
---------------------------------------------------------------------------
    \24\Jeff Neal, Director of Human Resources for the Defense 
Logistics Agency, as quoted in Thompson, report published by the 
Partnership for Public Service, note 1 above, at page 19.
---------------------------------------------------------------------------

                        III. Legislative History

    S. 967 was introduced by Senator Daniel K. Akaka on March 
22, 2007, and subsequently was referred to the Committee on 
Homeland Security and Governmental Affairs. The bill was 
referred to the Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia 
(OGM) on March 30, 2007.
    The bill is similar to S. 3584, the Federal Supervisor 
Training Act of 2006, introduced by Senator Akaka in the 109th 
Congress on June 27, 2006, and referred to the Committee on 
Homeland Security and Governmental Affairs OGM Subcommittee. A 
hearing was held to discuss this bill, other pending 
legislation, and performance management issues in the federal 
workforce on June 29, 2006, entitled ``Enhancing Employee 
Performance: A Hearing on Pending Legislation.''\25\ Presenting 
testimony before the Subcommittee were the Honorable Dan G. 
Blair, Deputy Director, Office of Personnel Management; Mr. 
Darryl Perkinson, National President, Federal Managers 
Association on behalf of the Government Managers Coalition; Ms. 
Colleen Kelley, National President, National Treasury Employees 
Union; Ms. Jacqueline Simon, Public Policy Director, American 
Federation of Government Employees; and Ms. Patricia McGinnis, 
President and Chief Executive Officer, Council for Excellence 
in Government. The testimony presented highlighted the need for 
more management and supervisory training.
---------------------------------------------------------------------------
    \25\Enhancing Employee Performance hearing, note 13 above.
---------------------------------------------------------------------------
    On June 12, 2007, OGM polled the bill out of Subcommittee 
favorably and on June 13, 2007, the Committee on Homeland 
Security and Governmental Affairs ordered the bill to be 
reported favorably to the Senate en bloc with an amendment by a 
voice vote. The amendment, offered by Senator Akaka during the 
Committee markup, provided technical corrections as requested 
by the Office of Personnel Management and additional language 
to assess the effectiveness of the bill's provisions. Members 
present were Senators Akaka, Coleman, Collins, Landrieu, Levin, 
Lieberman, McCaskill, Obama, Tester, Voinovich, and Warner.

                    IV. Section-by-Section Analysis

Section 1. Short title

    This section provides that the legislation in S. 967 may be 
cited as the ``Federal Supervisor Training Act of 2007.''

Section 2. Mandatory training programs for supervisors

    5 U.S.C. Sec. 4121 now requires agencies, in consultation 
with OPM, to establish training programs for managers and 
potential managers, and subsection (a) of section 2 makes 
several amendments to this section.
    Subsection (a)(1) defines the term ``supervisor'' for 
purposes of 5 U.S.C. Sec. 4121 to include individuals defined 
as supervisors and managers under 5 U.S.C. chapter 71, and 
other federal employees as defined by the Director of OPM by 
regulation.
    Subsection (a)(2) provides that agencies, in establishing 
training programs under Sec. 4121, must do so under operating 
competencies promulgated by OPM. This provision therefore also 
indicates that OPM should produce operating competencies to 
guide agencies through the process of developing and 
implementing training programs.
    Subsection (a)(3) replaces the current supervisor-training 
requirements with the new minimum requirements specified in the 
bill. Under these requirements, agencies must establish--
     Interactive instructor-based training to 
supervisors in: (i) Developing performance expectations with 
the employee and conducting performance appraisals, (ii) 
mentoring employees and improving their performance, (iii) 
addressing poor performance, (iv) addressing hostile work 
environments, and (v) carrying out other supervisory duties.
     Training for managers on the rights and 
protections afforded federal employees against prohibited 
personnel practices under 5 U.S.C. Sec. 2302, and particularly 
under the non-discrimination and whistleblower-protection 
provisions in subsections (b)(1) and (8) of that section.
     Mentoring programs under which experienced 
supervisors would transfer knowledge and advice to new 
supervisors and point out strengths and areas for development.
    Individuals must complete initial training not later than 
one year after they are appointed to be supervisors, and must 
be retrained on the same topics at least once every three years 
after initial training. This retraining can be done all at once 
or supervisors can receive credit towards the every-three-year 
retraining requirement for similar training previously 
completed.
    OPM must prescribe regulations to carry out this section, 
including measures for agencies to assess effectiveness of 
agency supervisory training.
    Subsection (b) specifies that the regulations for carrying 
out the supervisor training requirements must be promulgated by 
OPM not later than 180 days after enactment of this 
legislation.
    Subsection (c)(1) provides that the effective date of the 
new training requirements will be 180 days after enactment of 
the bill and will apply to any new or current supervisor.
    Subsection (c)(2) allows for current supervisors to meet 
the new supervisory training requirements of the bill within 
three years of the enactment date and then every three years 
thereafter.

Section 3. Management competencies

    Subsection (a) adds a new section 4305 to 5 U.S.C., to 
provide an assessment of how effective the new management 
training is. Under this new code section--
     OPM will issue guidance to agencies on 
competencies that supervisors are expected to meet in order to 
effectively manage employee performance.
     Each agency will--(1) develop competencies to 
assess each supervisor's performance, and in doing so must 
consider OPM's guidance; (2) assess the capacity of agency 
supervisors to meet the OPM guidance on competencies; (3) 
develop and implement a supervisor training program to address 
issues identified in the assessment; and (4) measure the 
effectiveness of the training program.
     Each agency will also submit an annual report to 
OPM on the agency's progress in implementing this program for 
training and assessment.
    Subsection (b) makes technical and conforming changes to 5 
U.S.C. chapter 43.

                    V. Estimated Cost of Legislation

                                                September 12, 2007.
Hon. Joseph I. Lieberman,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 967, the Federal 
Supervisor Training Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

S. 967--Federal Supervisor Training Act of 2007

    Summary: S. 967 would amend current law to require training 
for existing and newly hired federal employees that supervise 
other employees. The legislation also would direct the Office 
of Personnel Management (OPM) to issue guidance to agencies on 
standards that supervisors are expected to meet and would 
require agencies to review their training programs and report 
on their effectiveness to OPM.
    CBO estimates that implementing S. 967 would cost $55 
million in 2008 and $295 million over the 2008-2012 period, 
assuming appropriation of the necessary funds. Enacting the 
bill would not affect direct spending or revenues.
    S. 967 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 967 is shown in the following table. The 
costs of this legislation fall within all budget functions that 
include salaries and expenses.

 
------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Training Program for
 Supervisors:
    Estimated Authorization           55      55      55      55      55
     Level......................
    Estimated Outlays...........      50      55      55      55      55
Review of Training Process:
    Estimated Authorization            5       5       5       5       5
     Level......................
    Estimated Outlays...........       5       5       5       5       5
Total Changes:
    Estimated Authorization           60      60      60      60      60
     Level......................
    Estimated Outlays...........      55      60      60      60      60
------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted near the start of fiscal year 2008, 
that the necessary amounts will be appropriated for each fiscal 
year, and that outlays will follow historical trends for 
similar activities.
    S. 967 would require agencies to set new performance 
standards and train new supervisors within 12 months after such 
employees assume supervisory duties. Under the bill, all 
current supervisors would be trained within three years after 
enactment of the legislation; and supervisors would receive 
``refresher'' training every three years thereafter. This 
training would include working with supervisors to develop 
employee goals and objectives, mentoring programs, and 
informing managers about prohibited personnel practices and 
employee rights.
    Based on information from OPM, CBO estimates that there are 
about 210,000 supervisors in the federal government. (In 2006, 
about 3,200 new supervisors were hired.) In addition, OPM and 
human resources managers at federal agencies that CBO contacted 
expect the cost of managers' training seminars would range from 
hundreds of dollars per session up to a few thousand dollars 
for week-long seminars.
    CBO is unaware of any comprehensive information or report 
on the extent of supervisor training throughout the federal 
government. There is no existing requirement for federal 
agencies to provide training for all supervisors. Under current 
law, agencies are required to have a comprehensive training 
program for managers, but there is no mandate for managers to 
participate in that training. Although the use of training 
programs is not uniform throughout the federal government, 
information from some of the largest employing agencies, 
including the Departments of Defense, Energy, and Justice, 
suggests that agencies have supervisor training programs, 
usually for new supervisors. For this estimate, CBO expects 
that initial supervisor training would cost about $2,000 per 
employee, and the refresher training for current supervisors 
would cost about $1,000 per employee.
    Using information provided by major agencies and OPM, CBO 
expects that about 25 percent of all new managers are not 
provided with mandatory supervisor training that covers 
mentoring employees, establishing employees' goals, and other 
employee-management techniques. In addition, CBO expects that 
about 75 percent of all current managers typically do not 
receive subsequent retraining on a regular basis. Using those 
assumptions, CBO estimates that requiring federal agencies to 
provide mandatory training for new supervisors would cost about 
$2 million annually. In addition, providing refresher training 
for all supervisors every three years would cost $53 million in 
2008 and about $260 million over the 2008-2012 period, assuming 
agencies would implement that requirement over a three-year 
period.
    S. 967 also would require agencies to annually review and 
assess their supervisor training programs. Using information 
provided by OPM, a review of large employing agencies, and the 
cost of similar reports, CBO estimates that requiring agencies 
to review their training programs annually and report to OPM 
would cost $5 million in 2008 and $25 million over the 2008-
2012 period.
    Intergovernmental and private-sector impact: S. 967 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Matthew Pickford; 
Impact on State, Local, and Tribal Governments: Elizabeth Cove; 
Impact on the Private Sector: Justin Hall and Patrice Gordon,
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic and existing law, in which no 
change is proposed, is shown in roman):

   TITLE 5, UNITED STATES CODE: GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III_EMPLOYEES 

                          CHAPTER 41--TRAINING

SEC. 4121. SPECIFIC TRAINING PROGRAMS.

    (a) In this section, the term ``supervisor'' means--
          (1) a supervisor as defined under section 
        7103(a)(10);
          (2) a management official as defined under section 
        7103(a)(11); and
          (3) any other employee as the Director of the Office 
        of Personnel Management may by regulation prescribe.
    (b) Under operating competencies promulgated by, and in 
consultation with, [In consultation with] the Director of the 
Office of Personnel Management, the head of each agency shall 
establish--
          (1) a comprehensive management succession program to 
        provide training to employees to develop managers for 
        the agency; and
          [(2) a program to provide training to managers on 
        actions, options, and strategies a manager may use in--
                  (A) relating to employees with unacceptable 
                performance;
                  (B) mentoring employees and improving 
                employee performance and productivity; and
                  (C) conducting employee performance 
                appraisals.]
          (2)(A) a program to provide interactive instructor-
        based training to supervisors on actions, options, and 
        strategies a supervisor may use in--
                  (i) developing and discussing relevant goals 
                and objectives together with the employee, 
                communicating and discussing progress relative 
                to performance goals and objectives and 
                conducting performance appraisals;
                  (ii) mentoring and motivating employees and 
                improving employee performance and 
                productivity;
                  (iii) effectively managing employees with 
                unacceptable performance;
                  (iv) addressing reports of a hostile work 
                environment, reprisal, or harassment of, or by, 
                another supervisor or employee; and
                  (v) otherwise carrying out the duties or 
                responsibilities of a supervisor;
          (B) a program to provide interactive instructor-based 
        training to supervisors on the prohibited personnel 
        practices under section 2302 (particularly with respect 
        to such practices described under subsection (b)(1) and 
        (8) of that section) and the procedures and processes 
        used to enforce employee rights; and
          (C) a program under which experienced supervisors 
        mentor new supervisors by--
                  (i) transferring knowledge and advice in 
                areas such as communication, critical thinking, 
                responsibility, flexibility, motivating 
                employees, teamwork, and professional 
                development; and
                  (ii) pointing out strengths and areas for 
                development.
    (c)(1) Not later than 1 year after the date on which an 
individual is appointed to the position of supervisor, that 
individual shall be required to have completed each program 
established under subsection (b)(2).
    (2) After completion of a program under subsection 
(b)(2)(A) and (B), each supervisor shall be required to 
complete a program under subsection (b)(2)(A) and (B) at least 
once every 3 years.
    (3) Each program established under subsection (b)(2) shall 
include provisions under which credit shall be given for 
periods of similar training previously completed.
    (d) Notwithstanding section 4118(c), the Director of the 
Office of Personnel Management shall prescribe regulations to 
carry out this section, including the monitoring of agency 
compliance with this section. Such regulations shall include 
measures by which to address the effectiveness of agency 
supervisor training programs.

                   CHAPTER 43--PERFORMANCE APPRAISAL

                    Subchapter I--General Provisions

Sec.
4301. Definitions.
     * * * * * * *
4305.  [Regulations.] Management Competencies.
4306.  Regulations.
     * * * * * * *

SEC. 4304. RESPONSIBILITIES OF THE OFFICE OF PERSONNEL MANAGEMENT.

           *       *       *       *       *       *       *

    (b)(3) If the Office determines that a system does not meet 
the requirements of this subchapter (including regulations 
prescribed under [4305] 4306, the Office shall direct the 
agency to implement an appropriate system or to correct 
operations under the system and any such agency shall take any 
action so required.

SEC. 4305. MANAGEMENT COMPETENCIES.

    (a) In this section, the term ``supervisor'' means--
          (1) a supervisor as defined under section 
        7103(a)(10);
          (2) a management official as defined under section 
        7103(a)(11); and
          (3) any other employee as the director of the Office 
        of Personnel Management may by regulation prescribe.
    (b) The Director of the Office of Personnel Management 
shall issue guidance to agencies on competencies supervisors 
are expected to demonstrate in order to effectively manage, and 
be accountable for managing, the performance of employees.
    (c) Each agency shall--
          (1) develop competencies to assess the performance of 
        each supervisor and in developing such competencies 
        shall consider the guidance developed by the Director 
        of the Office of Personnel Management under subsection 
        (b) and any other qualifications or factors determined 
        by the agency;
          (2) assess the overall capacity of the supervisors in 
        the agency to meet the guidance developed by the 
        Director of the Office of Personnel Management issued 
        under subsection (b);
          (3) develop and implement a supervisor training 
        program to strengthen issues identified during such 
        assessment; and
          (4) measure the effectiveness of the supervisor 
        training program established under paragraph (3) in 
        improving supervisor competence.
    (d) Every year, or on any basis requested by the Director 
of the Office of Personnel Management, each agency shall submit 
a report to the Office on the progress of the agency in 
implementing this section, including reasons used to assess 
program effectiveness.

[SEC. 4305.] SEC. 4306. REGULATIONS.

    The Office of Personnel Management may prescribe 
regulations to carry out the purpose of this subchapter.

                                  
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