Human Capital: Telework Programs Need Clear Goals and Reliable Data
Published: 2007-11-06T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: Telework continues to receive attention within Congress and federal agencies as a human capital strategy that offers various flexibilities to both employers and employees. Increasingly recognized as an important means to achieving a number of federal goals, telework offers greater capability to continue operations during emergency events, as well as affording environmental, energy, and other benefits to society. This statement highlights some of GAO's prior work on federal telework programs, including key practices for successful implementation of telework initiatives, identified in a 2003 GAO report and a 2005 GAO analysis of telework program definitions and methods in five federal agencies. It also notes more recent work where agency officials cite their telework programs as yielding benefits. As GAO has previously recommended, Congress should determine ways to promote more consistent telework definitions and measures. In particular, Congress might want to have the Office of Personnel Management (OPM) and the Chief Human Capital Officers Council develop definitions and measures that would allow for a more meaningful assessment of progress in agency telework programs.
section_title: What GAO Found
paragraphs: Through a number of legislative actions, Congress has indicated its desire that agencies create telework programs to accomplish a number of positive outcomes. Many of the current federal programs were developed in response to a 2000 law that required each executive branch agency to establish a telework policy under which eligible employees may participate in telecommuting to the maximum extent possible without diminishing employee performance. The legislative framework has provided OPM and the General Services Administration with lead roles for the governmentwide telework initiative--providing services and resources to support and encourage telework. Although agency telework policies meet common requirements and often share characteristics, each agency is responsible for developing its own policy to fit its mission and culture. In a 2003 report, GAO identified a number of key practices that federal agencies should implement in developing their telework programs. Four of these were closely aligned with managing for program results: (1) developing a business case for telework, (2) establishing measurable telework program goals, (3) establishing systems to collect data for telework program evaluation, and (4) identifying problems and making appropriate adjustments. None of the four agencies we reviewed, however, had effectively implemented any of these practices. In a related review of five other agencies in 2005, GAO reported that none of the agencies had the capacity to track who was actually teleworking or how frequently, relying mostly on the number of telework agreements as the measure of program participation. Consistent definitions and measures related to telework would help agencies better manage for results through their telework programs. For example, program management and oversight could be improved by more consistent definitions, such as eligibility. Some information may take additional efforts to collect, for example, on actual usage of telework rather than employees' potential to telework. However, other valuable information may already be available through existing sources, such as the Federal Human Capital Survey. The survey--which is administered biennially--asks federal employees about their satisfaction with telework, among other things. OPM and the Chief Human Capital Officers Council are well-situated to sort through these issues and consider what information would be most useful. The council and OPM could also work together on strategies for agencies to use the information for program improvements, including benchmarking.

section_title: Letter
paragraphs: Telework continues to receive  attention within Congress and  federal agencies as a human capital  strategy that offers various  flexibilities to both employers and  employees. Increasingly recognized  as an important means to achieving  a number of federal goals, telework  offers greater capability to  continue operations during  emergency events, as well as  affording environmental, energy,  and other benefits to society.
Through a number of legislative actions, Congress has indicated its desire that  agencies create telework programs to accomplish a number of positive  outcomes. Many of the current federal programs were developed in response  to a 2000 law that required each executive branch agency to establish a  telework policy under which eligible employees may participate in  telecommuting to the maximum extent possible without diminishing  employee performance. The legislative framework has provided OPM and the  General Services Administration with lead roles for the governmentwide  telework initiative—providing services and resources to support and  encourage telework. Although agency telework policies meet common  requirements and often share characteristics, each agency is responsible for  developing its own policy to fit its mission and culture.
This statement highlights some of  GAO’s prior work on federal  telework programs, including key  practices for successful  implementation of telework  initiatives, identified in a 2003 GAO  report and a 2005 GAO analysis of  telework program definitions and  methods in five federal agencies. It  also notes more recent work where  agency officials cite their telework  programs as yielding benefits.
In a 2003 report, GAO identified a number of key practices that federal  agencies should implement in developing their telework programs. Four of  these were closely aligned with managing for program results: (1) developing  a business case for telework, (2) establishing measurable telework program  goals, (3) establishing systems to collect data for telework program  evaluation, and (4) identifying problems and making appropriate adjustments.  None of the four agencies we reviewed, however, had effectively implemented  any of these practices. In a related review of five other agencies in 2005, GAO  reported that none of the agencies had the capacity to track who was actually  teleworking or how frequently, relying mostly on the number of telework  agreements as the measure of program participation.
As GAO has previously  recommended, Congress should  determine ways to promote more  consistent telework definitions and  measures. In particular, Congress  might want to have the Office of  Personnel Management (OPM) and  the Chief Human Capital Officers  Council develop definitions and  measures that would allow for a  more meaningful assessment of  progress in agency telework  programs.
Consistent definitions and measures related to telework would help agencies  better manage for results through their telework programs. For example,  program management and oversight could be improved by more consistent  definitions, such as eligibility. Some information may take additional efforts to  collect, for example, on actual usage of telework rather than employees’  potential to telework. However, other valuable information may already be  available through existing sources, such as the Federal Human Capital Survey.  The survey—which is administered biennially—asks federal employees about  their satisfaction with telework, among other things. OPM and the Chief  Human Capital Officers Council are well-situated to sort through these issues  and consider what information would be most useful. The council and OPM  could also work together on strategies for agencies to use the information for  program improvements, including benchmarking.
To view the full product, including the scope  and methodology, click on GAO-08-261T.  For more information, contact Bernice  Steinhardt at (202) 512-6806 or  steinhardtb@gao.gov.
Mr. Chairman and Members of the Subcommittee:  I am pleased to be here today to discuss our observations of federal  telework programs based on our past work, particularly those practices  that are closely aligned with managing for program results. Telework is  increasingly recognized as an important means to achieving a number of  federal efforts, including effective strategic human capital management of  the federal workforce, and a greater capability to continue operations  during emergency events, as well as affording environmental, energy, and  other benefits to society. However, in the absence of clear program goals  and reliable data, agencies cannot identify problems or issues with their  programs and cannot develop and implement changes necessary to  improve their success.
Congress has demonstrated its keen interest in promoting the use of  telework in the federal government by establishing a wide-ranging  statutory framework. This framework has included provisions directed at  increasing employee eligibility for telework, requiring reporting and  evaluation of telework implementation, establishing agency telework  coordinators to lead the program, setting goals for application of telework  provisions to the federal workforce, and even withholding funds from  some agencies that fail to show progress.
My statement today will describe first, the statutory framework that drives  the agency telework programs and processes. I will also share  observations from our past work that pertain to four key practices related  to managing for results and our findings regarding the extent to which  agencies have implemented them.
My comments are based on previously issued GAO reports that were  developed in accordance with generally accepted government auditing  standards. This statement highlights some of GAO’s prior work on federal  telework programs, including key practices for successful implementation  of telework initiatives, identified in a 2003 GAO report and a 2005 GAO  analysis of telework program definitions and methods in five federal  agencies. It also notes more recent work where agency officials cite their  telework programs as yielding benefits.
subsections: section_title: Congress Has Established a Statutory Framework to Promote Agency Telework Programs and Increase Employee Participation
paragraphs: Through a number of legislative actions, Congress has indicated its desire  that agencies create telework programs to accomplish a number of  positive outcomes. These actions have included recognizing the need for  program leadership within the agencies; encouraging agencies to think  broadly in setting eligibility requirements; requiring that employees be  allowed, if eligible, to participate in telework, and requiring tracking and  reporting of program results. Some legislative actions have provided for  funding to assist agencies in implementing programs, while other  appropriations acts withheld appropriated funds until the covered  agencies certified that telecommuting opportunities were made available  to 100 percent of each agency’s eligible workforce.
The most significant congressional action related to telework was the  enactment of Sec. 359 of Pub. L. No. 106-346 in October 2000, which  provides the current mandate for telework in the executive branch of the  federal government by requiring each executive agency to establish a  policy under which eligible employees may participate in telework.In this  law, Congress required each executive branch agency to establish a  telework policy under which eligible employees of the agency may  participate in telework to the maximum extent possible without  diminishing employee performance. The conference report language  further explained that an eligible employee is any satisfactorily performing  employee of the agency whose job may typically be performed at least 1  day per week by teleworking. In addition, the conference report required  the Office of Personnel Management (OPM) to evaluate the effectiveness  of the program and report to Congress.
The legislative framework has provided both the General Services  Administration (GSA) and OPM with lead roles for the governmentwide  telework initiative—to provide services and resources to support and  encourage telework, including providing guidance to agencies in  developing their program procedures. In addition, Congress required  certain agencies to designate a telework coordinator to be responsible for  overseeing the implementation of telework programs and serve as a point  of contact on such programs for the Committees on Appropriations.
GSA and OPM provide services and resources to support the  governmentwide telework implementation. OPM publishes telework  guidance, which it recently updated, and works with the agency telework  coordinators to guide implementation of the programs and annually report  the results achieved. GSA offers a variety of services to support telework,  including developing policy concerning alternative workplaces, managing  the federal telework centers, maintaining the mail list server for telework  coordinators, and offering technical support, consultation, research, and  development to its customers. Jointly, OPM and GSA manage the federal  Web site for telework, which was designed to provide information and  guidance. The site provides access for employees, managers, and telework  coordinators to a range of information related to telework including  announcements, guides, laws, and available training.
Although agency telework policies meet common requirements and often  share some common characteristics, each agency is responsible for  developing its own policy to fit its mission and culture. According to OPM,  most agencies have specified occupations that are eligible for telework  and most apply employee performance-related criteria in considering  authorizing telework participation. In addition, OPM guidance states that  eligible employees should sign an employee telework agreement and be  approved to participate by their managers. The particular considerations  concerning these requirements and procedures will differ among agencies.
section_title: Better Performance Measures and Program Evaluations Could Improve the Assessment of Telework in the Federal Government
paragraphs: In our 2003 study of telework in the federal government, we identified 25  key practices that federal agencies should implement in developing their  telework programs. Among those were several practices closely aligned  with managing for program results including    developing a business case for implementing a telework program;    establishing measurable telework program goals;    establishing processes, procedures, or a tracking system to collect data to  evaluate the telework program; and identifying problems or issues with the telework program and making  appropriate adjustments.
Yet, in our assessment of the extent to which four agencies—the  Department of Education, GSA, OPM, and the Department of Veterans  Affairs—followed the 25 key practices, we found these four practices to be  among the least employed.
None of the four agencies we reviewed had effectively developed a  business case analysis for implementing their telework programs. In  discussing the business case key practice in our 2003 study, we cited the  International Telework Association and Council, which had stated that  successful and supported telework programs exist in organizations that  understand why telework is important to them and what specific  advantages can be gained through implementation of a telework program.  According to OPM, telework is of particular interest for its advantages in  the following areas:    Recruiting and retaining the best possible workforce—particularly newer  workers who have high expectations of a technologically forward-thinking  workplace and any worker who values work/life balance.
Helping employees manage long commutes and other work/life issues that,  if not addressed, can reduce their effectiveness or lead to employees  leaving federal employment.
Reducing traffic congestion, emissions, and infrastructure effect in urban  areas, thereby improving the environment.
Saving taxpayer dollars by decreasing government real estate costs.
Ensuring continuity of essential government functions in the event of  national or local emergencies.
In addition, some federal agency telework policies suggest other potential  advantages. For example, the Department of Defense’s telework policy  includes enhancing the department’s efforts to employ and accommodate  people with disabilities as a purpose of its program. The Department of  State’s policy notes that programs may be used to increase productivity.
As another example, the U.S. Department of Agriculture credits telework  with having a positive effect on sick leave usage and workers  compensation.
A business case analysis of telework can ensure that an agency’s telework  program is closely aligned with its own strategic objectives and goals.  Such an approach can be effective in engaging management on the  benefits of telework to the organization. Making a business case for  telework can help organizations understand why they support telework,  address relevant issues, minimize business risk, and make the investment  when it supports their objectives. Through business case analysis,  organizations have been able to identify cost reductions in the telework  office environment that offset additional costs incurred in implementing  telework and the most attractive approach to telework implementation.
We have recently noted instances where agency officials cited their  telework programs as yielding some of the benefits listed above. For  example, in a 2007 report on the U.S. Patent and Trademark Office  (USPTO), we reported that, according to USPTO management officials,  one of the three most effective retention incentives and flexibilities is the  opportunity to work from remote locations. In fiscal year 2006,  approximately 20 percent of patent examiners participated in the agency’s  telework program, which allows patent examiners to conduct some or all  of their work away from their official duty station 1 or more days per  week. In addition, USPTO reported in June 2007 that approximately 910  patent examiners relinquished their office space to work from home 4  days per week. The agency believes its decision to incorporate telework as  a corporate business strategy and for human capital flexibility will help  recruitment and retention of its workforce, reduce traffic congestion in the  national capital region, and, in a very competitive job market, enable the  USPTO to hire approximately 6,000 new patent examiners over the next 5  years. As another example, in a 2007 report on the Nuclear Regulatory  Commission (NRC), we noted that most NRC managers we interviewed  and surveyed considered telework and flexible work schedule  arrangements to be very to extremely valuable in recruiting, hiring, and  retaining NRC personnel and would be at least as valuable in the next few  years.
With regard to the second key practice aligned with managing for results,  none of the four agencies had established measurable telework program  goals. As we noted in our report, OPM’s May 2003 telework guide  discussed the importance of establishing program goals and objectives for  telework that could be used in conducting program evaluations for  telework in such areas as productivity, operating costs, employee morale,  recruitment, and retention. However, even where measurement data are  collected, they are incomplete or inconsistent among agencies, making  comparisons meaningless. For example, in our 2005 report of telework  programs in five agencies—the Departments of State, Justice, and  Commerce; the Small Business Administration; and the Securities and  Exchange Commission—measuring eligibility was problematic. Three of  the agencies excluded employees in certain types of positions (e.g., those  having positions where they handle classified information) when counting  and reporting the number of eligible employees, while two of the agencies  included all employees in any type of position when counting and  reporting the number of eligible employees, even those otherwise  precluded from participating.
With regard to the third key practice—establishing processes, procedures,  or a tracking system to collect data to evaluate the telework program—in  our 2003 review we found that none of the four agencies studied were  doing a survey specifically related to telework or had a tracking system  that provided accurate participation rates and other information about  teleworkers and the program. At that time, we observed that lack of such  information not only impeded the agencies in identifying problems or  issues related to their programs but also prevented them from providing  OPM and Congress with complete and accurate data. In addition, in our  2005 study at five agencies, we found that four of the five agencies  measured participation in telework based on their potential to telework  rather than their actual usage. The fifth agency reported the number of  participants based on a survey of supervisors who were expected to track  teleworkers. According to OPM, most agencies report participation based  on telework agreements, which can include both those for employees  teleworking on a continuing basis as well as those for episodic telework.  None of the five agencies we looked at had the capability to track who was  actually teleworking or how frequently, despite the fact that the Fiscal  Year 2005 Consolidated Appropriations Act covering those agencies  required each of them to provide quarterly reports to Congress on the  status of its telework program, including the number of federal employees  participating in its program. At that time, two of the five agencies said they  were in the process of implementing time and attendance systems that  could track telework participation, but had not yet fully implemented  them. The other three agencies said that they did not have time and  attendance systems with the capacity to track telework. “The conferees are troubled that many of the agencies’ telework programs do not even  have a standardized manner in which to report participation. The conferees expect each of  these agencies to implement time and attendance systems that will allow more accurate  reporting.”
Despite this language, four of the five agencies have not yet developed  such systems and are still measuring participation as they did in 2005. In  the fifth agency—the Department of Justice—an official told us that the  department has now implemented a Web-based time and attendance  system in most bureaus and that this system allows the department to  track actual telework participation in those bureaus. The Federal Bureau  of Investigation (FBI) was the major exception. This fiscal year, however,  the FBI began a pilot of a time and attendance application that will also  have the ability to track telework. Upon completion of the pilot, the  official said that all of the Department of Justice bureaus would have the  ability to track telework.
As for the fourth key practice closely related to managing for program  results—identifying problems or issues with the telework program and  making appropriate adjustments—none of the four agencies we reviewed  for our 2003 study had fully implemented this practice and one of the four  had taken no steps to do so despite the importance of using data to  evaluate and improve their telework programs. An OPM official told us, for  example, that she did not use the telework data she collected to identify  issues with the program; instead, she relied on employees to bring  problems to her attention.
To help agencies better manage for results through telework programs, in  our 2005 study we had said that Congress should determine ways to  promote more consistent definitions and measures related to telework. In  particular, we suggested that Congress might want to have OPM, working  through the Chief Human Capital Officers (CHCO) Council, develop a set  of terms, definitions, and measures that would allow for a more  meaningful assessment of progress in agency telework programs. Program  management and oversight could be improved by more consistent  definitions, such as eligibility. Some information may take additional effort  to collect, as for example, on actual usage of telework. Other valuable  information may already be available through existing sources. The  Federal Human Capital Survey, for example—which is administered  biennially—asks federal employees about their satisfaction with telework,  among other things. In the latest survey, only 22 percent indicated they  were satisfied or very satisfied, while 44 percent indicated they had no  basis to judge—certainly, there seems to be room for improvement there.  In any case, OPM and the agency CHCO Council are well situated to sort  through these issues and consider what information would be most useful.  The CHCO Council and OPM could also work together on strategies for  agencies to use the information for program improvements, including  benchmarking.
In conclusion, telework is a key strategy to accomplish a variety of federal  goals. Telework is an investment in both an organization’s people and the  agency’s capacity to perform its mission. We continue to believe that more  fully implementing the practices related to managing for program results  will significantly contribute to improving the success of federal telework  programs.
Mr. Chairman and members of the subcommittee, this completes my  statement. I would be pleased to respond to any questions that you may  have.
section_title: Contacts and Acknowledgments
paragraphs: For further information on this testimony, please contact Bernice  Steinhardt, Director, Strategic Issues, at (202) 512-6806 or  steinhardtb@gao.gov. Contact points for our Offices of Congressional  Relations and Public Affairs may be found on the last page of this   testimony. Individuals making key contributions to this testimony include  William J. Doherty, Assistant Director; Joyce D. Corry; and Judith C.  Kordahl.
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