Human Capital: Greater Focus on Results in Telework Programs Needed
Published: 2007-06-12T00:00:00

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, including the capacity to continue operations during emergency events, as well as benefits to society, such as decreased energy use and pollution. 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. In addition, the statement discusses GAO observations on the Telework Enhancement Act of 2007, S. 1000.
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 the OPM and the General Services Administration (GSA) 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 capability to track who was actually teleworking or how frequently, relying mostly on the number of telework agreements as the measure of program participation. S. 1000 is intended to enhance the existing legislative framework and provides that all employees of the executive, judicial, and legislative branches are eligible for telework except in some circumstances related to an employee's duties and functions. The bill also recognizes the importance of leadership in promoting an agency's telework program by requiring the appointment of a senior-level management official to perform several functions to promote and enhance telework opportunities. GAO's statement suggests changes to the assignment of responsibilities for rating and reporting along with changes to make the responsibilities for heads of agency and entities in the legislative and judicial branches more consistent with those of executive branch officials. The statement also points out several provisions of S. 1000 that are not clear in relation to existing legislation.

section_title: Letter
paragraphs: I am pleased to be here today to discuss our observations of federal  telework policies based on our past work and to provide additional  observations that relate to the provisions of S. 1000, the Telework  Enhancement Act of 2007. Telework is a human capital strategy which  offers flexibilities to both employers and employees. It 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.
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 the application of  telework provisions to the federal workforce, and even withholding funds  from some agencies that fail to show progress. S. 1000 is intended to  advance this framework and the implementation of telework programs  and to increase the eligibility of federal employees for telework as well as  its use.
My statement today will describe first the statutory framework that drives  the agency telework programs and processes. We will also share  observations from our past work that relate to agency telework  methodologies, as well as our views of the specific legislation under  consideration. And finally, we will offer some suggested next steps to  advance the purposes of the bill.
My comments are based on previously issued GAO reports that were  developed in accordance with generally accepted government auditing  standards.
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 Telework  Enhancement Act of 2007, S. 1000, continues the efforts of Congress to  achieve greater participation.
The most significant congressional action related to telework was the  enactment of Section 359 of Public Law 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 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 one 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 telework coordinators to be responsible for  overseeing the implementation of telework programs and serve as points  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  in regard to 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. A full list of the key practices appears in appendix I.  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, and/or a tracking system to collect  data to evaluate the telework program; and  identifying problems and/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.
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.  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. For example, making a case for  telework as a part of an agency’s Continuity of Operations (COOP) plan  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.  None of the four agencies we reviewed, however, had effectively  implemented this practice.
Moreover, 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 aligned with managing for results— establishing processes, procedures and/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. Also, in our 2005 study at five agencies, we found that four  of the five agencies measured participation in telework on the basis of  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 a quarterly  report 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, officials at four of the five agencies said that they  have not yet developed such systems and are still measuring participation  as they did in 2005. For the fifth agency—the Department of Justice  (DOJ)—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 DOJ to track actual telework participation in those bureaus.  According to this official, the Federal Bureau of Investigation is the major  exception, but DOJ is working towards having all bureaus use this system.
As for the fourth key practice closely related to managing for program  results—identifying problems and/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 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 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 Council, develop a set of terms,  definitions, and measures that would allow for a more meaningful  assessment of progress in agency telework programs. Some information  could be improved by more consistent definitions, such as eligibility. Some  information may take additional effort to collect, for example, on actual  usage of telework. Some of this 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. 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 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: The Telework Enhancement Act of 2007, S. 1000, Addresses Key Telework Issues, but Some Provisions Merit Additional Consideration
paragraphs: S. 1000 is intended to enhance the existing legislative framework and  provides that all employees of executive agencies are eligible for telework  except in some circumstances related to an employee’s duties and  functions. In addition, the bill addresses the coverage of employees in the  legislative and judicial branches and provides that within 1 year from the  date of enactment, policies shall be established to allow such employees,  unless otherwise excluded, to participate in telework to the maximum  extent possible without diminishing employee performance or legislative  or judicial branch operations. The bill further recognizes the importance of  leadership in promoting an agency’s telework program by requiring the  appointment of a senior-level management official to perform several  functions to promote and enhance telework opportunities.
We have several observations to offer on the bill. As we have discussed  with your staff, we have specific concerns about section 5 of the bill,  which would require GAO to establish and implement a rating system for  agency compliance with and participation in telework initiatives and  report the results. For executive branch agencies, we believe this function  is more appropriately placed with OPM. A GAO rating system that does  not have the benefit of a full GAO evaluation of the underlying information  would raise concerns that our independence is compromised if we were  asked at a future time to evaluate telework programs in the federal  government. Accordingly, we have provided Committee staff with  substitute language that would place these rating and report functions in  OPM, the agency that is currently responsible for reporting on most  telework activities and participation in the executive branch. Our  substitute language would have the Comptroller General instead provide  his views on the OPM report to the Senate Committee on Homeland  Security and Governmental Affairs and the House Committee on Oversight  and Government Reform within 6 months of the report.
We would also like to bring several other issues to your attention. The bill  would extend coverage of these telework initiatives to the legislative and  judicial branches. We suggest substituting a reference to “the head of each  legislative branch entity” in sections 2(c)(3) and 4(a) of the bill so that the  heads of the Library of Congress, the Government Printing Office, and  GAO, for example, would be responsible for developing agency policies on  telework, determining which employees are eligible for telework, and  designating senior-level employees to serve as telework managing officers.  This approach would be consistent with the coverage of the executive  branch under the bill where the head of each agency would perform  similar functions.
With regard to the bill’s requirement to appoint a telework managing  officer in each executive branch agency, it is not clear how that  employee’s duties would relate to the duties of the agency officials  currently designated as telework coordinators pursuant to the provisions  of section 627 of Public Law No. 108-199. Another provision of the bill  would define telework as occurring on at least 2 business days per week,  leaving unclear how this would relate to the broader definitions of  telework currently defined in existing legislation and OPM guidance,  which includes episodic or occasional instances. It is also unclear whether  the bill intends to allow agencies to consider employee performance in  making telework eligibility decisions. Current legislation and agency  practice requires employees to be performing satisfactorily.
The bill also provides for “productivity awards” for teleworking  employees, but it is not clear whether nonteleworking employees would  also be eligible to receive productivity awards and would be evaluated on  the same performance standards. We would note that one of the key  practices identified in our 2003 report was ensuring that the same  performance standards are used to evaluate both teleworkers and  nonteleworkers. The perception that care had not been taken to establish  fair and equitable eligibility criteria could present performance and morale  issues. Finally, the bill includes among the duties of the telework  managing officer assisting the head of the agency in designating employees  to telework in order to continue agency operations in the event of a major  disaster as defined under the Stafford Act, 42 U.S.C. § 5122. We would  note, however, that telework can be effective in a variety of emergency  conditions not limited to those emergencies defined under the Stafford  Act. For example, we reported that GAO’s telework capability was  significant to assisting the House of Representatives and minimizing the  disruption to its own operations when anthrax bacteria were released on  Capitol Hill in 2001.
In conclusion, telework is a key strategy to accomplish a variety of federal  purposes. Telework is an investment in both an organization’s people and  the agency’s capacity to perform its mission. We continue to believe that  OPM and the Chief Human Capital Officers Council are well-positioned to  help agencies better manage for results through telework. Mr. Chairman  and members of the subcommittee, this completes my statement. I would  be pleased to respond to any questions that you might have.
section_title: Contacts and Acknowledgements
paragraphs: For further information on this testimony, please contact Bernice  Steinhardt, Director, Strategic Issues, (202) 512-6806 or at  steinhardtb@gao.gov. Individuals making key contributions to this  testimony include William J. Doherty, Joyce D. Corry, Allen Lomax, and  Michael Volpe.
section_title: Appendix I: Key Telework Practices for Implementation of Successful Federal Telework Programs
paragraphs: This is a work of the U.S. government and is not subject to copyright protection in the  United States. It may be reproduced and distributed in its entirety without further  permission from GAO. However, because this work may contain copyrighted images or  other material, permission from the copyright holder may be necessary if you wish to  reproduce this material separately.