The Transforming Power of Information Technology:  Making the Federal Government an Employer of Choice for IT Workers

Myra Howze Shiplett
Director
Center for Human Resources Management

The National Academy of Public Administration

• Non profit
• Non partisan
• 400+ Fellows
• Chartered by Congress
  • to work with local, state, federal, and foreign government to improve governance
• Center for Human Resources Management
  • created in 1994 to conduct research and identify innovative HR practices

The Problem

• Growing need for IT skills
  • IT impacts the mission of every agency
  • Transforming the relationship between citizens and government
• Labor Shortage
  5 over the next 17 years
  • Need to increase IT workforce by 20
  • An aging workforce -- 50% eligible to retire by 2006
  • More than two position available per qualified candidate

The Problem (continued)

• Effect of outsourcing
  • Rely on outside expert help to keep up with dynamics of technologies while focusing internal resources on core functions (especially contract and project management)
  • In 2001, approximately 70% of dollars spent on IT will be paid to contractors
• A new approach is needed
  • to compete successfully for scarce talent in a market-driven, performance-based environment.

Project Phases

Phase I-Research

• study IT compensation practices in public and private sector
• benchmarking
• literature review
• review legislation
• identify other issues

Project Phases

Phase II-Design of Alternative Solutions

• evaluate compensation models
• cost benefit analysis of each alternative
• review of legal issues
• process and organizational changes necessary

Research Findings

• Shortage of Qualified IT Professionals
• Aging Workforce with Problematic Turnover

Age of the Federal IT Workforce

[This slide includes two pie charts that compare specific age groups for fiscal years (FYs) 1996 and 2000.]

• The age group ranging from 21-30 years was 7% of the workforce in FY 1996 but only 4% in FY 2000.
• The age group ranging from 31-40 years was 31% of the workforce in FY 1996 but only 25% in FY 2000.
• The age group ranging from 41-50 years was 40% of the workforce in FY 1996 and was 41% in FY 2000.
• The age group ranging from 51-60 years was 20% of the workforce in FY 1996 and was 27% in FY 2000.
• The age group 60 years and older was 2% of the workforce in both FYs 1996 and 2000.

Research Findings (continued)

• Pay gap with the private sector
  • up to 15% in some occupations)
• A broken recruitment system
  • as evidenced by long delays and complicated steps in hiring process
• Inadequate motivational tools
• Overly focused on internal equity

Three Dimension of Equity

• External Equity
• Internal Equity
• Personal Equity or Contribution

Conclusion

• A market solution for a market challenge
  • Research phase showed innovative programs at state, local and federal government levels
    • Broad banding, pay banding, and bands of pay ranges
    • Special salary rates and pay differentials for IT workers
    • Various bonuses, such as signing bonuses, scarce skills bonuses
    • Streamlined hiring process including direct hiring process
    • Enhanced IT-training and development opportunities
  • Private sector recruitment and retention strategies
    • Companies implement simple and flexible HRM systems that can be updated easily and quickly
    • Streamlined recruitment processes critical to ability to hire qualified IT professionals

Conclusion (continued)

• A premium for performance
  • IT professionals want to earn promotions and pay increases based on contribution and performance-not longevity or tenure
• A balanced work/life program
  • Salary is only one component in overall program to attract and enhance the workforce
  • Training and development are elements particularly important to IT workers
  • IT professionals drawn to more generous paid time off policies, length of the work week, flexible work hours and on-site child care that government offers.

Conclusion

• A rational transition
  • implementation strategy needed
  • champions needed
  • look to agencies examples already implementing change