Pivotal Insight has recently conducted research, including an extensive literature review and interviews with top Federal government executives, in order to understand top-of-mind human resources issues. In the course of our research, we came to understand an important point of context—unique to Federal HR executives—that greatly influences their most pressing issues. This article serves two purposes: (1) to explain how Federal HR executives face different (and at times more challenging) issues than their private-sector counterparts; and, (2) to outline Pivotal Insight’s upcoming research, which will address specifically how Federal HR executives can identify, resolve, and manage those issues in their departments in the context of overall organizational achievement.

Human resources executives today, regardless of their work environment, are dealing with an endless number of initiatives, from recruiting and retention issues to pay for performance, from reductions in force (RIFs) brought about by outsourcing to effective labor relations, from developing others to meeting their own performance expectations. And, human resources executives have to address these and other issues in a state of constant change.

According to our research with Federal human resources executives, however, they face an additional set of challenges due to a type of change that is unique to the government. Unlike the private sector, Federal human resources executives must work effectively under the added stress of addressing unexpected and unplanned-for mandates that shift agency missions—a concept we have dubbed mission flux. A wide variety of situational factors produce flux: legislative or executive directives (the “no child left behind” directives), national or international events (the rise of world terrorism), changes in technology (the ever-increasing effects of the Internet), executive leadership turnover, and many more.

Our interviews revealed several major factors that drive mission flux in government agencies, including

• Externally imposed factors: policy changes, inter- and intra-agency structural or responsibility shifts, and administrative shuffling
• Intrinsic factors: efforts to recast procedures to operate “more like a business,” demographic shifts, changes in demand and provision of services, shifts in the government workforce
• Technology factors: demands for new skills based on new technologies, demand for new training based on new technologies, increased competition with the private sector for employees with the requisite skills sets.

All of our interviewees agreed that they and their agencies are affected by constantly changing missions. Fully 80% of participants noted that they are dealing with constant mission flux, while the remaining 20% see their mission as fundamentally stable. Virtually all identified flux as having a significant impact on the human resources function in the form of personal stress, changes to hiring practices, and increased reliance on outsourcing, among others.

As one executive noted, “flux stresses everything.” It is this unique situation that makes Federal human resources executives’ job more trying than that of their private-sector counterparts. Within that context, and because of it, Federal human resources executives have to lead, train, and manage their organizations in ways that are different from private sector human resources executives.

Through our research, Pivotal Insight has identified several human resources-related “hot topics” among senior leaders. These are the issues deemed most pressing among the senior federal human resources executives and key government influencers that Pivotal interviewed in the spring of 2004. Our upcoming research efforts will focus on developing actionable advice on these issues as well as real how-to guidance for Federal human resources executives who must, in turn, enable their staff and organizations to meet their objectives.

An important note: These topics are not “new;” they’ve been discussed in the literature, at conferences, in hallways for some time. What is lacking in all of the information available about these topics is actionable guidance on how to address them. Pivotal Insight’s research process is designed to address this challenge by probing the issue, setting it in context, collecting disparate information, analyzing that information, and providing immediately actionable advice. Pivotal Insight supplies the information executives need to help implement plans to drive real change.

The topics below reflect some of these “hot topics” and the related issues that Federal executives need to resolve.

Effective performance management programs. Performance management as a topic has a long history in the Federal government under many different names. Regardless of what it’s called, the point is the same: how do managers ensure the best performance among their employees, and how do they reward those employees for that performance? Issues in performance management include:

• How to effectively manage highest performing and underperforming employees, and everyone in between
• How to effectively apply situational leadership so that all levels of employee can perform to their best abilities
• Non-pay options for managing performance
• Best practices from the private sector—adapted for the public sector—for implementing the SES performance-based pay system.

Competitive Sourcing and Contracting Out. Given that work is increasingly contracted out, effective management of processes and staff, both before contracts are awarded and after, is essential. Issues in competitive sourcing include:

• Outsourcing do’s and don’ts: leveraging and adapting best practices from the commercial sector
• How to identify and choose business processes ripe for outsourcing
• How to manage the A-76 process: profile experiences and expose best practices
• Business-benefit based contracting: how to base deals on outputs, not inputs
• Hiring, firing, and management of contractors under A-76
• Managing results
• Managing non-contract employees’ fears for their jobs.

Workforce planning. Mission flux, changing staffing needs, an aging workforce, competition from the private sector, the escalation of contracting out … all of these issues contribute to the difficulties of workforce planning for Federal executives. As a result, issues in workforce planning include:

• Planning far enough—but not too far—ahead to meet the strategic needs of a constantly changing environment
• “Special needs” planning: retirement, end of fiscal year, retention, competencies
• Recruitment and retention best practices
• Senior executive involvement in recruiting
• “Ownership” of target schools and environments
• Espousing the financial benefits of government service
• Connecting with the best and brightest.

Change management. We’ve all accepted the maxim, “the only constant is change,” but have we altered our management structures and processes to operate at maximum effectiveness? Top of mind issues include:

• Ensuring all employees understand the maxim and what it means to them
• Implementing leadership best practices that can drive acceptance of change
• Identifying the right metrics to operate effectively in a changing environment
• Gaining real and meaningful input from employees to help address and manage change.

To learn more about our upcoming research on the hot topics discussed in this article, participate in Pivotal Insight research, or to suggest additional topics to research, please contact us at 703-914-2760.