[House Hearing, 108 Congress] [From the U.S. Government Publishing Office] ACHIEVING DIVERSITY IN THE SENIOR EXECUTIVE SERVICE ======================================================================= HEARING before the SUBCOMMITTEE ON CIVIL SERVICE AND AGENCY ORGANIZATION of the COMMITTEE ON GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED EIGHTH CONGRESS FIRST SESSION __________ OCTOBER 15, 2003 __________ Serial No. 108-130 __________ Printed for the use of the Committee on Government Reform Available via the World Wide Web: http://www.gpo.gov/congress/house http://www.house.gov/reform ______ U.S. GOVERNMENT PRINTING OFFICE 92-901 WASHINGTON : DC ____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512�091800 Fax: (202) 512�092250 Mail: Stop SSOP, Washington, DC 20402�090001 COMMITTEE ON GOVERNMENT REFORM TOM DAVIS, Virginia, Chairman DAN BURTON, Indiana HENRY A. WAXMAN, California CHRISTOPHER SHAYS, Connecticut TOM LANTOS, California ILEANA ROS-LEHTINEN, Florida MAJOR R. OWENS, New York JOHN M. McHUGH, New York EDOLPHUS TOWNS, New York JOHN L. MICA, Florida PAUL E. KANJORSKI, Pennsylvania MARK E. SOUDER, Indiana CAROLYN B. MALONEY, New York STEVEN C. LaTOURETTE, Ohio ELIJAH E. CUMMINGS, Maryland DOUG OSE, California DENNIS J. KUCINICH, Ohio RON LEWIS, Kentucky DANNY K. DAVIS, Illinois JO ANN DAVIS, Virginia JOHN F. TIERNEY, Massachusetts TODD RUSSELL PLATTS, Pennsylvania WM. LACY CLAY, Missouri CHRIS CANNON, Utah DIANE E. WATSON, California ADAM H. PUTNAM, Florida STEPHEN F. LYNCH, Massachusetts EDWARD L. SCHROCK, Virginia CHRIS VAN HOLLEN, Maryland JOHN J. DUNCAN, Jr., Tennessee LINDA T. SANCHEZ, California JOHN SULLIVAN, Oklahoma C.A. ``DUTCH'' RUPPERSBERGER, NATHAN DEAL, Georgia Maryland CANDICE S. MILLER, Michigan ELEANOR HOLMES NORTON, District of TIM MURPHY, Pennsylvania Columbia MICHAEL R. TURNER, Ohio JIM COOPER, Tennessee JOHN R. CARTER, Texas CHRIS BELL, Texas WILLIAM J. JANKLOW, South Dakota ------ MARSHA BLACKBURN, Tennessee BERNARD SANDERS, Vermont (Independent) Peter Sirh, Staff Director Melissa Wojciak, Deputy Staff Director Rob Borden, Parliamentarian Teresa Austin, Chief Clerk Philip M. Schiliro, Minority Staff Director Subcommittee on Civil Service and Agency Organization JO ANN DAVIS, Virginia, Chairwoman TIM MURPHY, Pennsylvania DANNY K. DAVIS, Illinois JOHN L. MICA, Florida MAJOR R. OWENS, New York MARK E. SOUDER, Indiana CHRIS VAN HOLLEN, Maryland ADAH H. PUTNAM, Florida ELEANOR HOLMES NORTON, District of NATHAN DEAL, Georgia Columbia MARSHA BLACKBURN, Tennessee JIM COOPER, Tennessee Ex Officio TOM DAVIS, Virginia HENRY A. WAXMAN, California Ronald Martinson, Staff Director B. Chad Bungard, Deputy Staff Director and Chief Counsel Chris Barkley, Legislative Assistant/Clerk Tania Shand, Minority Professional Staff Member C O N T E N T S ---------- Page Hearing held on October 15, 2003................................. 1 Statement of: Brown, William A., Sr., P.E., HAIA, president, African American Federal Executives Association; Jasemine C. Chambers, Chair, Asian American Government Executives Network; Manuel Oliverez, president and CEO, National Association of Hispanic Federal Executives; Shirley Harrington-Watson, Chair, National Legislative Review Committee, Blacks in Government; Patricia M. Wolfe, president, Federally Employed Women; and Linda E. Brooks Rix, co-chief executive officer, Avue Technologies Corp.... 89 Lovelace, Gail T., Chief Human Capital Officer, General Services Administration; Jo-Anne Barnard, Chief Financial Officer, U.S. Patent and Trademark Office; and Dr. Reginald F. Wells, Deputy Commissioner for Human Resources, Social Security Administration.................................... 62 Stalcup, George H., Director, Strategic Issues, U.S. General Accounting Office, accompanied by Ron Stroman, Managing Director, Office of Opportunity and Inclusiveness, U.S. General Accounting Office; Ronald P. Sanders, Associate Director for Strategic Human Resources Policy, Office of Personnel Management, accompanied by Mark Robbins, General Counsel, Office of Personnel Management; and Carlton M. Hadden, Director, Office of Federal Operations, Equal Employment Opportunity Commission.......................... 10 Letters, statements, etc., submitted for the record by: Barnard, Jo-Anne, Chief Financial Officer, U.S. Patent and Trademark Office, prepared statement of.................... 74 Brown, William A., Sr., P.E., HAIA, president, African American Federal Executives Association, prepared statement of......................................................... 93 Chambers, Jasemine C., Chair, Asian American Government Executives Network, prepared statement of.................. 100 Davis, Hon. Danny K., a Representative in Congress from the State of Illinois, prepared statement of................... 6 Davis, Hon. Jo Ann, a Representative in Congress from the State of Virginia, prepared statement of................... 3 Hadden, Carlton M., Director, Office of Federal Operations, Equal Employment Opportunity Commission, prepared statement of......................................................... 44 Lovelace, Gail T., Chief Human Capital Officer, General Services Administration, prepared statement of............. 65 Rix, Linda E. Brooks, co-chief executive officer, Avue Technologies Corp., prepared statement of.................. 127 Sanders, Ronald P., Associate Director for Strategic Human Resources Policy, Office of Personnel Management, prepared statement of............................................... 30 Stalcup, George H., Director, Strategic Issues, U.S. General Accounting Office, prepared statement of................... 12 Wells, Dr. Reginald F., Deputy Commissioner for Human Resources, Social Security Administration, prepared statement of............................................... 79 Wolfe, Patricia M., president, Federally Employed Women, prepared statement of...................................... 116 ACHIEVING DIVERSITY IN THE SENIOR EXECUTIVE SERVICE ---------- WEDNESDAY, OCTOBER 15, 2003 House of Representatives, Subcommittee on Civil Service and Agency Organization, Committee on Government Reform, Washington, DC. The subcommittee met, pursuant to notice, at 2:06 p.m., in room 2247, Rayburn House Office Building, Hon. Jo Ann Davis (chairman of the subcommittee) presiding. Present: Representatives Davis of Virginia, Davis of Illinois, and Norton. Staff present: Ronald Martinson, staff director; B. Chad Bungard, deputy staff director and chief counsel; Robert White, director of communications; Vaughn Murphy, legislative counsel; Chris Barkley, legislative assistant/clerk; John Landers, detailee; Tania Shand, minority professional staff member; and Teresa Coufal, minority assistant clerk. Mrs. Davis of Virginia. A quorum being present, the Subcommittee on Civil Service and Agency Organization will come the order. I want to start today by thanking all of our witnesses for being here. This hearing is concerned with achieving diversity among the top ranks of the Federal Civil Service, an important topic that will only grow in significance in the coming years, and I do want to mention and to thank our Ranking Member Danny Davis for requesting this hearing and for playing such a big role in planning it. The impetus for this hearing is a General Accounting Office report from earlier this year. The GAO predicted that over the next 5 years about half the members of the Senior Executive Service will leave government. But the GAO analysis suggests that the racial, ethnic and gender makeup of the SES will change very little. A diverse SES corps can be a strength for the Federal Government, and as the GAO report mentions, diversity is considered so important that it is one of the eight critical success factors by which the agencies are judged in the GAO's models of strategic human capital management. Three Federal agencies are represented here today to share with us their experiences in achieving diversity in the workplace. I'm pleased that the Office of Personnel Management will be revealing its Candidate Development Program today, one of their efforts to increase minority representation at the top levels of government. We discussed this program a bit at our succession planning hearing 2 weeks ago, but today I'm interested in hearing the full details. Finally, we're also going to discuss the new No Fear Act which improves agency accountability for anti-discrimination and whistleblower protection laws. This is a very new law, but we would like to hear any initial findings and reactions. Thank you, and I'm looking forward to hearing your comments. I would now like to recognize the ranking minority member of the subcommittee, Mr. Danny Davis, for any opening statement. [The prepared statement of Hon. Jo Ann Davis follows:] [GRAPHIC] [TIFF OMITTED] T2901.001 Mr. Davis of Illinois. Thank you very much, Madam Chairwoman, and let me first of all thank you for your leadership and also for your responsiveness and the relationship that we've had and continue to have as we work on these issues. I want to thank you especially for calling this hearing. As you know, earlier this year I requested that the subcommittee hold a hearing on diversity in the Federal Senior Executive Service. That request was based on the findings of two reports the GAO issued on diversity in the Senior Executive Service [SES], that were requested by myself and other members of the Committee on Government Reform. I thank you for not only holding this hearing this afternoon but also would like to thank you, Chairman Tom Davis, and your respective staffs for your hard work in assuring that the witnesses on panel two appear before us today. Simply stated, the GAO reports found that there is a lack of diversity among the SES and that unless there is some intervention, as predominantly White male SES members retire they will be replaced for the most part by White women. Delegate Norton and others and I requested this hearing to help move us forward on the very important issue of diversifying the highest and most influential ranks of the Federal work force, the Senior Executive Service. The hearing is to focus on the steps the Equal Employment Opportunity Commission and the Office of Personnel Management have taken to address the following issues: How these agencies and others will diversify their respective SES corps, how effectively we are recruiting minorities for Federal service and how agencies are being held accountable for discriminatory practices that hinder diversity and upward mobility in the workplace. The Director of the OPM, Kay Cole James, has met and corresponded with me to discuss the findings in the GAO reports, and to her credit in April she announced the creation of a new SES Candidate Development Program. We call it the CDP. The CDP is the first step in addressing diversity in the SES. The program was created by OPM to help participants develop their leadership skills and prepare them for senior executive positions they will immediately be eligible for upon completion. But this is only a first step. As Director James pointed out when she announced the program in April, out of the 249 graduates from agency-sponsored CDP programs since January 2001, 30 percent were minorities, but only 39 percent of those 249 graduates have been placed in the SES. Agencies and this subcommittee have a lot more work to do to ensure that we're not talking about the same problem 10 years from now. This is not a new problem or one that is confined to Federal service. The Federal Government, however, should be leading the way in addressing it. As GAO stated in its most recent report, diversity can bring a wide variety of perspectives and approaches to policy development and implementation, strategic planning, problem solving and decisionmaking, and can be an organizational strength that contributes to the achievement of results. The Federal Government is at risk of failing to realize these benefits because its work force does not appropriately reflect the diversity of the people it serves. In last Sunday's issue the Washington Post Magazine contained an article entitled, ``Profiles in Courage: Washingtonians Tell the Truth about Diversity in the Workplace.'' The article profiles 10 people who told their stories about how race, size, gender or ethnicity impacted their treatment in the workplace. In one such profile Stacey Davis Stewart tells of working in the housing and community development business where there are few Blacks and even fewer women. Stacey Davis Stewart is the president of the Fannie Mae Foundation. Her profile is one we can learn from. Ms. Stewart said she was so tired of being confronted and challenged in the workplace that her boss had to tell her to speak up in meetings because she really had good ideas. She was quoted as saying, ``It was like he had let me out of a cage. When you have a work environment that values people, look at the talent that unfolds.'' Later in the article she says, ``The perspective I bring as an African-American female should be something that is highly valued, but in some cases it is not completely heard or respected because of the lack of diversity in that group. They haven't established some way of accepting difference.'' The Federal Government has to do a better job of accepting difference, whether it is race, ethnicity or gender based, and create an environment where difference is accepted and appreciated. As I mentioned, agencies in this subcommittee have a role to play in assuring that progress is made with regard to this issue. I would like this subcommittee to hold quarterly hearings where agencies would be randomly selected to testify about the steps they are taking to diversify. By holding quarterly hearings, this subcommittee can hold agencies accountable for results. Oversight and accountability are integral to achieving results, particularly when agencies appear reluctant to testify on this issue. Again, I thank you, Chairwoman Davis, for holding this hearing and welcome the testimony of today's witnesses and look forward to listening to them. [The prepared statement of Hon. Danny K. Davis follows:] [GRAPHIC] [TIFF OMITTED] T2901.002 [GRAPHIC] [TIFF OMITTED] T2901.003 Mrs. Davis of Virginia. Thank you, Mr. Davis, and I certainly appreciate you asking for this hearing today. I think it is a very important subject and I look forward to hearing from the witnesses. But I'd like to now yield to Ms. Holmes Norton to see if you have an opening statement. Ms. Norton. Yes, I do, Madam Chairwoman, and I want to begin by thanking you for leading this hearing today and affording the witnesses the opportunity to come forward and testify on what has been an important subject in the Federal service now for years, if I may say so, decades. I want to especially thank Mr. Davis for his consistency on this issue and his unfailing leadership on what is really a difficult issue. The Federal Government initially employed African Americans when private industry would not, so the African Americans could get jobs in the lower reaches of government certainly and in places like the Postal Service when they really would not be hired in other places, and for that the Federal Government deserves some considerable credit and has gotten that credit in the past. The problem is that is where African Americans stayed and that the middle and upper reaches of the Federal Government were simply off limits to African Americans for years, and if the truth be told, the situation for African Americans did not begin to improve until the passage of the 1964 Civil Rights Act. At the same time that it began to improve those in the private sector, and, yes, it began to improve and again the Federal Government--which began to use affirmative action-- indeed did better than it had done in prior decades. As a former chair of the Equal Employment Opportunity Commission, I can say to you, though, without fear of being contradicted that as hard as at least some in the government have worked, there has never been a point when the Federal Government could take pride in what it has done in the middle and upper reaches of the Federal services, never a point, and that point has not been reached today. The fact is that civil servants do not have the same rights to vindicate employment discrimination as they would have if they worked for any private company because we have not given them equality of rights to vindicate discrimination in the Federal service because they have to go through their own agencies. All of us would consider it absurd to ask people to apply to AT&T first in order to vindicate a discrimination complaint against AT&T, but that is exactly what we still require in the Federal service, and one begins to wonder if that hasn't had some impact on the ability of African Americans and others to reach their more natural places in the Federal service. I thank the Chair in holding this hearing and the GAO for their report. The continuing oversight of this committee on this issue says loudly and clearly the presence in the Civil Service is not enough, particularly when African Americans have been in the Civil Service as long as they have over time in the natural order of things, that they should be more evenly spread among the various categories of employment. This is a particularly important time to address this issue. We face a personnel crisis in the Federal Government because of the huge number of retirements that face us. Would it not be a tragedy not to seize this opportunity when we must replenish the Federal service anyway because so many are retiring, not to seize this opportunity to make sure we do it right this time by assuring African Americans, Hispanics and others a fair opportunity to be represented in the Federal service. I can say this. We're not going to get this opportunity again. Those folks are going to retire almost all at one time, and we're going to have to hire very quickly, especially in many of those agencies. If we do not seize this moment now, it will not pass our way again probably for decades. So the moment is now. Thank you very much, Madam Chairwoman. Mrs. Davis of Virginia. Thank you, Ms. Holmes Norton. And Mr. Davis, I want to say thank you for your suggestion about the quarterly meetings. We'll certainly take a look at that, and if it's not possible to do the meetings maybe we can certainly do something like ask for a quarterly report from the agencies. But we will take a look and see what we can do to accommodate you. I ask unanimous consent that all Members have 5 legislative days to submit written statements and questions for the hearing record and that any answers to written questions provided by the witnesses also be included in the record. Without objection, it is so ordered. I ask unanimous consent that all exhibits, documents and other materials referred to by Members and the witnesses may be included in the hearing record and that all Members be permitted to revise and extend their remarks. Without objection, it is so ordered. On this first program, we're going to hear from a number of agencies that have an oversight role in diversity issues. Our first witness today is George Stalcup, Director of Strategic Issues at the General Accounting Office. After him will be Ron Sanders, Associate Director for Strategic Human Resources Policy at the Office of Personnel Management. Joining him behind the table will be Mark Robbins, General Counsel at OPM. Last on this panel will be Mr. Carlton Hadden, Director of the Office of Federal Operations at the Equal Employment Opportunity Commission. We're all very glad to have this group here today, and it is the practice of this committee to administer the oath to all witnesses, so if you could please stand I'll administer the oath. If I could just have the second panel and the third panel stand at the same time, we can go ahead and administer the oath. If you will remember when you get up to testify you are under oath. If you'll raise your right hands, please. [Witnesses sworn.] Mrs. Davis of Virginia. Let the record reflect that the witnesses have answered in the affirmative, and you may be seated. And I would just remind all the witnesses that we do have your prepared statements on the record. So if you would like to summarize, you're more than welcome to do that. Mr. Stalcup, you're recognized first for 5 minutes. STATEMENTS OF GEORGE H. STALCUP, DIRECTOR, STRATEGIC ISSUES, U.S. GENERAL ACCOUNTING OFFICE, ACCOMPANIED BY RON STROMAN, MANAGING DIRECTOR, OFFICE OF OPPORTUNITY AND INCLUSIVENESS, U.S. GENERAL ACCOUNTING OFFICE; RONALD P. SANDERS, ASSOCIATE DIRECTOR FOR STRATEGIC HUMAN RESOURCES POLICY, OFFICE OF PERSONNEL MANAGEMENT, ACCOMPANIED BY MARK ROBBINS, GENERAL COUNSEL, OFFICE OF PERSONNEL MANAGEMENT; AND CARLTON M. HADDEN, DIRECTOR, OFFICE OF FEDERAL OPERATIONS, EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Mr. Stalcup. Thank you very much, Madam Chairwoman, Congressman Davis, Congresswoman Norton. I'm pleased to have this opportunity to discuss attrition within the Senior Executive Service and the challenge this poses as well as the opportunity it presents for helping to ensure the gender, racial and ethnic diversity of the Federal Senior Executive Corps. Two weeks ago this subcommittee held a hearing on succession planning at the Federal level. Our testimony stressed the importance of succession planning in building a diverse leadership corps and pointed out some things other countries have done in this regard. My testimony today underscores the importance of succession planning and other practices in ensuring diversity in the Federal Senior Corps and is based on our January 2003 report on the SES. The SES generally represents the most senior and experienced segment of the Federal work force. The potential loss of more than half of SES members between the years 2000 and 2007 coupled with attrition in the GS-15 and 14 ranks has important implications for Federal agencies and underscores the need to focus not only on the present but also future trends and challenges. Demographics and the public served by the Federal Government are changing. Representation by women and minorities in both the government's executive corps and the succession pool is crucial if we expect to bring a wider variety of perspectives and approaches to bear on policy development and implementation, strategic planning, problem solving and decisionmaking and to provide the organizational strength that contributes to achieving results. A number of organizations have oversight responsibility for ensuring diversity in the Federal workplace. Key among these are the other two organizations on today's panel, the Office of Personnel Management and the Equal Employment Opportunity Commission, which through policy, law and regulations are to, No. 1, protect Federal workers from unlawful discrimination and other unlawful work practices and, No. 2, promote equal opportunity, fairness and inclusiveness. With these thoughts in mind, I would like to make three points today. First, in our January 2003 report, we estimated that 55 percent of the career SES employed by the Federal Government on October 1, 2000 will have left by October 1, 2007. We also estimated that attrition among the GS-15 and GS- 14 ranks, the key source for executive replacements, while lower, would still be significant--47 percent at GS-15 level, 34 percent at the GS-14 level. Second, while the past is not necessarily prolog, if appointment trends from 1995 to 2000 were to continue, the only significant change in SES diversity across government by 2007 would be an increase in the number of White women from 19 to 23 percent and an essentially equal decrease in the number of White men from 67 to 62 percent. Now as shown on my chart on my right and your left, the proportion of racial, ethnic and minorities in the SES would change very little over that time span, from 13.8 to 14.6 percent. The chart on my left and your right on the top provides more detail on our projection, with governmentwide SES numbers by gender, racial and ethnic category. The first set of figures on that chart represent the number of SES in place on October 1, 2000. The middle set of figures show the number of those that would still be in place as of October 1, 2007. And the figures on the right show what the profile that would result if they were replaced at the same appointment trends that were used from 1995 to the year 2000. Now, those numbers represent a governmentwide picture. The third chart below shows that our projections vary by agency. For 10 of the 24 large agencies, projections show less minority representation in 2007 than in the year 2000. For 12 agencies they showed increases. My final point is that upcoming retirements and other attrition will provide the Federal Government with both a challenge and an opportunity. The challenge will be to develop succession plans based on inclusive strategies for having sufficient numbers of senior executives in place to develop and implement policies and programs of the Federal Government. The opportunity will be to help ensure diversity in the SES corps through new appointments. Based in part on our work on the SES corps and in other human capital areas, we have seen positive responses on the part of EEOC, OPM and other agencies in this regard, and commenting on our report last January, agencies agreed that more needed to be done and pointed to a number of ongoing and planned efforts aimed at increasing diversity within the executive branches. I anticipate we will hear more about those efforts this afternoon. Continued leadership from OPM and EEOC coupled with a strong commitment on the part of agency managers through such actions as succession planning and holding executives accountable for the diversity in the work forces they manage would help ensure the diversity of future Federal senior executive leadership. Madam Chairwoman and members of this subcommittee, this concludes my prepared statement and I will be pleased to answer any questions you may have. [The prepared statement of Mr. Stalcup follows:] [GRAPHIC] [TIFF OMITTED] T2901.004 [GRAPHIC] [TIFF OMITTED] T2901.005 [GRAPHIC] [TIFF OMITTED] T2901.006 [GRAPHIC] [TIFF OMITTED] T2901.007 [GRAPHIC] [TIFF OMITTED] T2901.008 [GRAPHIC] [TIFF OMITTED] T2901.009 [GRAPHIC] [TIFF OMITTED] T2901.010 [GRAPHIC] [TIFF OMITTED] T2901.011 [GRAPHIC] [TIFF OMITTED] T2901.012 [GRAPHIC] [TIFF OMITTED] T2901.013 [GRAPHIC] [TIFF OMITTED] T2901.014 [GRAPHIC] [TIFF OMITTED] T2901.015 [GRAPHIC] [TIFF OMITTED] T2901.016 [GRAPHIC] [TIFF OMITTED] T2901.017 [GRAPHIC] [TIFF OMITTED] T2901.018 Mrs. Davis of Virginia. Thank you, Mr. Stalcup. Mr. Sanders, you're recognized for 5 minutes. Mr. Sanders. Thank you, Madam Chairwoman, members of the subcommittee. I appreciate the opportunity to appear before you today on behalf of Director Kay Cole James to testify on OPM's efforts to address underrepresentation in the Federal Government's Senior Executive Service. Mr. Mark Robbins, OPM's general counsel, is also with me today to address any questions you may have on the No Fear Act. Madam Chairwoman, I believe that we all share a goal that is simply stated, an SES corps that reflects the diversity of America's citizenry. You can rest assured that the President and Director James are unequivocally committed to achieving that goal. It represents a mission imperative. We believe that a more diverse SES will result in a Federal Government that better serves our citizens, the ultimate objective of the President's management agenda, and they appreciate the leadership you and your subcommittee have provided in this area. Madam Chairwoman, the fact is that the SES today is not as diverse as it should be, and although we've seen some gradual improvement in this regard, progress remains slow. So the challenge remains, and it's one that is not amenable to quick fixes. Rather, as you know only too well, it's all about succession planning, managing the Federal Government's leadership development pipeline over a multiyear timeframe and paying attention to its diversity as we do so. As your hearing 2 weeks ago underscored, a diverse SES depends in large part on a diverse candidate pool. That is where OPM's new Federal SES candidate development program comes in. Designed to complement the executive development strategies of individual agencies, including those that already have their own CDPs, it incorporates the very best practices in leadership development, lessons drawn from organizations, both public and private, that have set the standard for connective excellence and diversity. In developing our program, we took into account the Constitutional limits upon efforts of affirmative outreach toward traditionally underrepresented groups. OPM CDP is designed to operate within those limits. It is a racially neutral program. Race plays no part in the candidate selection process. OPM's challenge is to create a diverse pool of applicants by ensuring that those qualified members of traditionally underrepresented groups know about the program and are encouraged to apply. We can do this through Constitutionally accepted standards for outreach. Thus, while a program is not and cannot be reserved for the exclusive development of leaders from underrepresented groups, we believe that includes a number of innovative features that will help us accelerate the accomplishment of that goal. First and foremost, our program enjoys the strong commitment of this administration's most senior leaders, including the members of the new Chief Human Capital Officers Council. All of its members are keenly aware of the executive succession challenge that we all face; and as our program's ultimate board of directors, they are sensitive to diversity issues, as they work to ensure continuity of leadership excellence in their agencies. Second, our program is uniquely demand driven, designed to find and develop high caliber successors to replace an agency's specific projected SES losses. This is in contrast to many agencies' CDPs, which attract, develop and graduate many talented candidates who never reach the SES, largely because they are not part of an effective succession strategy. Third, while we obviously cannot guarantee the diversity of our program's candidates, or for that matter the SES itself, we can increase the odds of both by actively and aggressively reaching out to all sources for the most diverse pool of potential executive talent that we can. We've already actively engaged in the various organizations that represent the interest of female and minority Federal employees, many of whom are here today to help us in this regard. In addition, unlike most agency CDPs, we intend to open our program to all U.S. citizens, not just current and former Federal employees, a reservoir of potential talent that is substantially broader and substantially more diverse than the typical agency CDP applicant pool. We also intend to conduct targeted print, electronic and direct marketing to and through minority, disabled employees and female professional associations that are potential conduits to that talent pool. Fourth, our applicant screening and assessment process will be based on merit and merit alone. Conducted jointly with participating agencies, OPM will identify the most outstanding applicants, and participating agencies will then have the opportunity to select one or more candidates from this finalist cadre, appointing them to a full-time developmental position at the GS-14 or 15 level. Fifth, participants in our program will benefit from a series of intensive leadership development activity specifically designed to prepare them for the SES. The program will be hands-on and experiential, with each individual having the opportunity to actually practice and demonstrate leadership in one or more executive level assignments. To support these assignments, OPM will provide each participating agency with a temporary SES allocation. Those that graduate will be certified by an OPM SES qualification review board and be eligible for noncompetitive promotion to the SES. Finally, no effort as important as this would be complete without some means of assuring accountability. We now have such a mechanism. As part of the President's management agenda, OPM has established a human capital assessment and accountability framework as a means of evaluating how well agencies are managing their people. It includes standards for dealing with work force diversity and leadership succession. Agencies that do not meet these standards do not receive high marks; and those marks are accorded to the President, I can assure you that they matter. Can we absolutely guarantee that our program will improve diversity in the SES? No, we cannot. However, we can and will do everything we possibly can to ensure that its applicant pool truly reflects America's diversity, that its candidate assessment process is absolutely free from any improper bias, that final selections involve senior agency leaders who understand the importance of and are committed to leadership excellence, continuity and diversity, and that agencies are held accountable for their efforts. Before I conclude, let me turn briefly to the No Fear Act. This summer the President delegated to OPM the responsibility to promulgate regulations implementing the act. Toward that end we've been working with the Justice Department, the Treasury Department, Office of Special Counsel and the EEOC. We've also had discussions with external stakeholders, including the No Fear Coalition. Regulations implementing the judgment fund reimbursement provisions of the act have been drafted and are currently being reviewed by OMB. Further, we're drafting regulations that will implement the additional sections of the act. Madam Chairwoman, in his landmark management agenda the President has recognized the Federal Government's work force as one of its most valuable assets, that our employees are a national resource and that the American people expect them to be managed efficiently and effectively. They also expect them to reflect their own diversity, from the front line to the executive suite. The President and Director James are unequivocally committed to that goal. Our new CDP represents part of that commitment, and we believe that it will ensure a ready reservoir of exceptional SES candidates and eventually an SES corps that reflects the diversity of America. I'll be pleased to answer any questions. Thank you. [The prepared statement of Mr. Sanders follows:] [GRAPHIC] [TIFF OMITTED] T2901.069 [GRAPHIC] [TIFF OMITTED] T2901.070 [GRAPHIC] [TIFF OMITTED] T2901.071 [GRAPHIC] [TIFF OMITTED] T2901.072 [GRAPHIC] [TIFF OMITTED] T2901.073 [GRAPHIC] [TIFF OMITTED] T2901.074 [GRAPHIC] [TIFF OMITTED] T2901.075 [GRAPHIC] [TIFF OMITTED] T2901.076 [GRAPHIC] [TIFF OMITTED] T2901.077 [GRAPHIC] [TIFF OMITTED] T2901.078 [GRAPHIC] [TIFF OMITTED] T2901.079 [GRAPHIC] [TIFF OMITTED] T2901.080 Mrs. Davis of Virginia. Thank you, Mr. Sanders. Mr. Hadden, thank you for coming, and now you're recognized for 5 minutes. Mr. Hadden. Good afternoon, Madam Chairwoman and members of the subcommittee. I appreciate opportunity to appear before you today on behalf of Cari M. Dominguez, Chair of the U.S. Equal Employment Commission. EEOC agrees with GAO that the projected large losses in the SES ranks over the next few years present the Federal Government with both a unique challenge and an opportunity. As a critical step toward leading the government toward a more inclusive workplace, the Commission unanimously voted to approve new guidance effective October 1st of this year to Federal agencies on how to meet their responsibilities and structure their EEO programs required by Title VII of the Civil Rights Act and Section 501 of the Rehab Act of 1973. It should be noted that prior to the final approval of the directive, the Commission distributed an earlier draft to Federal agencies for review and comment pursuant to the requirements of Executive Order 12067, and much of the input received from agencies was in fact incorporated into the draft. The Commission plans to develop operational instructions for the agencies and anticipates issuing those instructions before the end of the calendar year to agencies. The new directive requires agencies to take appropriate steps to ensure that all employment decisions are free from discrimination and is designed to reemphasize that the quality of opportunity for all in the Federal workplace is key to attracting, developing and retaining top quality employees who can deliver results, ensure our Nation's continued security, growth and prosperity. The directive requires agencies to systematically and regularly examine their employment policies and practices to identify and remove barriers to free and open workplace competition. Plans for addressing barriers will be developed by the agencies and progress toward removing those barriers will be monitored by the Commission. The Commission believes it is critical for agencies to pay special attention to potential barriers to entry and to those successor pools of GS-15s and 14s with a focus on those positions which would typically lead to senior level management. In addition, potential barriers should be examined not only in selection to GS-14 and 15 feeder pools but also the early development of high potential employees at lower grades and to other training and developmental opportunities which increase qualifications for future SES positions. An important component of the MD-715 is defining of the following essential elements for structuring model EEO programs at Federal agencies. It is the Commission's belief that attainment of a model EEO program at an agency will provide the infrastructure necessary for the agency to achieve the ultimate goal of a discrimination-free work environment characterized by an atmosphere of inclusion and free and open competition for employment opportunities. The six elements are as follows: First, demonstrated commitment from agency leadership; second, integration of EEO into the agency's strategic mission; third, management and program accountability; fourth, proactive prevention of unlawful discrimination; fifth, efficiency; and, sixth, responsiveness and legal compliance. We also should know that MD-715 addresses the unique challenges which face employees with disabilities. Although not addressed by the GAO report, this is an area of particular concern to the Commission. In fiscal year 2002 the percentage of employees with targeted disabilities in the Federal work force decreased for the 5th consecutive year, stretching this decline to 20 percent over the last decade. Agencies must make immediate and significant improvements in the ability to provide opportunities to qualified individuals with disabilities to work and compete equally for all levels of positions within the Federal Government. Complementing the Commission's efforts with MD-715 is the recent passage of the No Fear Act. EEOC has responsibility for issuing governmentwide regulations under Title III of that act, and that requires agencies post on their public Web sites on a quarterly basis information pertaining specifically to the processing of administrative complaints of employment discrimination filed under 29 CFR, Part 1614. This summer the Commission voted on proposed interim regulation under Title III of the No Fear Act. Following the Commission's vote, the regulation was circulated for agencies for review, comments were received from 23 agencies. Revisions were made based on the revised comments, and the Commission voted to approve the proposed interim regulation late last week, and that has now been submitted to the Office of Management and Budget for approval. The No Fear Act should provide the Federal Government one more tool to assist in efforts to identify and eliminate barriers to equal opportunity for all to compete for positions at senior levels. As the act states, agencies cannot run effectively if they practice or tolerate unlawful discrimination. The No Fear Act is designed to hold agencies to greater accountability in compliance with the nondiscrimination laws. Through the various mechanisms available under the act, agencies should be more aware of and responsive to issues of discrimination and retaliation in their agencies. We anticipate that this heightened awareness will be positively reflected in agency management of personnel practices and, to the extent that discriminatory practices are placing barriers to equal employment opportunity in the SES work force, lead toward the elimination of practices and create a level playing field. Thank you. I'll be glad to answer any questions that you may have. [The prepared statement of Mr. Hadden follows:] [GRAPHIC] [TIFF OMITTED] T2901.019 [GRAPHIC] [TIFF OMITTED] T2901.020 [GRAPHIC] [TIFF OMITTED] T2901.021 [GRAPHIC] [TIFF OMITTED] T2901.022 [GRAPHIC] [TIFF OMITTED] T2901.023 [GRAPHIC] [TIFF OMITTED] T2901.024 [GRAPHIC] [TIFF OMITTED] T2901.025 [GRAPHIC] [TIFF OMITTED] T2901.026 Mrs. Davis of Virginia. Thank you, Mr. Hadden, and as I generally do in this subcommittee, I'm going to begin the questioning by yielding to my ranking minority member, Mr. Davis. Mr. Davis of Illinois. Thank you very much, Madam Chairwoman, and I certainly want to thank all of the witnesses for their testimony. You know I was smiling to myself, because it seems as though I can't get away from my mother in terms of always remembering something that she said to us. She used to tell us that charity begins at home and spreads abroad. And I was thinking that the first question I might want to ask is would each one of you discuss the number of SES openings in your agency and how you go about filling them. Mr. Stalcup. If I could start out, I could ask Ron Stroman, who is the Managing Director of our Office of Opportunity and Inclusiveness, to come to the table--he was sworn in--and respond to that question. Mr. Stroman. Thank you, Mr. Davis. Let me begin by talking about the manner in which we fill the SES positions. Essentially we have a feeder group that comes from our Band III employees, our analysts at the Band III level. Essentially what we do is we have a Candidate Development Program in which staff is pooled from the Band IIIs, and we have developmental staff who go through a fairly rigorous SES process. After completion of that process, they then emerge into the SES. Diversity principles are essentially one of the cornerstones in selection of people into the SES. So, for example, in our most recent SES candidate pool of the nine SES candidates, we have two of those nine are African American women, and we wanted clearly to make sure that they were clearly represented. In terms of the actual numbers in the SES, let me give those to you, Mr. Davis. In our career SES pool right now, there are approximately 9.1 percent of the SES is African American, 3.3 percent of that SES pool is Hispanic, and 4.1 percent is Asian. Mr. Davis of Illinois. Thank you. Mr. Sanders. Mr. Sanders. Thank you, Mr. Davis. As you know, Director James practices what she preaches. OPM has just gone through a major restructuring, perhaps the most dramatic in its relatively short history, and we've just finished filling almost 20 new SES positions. We now total about 60 or so SES positions in the agency, and we're far above the average in the Federal Government. First, let me point out when we filled those jobs, we went to all-source recruiting. We opened it up for everybody. We had almost 1,000 applicants with about half from outside the Federal Government, half from within. And we ended up of the 20 positions we selected, one-third of those were non--former non-Federal employees that came from the private sector or the military services. The net result, an SES corps that we believe is a model; 10 percent of OPM's corps is African American, 10 percent Hispanic, 2 percent Asian Pacific islander. Women constitute 37 percent. We've got two people who are going to enter our own candidate development program, and we've also brought in for the first time in several years a class of 20 new Presidential management interns, and, again, they are just as diverse. Of those 20, 6 are African American, 12 are women and 4 Hispanic. Thank you. Mr. Davis of Illinois. Thank you very much. Mr. Hadden. The Commission is in a unique position. We are in a hiring freeze and we don't have SES openings, but the Commission has in fact planned; and what we have done is established a candidate development program in fiscal year 2001, and of the candidates in that program, they reflect a diversity of the Commission. There are 6 candidates and 83 percent are women and 33 percent are Hispanic and 33 percent are African American. In regard to the Commission's current profile, the way we look today, I think we're probably--I don't want to say the most diverse Federal agency, but I think we're amongst the top. In fiscal year 2003, minorities constitute 56 percent of the SESers at the Commission. Women constitute 46 percent of the SESers at EEOC. Mr. Davis of Illinois. Thank you very much. Madam Chairwoman, I know that my time is about to expire. So I'm going to ask could we have a second round with this group? I know we've got three panels, but---- Mrs. Davis of Virginia. I think we can allow for a second round. Mr. Davis of Illinois. Thank you. Mrs. Davis of Virginia. Ms. Holmes Norton. Ms. Norton. From OPM is it Mr.---- Mr. Sanders. Sanders, yes, ma'am. Ms. Norton. I'm looking at the GAO report, and I'm looking at page 6, number of SES percentages of women and minorities on October 1st. And this is where he does projections. With minorities there are 12 agencies that probability increases. Eight agencies--I'm just looking at this for the first time, so you just correct me if I'm wrong--that probability decreases. And one of them is OPM, in minorities, minus 2.3. Percentage-- and yet the figures you have just given of fairly large numbers of people in your pool now--and I'm looking at percentage on October 1, 2007 using current appointment trends and percentage change from October 1, 2000. And I'm looking at OPM, and I'm wondering why of all places OPM would be projecting minus 2.3 change in minorities. Mr. Sanders. Ms. Norton, those are GAO's projections, and that I think underscores a flaw in their report. It's a flaw that they recognize. It's grounded on the assumption that what was will be. Ms. Norton. Well, that's the only thing they have to go by, sir. Mr. Sanders. It is and I'm not faulting their methodology. Their projections are based on an October 2000 base. It projects forward to October 2007, and it simply assumes that the way OPM filled its SES jobs in the past will be the way OPM fills its SES jobs through 2007. Director James has taken advantage of the restructuring of the agency to fundamentally change that assumption. So those projections are wrong, and we hope that frankly all of them are wrong. I think GAO would support that. It's simply an extrapolation of history, and we all know we can change history. Ms. Norton. What do you have to say, Mr. Stalcup? Mr. Stalcup. Well, we did make projections. Our point was to raise the red flag that large numbers would be leaving, and if the hiring and appointment trends from the late 1990's persisted through 2007 this is where we would end up. Again, this was a projection. It was a warning flag. It was in no way a prediction. In fact, it was just the opposite, of trying to raise the issue so that in fact change did happen. Ms. Norton. Could I ask you further, Mr. Stalcup, you're looking at, I presume, the Federal work force as if in fact jobs are going to be filled in the normal way in which they were filled, and yet we are seeing the administration come here with bills for contracting out huge numbers of jobs, often in the largest agency. I wonder if we're talking about the same kind of work force that would be in fact depending on the Civil Service to do its work. I recently saw a chart on the growth in Federal employees, and if you include people who were contracted out, it was a million employees contracting out over which we have nothing to say about the gender or virtually nothing to say except through the normal process that we use on of course private sector employees and keeping their records; but we have--what you see are a huge block of jobs that are going outside of the work force, and I wonder if you've taken that into account in projecting how many SES positions are going to be available or might in fact disappear because the Federal work force is disappearing as we speak. Mr. Stalcup. Well, again, our projections were based on what in fact happens from the years 1995 to 2000. During that course in time undoubtedly there was some contracting out. So to the extent that dynamic of contracting out goes up after that period of time, our projection would not have covered that. Ms. Norton. That could mean fewer SESs altogether, just like---- Mr. Stalcup. Again, our study did not cover that. I understand your question. It is a good question, but it was not covered in this study. Ms. Norton. Thank you very much. Mrs. Davis of Virginia. Thank you, Ms. Holmes Norton. So let me, Mr. Stalcup, Mr. Sanders, make sure I understand it. The projections were based on if we did the same thing yesterday--if we did what we did yesterday, if we're doing it today, then we'd be in the same place tomorrow. And in fact that is not true, at least for OPM, because you changed the way you were doing things. Is that correct? Mr. Stalcup. Yes, ma'am. Mrs. Davis of Virginia. When we talk about improving diversity, there's been a suggestion about one of the ways to bring more members of the minority groups into the Federal Government is through the hiring process, but all of that is based on the fact that--or the assumption that we're going to have all these retirements or loss of jobs through attrition. Does that still hold true? I guess this would be to OPM. Do you all have any projections as to how many vacancies there's going to be? I mean---- Mr. Sanders. Yes, ma'am. Those retirements will occur. They've been deferred for various reasons. You know, anecdotally people say the economy, they're waiting for it to pick up before they look at a post Federal career, etc. All we know is that the number of folks who were eligible to retire in the Senior Executive Service continues to grow. In effect, we've created a bow wave. If anything, we may see a greater rate of retirements. Even though the eligibility is creeping up, the fact is that they may all go over a shorter period of time once they decide to. So the opportunities are going to be there. They've just been deferred slightly, and frankly, that gives us an opportunity to prepare the successor pool for them. Mrs. Davis of Virginia. So we're still looking 2004, 2005 where we can make the greatest change in the percentage of diversity? Mr. Sanders. Yes, ma'am. Mrs. Davis of Virginia. Mr. Stalcup, I know that recruiting takes a lot of effort, and if human resources offices and agencies are understaffed, which I think some probably are, maybe they need to get outside help for at least a short term. Do you know, do any of the Federal agencies use what we call executive head hunters to fill any of their positions and to bring in greater diversity? Do you know if any of the agencies are doing that? Mr. Stroman. Mrs. Davis, no, we're not aware of the use of executive head hunters in any particular agency, although as Mr. Stalcup indicated, we did not look at that issue to determine that. So there is perhaps an outside possibility, but it's nothing that we examined. Mrs. Davis of Virginia. So if they were using outside agencies, outside head hunters, how would we control that? I mean, how would we make the changes for greater diversity if that were happening, because we don't--I think what you're saying is you don't know for sure. Right? Mr. Stroman. Right. Mr. Stalcup. We don't. But I believe it's factors like that need to be considered, and what we talked about. The bottom line message of our report is the need for the long-term succession planning to be able to know with some certainty where you're going to be and what your needs are going to be as the years unfold, so that you can plan ahead and, in fact, have not only the people immediately available but the pipeline backing that up that will feed into what you need over time. Mr. Stroman. The other issue, Mrs. Davis, is that what you would have to do is if you were contracting with an outside agency is what you would do with any contractor. That is, if you wanted diversity to be part and parcel of the pool, the people that you are recruiting, I think you would have to make it abundantly clear to the contractor that this was an important part of what they were expected to do and then hold them accountable for the results as you would hold your own employees accountable for those results. Mrs. Davis of Virginia. So it ultimately falls back on the different agencies and the agency heads? Mr. Stroman. That's correct. Mrs. Davis of Virginia. Which brings me to the question I personally have is how do we make sure that our agencies and those who are responsible within the agencies know what they're supposed to be doing, and how do we get the message out to them? Mr. Sanders. I think hearings like this do. I think the fact that it is now part of the human capital assessment and accountability framework. It's part of GAO's models. So as we evaluate agencies, we look at those things. As they evaluate agencies, they look at them. And hearings like this highlight them on a periodic basis. The Chief Human Capital Officers Council has addressed this on a number of occasions. So, too, has the Interagency Task Force on Hispanic Employment that Director James chairs. So I can tell you that the awareness has certainly been elevated, and I think hopefully action will follow. Mrs. Davis of Virginia. What happens if action doesn't follow? Mr. Sanders. I think as I said in my statement, the best we can do is focus on creating as diverse an applicant pool as we possibly can at all levels of the Federal Government, including for SES vacancies, and then we have to trust the merit process to achieve the right result, the best person for the job. Mrs. Davis of Virginia. Those questions were just for my own personal use, by the way, because I just wanted to make sure how we're doing it and who is doing it and are we going to have to hold this hearing every year infinitum until we find out what we're supposed to be doing. I'm going to go ahead and stop and let Mr. Davis have a second round. Mr. Davis of Illinois. Well, thank you very much, Madam Chairwoman. Mr. Stalcup, in your testimony as you were giving it, you indicated that as you spoke with executives in different agencies, that they all pretty much agreed that something more needed to be done, that obviously we were not doing enough. Did any of them indicate that they were going to do anything? I'm saying they agreed that something needed to be done, but did they also indicate that they were in the process of doing something? Mr. Stalcup. Absolutely. Again, we have a formal comment process whenever we do any report. So we had written comments from all the agencies involved, OPM, EEOC and then several of the line agencies also. And across the board, as you say, all agreed with the need that more needed to be done. All were able to cite specific actions that they had under way or on the drawing board, so to speak, to get that done. The candidate program that Mr. Sanders referred to is one of those at OPM. EEOC, during the course of the past year, has issued a new strategic plan. The witness talked about Management Directive 715, which provides many of the needed actions on the part--I think now the key is the roadmap is kind of laid out there. It's going to require follow-through on the part of OPM, EEOC as well as the agency managers themselves. Mr. Davis of Illinois. Mr. Sanders, you indicated that progress obviously is slow, that change oftentimes is indeed-- much of the time it's much more covert than overt. But you also indicated that the new candidate development program was race neutral, and if it's to be race neutral, how is there assurance that race will be impacted in terms of changing the composition of the work force? Mr. Sanders. Mr. Davis, we can't make that assurance. What we can assure you of is that we're going to do everything we possibly can to reach out to ensure that we have an applicant pool that is as diverse as we possibly can make it. I've outlined some actions that I think we can take that will improve the diversity of that applicant pool over agency experience to date. But once we've done that we have to trust the merit process to run its course. We can't provide preference or anything like that. There are Constitutional limits by which we are bound. Mr. Davis of Illinois. So we are operating on the theory that much of the problem had to do with the applicant pool and that there weren't enough people in the pool that through the normal process of extracting out the best, that we would also have the kind of diversity that is desired? Mr. Sanders. I think all you have to do is look at the feeder pool of GS-14s and 15s, primarily GS-15s. That's typically where agencies draw from for candidate development programs and SES positions. It's not much more diverse than the SES corps. And that is in gross numbers. It's not talking about locations and occupations and specific demand and requirements. So it is kind of a roll of the dice if all you're doing is looking at GS-15s as your source for executive candidates. One of the things we know we can do is go beyond that candidate pool, look outside the confines of the Federal Government. There's lots of talent out there and, again, increase the diversity of the people we're considering and trust the merit process to do its thing. Mr. Davis of Illinois. Let me ask you this. I recently heard of a situation in an agency where essentially one person for the last 20 years has pretty much determined who the individuals were who got promoted or who moved up into the SES ranks. Could that happen under any scenario that you could think of in terms of policies and practices? Mr. Sanders. I suppose it could, but, again, looking forward I do think one of the subtle but important changes that has occurred, in part thanks to the actions of the Congress, is the creation of these new chief human capital officers in the major departments and agencies. Those are the individuals who will be held accountable. They have stewardship responsibility for the way the agency manages its people, and if you looked at the folks who have been named as CHCOs, as chief human capital officers, they are far more senior than, for example, agency HR directors in the past. These are individuals who take that accountability seriously. I've sat through a couple of meetings now that the CHCOs council has had. So while in theory that could happen, one person could control it and for whatever purposes he or she wanted, I think that is now changing as we're elevating the importance of the human capital business and the people who are responsible for it, again in part thanks to hearings like this. Mr. Davis of Illinois. And Madam Chairwoman, with your indulgence my last question would be to Mr. Hadden, and that is if we find that agencies don't really have the feeder pools that are necessary, what should happen to make sure that those feeder pools are in fact adequate? Mr. Hadden. Well, I think under MD-715, what we would hope agencies would do, and each agency circumstance may be different, is to examine what are the factors which caused that to occur, why aren't there people in the pipeline. That may be an example of looking at are there training opportunities being shared throughout the agencies, throughout the organization. We expect an agency to look at its own particular circumstances. It's not as easy as a stock answer for how each agency would deal with that, but we would expect each agency to look at its own practices, and we would then monitor and see for ourselves what barriers might have existed to keep that from happening. Mr. Davis of Illinois. Thank you very much, Madam Chairwoman. I know that my time is up, and I appreciate the indulgence. Mrs. Davis of Virginia. Thank you, Mr. Davis. And Mr. Davis, I would just say that we will have written followup questions for all three of the panels that we would ask that you would answer and get back to the committee. And so if you have any further questions, we can certainly do it that way. Ms. Holmes Norton. Ms. Norton. Thank you, Madam Chairwoman. Mr. Hadden, in a fairly elliptical sentence in your testimony, you say, therefore--page 4--EEOC believes it will be critical for agencies to pay special attention to potential barriers to entry into those successor pools of GS-15s and 14s. With a focus on those positions that typically lead to senior management--senior level management--see, I'm interested--not so much interested in the 14s and 15s. First of all, those are verified positions in the Federal Government, too. Those people have been leaving the Federal Government--the minorities and Whites, according to the GAO report, have been leaving the Federal Government and GS-15s at about the same rate. And you know why? Because these are people that are very much sought after. You know, they don't need the Federal Government. This isn't your grandfather's economy, and the private sector knows how to give health care, the kind the Federal Government doesn't give, sometimes picking up the whole thing. And we haven't come close to that. They know how to make bonuses really get more work out of managers, and people who attain 14 and 15 are very ripe to be picked off. So we've been concentrating on those levels. Well, you can concentrate all you want on those levels, but by the time somebody finally makes his way to 14 or 15 he may be applying all over the map. Who needs you anymore? So I really am just as interested in what we are doing to make the feeder pool fatter and to make people want to stay in the Federal Government to have enough sense that there is promotion to get to the place where you can be looked at for SES. I read the sentence from Mr. Hadden about how you get into the feeder pools and what you're doing to make sure, particularly given retirements, given competition, the sexy place to be, gentlemen, is not the Federal Government these days. The sexy place to be is in the private sector. So I want to know what you're going to do to retain people long enough to get them and what you're going to do to make sure the people get into the feeder pool so that they can be looked at by the SES in the first place. That I didn't find in the testimony. Don't you all speak at once, please. Mr. Sanders. If that is a general question, I'll take it on. Starting with the very beginning of the pipeline, we're really doing a tremendous job bringing in bright young folks to the Federal service, the Presidential management intern program, outstanding scholars, the Federal career intern program. The recruit rates are high, and the diversity statistics are pretty impressive. For example, in the class of 2003 for Presidential management interns, 21 percent were minority and almost 60 percent were women. Ms. Norton. What grades were those interns? Mr. Sanders. They start at GS-9. So at the beginning of the pipeline, we're doing quite well. We need more work in the middle of the pipeline. A number of agencies are doing very innovative things. IRS, my old place, HHS with its emerging leaders program, the Department of Labor has really had remarkable success bringing in MBAs straight into mid-level positions. OPM is about to develop and deploy an executive readiness program which is sort of one level down focusing on high potential 13s and 14s to prepare them for the SES candidate development program and the next step after that the SES. Those programs are under way. They're under development. And that is probably the weakest part of the leadership development pipeline. But in terms of keeping good folks, you know this because Director James has testified on this before and so has Dan Blair, our Deputy Director. We need to make the general schedule far more performance based so that when we have somebody who is on the fast track we can reward them, we can promote them, we can compensate them and keep them so they can get to the SES and not have to wait around for 20 or 25 years. Ms. Norton. You have to watch out how you do that too, because they can believe there is favoritism. Finally, let me ask you a question about accountability, Mr. Sanders. It says at page 10 of this testimony that we can hold agencies accountable for their efforts in this regard. You are doing a lot of good work in trying to do the groundwork. The accountability has always been a major problem here. And you go on in this testimony to talk about human capital, benchmarks of red, yellow and green, and apparently that is how the agency is marked, including the diversity of the work force and diversity in leadership decisions. Then you continue to get to the individuals who will be held accountable. And you speak about a chief human capital officer and her stewardship for ensuring diversity and leadership continuity in the agency. What you indicate is that at least you have a single point of accountability. I want to know how that person is going to be held accountable. If this were the private sector, for example, that person might be held accountable through their compensation. Diversity would be a specific element of their compensation. It might even be broken down as to high level diversity and diversity in the ranks, how the employee was evaluated. Diversity would be an important part of the evaluation of the manager or the leader. I want to know any such accountability notions that are a part of your system of accountability. Mr. Sanders. Particularly at the level of the chief human capital officer, for the most part these are senior political appointees in agencies. So accountability is directly to their Cabinet secretary, department head, to the President and, in part, to you all. I think hearings like this are part of the Federal Government's accountability mechanism. So while, for example, we can't reward or penalize them in terms of compensation, what we can do is put a spotlight on those that do good things, that make progress, and those that don't. Our focus will be on making sure that they have---- Ms. Norton. Are these people evaluated? Mr. Sanders. In terms of formal performance evaluations? Ms. Norton. In any way. Mr. Sanders. I think they have their own performance evaluations individually, and agencies are certainly evaluated as well. Ms. Norton. Well, are these people--are these people evaluated in any way? And if so, can they be evaluated for their achievement in diversity in the terms in which we are now discussing? Mr. Sanders. I think that evaluation occurs as they are held accountable by their agency head and by the President. Ms. Norton. Well, I just--for the record, you have not said to me that anybody will be evaluated or otherwise held personally accountable for the achievement of diversity benchmarks. That is what I am looking for. Mr. Stroman. Ms. Norton, if I can just comment on that, I can tell you that at the General Accounting Office, the Comptroller General awards bonuses to his senior managers as a result of performance at the end of each fiscal year. And one of the important elements with regard to those bonuses is diversity; that is, we track what the promotion opportunities have been during the course of a year, what the senior level looks like in a particular team, and the Comptroller General makes a decision. And diversity is an important component. So I agree with you that money at some point can be made available and can be used as an important stick to move diversity forward. Ms. Norton. Madam Chairwoman, I thank you for your indulgence. I do want to just say for the record that unless-- it is a part of human nature, and it is a part of the way in which government and every enterprise has run since the beginning of time. If an agency holds somebody accountable for how that agency processes Civil Service, sorry, Social Security, then you say that is important to this agency. And unless the agencies are going to be held accountable for whether they achieve and how much, how far they go in achieving--and I mean meeting goals. There is a sky--we got some this year. You will never satisfy at least some members of this committee unless there are goals set and unless you know whether those goals have been met. As far as this member is concerned, there is no accountability system. Thank you, Madam Chairwoman. Mrs. Davis of Virginia. Thank you, Ms. Holmes-Norton. I would like to clear up something in my own mind. I don't remember which one of you said it. Are you saying that the chief human capital operating officer, are they all political appointees? If so, who do they report to? Mr. Sanders. No, not all of them. That was a matter for each agency head to decide. But I do believe the majority of them are senior political appointees reporting; in many cases they are assistant secretaries, so they are reporting to their Cabinet secretary. Mrs. Davis of Virginia. So they come and go with the Cabinet secretaries when them come and go with the administration? Mr. Sanders. Yes, ma'am. The legislation doesn't specify whether the chief human capital officer is a political appointee or a career. And, frankly, that is a delicate balance because you do want somebody who is going to have the voice and the weight of the department head speaking on human capital matters. They, of course, have a career staff, including senior HR folks in the SES who report to them, who provide the continuity. Mrs. Davis of Virginia. Ms. Holmes-Norton, I understand what you are saying, but I also wonder how you can use diversity as something to go by when you are counting bonuses and salaries and the like, if the pool--and I am hearing that the pool may not be there. If the pool isn't there, how can you hold the person accountable for not hiring the people if they don't have the pool to hire from? Which brings me to my question, I guess of, are there barriers out there, and what barriers are out there to achieving what we are looking for here, diversity in the SES corps? And, quite frankly, just to give you where I stand, it would suit me fine if everybody could be hired based on whoever is hiring them never seeing their names so they can't guess whether they are male or female, and never seeing their face so they couldn't see what color, or their height or weight or anything. I don't know the magic answer to that question. But if you can---- Mr. Stalcup. Well, in part, in answer to that question, and going back to Ms. Norton's question, we are doing a study now looking at agencies across government in terms of how specifically they are holding their executives accountable for elements such as diversity. We are very early in the stages of that; it is a request from the Senate side, and that report will be coming out next year. So it is a key issue, one that we are in agreement with in terms of importance and one that will help us sort this out. Mrs. Davis of Virginia. Let me just say this. If you start doing that, and you make your senior executives--if you hold them liable for not having a diverse--for not hiring minorities, could we be getting to the point where they hire minorities just because they are minorities rather than hiring the best person for the job? Mr. Stalcup. Well, I would hope not. Obviously, our study also showed--the report that we talked about today--that, really, numbers is not necessarily a problem. Our study shows, at least at the GS-15 and 14 levels, that there will be sufficient numbers, both minority and White people. Mrs. Davis of Virginia. In the pool? Mr. Stalcup. In the pool, yes, down the road. So that is not necessarily an issue. Mrs. Davis of Virginia. OK. Mr. Sanders. Madam Chairwoman, in terms of appointing people to the Senior Executive Service, frankly that is one of the most expeditious ways of bringing folks into government. Not every agency practices it, but as Director James has demonstrated, and others, you can literally bring SESs on board in 30 days if you put your mind to it. You can reach out to a broad candidate pool, not just Federal Government or former Federal employees, but the private sector. There is wonderful talent out there. There is wonderful talent inside as well. You can do this very quickly. You can move fast. It just takes will. And it goes back to the issue of accountability and having somebody now that you all can talk to and point to, as well as the President saying, what are we doing? Mrs. Davis of Virginia. Well, I am impressed that OPM has raised their numbers. I am glad to hear that the report was based on what you used to do, so if you changed what you are doing, we can get a little higher. We will have some other questions we will submit to you for the record, if you can answer them and get them back to us. And that is open to my colleagues as well. I thank you all of you for being patient, and for being with us here today. I would now like to invite our second panel of witnesses to please come forward to the witness table. On this panel we will be hearing from some of the agencies themselves. First is Gail Lovelace, Chief Human Capital Officer for the General Services Administration. Next we will have Jo-Anne Barnard, the Chief Financial Officer for the U.S. Patent and Trademark Office. Third will be Dr. Reginald Wells, the Deputy Commissioner for Human Resources at the Social Security Administration. And we have already sworn you all in. So if you will take your seat, we will begin with the statements. We will now recognize you. We will ask you to summarize your testimony in 5 minutes. Any more complete statements you may wish to make will be included in the record. I would like to welcome you, Ms. Lovelace, and thank you for being with us today. We will begin with you. You are recognized for 5 minutes. STATEMENTS OF GAIL T. LOVELACE, CHIEF HUMAN CAPITAL OFFICER, GENERAL SERVICES ADMINISTRATION; JO-ANNE BARNARD, CHIEF FINANCIAL OFFICER, U.S. PATENT AND TRADEMARK OFFICE; AND DR. REGINALD F. WELLS, DEPUTY COMMISSIONER FOR HUMAN RESOURCES, SOCIAL SECURITY ADMINISTRATION Ms. Lovelace. Thank you. Good afternoon, Madam Chairwoman, members of the subcommittee. I appreciate the opportunity to appear before you today on behalf of Steven Perry, the Administrator of GSA. I am Gail Lovelace, GSA's Chief People Officer, and I am also the Chief Human Capital Officer for GSA. Today, I will briefly address three issues: the current level of diversity in GSA's SES work force; recruitment and development of minorities and women in preparation for SES positions; and a quick update on the implementation of the No Fear Act inside GSA. We believe that GAO is absolutely correct when they write that diversity can be an organizational strength that contributes to achieving results. In addition, diversity at the highest levels of an organization sets a positive and visible example for the rest of the organization to follow and to emulate. The desire to encourage and increase racial, ethnic, gender and other types of diversity in the Federal work force, including diversity at the senior executive levels, is explicit in guidance that covers much of my daily work. The President's management agenda includes an initiative for the strategic management of human capital, and this initiative establishes a goal of ``a diverse work force, including mission-critical occupations and leadership.'' GSA's Human Capital Strategic Plan, first published in August of last year, outlines seven human capital goals. Two of the seven goals are focused on executive leadership and diversity. As stated in our plan, one of the goals is ``to ensure that we have a diverse work force.'' Our plan is to continually assess our work force and take steps to ensure that there is appropriate representation by minorities, women and other identified groups in the GSA work force as a whole, and at various grade levels, certainly including the Senior Executive Service. In GSA, we believe that our overall work force is diverse. Currently, minorities comprise 37.8 percent of the work force; women represent 45 percent of our overall work force. At the executive level, GAO's report showed that as of October 1, 2000, 13.8 percent of our Federal career executives were minorities and 23.6 percent were women. At that time, GSA's numbers were slightly better than the average; 14.3 percent were minorities, and 28.6 percent were women. On September 30, 2003, 3 years later, GSA's numbers have regrettably declined for minorities, at 10 percent, but improved for women at 28.8 percent. For us, there is certainly room for improvement. With 80 career executives in GSA, we represent a very small portion of the governmentwide total. Even within that small number, we continue to see movement within our executive ranks. Just since March of this year, we have lost three women and four minority executives, either through transfers to the Department of Homeland Security, retirement or through movement to another position outside of GSA. Today, we are recruiting for several career executive positions. We are well aware of the opportunities that this presents and will make every effort to ensure that we are attracting a diverse group of candidates to GSA. As career senior executives leave the GSA work force, their vacant positions are filled from within GSA, or from other sources outside the agency. We are focusing our efforts on attracting a pool of diverse candidates from both directions. GSA, like many other agencies, uses a variety of sources to attract applicants. Our new recruiting branding strategy, ``You can do that here,'' is being utilized in a variety of settings to attract applicants to GSA. In addition to our recruitment efforts, GSA is also focused on development of internal staff to get them ready to move into executive positions. We recently established a new five-tier Leadership Institute that offers leadership development programs for managers, supervisors, senior specialists and analysts. In fiscal year 2002, with the support of OPM, GSA established our Advanced Leadership Development Program as one tier of our Leadership Institute. The Advanced Leadership Development Program is designed to develop future leaders and plan for executive succession in the coming years. The impetus for this endeavor is the potential for a pending leader exodus from GSA. As in many other government agencies, over half of GSA's executives, supervisors and managers will be eligible to retire in the next 5 years. It was deemed prudent to begin an accelerated leadership development program to prepare for the future. That program is comprised of three competitive phases, an application process, an assessment process and executive interviews. Once the applicant has successfully passed these phases, they enter into a coaching relationship and begin various programs required for their development. We are pleased that in our 2003 program, 25 percent of our participants are minority, 48 percent are women. In our external recruitment efforts, we are maximizing the use of Web-based technology and other supplemental methods of communication to reach out to new or previously untapped sources of highly qualified candidates. Most of our executive vacancy announcements, we have advertised for both Federal employees and outside applicants. We believe that this increases our opportunity to attract a more diverse applicant pool. We are also considering use of OPM's proposed new Federal SES Candidate Development program as another opportunity to increase our diverse pool of candidates. Before I close, I would like to turn to the No Fear Act. As required by the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002, GSA is implementing increased accountability for violations of antidiscrimination and whistleblower protection laws. We are moving forward with plans to effectively implement the No Fear Act, based upon the interim regulations that were issued by the Equal Employment Opportunity Commission, and anticipated guidance from OPM. Just last week our Associate Administrator for Civil Rights led a leadership group at GSA in a discussion about the law, and will continue to share updated information with them as we implement the plans that we expect to get as a result of requirements of the new regulations. We are developing an e-learning module for our OnLine University, and we are using our Web site to educate our associates about the act. In addition, our Office of Civil Rights has installed a new data base that will capture and report the data required by the act. In their model, GAO examined career senior executive service trends between 1995 and 2000. They projected that, based upon those trends, the proportion of minority men and women in the SES will remain virtually unchanged. We will be successful in meeting the challenge of creating a more diverse work force if at a future date GAO's projection has proven to be incorrect. That will require a concerted level of effort at all agencies. GSA is committed to taking steps needed to improve our diversity across GSA, including our executive ranks. Thank you for the opportunity to testify before you today, and I look forward to any questions. [The prepared statement of Ms. Lovelace follows:] [GRAPHIC] [TIFF OMITTED] T2901.081 [GRAPHIC] [TIFF OMITTED] T2901.082 [GRAPHIC] [TIFF OMITTED] T2901.083 [GRAPHIC] [TIFF OMITTED] T2901.084 [GRAPHIC] [TIFF OMITTED] T2901.085 [GRAPHIC] [TIFF OMITTED] T2901.086 [GRAPHIC] [TIFF OMITTED] T2901.087 Mrs. Davis of Virginia. Thank you, Ms. Lovelace. Now I would like to recognize Ms. Barnard. I would like to thank you for being with us today; you are recognized for 5 minutes. Ms. Barnard. Madam Chairwoman, Ranking Member Davis and members of the subcommittee, I appreciate the opportunity to testify today for the USPTO. Americans can be proud that when they apply for a patent or a trademark, they are relying upon one of the more diverse agencies in the Federal Government. This wide diversity is well represented within the agency's SES ranks. Since 1999, the USPTO has seen substantial increases in the number of African Americans, Asian Americans and women on our SES staff. Currently 14 of our 46 SES members are women, including one Asian American and three African American women. This represents a 133 percent increase over 1999 when we had six female SES members on our rolls. During the same 4-year period, we have increased the number of African Americans in our SES ranks by 100 percent, from two to four individuals, and the number of Asian American SESers by 200 percent, from one to three individuals. The USPTO's SES diversity profile compares favorably with that of the Federal Government as a whole. The most recent governmentwide SES demographics issued by the Office of Personnel Management in 2001 indicate that governmentwide, 25 percent of SES members are women and nearly 14 percent are minorities. At the USPTO, 30 percent of SES members are women, and over 15 percent of all appointments are held by minorities. As we replace retiring members of our existing SES corps over the next few years, we expect this diversity to further increase, because of the significant diversity in the pool of existing employees that we have. The USPTO currently has 46 members of the SES; 19 of these individuals, 41 percent, are now retirement-eligible, or will become eligible over the next 2 years. Although a few of our existing SES positions, like my own, are in the financial and administrative area or the information technology field, the vast majority of our SES jobs are highly specialized in nature. In addition to the managerial skills normally required for SES positions, incumbents and applicants for these jobs possess extensive intellectual property knowledge in either patent or trademark law. SES members in the patent business area manage a work force comprised largely of scientists and engineers. And those in the trademark area direct a staff of intellectual property attorneys. Executives in both of these areas must possess both the technical knowledge required to direct the work force, and a high degree of specialized knowledge about intricate, often complex examination rules, regulations and procedures. Much of this specialized knowledge can only be acquired through years of experience in the office. As a result, virtually all of our patent and trademark SES positions are filled from within the USPTO. Diversity is likely to increase in our SES ranks because of the underlying diversity of the pool of patent and trademark professionals from which many of our future SES executives are likely to be drawn. Our current work force presents a recruitment pool of 370 patent professionals at the GS-15 level, most of whom occupy supervisory and managerial positions. Of this total, 83 are women, 31 are African American, 84 are Asian American, 9 are Hispanic and 2 are Native Americans. We also have 72 attorneys at the GS-15 level, including 39 women, 4 African Americans, 3 Asian Americans, and 2 Hispanics. In order to enhance the qualifications of this SES pool, many of these patent and trademark professionals have taken advantage of the managerial, supervisory, leadership and executive management training and development assignments that we offer and fund. We have put in place and constantly seek to improve upon developmental opportunities that have included managerial training provided by the Office of Personnel Management's Federal Executive Institute and other facilities, a management certificate program that was designed specifically for the USPTO by Syracuse University's Maxwell School, in-house technical and managerial training and opportunities for numerous career development details throughout the agency. The USPTO also currently has an SES candidate training program under development. Our priority is always to select the best qualified person, regardless of race, national origin, sex or religion, for each SES position that we fill. Because we have so many talented men and women and minorities in our senior supervisory and managerial ranks, we are confident that many of them will rise to the SES level. In addition, we will continue to conduct the broadest possible searches for our financial, administrative and information technology SES vacancies. As for the No Fear Act, the USPTO is actively implementing the reporting and notification requirements pursuant to the act and the upcoming regulations. We have purchased software that will aid in meeting the reporting requirements and migration of current complaint data into a Web-based format is now under way. To meet the notification requirements, we have arranged to place a notification on each employee's printed pay stub, and on the USPTO Internet Web site. The notice will explain the rights and protections guaranteed by Federal antidiscrimination and whistleblower protection laws. We also have incorporated No Fear Act information into the training module that is given to all new managers and supervisors at the agency. The Office of Personnel Management is currently drafting regulations on the implementation of the reimbursement requirements of the act. We are prepared to take any steps necessary to implement these requirements as soon as the regulations are issued. I appreciate the opportunity to share this information and to testify today. Mrs. Davis of Virginia. Thank you, Ms. Barnard. [The prepared statement of Ms. Barnard follows:] [GRAPHIC] [TIFF OMITTED] T2901.027 [GRAPHIC] [TIFF OMITTED] T2901.028 [GRAPHIC] [TIFF OMITTED] T2901.029 Mrs. Davis of Virginia. And Dr. Wells, we appreciate you being here today, and you are recognized for 5 minutes. Mr. Wells. Thank you, Madam Chairwoman, and Mr. Davis for asking me to be here today to discuss the Social Security Administration's efforts to achieve diversity in its Senior Executive Service. I am pleased to have the opportunity to tell you about the efforts that SSA has made to develop and recruit a diverse work force as we also address the challenges presented by the forthcoming retirement wave among career civil servants. The Social Security Administration is an agency of 65,000 employees working in 1,500 installations nationwide. As Commissioner Jo Anne B. Barnhart has often said, the men and women of Social Security are ``the agency,'' and I share her view that the Social Security work force is the best in government. Our goal is to provide the American people with the service they expect and deserve. To succeed we must understand and meet the needs of a diverse public. That means we need a high- performing, well-trained and well-equipped staff, from our front line right up to our highest executives. Seventy-one percent of our employees are women, and 44 percent are members of minority groups. Diversity is reflected in all of the major components, at all levels, including among our deputy commissioners, regional commissioners and associate commissioners. We are also a very experienced group, with an average of 20 years of service, and an average age of 47. That is both a challenge and an opportunity for SSA, as the agency faces the massive increase in workloads that the aging of the baby boomers is already starting to create. Sixty percent of SES and GS-14s/15s will be eligible for regular retirement by 2008, and we will need to replace 24,000 of 65,000 employees over the next 10 years. But SSA views this turnover as an opportunity to increase diversity as we recruit and hire the work force that will take the agency into the future. Over the past 4 years, we have hired approximately 12,000 permanent employees. We have focused on ensuring equal opportunities for all, including minorities and women. Today, 44 percent of our employees are members of minority groups, compared to 28.5 percent in the civilian labor force and 30.8 percent in the Federal work force. We employ an increasing number of Hispanics, who now comprise 11.9 percent of SSA's work force, compared to 12.2 percent of the civilian labor force and 7.1 percent in the Federal work force. SSA ranks third among Federal agencies in this area. Further, SSA is second among major Federal agencies in hiring Hispanic employees. The Office of Personnel Management's June 2003 report to the President highlighted SSA as one of the model agencies for Hispanic hiring. In October 2002, our SES corps of 123 individuals included 41 minority men and women, representing one-third of the total. Ninety-four percent of the most recently completed SES candidate development program class, remaining with the agency, has been selected for placement in SES positions at SSA. Of the 30 SES appointees from this class, one-third were women and 40 percent were minority. However, Commissioner Barnhart and the entire agency leadership is firmly committed to continuing our efforts to build a work force that truly reflects the Nation as a whole. SSA's long tradition of developing leadership from within means that a diverse SES corps depends in large part on a diverse total work force. SSA recruits at historically Black colleges and universities and Hispanic-serving institutions, and has cooperative agreements with Native American tribal colleges and universities. SSA also uses the Outstanding Scholar Program to recruit minorities, as well as the authority granted by OPM to use bilingual registries in hiring. We are also establishing partnerships with national organizations, such as the National Association of Colleges and Employers, the Association on Higher Education and Disability, and the Hispanic Association of Colleges and Universities. SSA has three national development programs for employees from grades GS-9 through GS-15 that will enable the agency to meet the staffing and leadership challenges of the 21st century. These programs are considered to be among the best in government. In addition to our national programs, we offer numerous regional and component level programs. I would like to turn for a moment to the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002, also known as the No Fear Act. SSA strongly supports the implementation of the No Fear Act. Prior to October 1, 2003, the effective date, SSA took affirmative steps to comply with the notification provisions of the new act, and I am pleased to report that SSA has successfully completed all of the five required steps to inform employees of their legal protections and rights. In closing, I would like to emphasize SSA's pride in its work force and its efforts to promote diversity among its employees. Thank you, and I will be glad to answer any questions you may have. Mrs. Davis of Virginia. Thank you, Dr. Wells. [The prepared statement of Mr. Wells follows:] [GRAPHIC] [TIFF OMITTED] T2901.030 [GRAPHIC] [TIFF OMITTED] T2901.031 [GRAPHIC] [TIFF OMITTED] T2901.032 [GRAPHIC] [TIFF OMITTED] T2901.033 [GRAPHIC] [TIFF OMITTED] T2901.034 [GRAPHIC] [TIFF OMITTED] T2901.035 Mrs. Davis of Virginia. I would like to thank all three of our witnesses for being patient and being here with us today. Before I go to Mr. Davis, I have a question of Ms. Barnard. In inviting the Patent and Trademark Office to attend today's hearing, we were expecting them to send someone very knowledgeable about the agency's personnel and human resources functions relating to the Senior Executive Service. As the CFO, would you explain your role in the management, selection and oversight of the Senior Executive Service at the Patent and Trademark Office? Ms. Barnard. Yes. I am the Chief Financial Officer and the Chief Administrative Officer. So I also have under me the Office of Human Resources, and I am responsible for recruitment, for directing the committee that selects senior executives, the Performance Review Board, and the Executive Review Board. So I am directly involved in the agency's hiring and training programs. Mrs. Davis of Virginia. For the SES? Ms. Barnard. Yes. Mrs. Davis of Virginia. Thank you. Mr. Davis. Mr. Davis of Illinois. Well, thank you very much, Madam Chairwoman. Ms. Lovelace, I was intrigued with your testimony, especially the point where there has been some decrease. Could you explain how that may have happened, or how that could happen? Ms. Lovelace. The decrease in the number of minorities and women that are in our executive ranks comes from the fact that we have had turnover within the agency. There are people that have moved to other agencies, have retired, or have transferred into other positions outside of the government. We see a decrease in the number of SESers, and an increase in the number of minorities and women that actually leave the agency. We in fact will see that the numbers overall in terms of our percentages will decrease as well. There are some opportunities inside GSA right now. We are currently trying to recruit to fill career executive positions, to fill behind some of those losses. And so I think that is a unique opportunity for us. Mr. Davis of Illinois. I certainly agree with your comment, in terms of indicating that there was opportunity, because as I looked at the numbers and--you know, I saw that in terms of SES hires in 2002, there was one Black female, no Black males. And in 2003, there was one Black male and no Black females. Do you have your own candidate training program? Ms. Lovelace. It is not actually a candidate development program. It is a program to develop people to take on new leadership roles within GSA. So it is not a formal candidate development program. Mr. Davis of Illinois. You did indicate, though, that you were talking with OPM about possible use of their program? Ms. Lovelace. Yes. As a matter of fact, we are discussing this program at my Executive Resources Board at GSA. This meeting has actually been planned for some time, we will discuss our use of that program, and discuss the numbers that you see in front of you in terms of the hiring or lack thereof of minorities and women inside our executive ranks at GSA. We realize that there are issues inside GSA, which is why we have included a very specific goal in our human capital strategic plan to try to address that issue within GSA. Mr. Davis of Illinois. Thank you very much. Ms. Barnard, I was certainly struck, as I looked at your testimony and as I heard you, in terms of the percentages. I mean, you look at the percentages in your agency and you say, Wow. You know, you just--then, of course, you look at the numbers. And you say, Well, the wow is a little more understandable; that is, if you are going from one to three, or you are going from two to four. But, even so, that represents significant movement. And I don't mean to downplay that in any kind of way, but my question is, prior to those years, did the agency have a formal program that was designed to help move people up and in? Ms. Barnard. No, we have never had a formal SES development program, per se. The Department of Commerce has a program in which we have participated. As part of our human capital program right now, we are developing, under the aegis of the President's management agenda, a training program along the lines of the one Ms. Lovelace talked about, where we will be offering training to various levels of managers. As I spoke earlier, we really see our opportunities for improving the diversity of our work force in that underlying pool of managers, and because we are so diverse at that level, we think we will be able to make better inroads than in the past. For instance, if you look at the 23 selections that we have made in the past 4 years in the Senior Executive Service, 22 percent of those have been minorities. So we are having the minorities developed through our ranks of managers. And that is where we are placing our emphasis. Mr. Davis of Illinois. Let me just ask both of you quickly. Would it be just as simple and just as easy, perhaps, to use the program that OPM has developed? Is there a reason perhaps to have some other activity? Ms. Lovelace. The OPM program is not fully developed yet and has not been made available to agencies. Our Leadership Institute has actually been in existence for about 3 years; I believe we are going into our 4th year. We needed to step up our level of effort before OPM even began development of this program. But we will look to see how we can enhance our ability to recruit minorities and women by use of that program, and see how it aligns with what we are already doing inside GSA. Mr. Davis of Illinois. OK. Dr. Wells, quickly, I don't want to take issue with the comment that you made about the Social Security Administration having the best work force in the Federal Government, and I really don't know about that. But I do know about that bunch that work out of Region 5 in Chicago, and they are about as good as they come. So you don't get much better than they are. Mr. Wells. Thank you, Mr. Davis. Mr. Davis of Illinois. I have had a wonderful experience working with them. And they have had some of most committed and dedicated people that I have ever run into. I mean, they are out all times of the night, all over the place with us, as we try and take information to the people. Let me ask you, how long have you been in Federal Government service? Mr. Wells. In the Federal service, well, if you count my time with District Government, which doesn't actually count technically, although it is the same retirement system, I have actually been in the Federal Government proper since 1994. Mr. Davis of Illinois. So you are a career person? Mr. Wells. I am, yes, sir. Mr. Davis of Illinois. Not a political---- Mr. Wells. I am not a political, no. Mr. Davis of Illinois. I am wondering, if having people in certain positions coming from a career service vantage point might not make a difference? I suspect that throughout the Social Security Administration, there are people like you who have career service status and rank, and have moved up to certain levels and have responsibility. That responsibility carries with it certain continuity, and so there seems to be a level of professional commitment to doing the job. That is really what I am trying to get at and to suggest. Would you comment on that? Mr. Wells. Mr. Davis, I think--in my experience, I have been fortunate in that most of the Federal employees I have had the occasion to work with, both career and political, have been very dedicated to the work. I have had a very good experience with that. There is something to be said for continuity, and that is why we have the two sides. The career service is for purposes of keeping things going on an even keel. And clearly in the case of the Social Security Administration, which has very few political senior executive positions relative to some other agencies, we have really enjoyed a lot of continuity with the careerists that are there. I happen to be the designated chief human capital officer for the Social Security Administration. So I am one of the exceptions that Ron Sanders spoke of. I happen to wear that hat. I am also the Deputy Commissioner for Human Resources. Mr. Davis of Illinois. So I kind of gathered that. That was really the genesis of my question. And I think it does make a great deal of sense and provides opportunity for a level of professional thought, action and continuous commitment. If something doesn't happen, we can really come back to you 2 years from now and expect that you will still be there, or we can come back 3 years, 4 years maybe, and expect that you are still there. Mr. Wells. I certainly hope to be. Mr. Davis of Illinois. Rather than a political appointee, you might come back next year and they are gone. And whoever is there can then say, well, I really didn't have responsibility for what was going on year before last because I just got here. Mr. Wells. That is kind of in my genes. I happen to be a second generation Fed. My mother worked for the Internal Revenue Service for 45 years. So I don't know if I will go quite as long as she did, but I am intending to stay here for a career. Mr. Davis of Illinois. Well, maybe good fruit doesn't fall too far from the tree. Thank you very much. Madam Chairwoman, I have no further questions. Mrs. Davis of Virginia. Thank you, Mr. Davis. Dr. Wells, I will just say that if today is any indication of your loyalty and your commitment to your job--because as I understand it, you opted to be here rather than Austria; I am not sure that I would have that kind of dedication--I would imagine with that kind of commitment, you will probably be here in 3 or 4 years. Mr. Davis, I don't think you have to worry about that too much. Ms. Barnard, I was just rechecking your statement in the beginning. I think I heard you say that because of the type of work and all that you have in the PTO, generally promotions are from within, the feeder group is from within, you don't go outside to bring people up into the SES positions. Did I hear you correctly on that? Ms. Barnard. We go outside for administrative, for legal, information technology positions, just as all agencies do. And actually, that would be the extent that we would rely on OPM's training program. But the vast majority of our SES positions are specialized positions. They are patent group directors or patent managers or people that negotiate treaties worldwide in the patent and trademark area, or trademark managing attorneys. Those people we do tend to select come mostly from within because the nature of the rules and the rules of practice are things that are learned best through years of experience in the agency. It is extremely difficult to recruit people who are familiar with the government rules from the outside. In fact, we are constantly competing to retain our people because we have law firms and private industry that are trying to attract them away from us. Mrs. Davis of Virginia. Could you tell me, on the patent side, what percentage you have of minorities that would be in the feeder pool, GS-14, 15s? Ms. Barnard. Of the 370 that we have at the GS-15 level-- let's see, I have those numbers here--83 are women, so that is approximately 22 percent. About 10 percent, 9 to 10 percent, are African American; 22 percent are Asian American; less than 1 percent are Hispanic and Native American. Mrs. Davis of Virginia. Now, can you tell me in the SES pool on the patent side your breakdown on minorities? Ms. Barnard. Pardon? Mrs. Davis of Virginia. On the patent side, your SESs, could you give me the breakdown of the minorities? Ms. Barnard. I don't have that information, but I would be glad to provide that to you. Mrs. Davis of Virginia. Can you get that back to us for the record? And less than 1 percent were Hispanic, I think you said. I want to thank all three of the witnesses for being here and for being patient today. And we will have other questions for the record that we will submit to you, if you can get back to us in writing, and any other questions that we ask that we didn't get the answers to. I really appreciate your being here. I will dismiss this panel and bring in the third panel. I would like to thank our third panel of witnesses for being very patient with us. Today on this panel we have representatives of various employee groups that are all very interested in today's topic. From the African American Federal Executive Association we have its president, William Brown. Second is Jasemine Chambers, Chair of the Asian American Government Executive Network. Third we have Manuel Oliverez, president of the National Association of Hispanic Federal Employees. Fourth, that will be Shirley Harrington-Watson, National Legislative Review Committee Chair from Blacks in Government. And fifth we will hear from Patricia Wolfe, the president of federally Employed Women. Last, the committee will hear from Linda Rix, Co-CEO of AVUE Technologies Corp. And I believe we have sworn you all in. You all were here when we did the swearing in. Correct. And I will ask that each of you--we have your prepared statements, so if you would like to summarize and try to keep to the 5 minutes, we would certainly appreciate it. This is a very large panel. And we would like to get through all of the statements and then have the members of the committee be able to ask questions. So I would like first to welcome Mr. Brown. And thank you again for your patience. And thank you for being with us today. You are recognized for 5 minutes. STATEMENTS OF WILLIAM A. BROWN, SR., P.E., HAIA, PRESIDENT, AFRICAN AMERICAN FEDERAL EXECUTIVES ASSOCIATION; JASEMINE C. CHAMBERS, CHAIR, ASIAN AMERICAN GOVERNMENT EXECUTIVES NETWORK; MANUEL OLIVEREZ, PRESIDENT AND CEO, NATIONAL ASSOCIATION OF HISPANIC FEDERAL EXECUTIVES; SHIRLEY HARRINGTON-WATSON, CHAIR, NATIONAL LEGISLATIVE REVIEW COMMITTEE, BLACKS IN GOVERNMENT; PATRICIA M. WOLFE, PRESIDENT, FEDERALLY EMPLOYED WOMEN; AND LINDA E. BROOKS RIX, CO-CHIEF EXECUTIVE OFFICER, AVUE TECHNOLOGIES CORP. Mr. Brown. Madam Chairwoman, Congressman Davis and Congresswoman Norton, thank you for the opportunity to testify. In January of this year I retired from Federal service as the Deputy Director of Military Programs for the U.S. Army Corps of Engineers, after a 38\1/2\-year career. I was fortunate to achieve the rank of Senior Executive, level 5, but I assure you it was no easy feat. I encountered many obstacles despite my qualifications. I was and am a licensed professional engineer, one of the youngest persons to be inducted in the College of Fellows of the Engineering Association, an honorary member of the American Institute of Architects, and I have held a variety of GS-15 positions with the U.S. Air Force. In January 1995, after applying for 23 SES vacancies, and making the short list and being interviewed 15 times, I became the first African American career civil servant sworn into the Senior Executive Service in the field of engineering in the entire Department of Defense. Additionally, I was the only African American promoted to SES in the entire Army that year. Now, that was just 8\1/2\ years ago. Can you imagine the number of highly qualified minorities who preceded me and who were denied the opportunity to serve our Nation at the highest levels? Just think of where our Nation might be now if selecting officials had taken advantage of the skills and experience of the hundreds of highly qualified African Americans who are willing to stand up for America and put duty, honor and country before all else. In February 2002, several African Americans, including myself, who attended Harvard University, formed the African American Federal Executive Association. Our goal is very simple; we promote the professional development and advancement of minority groups with particular emphasis on African Americans into the Senior Executive Service. With that, I would like to provide you a few specific comments. Most Federal agencies are not serious about diversity. The good old boy network continues to flourish. Agencies continue to change the rules of engagement, and minority groups are pitted against one another for the few vacancies that become publicly available each year. The General Accounting report on SES diversity indicates that with current trends, the number of White SES females will increase by 4 percent by year 2007, while the number of minority males and females will only increase by 0.7 percent. Our Nation can ill afford to wait at this snail's pace for the complexion of our government leaders to change. The latest census results indicate our Nation is more diverse than ever. How long must a citizenry wait before the leadership reflects the ethnicity of our population? Are we not striving for ethnic equality in Iraq and Afghanistan? Why then are we not striving for the same in America? To help the subcommittee achieve ethnic equality, I offer several recommendations. Recommendation No. 1: We recommend endorsement of the OPM- CDP program. We provided comments during the development, and while not all of our comments were incorporated, those dealing with direction, vision, intent and implementation were. We commend the Honorable Kay Cole James for her leadership and willingness to consider alternatives to business as usual. CDP is, however, one option that needs to be included in a diversity tool box. Much more must be done if diversity is to be achieved in the near future. Our second recommendation is that you consider withdrawing all authority from an agency to hire Senior Service Executives until that agency achieves diversity in the SES ranks equal to ethnic representation in the United States as a whole. In the interim, OPM or a congressionally appointed board should be given authority to fill all career SES vacancies in that agency until SES parity is achieved. Our third recommendation is that you pass legislation prohibiting Federal agencies from changing the rules of engagement within 1 year of filling a vacancy. I have observed firsthand the selection of individuals without a college degree into the SES corps. None were minorities. I have also observed discussions on the academic qualifications of candidates when an African American is one of the top candidates. Invariably, the discussion always centers on the African American not having enough degrees or the right degrees. This changing of the rules when a minority is being considered must be eliminated. If a degree is required, require it of all candidates. If it is not required, require it of none of the candidates. I recently met with African Americans from a very visible agency, where an African American has not been promoted beyond the GS-14 level in the last 20 years. In this agency, one SES screens all candidates for senior positions and makes the vacancy selection. No other person is involved in the selection process. The process being used by agency ensures that no African American ever gets into the pipeline to compete for an SES position. Why is this kind of process being allowed to exist in our government? Madam Chairwoman, our fourth recommendation is that your subcommittee put an end to this kind of practice by enacting legislation requiring all agencies to use a panel of no less than three individuals to screen applicants for all GS-14 and above vacancies. Furthermore, we recommend that the legislation include a provision that when a minority is among the top three candidates, the agency be required to justify in writing to the agency head why the minority was not selected. We also recommend that the selection panel be required to include a voting minority at or above the level at which the position will be filled. To offset the argument that qualified minorities cannot be found to serve on the panels, we further recommend that your legislation include a provision for the agency to hire and reimburse retired minority Federal employees to sit on the selection panels. Finally, Madam Chairwoman, we are finding that complaints against an agency are not being adjudicated in a timely manner. I am sure that when agencies realize that under the No Fear Act they will be required to pay from their budget settlement fees, they will be quick to resolve complaints as well as take steps to ensure issues do not reoccur. For these reasons, we support the No Fear Act. Madam Chairwoman and members of the subcommittee, I thank you for the opportunity to share our thoughts with you. I have always believed that pride in public service occurs when you treat people with dignity and respect, and you allow them to be all that they can be. There have been times when this belief has been tested. In the final analysis, I was the one of the lucky ones. I served on diplomatic missions to Russia, Nigeria, Hungary, France, etc., and I was able to stand tall for America. But remember, I said I was lucky. What about those who are not so lucky? What about those who could have made America even stronger? What about your children, my children, the future generations to come? People are America's greatest asset. You have the opportunity to make America an inclusive rather than exclusive society by implementing the recommendations that I have outlined for you. Thank you. Mrs. Davis of Virginia. Thank you, Mr. Brown. And thank you for your service to our country. [The prepared statement of Mr. Brown follows:] [GRAPHIC] [TIFF OMITTED] T2901.036 [GRAPHIC] [TIFF OMITTED] T2901.037 [GRAPHIC] [TIFF OMITTED] T2901.038 [GRAPHIC] [TIFF OMITTED] T2901.039 [GRAPHIC] [TIFF OMITTED] T2901.040 Mrs. Davis of Virginia. Ms. Chambers, you are recognized for 5 minutes. Ms. Chambers. Good afternoon, Madam Chairwoman, Mr. Davis and Ms. Norton. According to the 2000 U.S. census, there are 12.8 million Asian Pacific Americans in the U.S. population. That amounts to 4.4 percent. Today, about 87,000 APAs serve in the Federal executive branch, 56,000 on active duty in the military, and 26,000 in the military Reserves, as well as 56,000 in the U.S. Postal Service. These 200,000-plus employees do not include those in the legislative and judicial branches or the national security agencies. Despite the participation and contributions, APAs have largely been absent from the top Federal leadership and executive positions. Although the number of APAs in the SES doubled from about 50 to over 100 in the last decade, only 1.7 percent of the current SES members are Asian Pacific Americans, and that is well below its representation in the entire Federal work force or in the general population. According to the GAO report, based on the current separation and hiring trends, the number of APAs in the career SES will increase only modestly to 104 by the year 2007, but still remain at only 1.7 percent of the total SES. The Asian American Government Executives Network [AAGEN], shares this extremely alarming observation, and believes that the actual problems are more severe than reported because of several reasons. No. 1, there are 2,900 Asian Pacific Americans in the GS-15 pipeline. However, more than half of the 2,900 APAs serve as nonsupervisory medical personnel under special pay plans in the Department of Veterans Affairs, and these positions are not structured to advance into the SES; and this number can be very misleading, if you just look at the plain number in the GS-15 pipeline. Our second observation is, as the Federal Government's human resource agency, the Office of Personnel Management itself has not had one Asian Pacific American serving in either its career SES or at the GS-15 rank. From the year 1990 through September 30, 2003, the single Asian Pacific American SES was believed to be brought in on October 1, 2003, a couple of weeks ago. And third, to illustrate this pipeline problem, the only APA SES member in the 65,000-employee Social Security Administration is expected to retire soon. And in this 65,000 employee agency, there are believed to be only eight Asian Pacific Americans in the GS-15 pipeline to fill this and other upcoming vacancies. And unfortunately, some of these APAs are themselves eligible to retire soon. And finally, as another example in the pipeline problem, out of a class of 50 candidates, only 3 minorities, 1 Asian Pacific American and 2 Hispanic Americans, and no African- American, were recently accepted into the SES candidate development program conducted by the Department of Agriculture. The Asian American government executive network recognizes that sound decisions can be made only with good data and good analysis. We commend the subcommittee and the GAO for producing a very insightful report. However, we also note that there are significant data information gaps about the Federal work force. For example, OPM's demographic data has become less available to the public. The most recent demographic profile of the Federal work force on the OPM Web site dates back to September 30, 2000. That data more than 3 years old. Timely and reliable information is a form of public accountability. Beginning October 1, 2003, the No Fear Act became effective. The law now requires Federal agencies to disclose employment complaint statistics on the Internet. The Asian American government executives network believes that these same principles underlying the No Fear Act--and that is public disclosure and accountability--are equally applicable in work force diversity issues. In closing, the Asian American government executives network urges Congress and the administration to proceed to the next stage of reaching out to the APAs and removing the employment barriers that prevent APAs from reaching the full potential, offering true equal opportunities to enter the SES and other senior positions and also be included in the current transformation to a 21st century government. AAGEN concurs with the four GAO recommendations, and in addition, we propose the following, that the recommendations by the GAO be linked to specific agency strategic plans and actions, established performance goals, continuing to monitor results and consequences of good or poor performance. And No. 2, the Congress continues to exercise oversight by directing the GAO to conduct annual audits and to hold hearings such as this to address the progress or the lack of it. No. 3, the OPM and U.S. Postal Service should be directed to restore the availability of timely reliable and accurate demographic work force data to the public, including both the employment and the applicant pool information. And finally, the subcommittee continues to include the Asian American government executives network and the Asian Pacific American perspectives in the current transformation of the SES. Madam Chairwoman, Mrs. Davis, Ms. Norton, thank you very much. This concludes my statement. Mrs. Davis of Virginia. Thank you, Ms. Chambers. [The prepared statement of Ms. Chambers follows:] [GRAPHIC] [TIFF OMITTED] T2901.041 [GRAPHIC] [TIFF OMITTED] T2901.042 [GRAPHIC] [TIFF OMITTED] T2901.043 [GRAPHIC] [TIFF OMITTED] T2901.044 [GRAPHIC] [TIFF OMITTED] T2901.045 [GRAPHIC] [TIFF OMITTED] T2901.046 [GRAPHIC] [TIFF OMITTED] T2901.047 [GRAPHIC] [TIFF OMITTED] T2901.048 [GRAPHIC] [TIFF OMITTED] T2901.049 [GRAPHIC] [TIFF OMITTED] T2901.050 Mrs. Davis of Virginia. Mr. Oliverez, certainly feel free to summarize your statement if you would. We have your full statement in the record. You're recognized for 5 minutes. Thank you. Mr. Oliverez. Madam Chairwoman---- Mrs. Davis of Virginia. Could you turn your mic on, sir, or pull it a little closer. Yes. Mr. Oliverez. My name is Manuel Oliverez, and I am the president and CEO of the National Association of Hispanic Federal Executives [NAHFE]. It is an honor for me to represent for the subcommittee an organization of Hispanic professionals concerned about Hispanic representation in the Senior Executive Service. The Hispanic population represents the largest minority group in the United States, according to U.S. bureau statistics, and will continue to increase at a rapid rate within the next few years. At the present time Hispanics represent more than 13 percent of the total population, and more than 12 percent of the civilian labor force is Hispanic. Hispanics, according to the June 2003 OPM report to the President on Hispanic employment in Federal agencies, represent 6.9 percent of the Federal work force. Incidentally, Hispanics are the only ethnic underrepresented group in all of the Federal agencies in the government. Hispanic representation at the Senior Executive Service level is only 3.3 percent, including professionals who receive senior pay but are not in the senior executive or management positions. Hispanic representation in the pipeline for senior executive positions is 4.5 percent, 3.8 percent, 3.3 percent for GS-13s, 14s and 15s respectively. NAHFE concurs with the GAO estimates concerning the upcoming losses of Federal employees in the Senior Executive Service at the GS-15 and 14 levels. NAHFE maintains that if current hiring promotion and retention practices continue, diversity at the senior level of the Federal Government will continue at the present unacceptable levels, and the level of Hispanic representation will continue to be a serious concern to those who design, develop and implement personnel practices in the Federal Government. The June 2003 OPM report to the President indicates that Federal agencies hired more than 13,000 Hispanics or 9.5 percent of all employees hired in the Federal work force during fiscal year 2002. However, the total number of Hispanic employees increased by 6,151, or 4.7 percent. NAHFE commends the Director of OPM, Ms. Kay Cole James, and those members of the interagency task force on Hispanic employment for their efforts in this right direction. However, based on the numbers on Hispanic representation, NAHFE agrees with GAO that more consistent efforts and accountability measures are needed to improve diversity in the Federal work force, especially at the senior executive levels. Hispanics are affected not only by past and current discriminatory recruitment hiring, promotion and retention practices, but also by a lack of participation in succession planning, developmental assignments and opportunities for formal and informal training, coaching and mentoring. These barriers are evident by looking at the numbers of Hispanics selected for SES positions as well as Hispanic candidates selected for SES candidate development programs. And to add insult to injury, many of those that complete the SES training are not placed in senior positions. NAHFE appreciates the material that is developed in Spanish-containing information on employment opportunities in the Federal Government. However, these resources, as well as those invested in training candidates for the SES, will not produce the desired results until other issues are addressed. Hispanic youth deserves the opportunity to learn about public service early in their careers, and Hispanics entering the Federal work force deserve the opportunity to learn about the Senior Executive Service as early as possible. Career development is as important as a potential for leadership. The National Association of Hispanic Federal Executives would like to thank again the OPM Director for including NAHFE as a stakeholder in the discussion of issues and policies that will save diversity in the Federal Government in the future. NAHFE members are very concerned about the stagnant progress of Hispanic representation in the Federal work force. In spite of continued increase in the Hispanic population. Initiatives and policies will not produce desired results unless there is a consistent support and commitment for diversity from the White House, U.S. Congress, cabinet secretaries and agency heads. NAHFE recognizes and is excited about the President's management agenda, and specifically about the strategic management of human capital that provides guidance to Federal agencies in hiring and retaining policies consistent with agency mission and critical need. NAHFE supports a pay for performance initiative that will definitely encourage performance and will eventually clean the system of underperformers. And although there may be a need for checks and balances and tools for managers to justify the recommendations and decisions, NAHFE believes that ultimately these policies will encourage Federal employees to maintain and upgrade their level of skills and performance. In summary, NAHFE recommends that organizations of Federal employees and organizations advocating excellence in public service be given the opportunity to participate in the process. First of all, nonprofit organizations should have access to small business, education and training funding opportunities to assist Federal Departments in the identification, preparation, training and career development programs of candidates that will improve diversity in the Federal work force. NAHFE has identified several initiatives that, given the adequate attention in funding, will meet the objectives of the strategic management of human capital. Following those initiatives--NAHFE initiatives that can help Federal agencies achieve diversity in the Senior Executive Service level. The NAHFE annual conferences in development and training where GS-15s are taught how to prepare their SES packages, the Hispanic Federal executive summits, we've had six of those for SESers and GS-15s. Project Tivo, a program for GS-15s, a data base program. Project NARA, a 5, 7 and 9, 11 data program that we have on our Web site. The NAHFE mentoring program, the NAHFE networking initiatives, and the NAHFE Yahoo program where we have over 250 SESers and GS-15s. We provide daily information on the opportunities in the system. These initiatives will ensure the Hispanics possess the skills to compete for Federal employment at all levels. For those competing for entry level positions, NAHFE can offer training and resume preparation, interviewing skills and general knowledge of requirements for Federal employment. For those already in the Federal work force, NAHFE can coordinate seminars and other training opportunities to prepare Hispanics for the GS-13 to 15 positions. For those GS-14 and 15, however, NAHFE can support OPM efforts to ensure Hispanic candidates nationwide are aware of the opportunities at the senior level and understand the preparation and application process that will allow them to submit competitive application packages. All outreach efforts, including the dissemination of materials in Spanish, will not produce the desired results until Hispanic candidates are interested in public service and understand the process and requirements and have access to training and mentoring opportunities to advance to the senior level. The increase in Hispanic population not only in traditionally Hispanic geographical areas demands a comparable diversity at all levels of the Federal Government, most critically at the Senior Executive Service level. NAHFE wants to thank all members of the Subcommittee on Civil Service and Agency Reorganization, and especially to Representative Jo Ann Davis, chairwoman of the subcommittee, for inviting NAHFE to the discussion of issues concerning diversity at the Senior Executive Service. NAHFE members, mostly in grades 13, 15 and SES, are excited about the opportunity to make a difference, and be part of the developing initiatives and policies that will increase Hispanic representation at the Senior Executive Service and management level. Thank you. Mrs. Davis of Virginia. Thank you, Mr. Oliverez. Ms. Harrington-Watson, and if you could, if you see the yellow light on, that tells you you have about 30 seconds to wrap it up. And I'll just repeat, we all have the full statements here. So if you could do a summary, that would be appreciated. Thank you, you're recognized for 5 minutes. Ms. Harrington-Watson. Thank you. Honorable Davis, Honorable Davis and Honorable Norton, I am happy to be here representing the national president, Mr. Gregory Reed. He is in Austin, TX on grand jury duty and sends his regrets. I was just looking at how in depth our presentation is, and you're absolutely right, 5 minutes would not do us justice, and I will not infringe upon going over that time. I'd like to just step through some of the pages and just raise some issues. Blacks in government, of course, represent African-American employees on the State, local, county and national level. And as we're here today to talk about the section level, we all are here letting you know that we are very much concerned about GS-9s and 13s who we consider to be the tremendous feeder pool that, as of today, feel they have no hope. We would like to encourage you to help us encourage our membership, because there is no possibility of increasing the numbers if we do not get our constituents to apply. And many of them at this point have given up. I would like to raise the attention of the panel to page 12. I took the time to go through the entire GAO report, and you will see there the compilations of how African-American males and females compare in the 12 top agencies on size and then also how we fair as relates to SES in the five smallest agencies. From this chart alone you see our numbers are very small. When we looked at our feeder pools of GS-15s and 14s, there is an alarming statistic that you probably have also reviewed as you looked at the GAO report, and that is our feeder pool is in an age range where many of those GS-15s and 14s will be seeking retirement in the next 5 years. In our full report, we raise the question of what is going to happen with reforms as it relates to older workers in America, and we were very interested in the statistics and the information that was also provided in the additional GAO report on older workers in America, GAO 03307. We wanted to make a couple of recommendations that are also found in our report. One is that the leadership of America should not be one that is resting in agencies. We feel that appropriations are needed to develop future leaders of America, and we wish to suggest that may be an area that we could look at in the future, how does Congress finance leadership development so that it does go back to an appropriate higher level rather than throughout the individual agencies? Additionally, we wanted to just raise to you the possibilities of talking about other certification processes. Blacks in government feel that we are a tremendous training ground, as many other large employee organizations, and there could possibly, with an additional certification process where our leaders who serve for 2 to 4 years, could be certified by OPM. So as an alternative to some of these very expensive leadership programs, we know that on-job training is one of the highest levels of training that you could possibly get. I'd like to just conclude by just saying this is quite an opportunity. We have said a lot in our comments to you, but we know that as OPM steps out in the next few months with this trial program of candidate development, we would like to suggest strongly that there would be some uniformity in all CDPs that occur within every agency, also that there would be some uniformity in the way that nonCDP SESers are hired. CDP programs only represent 30 percent of all SESes. So where are the other 70 percent coming from, and exactly how do they get selected? We are also concerned about current employees of the government. They should have a better opportunity to apply for SES than outside selections. Thank you, Madam Chairwoman, for giving me this opportunity, and Blacks in government would just like to go on record saying we are here to provide assistance and support. Mrs. Davis of Virginia. Thank you, Ms. Harrington-Watson, for staying within the 5-minute time limit and summarizing an excellent statement that you brought to us. Ms. Wolfe, you're recognized for 5 minutes. Ms. Wolfe. Thank you. federally employed women [FEW], very much appreciates the opportunity to testify at this subcommittee hearing on diversity in the Senior Executive Service. On behalf of the over 850,000 women employed in the Federal Government and the military, we thank Chairwoman Davis, Ranking Member Davis, and Delegate Holmes Norton for conducting this very important meeting. FEW is a private nonprofit organization founded in 1968 after Executive Order No. 1375 that added sex discrimination to the other forms of discrimination prohibited in the Federal Government was issued. As a private organization, FEW works to improve the status of women employed by the Federal Government. This includes contact with Congress to encourage progressive legislation, keeping our members informed of issues, and I would just also like to note that FEW does share delegate Holmes Norton's concern with the contracting-out issue and its impact on diversity. For over 35 years, federally Employed Women has been working to end sexual discrimination and to enhance opportunities for the advancement of women in government. We have an extensive training program at a national level, a regional level, and we work hard to try to provide women with the opportunities to enhance their skills so that they will be ready to take advantage of opportunities should they come along. FEW is quite diverse. Approximately one-third of our membership is comprised of minorities. At this time approximately 50 percent of our organization's leadership is comprised of minorities. I'm very proud of this diverse group of leaders. Our leaders come from about 21 States. FEW has also instituted a diversity program with the aim of developing strategies to identify and eliminate barriers within the Federal Government. This program is led by our national vice president for diversity. We also offer diversity training annually at our national training program and throughout the year at local events. As we all saw from the stats in the GAO study, we certainly acknowledge that there has been some improvement for women as a gender group in the last couple of years. These levels still do not represent actual employment levels of women and minorities currently serving in the Federal work force. In order to better reflect the demographics of the entire Federal work force, the SES composition should be at least somewhat comparable to employment levels of both women and minorities. OPM and the EEOC have provided some recommendations on how agencies and Federal departments can enhance diversity in their SES work forces, and of course we want to applaud OPM's initiative in creating the SES candidate development program. They have also included FEW as a stakeholder, and we are very appreciative of that. We believe that their program, which does include some rotational assignments, formal training, mentoring, etc., is definitely geared to helping women and minorities and disabled Federal workers move into the executive ranks of government. This type of program should be the model for all Federal agencies in creating a high quality SES that reflects the diversity of the work force. FEW supports the recommendations of these agencies, and certainly we applaud the agencies that were represented here today for their work in this area. We have some additional measures that we ask might be considered, and they really go to the thing that I've heard mentioned several times today, the feeder pools, these succession pools, because we believe that to have people get into the Federal executive service, the process has to start a lot sooner than when someone is ready at the higher level. Just as a very small starting point, include more women and minorities at top-level personnel and human resource meetings. Put more emphasis on providing opportunities for career ladder positions for women and minorities. Too often they're stuck in positions that offer no continuous upward mobility to even get them to the grade level of 14, the necessity for entering the Senior Executive Service. We also believe that agencies should provide guidance to their managers. Now, just to summarize and mention, FEW also was an active member of the No Fear Coalition, and we very much support that initiative. Again, we appreciate the subcommittee's interest in this issue and all the support that you have given Federal workers in the past. I'm very proud of the work that we do for the Federal Government, and simply want to ensure that all workers are given the same opportunity to enter the ranks of Senior Executive Service and that the Senior Executive Service truly represents the Federal work force. We believe a proactive approach to diversity will achieve much. I thank you all very much. Mrs. Davis of Virginia. Thank you, Ms. Wolfe. [The prepared statement of Ms. Wolfe follows:] [GRAPHIC] [TIFF OMITTED] T2901.051 [GRAPHIC] [TIFF OMITTED] T2901.052 [GRAPHIC] [TIFF OMITTED] T2901.053 [GRAPHIC] [TIFF OMITTED] T2901.054 [GRAPHIC] [TIFF OMITTED] T2901.055 [GRAPHIC] [TIFF OMITTED] T2901.056 [GRAPHIC] [TIFF OMITTED] T2901.057 [GRAPHIC] [TIFF OMITTED] T2901.058 Mrs. Davis of Virginia. Ms. Rix, you're recognized for 5 minutes, and feel free to summarize. Ms. Rix. Thank you, Madam Chairwoman and members of the subcommittee. We're quite pleased, actually, very honored to be asked to come and speak before you today. I am the founder and co-chief executive officer of AVUE Technologies Corp. I started the company after a 5-year career with the Office of Personnel Management. The company is exclusively devoted on the practice of developing and providing services that are work force management solutions exclusively for the Federal Government sector. In addition to the 20 Federal agencies and departments that are our customers, we provide on a public service basis job information portals and have partnerships--formal partnerships signed with region 11 of Blacks in Government, which serves the Washington, DC, metro area; National Image, which is an organization that supports the education and employment of Hispanics and Latinos; the Federal Asian Pacific American Council; Black Data Processing Associates; and also the Senior Executives Association. Our principal effort in providing this public service is to, in fact, increase the capability of Federal Government agencies to reach out to a wider and more diverse audience and encourage individuals to not only apply for Federal positions, but also to understand the process by which individual Federal positions are filled and recruited in the Federal Government sector. A major feature of AVUE's system for its clients and also for the senior executive's association is a senior executive's portal that includes opportunities for employment in the Senior Executive Service for current employees as well as outside applicants that may be interested. It includes a wide variety of tools for applicants so that they understand, for example, what we mean when we talk about executive corps qualifications, how are those measured, how does one effectively address that, how does one build an effective resume to be entered and be considered fairly in the Senior Executive Service cadre. Our observations are principally associated around our experience in the Federal Government sector, and it is also principally associated around our current clients and a lot of the successes that they have achieved. We would start with the observation that SES diversity in and of itself, as you have heard, I think, a number of times today already, about the pipeline or the feeder pool, what we have as a basic observation is that Senior Executive Service diversity cannot be compartmentalized from general work force diversity, which cannot be compartmentalized from the available labor pool in the country, and it is very important not to isolate and not to feature a comparative analysis of underrepresentation in the Senior Executive Service against merely the pipeline that currently feeds the senior executive service. Now, to paraphrase an earlier comment here, you know, if you always do what you've always done, you'll always get what you always got. So we are in the process here of helping our customer agencies and helping our affiliate partners to go forward and to establish, in essence, a new trend line and a new method of evaluation and examination of opportunities. We feel that external recruitment must be considered as a fundamental source of representation and the improvement of representation in the Senior Executive Service. I did not hear today and I don't know if you are aware of the statistic that the GS-14 and 15 pipeline in the Federal Government today is basically filled from within government ranks currently. In fact, the trend line in looking at OPM's central personnel data file statistics is that 99 percent of the 14s and 15s in the Federal Government today come from within. So you must examine a multifaceted, multitiered layer of how the government goes through the process of recruiting. It is also true that agencies do differ substantially as to what is a good comparative analysis of what they need and what is available and how we recruit in the Federal Government sector. I think that MD-715 EEOC's new directive on accountability measures and the recruitment process along with the no fear legislation basically reinforces existing the statute, but adds additional accountability levers into that statute. One of the things that is very important here is that agencies be able to track their applicant flow data to be able to measure continuously whether their recruitment is, in fact, effective and whether their recruitment produces the right result and perhaps their selection process does not or whether this selection process is, in fact, producing the right result; but they need to increase their outreach and their recruitment efforts. At AVUE, our current customer clients currently we have a statistic that 93.64 percent as of today of all applicants that apply for Federal Government agency clients that are AVUE agencies voluntarily report their race, sex and national origin data. This is an important statistic. Because of EEOC's management directive, what this allows us to do is actually measure concretely and provide metrics on the recruitment process and on recruitment sources and on where our applicant prospect pool is coming from, not just the accomplishment as a result of the selection process. AVUE provides its client agencies with data that allows them to see every phase of the process and to see how the applicant pool progresses through phases of the process. I am out of time. So I just want to make one last statement that I think is an important statement here. It is imperative that the government continue to go through the process of the most aggressive and most successive outreach it can possibly utilize to globally disseminate job information to the widest possible audience. Today we are in danger of having the Office of Personnel Management make the USA job site the only information portal for job information. We would urge you to reconsider that as it is fundamentally contrary to the entire understanding and mechanisms by which outreach operate. We need to provide more information to more people and increase the diversity of our recruitment pool and not do less. So in closing, what I would like to do is thank you again for this opportunity and to also say that part of our written submittal includes some agency success stories relative to how we are able to actually materially change managerial behavior, the process and transparency of the process that helps agencies not only meet their existing objectives and existing regulation, but new regulations as promulgated by MD-715 and the No Fear Act. Thank you. Mrs. Davis of Virginia. Thank you, Ms. Rix. And thank you all for your testimonies. [The prepared statement of Ms. Rix follows:] [GRAPHIC] [TIFF OMITTED] T2901.059 [GRAPHIC] [TIFF OMITTED] T2901.060 [GRAPHIC] [TIFF OMITTED] T2901.061 [GRAPHIC] [TIFF OMITTED] T2901.062 [GRAPHIC] [TIFF OMITTED] T2901.063 [GRAPHIC] [TIFF OMITTED] T2901.064 [GRAPHIC] [TIFF OMITTED] T2901.065 [GRAPHIC] [TIFF OMITTED] T2901.066 [GRAPHIC] [TIFF OMITTED] T2901.067 [GRAPHIC] [TIFF OMITTED] T2901.068 Mrs. Davis of Virginia. I'm going to go to Mr. Davis. We had a lot of testimony there, and I'm sure that we're going to have questions that we can't get in today in the time limit that we will submit to you in writing if you could get it back to us for the record. And Mr. Davis. Mr. Davis of Illinois. Thank you very much, Madam Chairwoman. Ms. Chambers, let me ask you first. We've talked a great deal about the Office of Personnel Management candidate development program. You sort of indicated that OPM itself didn't have such a good record when it comes to Asian Americans. Are you suggesting that you don't have confidence in their program or that their program may not generate the kind of results that you're looking for? Ms. Chambers. The candidate development program that OPM is putting together right now is a new program. It hasn't actually gone into effect. So, I mean, it's a matter of, you know, waiting and see how it goes. And so I think they are making a lot of effort to include groups such as the Asian Pacific American government networks to give input in the design of the program and other groups on the panel have also been involved. But so far the--as far as history goes, the only APA that I'm aware of that is an SES rank since the last 10 years, 13 years, was just appointed recently. So hopefully from now on, it will be much better. Mr. Davis of Illinois. So you're saying that you do have hope, but you're just pointing out that the history has not been so good, and that change appears to be on the way. I'm saying--my mother used to tell us, you know, what you do speaks so loudly, I can't hear what you're saying. And, you know, that sort of resonated a great deal. So you're not saying that you don't think the program will not net some results, but just up to this point you have not seen--coming from the leader. Of course, they haven't always been around and haven't always been the agency that they are, and so hopefully there is movement. Ms. Chambers. I think the fact that this subcommittee and yourself have gotten involved in addressing this issues is definitely helping to push forward, you know, the momentum, give it momentum. So appreciate that very much. Mr. Davis of Illinois. Thank you. Ms. Wolfe, you know, the GAO report suggested that unless there is some intervention, that the only real change by 2007 will be the diminution of White males but an increase with White females. No movement necessarily for other population entities. Do you have any idea as to why they would arrive at that conclusion? Ms. Wolfe. I wish I had a magic answer to that. I don't. Now, again, it may be--now, as Ms. Chambers mentioned, something to do with history. I think clearly if things are to change, there has to be more of an outreach effort. There has to be more of getting people in this pipeline that we keep talking about. Perhaps agencies could develop some criteria. Certainly we would encourage them to participate in the OPM candidate development program, but that's at the end of the line, so to speak, perhaps develop some criteria for getting people more in the mid-level manager positions that would again provide some minorities. And we have the idea of perhaps including them in different meetings, giving opportunities for some cross-training rotational assignments, that kind of thing. Mr. Davis of Illinois. I've always been--I've always looked at this whole business of subjectivity and tried to figure how it is that individuals can make decisions on an objective basis or how a reporter can write a story and not inject some of him or her self into it, or how an analyst can make an analysis and not inject some of their feeling about whatever the issue is into it. Mr. Brown, do you think that subjectivity--I mean, you mentioned this one person, whoever might be, that subjectivity has played too much of a role in making these promotions happen. Mr. Brown. Absolutely, Congressman. In fact, my belief is that we're somewhat focused on the wrong portion of the issue here. We've been having a lot of talk about getting candidates into the pipeline and so forth, and I totally support that and we must do that; but I would offer to you that the bigger issue is not the pool of candidates, but the pool of selecting officials and the attitudes and the subjectivity that they use in making their decisions. Mr. Davis of Illinois. Can I just quickly, Ms. Watson, you placed a lot of emphasis on concern for the pool. You mentioned GS-9s and 10's and that kind of thing. Ms. Harrington-Watson. Yes, sir. Mr. Davis of Illinois. Do you agree with Mr. Brown? That or---- Ms. Harrington-Watson. Yes. I do agree with his summary, but let me just add two things between both of these Houses that I'm sitting in between, those who have made it and the women pool. When you look from the African-American female perspective or the African-American male perspective, I can say that I do terribly disagree with total outside recruitment over increasing outside recruitment, because you have people, as Mr. Brown has said, that have been struggling for 10, 15 years trying to get to a 14- or a 15- and then to see that completely dashed with any possibilities of ever making it to an SES because outside recruitment is so heavy already. We look at this from Blacks in government perspective that if you look at the age of the average 14 and 15 right now, and you look at the lack of possibilities, we will not see any change for African-Americans, because we're not going to be there in any substantial number to even be considered in a few years. So our plight is a little more--a little different than some of the other categories, but there is no substantial change even in the candidate development concept. I want to step back to one question you were asking--I think I heard the question underlying when you were talking to Ms. Chambers about where is the real problem in the decisionmaking. When we first went to OPM as stakeholders, it was raised that every person representing OPM in that room was a White male that was making decisions on the SES candidate development program. There were no White females. There were no Black females. There were no minorities represented. So if all the decisionmakers on the leadership of our country are coming from one segment, I would say that we really have not made a lot of progress. Mr. Davis of Illinois. So you're saying we've got to train the trainers essentially. I have no further questions, Madam Chairwoman, but I appreciate that. Mrs. Davis of Virginia. Thank you, Mr. Davis. I'm sure I'm going to have a lot of questions after I leave here, but right now I want to zero in on you, Ms. Chambers. And you gave a lot of statistics there, and I'm hoping you have an answer that I asked the previous panel. When I asked Ms. Barnart about the Patent Office, and she gave me a very large percentage of Asian folks that were working there, I think 22 percent, do you happen to know what percentage of the SES in the patent side of the office are Asian? Ms. Chambers. Well, this is a very interesting question, because I am from the Patent Trademark Office. Mrs. Davis of Virginia. That's why I'm asking the question. Ms. Chambers. And I can tell you on the patent side as far as Asian American--Asian Pacific Americans go, there are--let's see. There are three Asian Pacific Americans, two males and one female. And I'm the one female. Mrs. Davis of Virginia. Out of--and that is SES? Ms. Chambers. SES. Mrs. Davis of Virginia. Out of how many? Ms. Chambers. Out of 24 group directors. As Ms. Barnart said, the group director position is highly technical, specialized. So they manage the 10 examining groups. So there are a total of 24 group directors; and of the 24, three Asians including myself. And as far as--I'm trying to think--African- American goes, I think there is two African-American women and no Hispanic. Mrs. Davis of Virginia. No African-American males, just women? Ms. Chambers. Just women at this time. Mrs. Davis of Virginia. If our math is right, that's 8 percent Asian Pacific Americans out of 22 percent in the pool. Is that about right? Eight percent that are SES out of 22 percent in the pool? Ms. Chambers. Yeah. Mrs. Davis of Virginia. I'm sure I've got a lot of questions for the rest of you. I've got to tell you, Ms. Harrington-Watson, you did an excellent job summarizing your statement, and I really appreciate it. So don't think we missed anything. Ms. Harrington-Watson. Thank you. I was wondering if I was going to get that compliment. I really tried. Mrs. Davis of Virginia. You did an excellent job, you certainly did. You get an A plus in my book. I want to thank all of you for being here. We did have a very long hearing and a lot of witnesses. But we heard a lot. And I will just say to you, Ms. Harrington-Watson, what you said about not liking going outside of the Federal Government to find those who move up, that puts us back, if I'm not mistaken, Mr. Davis, puts us back in the same dilemma if we did that. If the diversity level right now is low and if we had to pull from the pool of the low percentage, we can't ever increase the percentage. Ms. Harrington-Watson. Well, let me just give you a scenario, and just see what you think about this opinion. We may be talking about low pools, but when there is no selection within the available pool, that is the real issue at hand. If you have a limited number, yes, I agree, let's go outside, let's recruit, really recruit; but in most agencies, you have anywhere from 5 to 15 percent in those 14, 15 levels already. Mrs. Davis of Virginia. Of minorities? Ms. Harrington-Watson. Of minorities. And they are not making the highly qualified list. Now, there are a lot of reasons, many we would like to explore in the future. In fact, that was one of the questions to OPM is how can you help us identify what you see as the shortcoming for minorities when they apply for SES positions, because as you know when you go through that ECQ process and if you don't write in the first person, if you don't put certain data there, then you're just completely knocked out. So if we're not making the connection in application processing, let's work on that. If we're not making the connection based on first line elimination, which happens at many agencies where the first line supervisor decides which candidates to even send forward, then let's work on that. If the certification process is where we're losing those minorities that we feel like are highly qualified and have been working in agencies 10, 15 years, then let's work on that. Right now I would think that we are void on enough data to understand what are the shortcomings and the inside candidates receiving true consideration. Mrs. Davis of Virginia. Well, it's certainly a lot of food for thought for us here, and I'm sure this isn't the last that we've heard of this subject. And I'm certainly going to work with my colleague, Mr. Davis, to see what we can do. You know, it used to be that I thought White females were part of the minority, but I see here today we're not based on this breakdown. And everybody told me we've come a long way, baby, but not necessarily up here on the Hill. So I understand what you're saying. Anyway, I thank you all for being here today and for your patience, and like I said, we will submit questions to you for---- Mr. Oliverez. Madam Chairwoman, may I say something? Mrs. Davis of Virginia. Sure. Mr. Oliverez. (Speaks in Spanish.). Mrs. Davis of Virginia. I have no idea what you said, but thank you. Thank you all. Thank you. The hearing is adjourned. 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