THE INTELLIGENCE WORKFORCE FOR THE 1990S: A REVIEW OF PERSONNEL AND COMPENSATION SYSTEMS TO MEET CURRENT AND FUTURE MISSIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000200230001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 18
• Document Creation Date: December 22, 2016
• Document Release Date: October 25, 2012
• Sequence Number: 1
• Content Type: REPORT

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National Academy of Public Administration
The Intelligence Workforce for the 1990s:
A Review of Personnel and Compensation Systems
to Meet Current and Future Missions
Philip A. Odeen, Chair
Julius W. Becton
James Colvard
Bobby R. Inman
Carol Laise
Fred Meuter, Jr.
William G. Miller
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Officers of the National Academy
Joseph L. Fisher, Chairman of the Board
Astrid E. Merget, Vice Chairman
Ray Kline, President
Sheldon S. Cohen, Secretary
Anita Alpern, Treasurer
Academy Studies
Roger L. Sperry, Director
National Academy Panel on Intelligence Agency Personnel Systems
Philip A. Odeen, Chair
Honorable Julius 4d. Becton
James Colvard, Ph.D.
Admiral Bobby R. Inman
Honorable Carol Laise
Fred Meuter, Jr.
William G. Miller
Project Staff
Don I. Wortman, Project Director
Frank A. Yeager, Deputy Project Director
Sammie Bear, Executive Assistant
John M. Clarke, Research Associate
Joseph W. Howe, Research Associate
Elaine L. Orr, Writer/Editor
Donald E. Smith, Research Associate
Winifred Steinbach, Secretary
John R. Wilson, Research Associate
James Y. Sweet, Research Associate
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As required in the Intelligence Authorization Act for
Fiscal Year 1988, the National Academy of Public Administration
is submitting to Congress the final report on its study of the
Intelligence Community's personnel systems.
The study was led by an Academy panel of senior executives
with experience in national security and managing large
organizations.
The objective is to provide the congressional intelligence
committees with findings and recommendations to help them and
the Intelligence Community improve human resources management.
This analysis is timely as these agencies prepare to fulfill
their complex missions in the face of a changing workforce and
increased private sector competition for talented people.
Throughout the study, the panel and its project staff
received the cooperation and assistance of many men and women
within the Intelligence Community, and the Academy appreciates
their support.
Ray Kline
President
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VOLUME ONE
Preface
Table of Contents
Executive Summary
List of Acronyms
Chapter One: Introduction
1
I. Changing Functions Reflect Breadth of Missions
II. History of Different Treatment of Intelligence Agencies
3
4
III. Observations on Counterintelligence
IV Value of Flexible Human Resource Management Approach
6
7
V. Organization of this Report
8
Chapter Two: Changing Workforce Will Alter the World of Work
9
I. Who Will Work in the Coming Decade
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9
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B. Expected Impact of Change on the Federal Workforce
11
II. Availability of New Workers
13
A. Education Preparation
B. Higher Education Trends and Job Requirements
C. Growth in Occupations Requiring Advanced Degrees
A. Private Sector Response
B. Federal Response
C. Responses Within the Intelligence Community
V. Conclusions: Changing Workforce and Intelligence Agencies
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Chapter Three: Hiring and Keeping the Best Personnel 25
I. Impact of Changing Authorization Levels 25
Conclusions and Recommendations: Changing Authorization Levels 27
II. Recruiting the Best and the Brightest 27
A. Varying Success for Critical Skill Recruiting 27
Conclusions and Recommendations: Varying Success in
Critical Skill Recruiting 29
B. Continuing Difficulty Predicted 30
Conclusions and Recommendations: Continuing Difficulty
Predicted 32
C. Military Intelligence Components: Greater Hiring Difficulty 33
Conclusions and Recommendations: Military Intelligence Hiring 34
D. Predicted Changes to Agency Skill Needs 35
E. Recruitment Coordination Lacking 35
Conclusions and Recommendations: Recruitment Coordination 35
III. Impact of Personnel Security Requirements on Recruiting 36
Conclusions and Recommendations: Personnel Security 37
IV. Retaining Talented Staff 38
Conclusions and Recommendations: Retaining Talented Staff 39
Chapter Four: Investing in the Intelligence Community Workforce
I. Training for Mission Accomplishment
A. Different Levels of Effort
B. Intelligence Community Cooperation on Training
C. Agency Assessments of Training Programs
D. Agencies Looking Ahead
Conclusions and Recommendations: Training for Mission
Accomplishment
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II. Career Development of Intelligence Community Personnel 47
A. Amount Varies Among Agencies 48
B. Relation of Career Development and Agency Planning 50
C. How the Agencies are Looking Ahead 51
Conclusions and Recommendations: Career Development 52
III. Staffing Reductions and Outplacement: Ensuring the Investment
is With the Right People 53
A. Staff Reductions 54
B. Removal Authorities 54
C. Outplacement Programs
Conclusions and Recommendations: Staffing Reductions and
Outplacement: Ensuring the Investment is With the Right People 57
Chapter Five: Creating a More Diverse Workforce 59
I. Marked Variations in Workforce Profiles
II. Recruitment Efforts
Conclusions: Recruitment Efforts
III. Working Within the Heterogenous Workforce
A. Promoting and Retaining Staff
B. Preparing the Workplace to Dear with Differences
Conclusions: Working Within the Heterogeneous Workplace
Conclusions and Recommendations: Creating a More
Diverse Workforce
Chapter Six: Compensation Systems for the Next Century 73
A. Intelligence Agency Independence from General Schedule 74
vii
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II. Different Pay for Work at the Same Grade
A. Variations in Starting Salaries
B. Different Promotion Intervals
C. Special Salary Rates Help Close Market Gap
Conclusions and Recommendations: Different Pay for Work at
the Same Grade Level
III. Domestic Salary Rates and Allowances Vary
A. Basic Pay Affects Allowance Rates
B. Different Amounts for Foreign Language Incentives
Conclusions and Recommendations: Domestic Special Pay and
Allowances
IV. Overseas Pay and Allowances Vary 85
A. Overseas Allowances 85
B. Key Differences in Overseas Pay 95
Conclusions and Recommendations: Overseas Pay and Allowances 98
V. Enhanced Pay Flexibility 99
A. Federal Experimentation and Proposals 100
B. Private Sector and Other Public Sector Experience 101
C. NSA Proposals for Flexible Pay and Bonus Authority 103
Conclusions and Recommendations: Enhanced Pay Flexibility 104
VI. Benefits Proposals Reflect Workforce Changes 105
A. Comparing Federal and Private Sector Benefits 105
B. CIA Proposal for Flexible Benefits 106
Conclusions and Recommendations: Benefits Proposals 107
Overall Conclusions and Recommendations: Compensation Systems
for the Next Century 109
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Chapter Seven: Coordinating Human Resource Policy
I. Congressional Concern on Lack of Coordination
II. Framework for Coordination
III. Possible Options for Coordination
Option 1: Agency Comparative Analysis of
Legislative Proposals for HRM Change
Option 2: Senior Coordinating Group
Option 3: DCI Expanded Leadership
III. Panel Preference for Senior Coordinating Group
Chapter Eight: Managing the Intelligence Workforce
for the 1990s and Beyond
I. Flexibility and Strategic Planning
II. From Flexibility to Enhanced Productivity
III. Support for Appropriate Rates of Pay
IV. With Flexibility Comes Accountability
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Appendices
A. Scope and Methodology
B. Intelligence Agency Compensation Programs
C. The Central Intelligence Agency Flexible Benefits Proposal
D. Compensation Experiences of Some Other Organizations
E. Agency Removal Authorities, Staff Reduction Policies and
Outplacement Programs
F. Agency Staffing Programs
G. Impact of Personnel Security on Recruitment
H. Agency Efforts to Create a Diverse Workforce
I. Agency Training and Career Development Programs
J. Summary of Employment-Related Restrictions on IC Personnel
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In the 1988 Intelligence Authorization Act, Congress directed
that the National Academy of Public Administration (NAPA) perform a
comprehensive review and comparative analysis of the civilian
personnel management and compensation systems of agencies in the
Intelligence Community (IC). In requiring this study, Congress
emphasized the importance to national security of effective human
resource management (HRM) within elements of the Intelligence
Community (hereafter referred to as the "intelligence agencies")
and further highlighted its recognition of the many unique aspects
of the intelligence work environment.
The breadth and complexity of global issues with major
national security implications have grown in the past decade.
Issues such as arms control verification, narcotics traffic,
terrorism and international capital flows are now high on the
agenda of U.S. policy makers, resulting in a demand for new types
of intelligence. Changes in intelligence collection techniques
over the past 20 years have dictated new and highly technical
skills. At the same time, the intelligence agencies had to
accommodate large fluctuations in staffing levels. Substantial
reductions between 1969 - 1979 were followed by major rebuilding in
the 1980s. The U.S. intelligence agencies have responded well to
these challenges and in most cases have maintained and further
developed a multi-skilled, technologically adept workforce.
As the intelligence agencies approach the 1990s, neither they
nor the NAPA panel expect .growth rates as in the 1980s. Instead,
staffing levels will probably hold steady or be reduced. The U.S.
labor force will also grow at a slower rate, and the number of
young people entering the workforce will decline relatively and
absolutely. While this might imply that the Intelligence Community
will not be disadvantaged by the diminishing supply of entry-level
workers, this is not the case. In fact, at the same time that jobs
are requiring higher levels of math, science and literacy than ever
before, employers are becoming increasingly dependent on workers
who often receive the poorest education. The prognosis for a match
between the increasing skill demands of the intelligence agencies
and the crop of future workers is poor. Given the challenge posed
by these labor force projections, the intelligence agencies must
develop even more resourceful and innovative responses to ensure
continued ability to staff positions with the required skill mix.
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The intelligence agencies with the most flexible appointment
and compensation authorities -- CIA, NSA and, beginning in 1984,
DIA -- demonstrated the greatest ability to recruit and retain a
quality workforce in the 1980s, a time of rapid agency growth
coupled with extensive marketplace competition for skills most
crucial to intelligence agency needs. The panel believes
flexibility is fundamental to the ability of the intelligence
agencies to successfully carry out their unique missions, and urges
that Congress continue to provide authorities that permit flexible
personnel policies.
To further equip the intelligence agencies to meet the
workforce challenges of the coming decade, the panel recommends
that Congress grant additional personnel authorities.
-- All intelligence agencies should have the authority,
similar to that of CIA, to select, appoint and
compensate staff such that they can attract and retain a
high quality workforce. The panel does not believe the
Department of -State needs additional authorities, but
rather must create incentives to make service in its
Bureau of Intelligence and Research more
career-enhancing for foreign service officers.
-- In the case of the FBI, whose employees move in and out
of counterintelligence work, these authorities should be
extended to the entire bureau.
-- Compensation authorities should be broad enough to
permit the intelligence agencies to establish and pay
domestic local pay premiums for those employees who are
moved at the order of the government. The panel cites
the approval of a recent demonstration project for the
FBI in the metropolitan New York area as an example of
what can be done in an extreme situation.
-- NSA should be granted authority to test its proposed
revised compensation systems. Within these proposals,
the panel endorses recruitment, performance and
relocation bonuses, but not retention bonuses for
individuals.
-- The director of central intelligence should be permitted
to bring all intelligence agencies' overseas allowances
and benefits into alignment with those the secretary of
state establishes on behalf of U.S. government civilian
employees overseas.
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The intelligence agencies should be granted exemptions
from those portions of the Government Employees Training
Act that restrict certain expenditures for external
training, particularly those for attaining a degree.
Should a government-wide exemption not be proposed early
in the 101st Congress, the agencies should seek a
presidential exemption, as permitted in Title 5, U.S.C.,
section 4102.
-- The head of each intelligence agency ,should be
authorized to issue dual compensation waivers for a
limited number of individuals who possess specific skill
needs.
-- Heads or IC agencies should be authorized to approve
early optional retirement when it is necessary to reduce
strengths or when overages occur in specific
occupational skills.
The panel believes employees in the IC agencies should
be able to transfer from an excepted or exempt personnel
system to the competitive Civil Service. The panel
recommends that the IC staff examine the research done
to date on this issue and develop a proposal to advance
it.
The military department intelligence components have received
authority to implement additional authorities, similar to those
granted DIA. The panel strongly supports the timely implementation
of the Civilian Intelligence Personnel Management system, which
unfortunately has been delayed to January 1989, and even then will
not be fully implemented by all military departments.
One area in which the agencies did not take full advantage of
their more flexible personnel authorities was in recruiting members
of minority groups and, in some agencies, women. While the panel
recognizes that many of the occupations in the intelligence
agencies are not those that have traditionally been filled with
large number of women and members of minority groups, some agencies
clearly did better than others. The panel believes that the
intelligence agencies' top management did not focus on equal
employment issues to the same extent as other federal agencies did
in the 1980s. The agencies now describe recruiting programs that
indicate strong top management interest and active levels of
effort. The panel firmly believes that intelligence agency equal
employment efforts need strong commitment from the agency head and
senior staff, and should be an integral part of overall workforce
management -- recruiting, training, career development and
succession planning.
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Within the parameters of its personnel authorities, the CIA
has designed a flexible benefits program which it believes will
enable it to better meet the needs of an increasingly diverse
workforce. The panel fully endorses implementation of the proposed
benefits program, with a caution that the CIA carefully monitor the
cost implications of changes to health benefits. The panel
recommends that the CIA supply information on the results of this
to the Office of Personnel Management and Congress, for their use
in evaluating similar proposals from other agencies and determining
whether the flexible benefits can be extended throughout the
federal government.
The panel sees a clear need.for enhanced coordination of human
resource management (HRM) policies, and recommends that the IC
establish a Senior Coordinating Group (SCG), composed of IC
employees at the director of personnel level or higher. The panel
envisions that this group would report at a minimum semi-annually
to an NFIC-like committee composed of the heads of CIA, NSA, DIA,
and the intelligence components of the military departments, the
FBI and the State Department.
The panel envisions the SCG would coordinate a number of HRM
efforts, and that it would establish an annual agenda to review all
aspects of HRM. Specific topics to include are:
-- Recruitment, such that -- mindful of Privacy Act
implications -- the agencies share information on good
candidates when one agency cannot follow through to hire
a potential recruit.
-- Training, so that smaller intelligence agencies have
better access to the programs of larger agencies, and
there is less potential for duplication.
-- Basic ordering contracts so agencies can attain more
efficient delivery of external training. DIA is
examining this now, and this has the potential for
Community-wide use.
-- Compensation rate comparisons, especially as they
pertain to overseas pay. Equity and good management
require that employees performing like duties under
comparable circumstances be comparably compensated.
(This NAPA panel will examine this issue further,
particularly in the case of overseas pay, and will issue
a separate report to Congress.)
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-- Shared information on involuntary removal cases -- being
mindful of employee rights of privacy -- with the other
agencies of the IC, perhaps in coordination with the IC
Staff. The other agencies would have an opportunity to
do their own risk assessment, as may be applicable.
-- Placing surplus employees with other IC agencies when
one agency is faced with a staffing level reduction or
shift in skill needs.
-- Developing outplacement programs for those agencies
which do not have them or which have only limited
programs. Other agencies can look to the CIA and the
Department of State, as well as the private sector, for
examples.
Better Coordination Will Yield Enhanced Accountability
A further role, perhaps the more important one, for the Senior
Coordinating Group pertains to vetting legislative proposals before
the administration presents them to Congress. Such an inter-agency
group would help ensure an integrated approach toward proposed HRM
changes within the IC. At the same time, this would leave
responsibility for assessing the potential impacts of change with
the intelligence agencies, rather than forcing congressional
committees to try to assess the implications of proposals.
Further, the panel recommends that the intelligence agencies
keep congressional committees apprised of major issues which may
give rise to important changes in HRM policies. The panel
emphasizes that this communication should be at the broad, policy
level. The panel sees no reason for congressional committees to
become involved in most aspects of agency management.
The objective is to strike a balance between appropriate
communication and reporting mechanisms, so that Congress has the
information it needs to perform effective oversight and the
agencies have the freedom they need to operate within the
parameters of their statutes and management structures.
While the panel favors coordinated change, it cautions that
the Congress not regard uniformity as an end. The intelligence
agencies are, in varying degrees, parts of larger organizations
with different cultures, authorizing committee jurisdictions and
missions. Uniformity would be difficult to achieve and -- given
the diverse missions and agency structures -- would thwart
innovation. Also, there is clear evidence that the federal
government is moving away from the concept of uniformity, as
reflected in the Office of Personnel Management's advocacy of
decentralized approaches to personnel management and many
demonstration projects.
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A final area, one which Congress has paid particular attention
to in recent years, is counterintelligence and the role of agency
personnel security programs in safeguarding national security
information. The panel notes that agencies operate under similar
statutes with respect to Sensitive Compartmented Information, and
they are covered by a DCI directive on security procedures.
However, practices vary greatly, as does the extent to which
counterintelligence issues are woven into agency training and
career development programs. The panel strongly supports the
Intelligence Community's efforts to upgrade personnel security and
more fully integrate it into all aspects of human resource
management.
The panel commends the individual agencies and Congress for
their efforts to anticipate workforce changes and develop HRM
systems to help address issues which arise. The panel is confident
that the IC agencies and Congress can work together to ensure the
flexibilities that will produce an intelligence workforce able to
fulfill the required missions of the 1990s and beyond.
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List of Acronyms
ACTEDS Army Civilian Training, Education and Development System
CIA Central Intelligence Agency
CIARDS CIA Retirement and Disability System
CIPMS Cvil~an Intelligence Personnel Management System
CSRA Civil Service Reform Act
CSRS Civil Service Retirement System
CSS Central Security Service
DCI Director of Central Intelligence
DIA Defense Intelligence Agency
DIC Defense Intelligence College
DISCAS Defense Intelligence Special Career Automated System
DOD Department of Defense
DOE Department of Energy
FBI Federal Bureau of Investigation
FCI Foreign Counterintelligence
FEGLI Federal Employees Group Life Insurance
FEHBP Federal Employees Health Benefits Program
FERS Federal Employees Retirement System
FES Factor Evaluation System
FS Foreign Service
FSI Foreign Service Institute
GAO General Accounting Office
GETA Government Employees Training Act
GS General Schedule
HPSCI House Permanent Select Committee on Intelligence
HRM Human Resources Management
HUMINT Human Intelligence
IC Intelligence Community
ICDP Individual Career Development Plan
ICS Intelligence Community Staff
INR Bureau of Intelligence and Research
MSPB Merit Systems Protection Board
NCS National Cryptologic School
NFIC National Foreign Intelligence Committee
NFIP National Foreign Intelligence Program
NSA National Security Agency
OPM Office of Personnel Management
OTE Office of Training and Education (CIA)
PATCO Professional/Administrative/Technical/Clerical/Other
RIF Reduction in Force
SCI Sensitive Compartmented Information
SSCI Senate Select Committee on Intelligence
TPF&C To~aers, Perrin, Forster & Crosby
U.S.C. United States Code
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