LIST OF MATERIALS TRANSMITTED FOR SSG COMMENT OCTOBER 20, 1988

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90M00005R000200030007-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 50
• Document Creation Date: December 23, 2016
• Document Release Date: August 16, 2012
• Sequence Number: 7
• Publication Date: October 20, 1988
• Content Type: MISC

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LIST OF MATERIALS TRANSMITTED
FOR SSG COMMENT OCTOBER 20, 1988
Comments on this material requested by October 27, 1988.
Comments may be made by telephone or in writing.
1. Chapter One: Introduction
2. Chapter Two: Changing Workforce Will Alter the World of
Work
3. Chapter Three: Coordinating Human Resource Policy
4. Chapter Five: Hiring and Keeping the Best Staff
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v.
CHAPTER ONE
INTRODUCTION
With the passage of the National Security Act of 1947, Congress
recognized the importance of timely and accurate intelligence
information about the activities, capabilities, and intentions of
foreign powers. Placement of the Director of Central Intelligence
(DCI) under the direction of the National Security Council
emphasized the critical relation of intelligence to national
security.
The importance of timely and accurate intelligence to national
security is no less today and cannot be expected to lessen in the
future. To meet this need it is vital that the organizations
providing intelligence to US policy makers be of the highest
quality. Quality products do not come from average organizations.
The quality of an organization is in large measure determined
by the quality of its staff. No organization can be a top calibre
one unless it can attract and retain high quality, dedicated staff.
There is growing concern about the increasing inability to attract
to the federal government the country's best talent.
This issue must De a major concern to the Congress and the
Intelligence Community. The changing techniques of intelligence
call for staff with new tecnnical skills and increasing management
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competence if the intelligence agencies are to respond to the
ever-changing activities and work methods needed to fulfill their
missions.
The Congress has directed increasing attention to human
resource management (HRM) in the intelligence community in recent
years. The focus has been on HRM quality and on personnel costs,
which are a substantial portion of the intelligence budget. In
requesting that the National Academy of Public Administration
conduct this study, recognized the importance of effectively
managed, quality staff to an effective intelligence program.
The Congress directed that NAPA perform a comprehensive review
and comparative analysis of the civilian personnel management and
compensation systems of the Intelligence Community (IC). In this
study the NAPA panel:
Examined the need for significant change in the existing
IC personnel systems given the strategic trends in the
intelligence function and the economic, social, and
demographic trends in U.S. society.
Examined these personnel systems to ascertain if they will
be adequate to attract and retain the highest quality
personnel through the 1990s.
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Analyzed personnel issues facing the IC that may differ
greatly from those facing the federal government in
general.
Compared the personnel needs and requirements facing the
individual IC agencies, with due regard for the differing
missions, risks, job requirements and environments of the
organizations in the-community.
The Congress directed the Academy panel to recommend changes,
if warranted, in legislative, regulatory, or other areas in the
personnel and/or compensation programs to improve the effectiveness
of the personnel systems of the IC agencies and to ensure they are
able to accomplish their missions in the year ahead.
The seven member NAPA panel, assisted by its project staff,
has reviewed issues which encompass:
How anticipated changes in the U.S. workforce will affect
intelligence agencies.
The impact of future intelligence requirements on human
resource management systems, and how these systems might
be organized to meet changing needs.
Different levels of compensation within the intelligence
agencies and how they compare to the rest of the federal
government and the private sector.
Recruitment and retention , especially as they relate to
critical skill occupations, and whether personnel security
requirements adversely affected agencies' ability to get
quality staff.
How well the agency career development and training
programs support current and future mission accomplishment.
Efforts the agencies have undertaken to make their
workforces more representative of all groups within the
U.S. population, and whether current levels of effort will
enable the agencies to continue to diversify their
workforces.
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In addition, the Senate Select Committee on Intelligence
requested that NAPA review IC staffing costs and make appropriate
recommendations on ways to constrain these costs without adversely
affecting intelligence missions. This report addresses these
possibilities in the context of overall workforce efficiency.
Principal findings are presented in Volume I of this report.
Supplemental information, including a great deal of comparative
information on each subject examined, is contained in Volume II.
This introductory chapter describes the agencies' breadth of
missions and the history of special treatment Congress rias
considered necessary for these agencies.
I. CHANGING FUNCTIONS REFLECT BREADTH OF MISSIONS
While enabling statutes are largely unchanged, the activities
the intelligence agencies perform and the priorities they address
to fulfill their missions are continually adapted to changing
national security needs. As recently as five years ago, few
experts would have predicted the roles many of the agencies now
play in monitoring arms control agreements or tracking
international financial dealings -- especially those related to
drugs. Certainly, glasnost and perestroika were not in most
Americans' vocabularies, and their impact on agency missions can
still not be fully predicted.
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The breadth and complexity of global issues with significant
national security implications has grown in the last decade and the
panel foresees no diminution in this trend. Terrorism, narcotics,
nuclear proliferation, evasions of U.S. export controls, arms
transfer, trade and business practices of our allies and of
third-world countries, and international financial markets all
require continuing attention. While the agencies have different
roles vis a vis these issues, they must all adapt to these added
complexities.
The principal foreign challenge continues to be the USSR, and
the changes going on in that nation are of such a magnitude that
the intelligence agencies must not only maintain their current
level of effort but also adapt that first priority effort to very
new circumstances in that country.
Concurrent with these mission changes, the intelligence
agencies have had to adjust to significant shifts in staffing
levels -- major reductions in the 1970s followed by major
rebuilding in the 1980s -- and in their employee skill mix, as they
have come to increasingly rely on technical collection systems.
While the intelligence agencies are not expecting major shifts
in skills requirements over the next decade, they do anticipate an
increased need for people with a blend of skills. They expect to
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have to develop strategies to meet unexpected requirements, some of
whicn may require different expertise than now available. The
agencies will continue to have workload surges as unpredicted world
events transpire.
II. HISTORY OF DIFFERENT TREATMENT OF INTELLIGENCE AGENCIES
The intelligence agencies differ from other federal agencies
in a number of ways. Intelligence Community staff are subject to
detailed security investigations, limited job security, little
input to geographic work locations, limitations on personal travel,
and in some cases danger to personal safety.
One of the most signigicant differences is the need for
secrecy. In designating that the Director of Central Intelligence
protect intelligence sources and methods from unauthorized
disclosure, Congress emphasized the importance of secrecy in
intelligence activities. Some believe that President Eisenhower
said it best when he said of intelligence:
Success cannot be advertised: failure cannot be
explained. In the work of intelligence, heroes are
undecorated and unsung, often even among their own
fraternity... -- their reward can be little except
the conviction that they are performing a unique and
indispensable service for their country, and the
knowledge that America needs and appreciates their
efforts.
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Congress further emphasized the vital need to maintain the
confidentiality and secrecy of intelligence activities and personnel
when it passed the Intelligence Identities Protection Act of 1982
(50 U.S.C., 421 - 426). This law makes it a crime for people who
have or previously had access to classified information to
intentionally disclose to unauthorized recipients any information
identifying a covert intelligence agency employee who is serving
outside the U.S. or did so in the past five years. The Act was
intended to halt efforts to identify covert agents, recognizing that
such actions jeopardize their lives and safety and damage the
ability of the U.S. to safeguard national defense and conduct
effective foreign policy.
The nature of the intelligence community is further
demonstrated through the special handling processes for intelligence
program and budget review within the executive branch and in
Congress. Because of security requirements, the intelligence
agencies are also exempt from portions of the Freedom of Information
Act and from the Federal Labor Management Relations Program.
The courts regularly uphold the special nature of intelligence
work. In one case in which an employee leaked information to the
press (U.S.A. v. Samuel Loring Morison), the U.S. Court of Appeals
noted:
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Intelligence gathering is critical to the formation
of sound policy, and becomes more so every year with
the refinement of technology and the growing threat
of terrorism. Electronic surveillance prevents
surprise attacks by hostile forces and facilitates
international peacekeeping and arms control efforts.
Confidential diplomatic exchanges are the essence of
international relations. None of these activities
can go forward without secrecy.
The U.S. Supreme Court ruled that the Merit Systems
Protection Board (MSPB) did not have the authority to review
either the substance of an underlying security-clearance
determination or tne due process procedures associated with it in
the course of reviewing an adverse action. The Court noted that
placing the burden of proof upon the government "would involve the
Board in second-guessing the agency's national security
determinations. We consider it extremely unlikely that Congress
intended such a result when it passed the Act and created the
Board." (Dept. of the Navy v. Thomas E. Egan)
A. Personnel Systems Reflect Special Circumstances
A further marked difference between intelligence agencies and
their federal counterparts lies in their personnel systems. Over
the Years, Congress has given agencies within the Intelligence
Community varying levels of authority to appoint staff, determine
occupational requirements, set pay rates, evaluate employee
performance and terminate staff without regard to the normal civil
service rules. The CIA's authorities were granted in their
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initial legislation. The NSA's independent personnel system was
created with the National Security Act of 1959, because the need
for secrecy in their job structure made it impractical to be
subject to Civil Service Commission oversight.
The DIA and military intelligence authorities were granted
more recently (1984 and 1987), and were largely based on the
agencies' inability to attract and retain top staff, given their
inability to compete with the more flexible systems of NSA and
CIA. The FBI's excepted authorities were extended to all staff by
an Executive Order in 1941, but it operates within traditional
Title 5 for pay schedules and rates. Congress has not granted
special personnel autnorities for the intelligence components
within the Department of State's Bureau of Intelligence and
Research.
Congress also has highlighted the special needs of those CIA
employees whose duties are especially hazardous or entail special
security requirements when it created the CIA Retirement and
Disaoility System (CIARDS 50. U.S.C. 403). While these kinds of
demands may not be equally placed on all Intelligence Community
staff, it is important to recognize that they do exist for some
staff. The human resource management systems of the IC agencies
must be able to effectively meet the special needs of those staffs
who work under these unique requirements, as well as staff less
exposed to personal danger or covert lives.
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III. VALUE OF FLEXIBLE HUMAN RESOURCE MANAGEMENT APPROACH
The intelligence agencies expect budgets and staffing levels
to stabilize, and the NAPA panel concurs in this view. At the
same time, collection capabilities acquired when resources were
increasing will lead to "data explosions," meaning the agencies
will need more analytical capability, either human or artificial.
To meet changing requirements and enhanced data availability,
the intelligence agencies will need to attract, retain, train and
retrain a workforce with the skill mix that will meet national
security needs. These efforts will have to be accomplished in a
climate of constant or declining staffing levels within a labor
market undergoing major changes. Yet, there are limits to the
intelligence agencies' abilities, and to that of the IC as a
whole, to do realistic long range HRM planning. Perhaps because
they have concentrated on reacting quickly to international issues
or crises, the agencies do not have well-developed HRM planning
strategies. The issue is whether their personnel systems are
flexible enough to function effectively in a dynamic job market,
and meet the needs of their changing workforce.
The panel believes that the intelligence agencies with the
greatest flexibility to appoint and compensate have demonstrated
the greatest ability to recruit and retain a quality workforce in
the 1980s, a time of considerable agency growth and extensive
marketplace competition for people with the skills most critical
to agency needs.
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The CIA and the NSA have the greatest legal authority to
respond to these challenges. Under its 1984 legislation, the DIA
has made major changes in its personnel systems and now has the
tools to more readily meet these challenges. The military
department intelligence components have had considerable
difficulty in recent years. The Civilian Intelligence Personnel
Management System (CIPMS), scheduled to be phased in beginning in
January 1989, will hopefully provide the tools needed to bring
about improvements those organizations need.
In the panel's view, the flexibility provided these agencies
to establish agency specific personnel systems offers the best
hope that these agencies will be able to meet the HRM challenges
of the future, a time which may require adjusting the workforce to
periods of no growth. The panel strongly recommends that the
intelligence agencies retain these flexibilities in their
personnel systems. This report recommends additional, specific
flexibilities to accommodate periods of stability and growth, as
well as to address distinct issues.
Further, this flexibility must continue to recognize and
enable the government to respond to the unique circumstances under
which some staff of the Community work. Congress has done so in
enacting CIARDS for selected CIA staff and should consider the
special needs of any staff in other community agencies who might
be required to work under comparable circumstances.
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Combined with appropriate accountability within the
organizations and to Congress, tne panel believes that additional
management discretion is needed to provide managers with the human
resource management tools they need to fulfill their agencies'
missions. The panel commends the Congress for providing the
agencies with their current levels of flexibility, and for
commissioning this study as it anticipates further demands on the
intelligence worKforce and the challenge of recruiting, retaining,
training and retraining high quality staff.
#393 - October 18, 1988
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REFERENCES
Authored works
Bernstein, Aaron, "Where the Jobs are is Where the Skills Aren't,"
Business Week, 9/19/88, pp. 104 - 108.
Bezold, Clement, et. al., The Future of Work and Health, prepared
for the Institute for Alternative Futures, Auburn House Publishing,
Dover, MA, 1986.
Carnevale, Anthony P., "Human Capital: A High-Yield Corporate
Investment," in The World of Work: Careers and the Future, edited
by Howard F. Didsbury, Jr., World Future Society, Bethesda, MD, 1983.
Ehrlich, Elizabeth and S.B. Garland, "For American Business, A New
World of Workers," Business Week, 9/19/88, pp. 112 - 120.
Ehrlich, Elizabeth, "America's Schools Still Aren't Making the
Grade," Business Week, 9/19/88, pp. 129 - 136.
Finn, Micnael G., "Foreign Engineers in the U.S. Labor Force," in
Foreign and Foreign-Born Engineers in the United States: Infusing
Talent, Raising Issues, National Academy Press, Washington, D.C.,
1988.
Fullerton, Howard N., Jr., "Labor force projections: 1986 - 2000,"
Projections 2000, Department of Labor/Bureau of Labor Statistics,
Bulletin 2302, March 1988, pp. 17 - 27.
Gordon, Theodore J., "Beyond Conventional Wisdon: Lifestyle Long
Snots," in Working in the Twenty-First Century, edited by C. Steward
Sheppard et. al., John Wiley & Sons, New York, 1980.
Kaufman, Pnillip, Growth in Higher Education Enrollment: 1978 to
1985, Center for Education Statistics, U.S. Department of Education,
an issue paper of the Office of Educational Research and
Improvement, Wasnington, D.C. 1986. (Pub. # CS 87-427)
, Trends in Elementary and Secondary Public School
Enrollment, Center for Education Statistics, U.S. Department of
Education, an issue paper of the Office of Educational 1Research and
Improvement, Washington, D.C., 1987. (Pub. # CS 87-425)
Kutscher, Ronald E., "Overview an implications of the projections to
2000," Projections 2000, Department of Labor/Bureau of Labor
Statistics, Bulletin 2302, March 1988, pp. 1 - 7.
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Lampert, Richard D., Points of Leverage: An Agenda for a National
Foundation for International Studies, Social Science Research
Council, New York, 1986.
Levitan, Sar A., "Beyond 'Trendy' Forecasts: the Next 10 Years of
Work," in Careers Tomorrow: The Outlook for Work in a Changing
World, edited by Edward Cornisn, World Future Society, Bethesda, MD,
1988.
Nussbaum, Bruce, "Needed: Human Capital," Business Week, 9/19/88.
pp. 100 - 103.
Pennar, Karen, "It's Time to Put our Money Where our Future Is,"
Business Week 9/19/88, pp. 140 - 141.
Personick, Valerie A., "Industry output and employment through the
end of the century," Projections 2000, Department of Labor/Bureau of
Labor Statistics, Bulletin 2302, March 1988, pp. 28 - 43.
Porter, Joanell T., Highlights: 1985 Recent College Graduates
Survey, Center for Education Statistics, U.S. Department of
Education, Office of Educational Research and Improvement,
Wasnington, D.C., undated.
Unauthorea or organizational works
Employee Benefit Research Institute, Fundamentals of Employee
Benefit Programs, EBRI Research Institute, Washington, D.C., 1987.
Hudson Institute, Workforce 2000: Work and Workers for the
Twenty-first Century, Hudson Institute, Indianapolis, IN, June 1987.
Summary Report 1986: Doctorate Recipients from United States
Universities, Office of Scientific and Engineering Personnel of the
National Research Council, National Academy Press, Washington, D.C.,
1987.
Committee on the International Exchange and Movement of Engineers,
Foreign and Foreign-Born Engineers in the United States: Infusing
Talent, Raising Issues, National Research Council, National Academy
Press, Washington, D.C. 1988.
U.S. Department of Education, Center for Education Statistics,
"Bacnelor's and Higher Degrees Conferred in 1985 - 86," Bulletin of
tne Office of Educational Research and Improvement, Washington,
D.C., December 1987. (Pub. # CS 88-259b)
U.S. Department of Labor, Chart in "The Changing Labor Force,"
Occupational Outlook Quarterly, Fall 1987, p. 8.
US Office of Personnel Management, Civil Service 2000, prepared for
OPM by the Hudson Institute, Washington, DC, 1988.
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DRAFT
CHAPTER TWO
CHANGING WORKFORCE WILL ALTER THE WORLD OF WORK
A mass of recent studies have compared the expected crop of
future workers to the increasing skill demands of the
information-age workplace; the prognosis for a match is poor. Given
tnat skilled employees are critical to organizational performance,
the federal government is beginning to address the impact these
changes will have on its workforce.
When looking at the composition of today's intelligence
agencies and envisioning their future workforces, it is difficult to
avoid the "demographics as destiny" scenarios put forth in many
future-oriented analyses. These projections are important, and much
of tne discussion here will use them. However, they need not
portend severe skill shortages. The intelligence agencies have the
chance to act on this information to develop more proactive human
capital development policies, and thus mitigate some of the
potential impact.
This chapter examines changing workforce demographics and
values in the context of tile Intelligence Community of today and
what the agencies whicn comprise it will have to do to ensure they
can respond to the ever-changing challenges of their national
security missions.
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DRAFT
I. WHO WILL WORK IN THE COMING DECADE
While "the future" is an abstract term, it is a fact that five
of every six people who will be in the labor force in 1997 are
already worKing or looKing for jobs today. In 1988, the median
years of education required of new jobs is 12.8, 54.5 percent of
families have two wage earners, unemployment is at an eight-year low
of 5.5 percent, and the nigh-school drop-out rate continues to
increase in many urban areas.
With an older, slower growing, more ethnically diverse and more
female workforce is projected for the turn of the century, change
will become the norm in many respects.
A. Basic Demographic Projections
Tne next decade will see a labor force growing at a slower rate
tnan at any time since the 1930s. Moderate growth projections call
for the labor force to expand by nearly 21 million, 18 percent,
between 1986 and 2000. This is a slowdown in numbers and rate of
growth compared to the previous 14 year period, when the labor force
increased by almost 31 million or 35 percent.
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DRAFT
The number of young people (age 20 to 29) will decline
relatively and absolutely from 41 million in 1980 (18 percent of the
total workforce) to 34 million in 2000 (13 percent). Essentially,
the lower birthrate of the pre-"baby boom" generation will reassert
itself.
The median age of the population will oe 36 -- older than at
any time in the nation's history -- and the workforce will age with
it, from a median of 36 years in 1984 to 39 years in 2000. As Table
1 shows, the proportion of tne workforce in each age category will
shift as the birth rate decreases, baby boomers age and the labor
participation rate of those over 55 declines, largely because of
retirement incentives. This latter point may be mitigated somewhat
by retirees who choose to reenter the workforce, perhaps in a
part-time capacity, after having retired from a previous career.
Table 1
Age Groups as Proportion of the Workforce: 1986 - 2000
Age Group
Proportion of
Workforce, 1972
Proportion of
Workforce, 1986
16
to
24
23
20
25
to
54
60
67
55
&
older
17
13
Proportion of
Workforce, 2000
16
73
11
Source: Department of Labor, Occupational Quarterly, Fall 1987
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DRAFT
Between 1985 and 2000, 60 percent of new entrants to the
workforce will be women. By that time, 61 percent of all women will
work, and 47 percent of the total workforce will be female. Their
wages will be 74 p4rcent of those of their male counterparts, up
from the current 67 percent.
By tne year 2000, non-whites will grow from 13.1 percent to 15
percent of the total workforce. In so doing, they will represent 29
percent of the net addition to the workforce. The overall workforce
growtn rate will be 1.2 percent -- 1 percent for whites, 1.8 for
blacKs, 3.9 for Asians and 4.1 percent for Hispanics.
The greatest increase will be among working black women, who
will outnumber black men. This contrasts with the pattern among
whites, where working men outnumber working women almost three to
two. When workers of both sexes are considered together, the ethnic
group with the greatest projected increase will be Hispanics -- a 74
percent labor force increase, to become a total of 10 percent of the
U.S. workforce. Blacks will remain the largest minority group in
the workforce, comprising 18 percent of all workers by the year 2000.
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DRAFT
Wages for many members of minority groups, already below that
? of the average wages for white workers, are not expected to rise in
proportion to their labor force participation rate. The Bureau of
Labor Statistics (BLS) points out that blacks and Hispanics account
for a greater proportion of people employed in occupations that are
projected to decline or grow more slowly. The declining occupations
are those requiring the least amount of education and training, and
afford lesser opportunities. With these lesser requirements, come
generally lower salaries. BLS highlights the need for higher levels
of educational attainment if blacks and Hispanics are to take
advantage of job opportunities in rapidly growing occupations.
B. Expected Impact of Change on the Federal Workforce
Anticipating future workforce shifts, the Congress required in
the 1988 Appropriations Act that the Office of Personnel Management
(OPM) report on the long term workforce needs of the federal
government. Civil Service 2000, prepared for OPM by the Hudson
Institute -- author of Workforce 2000 -- looks at national trends,
what they might portend for the federal government as an employer,
and what could be done in anticipation of the future.
Civil Service 2000 finds today's federal workforce is better
educated, older, and comprised of a larger proportion of members of
minority groups. The report projects little overall workforce
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DRAFT
growth, a rise in tne female proportion of the workforce, growth in
the professional and technical categories, shrinkage in the clerical
fields, continued need for a workforce with language skills three
times greater than the national rate, and a growing need to reinvest
(largely through training) in senior-level technical personnel.
Unless the average tenure of federal workers drops sharply from
its current 13.5 years, more than half of the year 2000 federal
employees are already on the payroll. Already, the average age of
federal worKers is 41, compared to 36 for those elsewhere in the
economy. Over the next 12 years, if federal employment levels
remain stable, the average age will rise. Wnile this increase will
be true elsewhere in the U.S. workforce, the bulge of federal
workers now between the ages of 36 and 41 will cause a steady rise
in age until a "retirement explosion" begins in 2002.
Civil Service 2000 discusses a "slowly emerging crisis of
competence" in federal agencies, due to lack of competitive
compensation, falling public esteem for civil servants and outdated
management practices and needless aggravations. The report projects
recruiting and retention problems because of increased private
sector competition, the fact that a growing share of federal jobs
will fall into the highest skill (most competitive) categories, and
the loosening of the "golden handcuffs" through the new, portable
Federal Employees Retirement System.
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DRAFT
Given these expectations, the report recommends four steps
designed to develop better strategies for attracting, hiring,
training, motivating-and retaining talented people.
Recognize the varying federal agency structures and employee
needs by decentralizing authority and responsibility for
operations and hiring. Standardized recruitment,
classification and pay should give way to decentralized
personnel management.
Continue emphasis on hiring, training and promoting women and
members of minority groups. If it remains an exemplary
employer of these groups, the federal government can expect to
attract and keep more than its "fair share" of the best
qualified members of this changing workforce.
Substantially increase internal and external education of
federal workers. Since it will be difficult to compete for the
best qualified workers, federal agencies should systematically
invest more in their existing workforces; this is a
cost-effective way to build skills.
Upgrade federal pay and make benefit packages more flexible.
In return, demand performance. The other three steps will not
matter much unless the federal government can offer salaries
tnat are comparable with those offered by other employers. At
the same time, a small but important part of building a
quality workforce is tne flexibility to set high standards and
fire those who do not measure up.
Without reforms, some federal agencies may find that the
quality of services they can deliver will slowly erode. For the
federal government collectively, Civil Service 2000 says the time
to address these issues is now, before a slow decline or crisis has
irrevocably damaged the reputation for competence, honesty and
fairness that the federal civil service still enjoys. Given their
national security missions, these issues become even more important
for the intelligence agencies to address.
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DRAFT
II. AVAILABILITY OF NEW WORKERS TO THE INTELLIGENCE AGENCIES
Most professional jobs in the Intelligence Community are for
those with at least one college degree, and the agencies seek to
attract recruits at or near the top of their graduating classes or
professions. Regardless of whether the intelligence agencies will
be able to compete with others who want to hire this talent, it is
important to first examine the qualifications of those who will
comprise the entry level labor pool through the next decade.
A. Education Preparation
With its warning of a "rising tide of mediocrity," the National
Commission on Excellence in Education's report, A Nation at Risk,
focused the nation's attention on the deteriorating quality of its
schools. A discussion of now this occurred and what needs to be
done to repair damaged school systems is beyond the scope of this
report. The issue itself -- that increasing numbers of U.S.
students will not be well prepared for the world of work -- will
affect government in many ways.
The Department of Education notes that there has been a
substantial increase in the number and proportion of the nation's
schoolchildren coming to school from backgrounds that increase the
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DRAFT
chance that they will not do well in school. Many of these "at
risk" children will have one or more of the following
characteristics: poverty, non-English language bacKground, and
single-parent families. This increase in the "at risk" population
will continue into the 21st century, and many of these
children-turned-workers will be members of minority groups, who will
comprise a rising proportion of the labor pool.
Thus, with jobs requiring nigher levels of math, science, and
literacy than ever before, the workplace is becoming increasingly
dependent on workers who often receive the poorest education. This
will mean that employers will have to provide more basic skills
training for many clerical and para-professional staff. The good
news is that early childhood programs have been proven to make a
large difference in children's success in school, and governmental
and private organizations have recognized the need to devote more
resources to reaching children whose family environments don't
assure adequate learning skills. The not-so-good news is that only
18 percent of children eligible for Head Start programs are served
by tnem, due to inadequate funding.
The median years of education required of new job holders will
rise from 12.8 to 13.5 years between 1984 and 2000. Of all jobs
created, over half will require education beyond high school, with
one third filled witn college graduates. Today, only 22 percent of
all occupations require college degrees.
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DRAFT
While high school graduates will not comprise as large a
portion of intelligence agencies' workforces as they would at, for
example, the General Services or Social Security Administrations,
the agencies will need to prepare to provide additional basic skills
training for these workers. In addition, the fact that less skilled
workers will comprise an increasing proportion of the overall
workforce will mean that the intelligence agencies will face tougher
competition for more highly educated workers.
B. Higher Education Trends and Job Requirements
Today, only 22 percent of all occupations require a college
degree. By tne year 2000, more than half will require some
education beyond high school and nearly a third will be filled with
college graduates. The median years of education required by the
new jobs created between 1984 and 2000 will be 13.5, compared with
12.8 today.
In contrast, of the 2.4 million people who graduate from high
school each year, as many as 25 percent cannot read or write at the
eighth-grade level. The Educational Testing Service does report
that test scores in math, reading, computer literacy and science
have gone up since the mid-1970s -- with much of the improvement
among minority youth. However, there has been no improvement in
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1"1 I
nigher-order skills, those that the information age workplace
increasingly needs. American high school students score below their
foreign counterparts in international math and science tests, and
test nearly two to three years behind Japanese students. Thus, many
of those reaching young adulthood between now and 2000 will not meet
the higher level educational requirements of many intelligence
agency positions.
In addition, 20 of the 21 million new jobs projected to be
created between 1986 and 2000 will be in the service-producing
sector; only 4 percent of total employment growtn will be in
government, and most of this at the state and local levels. Thus,
the "cues" bright students get will lead them to college majors to
prepare not only for the private sector, but segments within it that
likely will not require coursework compatible with education needed
for intelligence work.
There are not many projection figures for degrees to be awarded
between now and the year 2000. Education enrollment rates alone are
difficult to predict; the large declines projected for the early
1980s did not materialize, mostly because of the increase of older
female students and a rise in the college-going rate of 18 to 24
year olds. However, the Department of Education believes that
enrollment decline will come, but later and less than had been
originally predicted. Overall head count enrollment levels are
projected to be about six percent lower in 1992 than in 1985. All
of the projected decline is in full-time students. This may
indicate more of the future college enrollees will be working
adults, many of them retraining for new careers.
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DRAFT
The rate of growth in those receiving doctorates from U.S.
universities rose five percent in the late 1950s and that rate
doubled and then tripled in the 1960s and early 1970s. It peaked in
1973, aeclined from 1974 to 1976 and has stabilized since 1977.
While this may indicate that the intelligence agencies are
competing with other employers for a relatively stable pool of
graauates, tne proportion of those graduates who are foreign or
naturalized U.S.citizens has grown as the overall pool has
contracted. (See Chapter Five for more detail on these trends.)
Because of security requirements, this means that a considerable
portion of additions to the most highly educated segments of the
labor force is not available to the IC.
C. Growth in Occupations Requiring Advanced Degrees
At the same time that fewer of those with the most advanced
degrees in the critical skill areas are available for intelligence
work, the growth rate for jobs in these occupations will also
increase. The Hudson Institute projects that growth will be 25
percent across all occupational categories and: 41 percent for
engineers/architects/ surveyors; 68 percent for natural/computer/
mathematical scientists. (They offer no figures for foreign language
occupations.) Only lawyers and judges will have more occupational
growth (71 percent) than scientists.
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LJKAF'
Recent trends show the most growth in advanced degrees in
computer and information sciences (38.7 percent more doctorates
awarded in 1986 than in 1985). For the same period, doctorates-
awarded grew only 6.2 percent in mathematics, 5.6 percent in
engineering, and 2.5 percent in foreign languages. Engineering
bacnelors degrees decreased 1.1 percent in 1986, the first decrease
in 10 years. Computer/information sciences and mathematics had the
largest increase in bachelors degrees awarded that year -- both up
7.7 percent. Foreign languages increased 1.5 percent.
While a larger proportion of foreign language doctorate
recipients are U.S. citizens than are those in the other critical
skill disciplines, this data becomes less encouraging when you
examine the number of doctorates awarded in 1986 for Russian (28),
Arabic (9), Chinese (13), and Slavic languages (8). Equally
discouraging is the decline in student demand for instruction in
many of the less commonly taught languages. Combined with
constrained university budgets, this may cause some of those
languages to be dropped from university curriculums.
The crux of the combination of a growth rate for jobs in many
professional occupations and the shrinking proportion of the labor
pool with the skills to fill these jobs means that the intelligence
agencies will have tougher competition for the people with the
increasingly higher-demand skills.
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DRAFT
III. Changing Values Associated with Work
With the demographic changes in the workforce, managers will
likely find their employees with various sets of priorities.
Current trends suggest that men and women are seeking to balance
career with family and that the pressure for more flexible working
arrangements will therefore grow, including demands for
company-sponsored day care, part-time work, and childbirth leave for
both parents.
As tne workforce ages, some analysts believe it may become more
productive, on the theory that age brings with it a more
experienced, reliable talent pool. Others believe a larger core of
older workers will be less willing to adapt to new ideas in the
workplace. Most agree that older workers and two-career families
will probably be less willing to make geographic moves, a factor
which may affect some of the intelligence agencies more than other
organizations.
More difficult to quantify is the worth of work to those
performing it. Through history, work has been judged to be of
value, and is characterized by extrinsic rewards (compensation,
benefits, status, etc.) and intrinsic rewards (personal achievement,
self-satisfaction, etc.). An Aspen Institute study focuses on
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DRAFT
changing values toward work, and associates many current values with
"expressivism," defined as including values such as "creativity,
autonomy, rejection of authority, placing self-expression ahead of
status, pleasure-seeking, the hunger for new experiences, the quest
for community, participation in decision-making, the desire for
adventure, closeness to nature, cultivation of self, and inner
growth."
The post-World War II worker, having lived through the Great
Depression and survived the immediate or threatened peril of war,
would have a hard time relating to such a list. While there are no
universal indices of "worker values," most manager would acknowledge
that many workers today focus more on values associated with "self"
than they did a decade ago.
This workforce demands such things as expressions of social
conscience on the part of their employers ("don't invest in South
Africa") and flexibility in working hours and benefits. They want
to participate more in managerial decisions, and they place a higher
value on the quality of products or service on which they work.
Workers also feel less tied to one employer than they may have
in previous decades in the U.S. or still do in, for example, Japan.
Thus, worker willingness to make changes coincides with what many
believe will be the need to retrain throughout their careers. Some
experts maintain workers will perform five or six different jobs
over tne course of their working lives, requiring varying degrees of
retraining for each.
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DRAFT
IV. THE WORKPLACE RESPONDS
Recognizing the workforce shifts, public and private sector
employers have begun to restructure aspects of their working
environments, training programs and benefits packages to adapt to
the changing world of work.
A. Private Sector Response
Recent studies show that current modes of corporate
organization do not tap the positive values of the baby boom
generation, and predicts that firms that stress the need for
employee participation, ethical behavior, and elevated product
quality are those that will have the most productive workforces.
Thus, the rise in total quality circle groups, employee excellence
programs, and the enthusiasm for books such as In Search of
Excellence.
In a 1987 Conference Board survey of 2,000 businesses and other
organizations, education was ranked as respondents' top concern.
Concurrently, the National Alliance of Business recently called upon
the business community to "view education from the perspective of a
company in trouble," urging its members to take a more active role
in education in their communities.
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UKAr I
As large companies, especially those in major metropolitan
areas, have found their searcn for qualified entry level clerical
and para-professional staff more difficult, some have begun special
training programs for new hires and others have formed
"adopt-a-school" programs through which company employees perform
volunteer services for local schools.
In the benefits arena, firms have also begun to meet the more
varied workforce expectations by increasingly permitting workers to
select from among a variety of benefit options paid for by employer
contributions or employee pre-tax contributions -- the so called
flexible benefit or "cafeteria" benefit plans. High on worker
perceived needs are corporate assistance with child and elder care.
As businesses begin to more accurately perceive productivity losses
associated with family care-giving, they have become more willing to
nelp employees locate child-care resources or plan for parental care.
In response to changing demographics and other trends, some
employers nave begun to perceive their workforce as a source of
human capital. With job retraining and job replacement costs
climoing, nigh turnover rates are becoming unacceptable -- just as
it is unacceptable to management to incur excessive costs due to
poorly maintained facilities and equipment. There appears to be a
growing willingness in corporate America to invest more in human
resource development and training for workers.
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DRAFT
B.Federal Response
From the introduction of flex-time in the early 1980s to the
1988 extension of employee leave sharing, the federal government has
begun to recognize the need to provide a more adaptable work
environment for its two million civilian employees. Greater
workplace flexioility is being tested in the demonstration projects
authorized under the 1978 Civil Service Reform Act. Using this
authority, the Navy, at China Lake and San Diego, has designed pay
and performance systems tailored to their employee's work and
needs. The Institute for Science and Technology (formerly the
National Bureau of Standards) has recently been authorized by
Congress to undertake a similar experiment. (See Chapter Four for
details.)
The Civil Service 2000 report stresses that federal agencies
should encourage individual agencies to assess child care needs and
provide assistance to child care groups at all federal sites, not
just those in GSA-managed facilities. The report emphasizes there
should not be a government-wide initiative to establish child care
centers or a standard solution applied to all agencies. Instead,
the report appears to envision the federal role as that of general
resource and supportive employer, when the workforce wants the
service. Site needs will vary with factors such as proximity to
commercial care facilities, working hours and average age of the
workforce.
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LAM AfAr I
In terms of employee training, the Office of Personnel adopted
a Defense Department proposal to amend that portion of the
Government Employees' Training Act that prevents the federal
government from expending funds to assist employees in getting a
college degree. (See Chapter Five for details.) Though not approved
in tne 100th Congress, the fact that the federal government wants to
make such a major change is indicative of the increased training
role it recognizes it must play in the near future.
OPM Director Horner has cnaracterized Civil Service 2000 as a
useful planning aide, one she would of requested had Congress not
mandated its preparation. Clearly, the federal government is well
aware of the changing nature of its workforce and the ensuing need
for policy changes.
C. Response Within the Intelligence Community
Because of their more flexible personnel authorities, the
intelligence agencies have been able to overcome some potential
skill shortages by, for example, offering higher salaries than other
agencies can. They have also attempted to respond to the changing
demographics of their workforces. For example, the NSA Federal
Womens Program has played an active role in locating child care
resources for the agency's young workforce. The CIA's proposal for
a flexible benefits package represents its efforts to let a diverse
workforce select tne mix of benefits most likely to meet their needs.
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DRAFT
Conclusions
While the panel believes that the IC agencies have generally
been able to recruit quality candidates for their positions , it is
clear that projected changes
innovation if this record is
in the U.S. workforce call for greater
to be
request for this report epitomizes
intelligence agencies' workforces,
sustained. In many respects, the
the nature of change within the
and congressional recognition of
the need to adapt human resource policies.
To a large extent, the Intelligence Community must address some
of tne same issues that other employers will face -- a future
workforce that will be smaller and aging, among other factors. The
workforce will also have fewer people with the "blend of skill"
requirements needed by the sophisticated IC collection systems, and
a large and growing proportion of the new graduates with those
skills will be naturalized or non-U.S. citizens. Already in direct
competition with hi-tech private sector firms, this competition will
grow as the workforce contracts.
Because a growing number workers will be from "at risk"
families and because of the expected need for workers to retrain
several times throughout their careers, it may be necessary for the
IC to provide more training related to direct skill attainment.
Employees hired by an intelligence agency, having met rigorous
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URAF r
personnel security requirements and demonstrated a commitment to
public service, can be assumed to be worth retaining, and thus
retraining, as needed. This is not only a good human resource
management policy, but also economical, given the costs of
recruitment.
Harder to identify is how tne agencies need change to respond
to the somewhat different value system of the baby boom generation.
In the intelligence agencies, intrinsic rewards are an even larger
part of an individual's rewards system, if only because the
workforce can't talk about their accomplishments outside a very
limited circle. With a shifting set of values among current and
future intelligence employees, it may be even more important for IC
managers to address these value shifts than it is for other
employers. The lead times for hiring staff and the difficulty in
replacing some of staff members' expertise make it essential to
retain good employees.
Anticipating future workforce composition cannot assure that
the intelligence agencies will continue to attract top quality
candidates in the increasingly competitive workplace or that they
can retain the talented staff they acquire. However, long-range
workforce planning -- done in the context of the changing workforce
and a flexible human resource management approach -- will enhance
the intelligence agencies' ability to control the skill mix of their
staffs and now these skills are applied to meet their complex
missions.
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LS_E_CRET
DRAFT
CHAPTER THREE
COORDINATING HUMAN RESOURCE POLICY
The Conference Report to the 1988 Intelligence Authorization
Act instructed that the National Academy of Public Administration
"Assess tne ability of intelligence community activities to perform
their current and future missions with existing or proposed
personnel and compensation systems." The Academy panel recognized
that there are many differences among agency authorities and
policies and tnat there has been a great deal of recent change in
these areas. Given this, the panel believed that one of its most
important tasks was to assess the extent of coordination on these
issues within the Intelligence Community and whether agencies with
similar missions yet independent personnel systems in different
organizational settings would benefit from a more coordinated
approach to personnel policy.
In looking at intelligence agency human resource management
(HRM) in its broadest context, the panel examined a range of
organizational options for inter-agency coordination. Some of the
options deal with statutory changes, while others go further, and
discuss a stronger central role for coordinating change to major
policies unaer existing statutory authorities. Prior to discussing
these, tne panel presents more detailed background information.
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. DRAFT ifisEcRET
I. Congressional Concern on Lack of Coordination
There has been concern among the congressional intelligence
committees, who must address legislative proposals and conduct
oversight, that the current lack of coordination has led to uneven
compensation levels and other potential inequities. The committees
believe tnis may be further reflected in an uncoordinated pattern of
change -- termed "ratcheting" -- in which IC agencies become aware
of new benefits one agency gets, and then request it for
themselves. They believe proposals for personnel policy change
should be examined in terms of their comparative impact or
usefulness for other intelligence agencies, and in terms of how they
relate to Title 5 Civil Service policies.
The depth of concern on this is reflected in the fact that this
NAPA study was originally proposed by the House Permanent Select
Committee on Intelligence (HPSCI) as the Commission on Intelligence
Personnel Systems, with one member appointed by the president,
another by the speaker of the House, and a third by the majority
leader of tne Senate. The House believed the Commission was
necessary to: provide a comprehensive review of current programs;
assess the need for changes, especially those required by the unique
circumstances of intelligence activities; and present
recommendations to the Congress after considering the potential
inequities the proposed changes would create either among
intelligence agencies or between the intelligence community and the
federal Civil Service.
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A more recent reflection of the House Committee frustration in
dealing with personnel and compensation proposals was contained in
their comments on the fiscal year 1989 authorization for the
National Foreign Intelligence Program (NFIP). The Committee
expressed great concern that CIA personnel management and
compensation systems could create inequities between CIA personnel
and those in other intelligence agencies as well as with the federal
Civil Service. The Committee maintains that inequities should be
avoided and differences established only when unique circumstances
of intelligence activities warrant such action. Further, the
committees believe major personnel changes should not be implemented
without fully evaluating the impact such changes would have on other
agencies and whether they may need the same changes.
The Senate Select Committee on Intelligence (SSCI) nas
undertaken efforts to define for itself the varying personnel
approaches within the IC. It reviewed IC personnel management, with
work done in part by staff borrowed from the General Accounting
Office, and prepared extensive background information on several of
the agencies. As the review process neared the report writing
stage, SSCI staff began working on the Iran Contra investigation,
and were not able to complete it. Given the similar scope of the
NAPA study, the SSCI has deferred completing its own review pending
the outcome of tnis study.
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3tCREI
DRAFT
II. Framework for Coordination
In the executive branch, there is an umbrella organization --
tne Office of Personnel Management -- to translate the laws
governing Civil Service into administrative doctrine and delegate
portions of the related functions to department or agency heads.
The OPM also oversees proper implementation of personnel law.
witnin the Intelligence Community, there is no entity with a similar
responsibility. While such a formal structure may not be needed,
or even beneficial, the panel sees a clear need for enhanced
coordination of HRM policies.
While the panel favors coordinated change, it cautions that the
Congress not regard uniformity as an end, but that it instead seek a
common set of personnel policy parameters under which all
intelligence agencies would operate. The intelligence agencies are,
in varying degrees, part of larger organizations with different
cultures, authorizing committee jurisdictions and missions. This
does not lend itself to a central structure. Not only would sucn a
structure be a complex one to administer, it can thwart innovation.
Clearly, the federal government is moving away from this concept, as
OPM itself is now advocating decentralized approaches to personnel
management.
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DRAFT
Establishing a set of broad parameters, rather than a defined
operating structure provides each agency with the flexibilities
recommended throughout this report. The agencies would have maximum
discretion in implementing these policies according to their
management needs, and they would be accountable through the
congressional oversight process.
III. Possible Options for Coordination
The panel presents three options for increased coordination of
personnel policy changes. These range from fairly little change in
the current process to a decision-making role for the DCI. The
panel considered the concept of a central personnel component for
tne Intelligence Community, but did not believe that concept to be
in tandem with its other recommendations. In assessing each of the
tnree options presented here, the panel looked at the extent to
which it would assure equitable treatment for employees with similar
work or work environments, and provide congressional committees a
base of information on the impact of major changes.
Option 1 Agency Comparative Analysis of Legislative
Proposals for HRM Change
Each intelligence agency would analyze the impact their
legislative proposals would have within their own organizations and,
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DRAFT SECRET
potentially, within the broader Community. These analyses would be
submitted with the proposal to the House and Senate intelligence
committees.
Pros: Agency Accountability for
Comparative Analysis
A.) Least threatening to the individual agencies in terms
of potential interference or impaired independence.
B.) Forces the submitting agency to examine Community-wide
implications of proposed statutory personnel changes.
C.) Gives the committees one agency's perspective on change
implications.
Cons: Agency Accountability for
Comparative Analysis
A.) Does not assure coordination among the intelligence
agencies before they submit legislative requests on
personnel issues.
B.) Does not eliminate the potential for "ratcheting," as
decisions may still be made incrementally.
C.) Puts the onus on congressional staff, who may not be
experts on personnel matters, to analyze and assess
change proposals.
Option 2 Senior Management Coordination
This would entail establishing a coordinating mechanism,
cnaired by the DCI, similar to the National Foreign Intelligence
Committee (hereafter referred to as Senior Coordinating Group, or
SCG.) The SCG would consider all statutory personnel change
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DRAFT
? proposals and major changes in employee benefits and compensation
? schedules. The SCG could be supported oy a small staff element in
the ICS.
Each agency represented at the SCG would be given the
opportunity and would be required to state its views about another
agency's statutory proposal. These comments would then be assembled
by the agency proposing the change and would become part of its
suomission to Congress. This uses the SCG as a coordinating
mechanism, as a forum for discussion, but leaves the formal
presentation of the change to the proposing agency.
Pros: Senior Coordinating Group
A.)
B.)
C.)
Gives congressional committees increased confidence
that comparative analysis of proposed changes fully
consiaers potential inequities or impacts.
Permits the proposing agency to near different
viewpoints, and gives it the chance to amend its
proposal in a relatively low visibility environment.
Ensures that congressional committees receive
conflicting points of view without having to develop it
themselves.
D.) Leaves accountability for proposing change with the
individual intelligence agencies.
Cons: Senior Coordinating Group
A) Non decision-making committees are usually unable to
resolve conflicting views, and can only report the
different policy positions to the congressional
committees.
B.) Committee processes inherently involve aelays.
C.) Congressional committees would remain the ultimate
decision-makers on agency change proposals, which
leaves them more in the loop than they may want to be.
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Option 3 DCI Review of Proposed Personnel Legislative
Changes' and Major Changes Within Existing Legislation
The scope of the DCI's review would be expanded to cover
significant changes in employee benefits and compensation
schedules. The DCI would have the authority to stop proposals
deemed inappropriate and require corrective action when he deemed
some personnel authorities were to be used inappropriately. The DCI
would be supported by a small staff element in the ICS which had
professional credentials in the field of human resource management.
Pros: DCI Review of Proposed Personnel Legislative
Changes and Major Changes Within Existing Authorities
A.) Ensures that congressional committees receive only
those statutory proposals or that information on major
policy changes that the DCI determines merit committee
consideration.
B.) Assures that decisions on conflicting views will be
made within the Executive Branch.
Cons: DCI Review of Proposed Personnel Legislative
Changes and Major Changes Within Existing Authorities
A.) Creates added tension witnin the IC, in that other
agencies may believe the DCI does not have a role in
deciding wnetner statutory requests should go forward
or in reviewing personnel policies agencies can legally
implement under their own authorities.
B)
C.)
Places the DCI in a difficult role re other power
centers -- the Secretary of Defense and the Attorney
General.
Moves accountability for implementing policies within
the "broad parameter" system from the individual
agencies to the DCI.
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DRAFT
Panel Preference for SCG
In developing its recommendation, the panel sought to balance
tne concerns of the congressional intelligence committees with the
organizational realities of the agencies which comprise the
Intelligence Community.
The panel believes it is not only understandable but
commenaable tnat the intelligence committees are willing to devote
time and effort to understanding Intelligence Community HRM and
looking toward the impact of future economic, social and demographic
trends. Equally understandaole is the committees' apparent
frustration in having to focus on details within current policy
implementation or change proposals. This is not an efficient use of
congressional oversight time, as NAPA has highlighted in previous
reports on effective congressional oversight.
At the same time, the panel recognizes that it nas probably
been very frustrating to the intelligence agencies to invest time in
designing and refining HRM change proposals, only to have to wait
what may seem inappropriate lengths of time for approval.
The panel sees two points that need to be addressed -- the
level of communication between the intelligence committees and the
IC agencies, ana the scope of changes the agencies may make without
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IJKAI- I ,LCRET
seeking congressional approval. Whatever coordinating approach is
selected to deal with these issues, it must be one that clearly
places accountability for HRM implementation with the intelligence
agencies themselves and draws the intelligence committees into these
issues only in terms of the broad parameters of the HRM systems.
The panel recommends Option 2, establishing a Senior
Coordinating Group, as the one whicn best achieves these
objectives. In relying on a such an inter-agency group, the
congressional committees assure an integrated approach toward HRM
change and leave the responsibility for assessing the potential
impacts of change where it belongs -- with the intelligence agencies.
The intelligence agencies began cooperating more on personnel
issues with the inception of the NAPA study. While they were not
necessarily unwilling to cooperate with one another prior to the
study, they had little occasion to do so, and there were no
incentives to encourage this. The NAPA panel's experience with the
extent of cooperation and the level of coordination of the Study
Steering Group's comments on NAPA's work suggests that the agencies
within the Community are able to work effectively on these issues.
The Study Steering Group composed of Directors of Personnel or
officers in similar positions was established by the Community to
facilitate the work of NAPA. It has worked well and the panel
recommends that it continue as an arm of the SCG on human resource
issues.
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DRAFT
A DCI decision-making role (Option 3) could certainly fill the
same role, but the panel believes it would limit the agencies'
independence. An enhanced role tor an individual or position
generally creates tension within any organization or group of
organizations. This need not necessarily be "bad" -- consider the
concept of "creative tension" -- but the Congress will need to
consider whether the agencies' potential mistrust of an expanded
role for the DCI will impede the coordination process or remove
elements of agency independence that the Congress may have
deliberately created. As a practical matter, agency missions and
workforces are sufficiently different that a single decision-maker
would require a great deal of centralized expertise, likely to
duplicate individual agency capabilities. Thus, the ICS staff
working to support the DCI would be much larger than that
anticipated in Option 2.
The panel recommends that the intelligence agencies work to
keep the congressional committees apprised of major change proposals
as they develop. The concept of "no surprises" is a basic tenet of
effective management and good congressional relations, and would
save a great deal of anguish. At the same time, 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.
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Sr-CRE.T
Option 2, administered with common sense communication, will
provide the committees with the information they need to make
decisions, and the intelligence agencies with the flexibility to
implement their current HRM systems and develop effective approaches
for the future. It will also provide the framework for implementing
the panel's recommendation for increased coordination in a number of
specific areas.
392/ October 20
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SECRET DRAFT
CHAPTER FIVE
HIRING AND KEEPING THE BEST STAFF
Each of the intelligence agencies has wrestled with determining
the appropriate mix of skills to fulfill their complex missions and
with identifying and hiring top quality staff. This entails meeting
strict personnel security requirements, which are crucial components
of staff eligibility when working with national security information.
The next decade will tax all federal agencies' abilities to
recruit and retain a talented, diverse workforce. The intelligence
agencies will face even greater challenges than many others, in
large part because of the skill mix they require. In addition,
there will be increasing competition from the private sector for
people with these skills, especially for members of minority groups.
This chapter focuses on the intelligence agencies' staffing
levels over time, their efforts to recruit and retain top quality
staff, and the extent to which personnel security requirements
affect those efforts.
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