I am writing to share AFSA's concerns and suggestions regarding implementation of the Human Capital Initiative (HCI) and to request your assistance in developing a collaborative approach to implementing the HCI that involves management, HRD and employees.

The HCI is intended to help agencies strengthen their human resource function and ensure that agencies have high-performing employees with the right skills to achieve the agency's mission. AFSA supports the HCI. However, we are concerned that the lack of participation on the part of FAS managers, the limited guidance from HRD, the limited HCI knowledge on the part of HRD staff that provide guidance to FAS on recruitment, training, performance management and workforce planning, and the tendency to treat the HCI as a compliance exercise threatens its successful implementation. For instance, HRD is in the process of identifying mission-critical and leadership occupations, defining the skills necessary for those positions, devising a system to measure skill gaps, and developing training and recruitment strategies to fill those gaps - all with little input from FAS management, FAS employees or relevant FAS committees.

Based on input from FSA, HRD is well down the path of implementing the HCI. As a result, FAS runs the risk of inheriting a human capital management plan that reflects the needs of FSA as opposed to FAS. Unlike FSA, FAS has a dual personnel system. An effective human capital strategy needs to reflect an understanding of the FS system so that the recruitment, training, workforce planning and performance management strategies developed under the HCI meet the needs of the FS and the agency. In addition, FAS has a highly mobile workforce. Effective workforce planning, including succession planning, cannot be conducted without taking into consideration unique FAS policies, such as the WPP, and the need to capture the significant knowledge of returning and retiring FSO's. Likewise, an effective training program cannot be developed without taking into consideration the fact that FSOs spend a significant percentage of their careers overseas.

A significant AFSA concern is the tendency to treat the HCI as a compliance exercise. A case in point is the requirement to tie individual performance to agency goals. According to the quarterly human capital status report, 100% of FAS employee performance evaluations are now tied to agency goals. This is not the case. A workable system has not been developed for FSO's in the field. While AFSA understands the importance of "getting to green", we should focus on achieving the desired result which, in this case, is an effective and comprehensive performance system that includes all FSO's.

FAS managers and employees need to become more involved in the HCI process to ensure effective implementation. Likewise, HRD should be more proactive in communicating the requirements and importance of the HCI and guiding managers through the process. AFSA suggests that FAS:

•  request HRD to be more proactive in communicating the importance and requirements of the HCI to FAS managers, FAS employees and HRD employees;

•  identify the specific workforce analysis data FAS managers need to make informed hiring and WPP placement decisions;

•  effectively engage managers in implementing the HCI by requiring performance evaluations of senior management to have measurable objectives and evidence of success in human capital management;

•  develop and implement a comprehensive FS performance management system that meets the requirements of the HCI and covers all FSO's; and,

•  "operationalize" the 5-year human capital strategy by tasking FAS and HRD, under the direction of the Operations Director and with union involvement, to develop and implement annual performance plans and performance measures for recruitment and training that reflect the needs of FAS.

AFSA would welcome the opportunity to meet with you to discuss these and other suggestions to involve management, HRD and employees in the implementation of the HCI so that we can attract, recruit and retain high performing employees and provide management with the information needed to make informed human capital decisions.