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The Office of Personnel Management (OPM) is issuing a proposed rule to redefine, clarify, and update the reporting requirements in Subpart B and C of 5 CFR 250. This rulemaking will address the Federal Workforce Priorities Report, HRStat Data-driven Reviews, Human Capital Operating Plan, Human Capital Reviews, and employee surveys. These amendments will better align human capital management practices to broader agency strategic human capital planning. Plans are non-final, deliberative documents that should not be disclosed under FOIA exception 5. They are crucial for robust workforce planning and are not final agency actions per the Administrative Procedure Act 5 USC 704.

Statement of Need:

On January 20,2025, President Trump issued Executive Order 14170 titled, Reforming the Federal Hiring Process and Restoring Merit to Government Service. The Merit Hiring Plan explicitly calls for reduced time-to-hire, talent teams, pooled hiring and skills assessments. Implementing the OPM developed Merit Hiring Plan would allow opportunities for OPM to manage hiring efficiency, skills based assessing, and standardize recruitment practices across government.

Additionally, this proposed rule underscores the significance of aligning human capital management practices with broader agency strategic human capital planning. Ensuring that the Federal Workforce Priorities Report, HRStat Data-driven Reviews, Human Capital Operating Plan, Human Capital Reviews, and employee surveys are integrated into the strategic framework is essential for improving organizational performance and accountability. These elements are critical for a robust workforce planning strategy that enhances overall performance accountability and ensures the workforce is equipped to meet evolving demands.

Employee surveys play a vital role in this process by providing insights into employee engagement, satisfaction and areas that require improvement. The feedback gathered through these surveys informs the continuous improvement of human capital practices and helps in creating a more responsive and dynamic workforce. This comprehensive approach not only strengthens the effectiveness and efficiency of human capital management but also fosters a culture of accountability and continuous performance enhancement across federal agencies.

Summary of the Legal Basis:

OPM is issuing this proposed rule pursuant to 5 USC 1103(c) which states OPM sets strategic Human Capital standards.

Alternatives:

An alternative to changing the regulation would be to update current HRStat and Human Capital Operating Plan guidance to incorporate implementation of new talent management standards and requirements.

Anticipated Costs and Benefits:

Cost savings could come from filling vacancies faster, lower costs per hire, reduced advertising, and lower reliance on expensive contractors.

Risks:

Undetermined