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Part 6. Human Resources Management

Chapter 251. Strategic Workforce Planning for Human Resource Management

Section 1. Provisions, Authorities, Requirements, and Processes

6.251.1  Provisions, Authorities, Requirements, and Processes

6.251.1.1  (07-01-2003)
Overview

  1. IRM 6.251.1 provides Division Commissioners and Functional Chiefs and their staffs with information on Strategic Workforce Planning for Human Resource Management within the Internal Revenue Service (IRS).

  2. IRM 6.251.1 provides guidance and standards for establishing workforce planning in the Service’s Business Units and describes how such planning fits into the Strategic Planning, Budgeting and Performance Management (SPB&PM) Process.

6.251.1.2  (07-01-2003)
Definitions and Acronyms

  1. A list of definitions and a list of acronyms are provided as exhibits. See Exhibits 6.251.1-1 and 6.251.1-2.

6.251.1.3  (07-01-2003)
Responsibilities

  1. Workforce Planning Council (WPC) (or applicable decision making body) will:

    1. Develop planning guidance.

    2. Identify strategic workforce issues.

    3. Develop future year Servicewide staffing plan, estimating internal and external hiring mix, cross divisional and cross occupational interactions.

    4. Develop future year training requirements.

    5. Resolve issues related to both financial and human resource constraints in the SPB&PM process.

  2. Strategic Human Resources (SHR), Workforce Planning (WP) will:

    1. Perform workforce analysis to include supply, demand and gap analysis.

    2. Publish the Workforce Analysis Report and the IRS Workforce Plan.

    3. Manage the Integrated Workforce Planning System (IWPS) and produce the Five-Year Staffing Plan.

    4. Monitor Servicewide hiring during the performance year and provide statistical analysis and reporting.

    5. Conduct workforce planning process improvement analysis.

    6. Coordinate with WPC (or applicable decision making body), Divisions, and the Chief Financial Officer throughout the workforce planning process.

    7. Perform resource analysis studies, as requested.

  3. Divisions will:

    1. Translate program decisions made during the SPB&PM process from Full-Time-Equivalent (FTE) dollars to mission critical position requirements.

    2. Incorporate the IRS Workforce Plan into Division and Functional Unit Business Plans.

    3. Conduct performance monitoring and reporting of Business Plan execution, which includes aspects of the IRS Workforce Plan.

    4. Develop, maintain and update a Division Annual Hiring Plan, and provide status updates to SHR:WP.

    5. Maintain and update the Authorized Staffing and Charting (ASC) and HR Connect (as applicable).

    6. Coordinate with SHR:WP and Chief Financial Officer throughout the Workforce Planning process.

  4. Chief Financial Officer: Corporate Planning & Performance and Corporate Budget (CFO:CPP & CB) will support SHR:WP and Divisions with financial and other information throughout the Workforce Planning process.

  5. Office of Research, Analysis and Statistics will provide access to business trends and analysis information/reports and render assistance, as required, in interpreting the information.

6.251.1.4  (07-01-2003)
Purpose of Strategic Workforce Planning

  1. Workforce planning contributes to the achievement of corporate program objectives by planning and forecasting the appropriate workforce structure needed to support strategic plans and budget decisions.

  2. Workforce planning relies upon the integration of other planning processes and organizational components. In particular, strategic planning, budgeting, and human resources organization are key components in workforce planning.

  3. The IRS Strategic Plan required by the Government Performance and Results Act (GPRA) of 1993 identifies organizational direction and articulates measurable program goals and objectives. The budget process provides information on the allocated funding to achieve objectives. The human resources organization provides tools for identifying skills/competencies needed in the workforce, recruiting, career development, and training, in order to build a future workforce that accomplishes the IRS mission and objectives. Finally the performance management system documents how successful the organization was in achieving program goals and objectives.

6.251.1.5  (07-01-2003)
Strategic Workforce Planning Regulatory Authority and References

  1. GPRA of 1993. This Act seeks to shift the focus of government decision-making and accountability away from the activities undertaken to the results achieved from those activities. Under the Act, agencies are required to develop multi-year strategic plans, annual performance plans, and annual performance reports.

  2. "Strategic Management of Human Capital" was one of the fourteen areas identified for improvement in the President’s Management Agenda (Fiscal Year 2002). The agenda specifically directs agencies to link human capital strategies to organizational mission, vision, core values, goals and objectives and to use strategic workforce planning to develop a high-performing workforce. In support of the President’s Management Agenda the Office of Management and Budget (OMB) issued the " Standards for Success" which incorporates elements of the General Accounting Office’s (GAO) "Critical Success Factors," as well as the accountability requirement of Civil Service Rule X from Executive Order 13197.

  3. Human Resource Management Council Memorandum for Heads of Departments and Independent Agencies (Transmittal MSG-041a), May 8, 2001, " Workforce Planning Restructuring." This memorandum instructs Executive agencies and departments to submit workforce analysis to the Office of Management and Budget (OMB) by June 29, 2001, as the initial step in the implementation of the President’s initiative to have agencies restructure their workforces to streamline organizations. The memorandum also provides preliminary guidance on the development of agency-specific restructuring plans in the context of the FY 2003 budget request and annual performance plan.

  4. Human Resource Management Council Memorandum for Heads of Departments and Independent Agencies, March 9, 2001, "Performance Goals and Management Initiatives for the FY 2002 Budget." This memorandum provides guidance on the development of agency Performance Plans, including making greater use of performance-based contracts, expanding the application of on-line procurement, and expanding A-76 competitions.

6.251.1.6  (07-01-2003)
Benefits of Strategic Workforce Planning

  1. Workforce planning provides senior leaders with a strategic basis for making human resource decisions. It allows managers to anticipate change rather than react to events, as well as to provide strategic methods for addressing present and future workforce issues. Furthermore, workforce planning:

    1. Provides more effective human resource management through accurate, efficient alignment of the workforce with strategic objectives and performance measures.

    2. Links expenditures to organization’s long-term goals and objectives.

    3. Ensures replacement availability to fill critical vacancies, especially those that require lengthy developmental training.

    4. Provides realistic staffing projections for budget purposes.

    5. Links recruitment, development and training decisions to organizational goals.

    6. Provides a systematic process to address issues that drive workforce changes.

6.251.1.7  (07-01-2003)
Strategic Workforce Planning Model Overview

  1. IRS uses the four-phased Workforce Planning Model ( See Exhibit 6.251.1-3). The planning model is designed to be a continuous and systematic process that is linked to the SPB&PM process. See Exhibit 6.251.1-4 for the linkage of the two systems over a multi-year timeline. Exhibit 6.251.1-5 summarizes major deliverables in the workforce planning process.

  2. The planning process takes into account that in any one calendar year there are three separate budget planning and execution scenarios occurring ( See Exhibit 6.251.1-4). For instance, in calendar year 2003 the organization is conducting long range planning for FY 2005 and beyond, short range planning for FY 2004 execution, and monitoring of FY 2003 current year performance.

  3. A detailed description outlining the planning guidance including the process flow, deliverables, start and finish dates, linkages to the SPB&PM process, and roles and responsibilities are provided in subsections 6.251.1.8 through 6.251.1.12.

6.251.1.8  (07-01-2003)
Agency Strategic Direction - Phase I Process

  1. The following figure shows the Agency Strategic Direction - Phase I Process.

    Figure 6.251.1-1
    This image is too large to be displayed in the current screen. Please click the link to view the image.

6.251.1.8.1  (07-01-2003)
Phase I Overview

  1. The first step in the Workforce Planning process is to capture and integrate the strategic direction, which is set by the Senior Leadership Team (SLT) in accordance with GPRA requirements.

  2. IRS’s Strategic Plan charts the future with broad mission-related targets and milestones. The vision, mission, and measurable goals and objectives drive the identification of what type of work needs to be accomplished. This plan is updated every three years.

  3. The yearly SPB&PM process provides linkage and yearly programming of funds and resources to accomplish IRS goals and objectives.

6.251.1.8.2  (07-01-2003)
Phase I - Roles and Responsibilities

  1. Strategic Human Resources, Workforce Planning (SHR:WP) will:

    1. Provide CFO:CPP with Workforce Planning instructions for incorporation into overall SPB&PM guidance instructions.

    2. Coordinate with Divisions during the development and consolidation of Human Capital components of the Strategic Assessment Report (SAR).

    3. Consolidate SHR Human Capital Drivers of Program Resources (DRIPs), which have Servicewide impact.

    4. Develop and publish the Workforce Analysis Report and IRS Workforce Plan for SLT, WPC, and Divisions for use during the SPB&PM cycle.

    5. Develop/coordinate with Divisions and maintain the Servicewide Annual Hiring Plan (AHP).

    6. Monitor the effectiveness of the Workforce Planning Process and make necessary changes.

6.251.1.8.3  (07-01-2003)
Phase I - Process

  1. This subsection highlights those areas where Workforce Planning is integrated into SPB&PM. It does not replace guidance provided in the SPB&PM Guidebook.

  2. In early December, SHR:WP provides the SLT, WPC (or applicable decision making body), and Divisions a Workforce Analysis Report as described in Workforce Analysis-Phase IIA Process (See IRM 6.251.1.9). Divisions use this report during development of their SARs.

  3. Following issuance of Strategic Assessment and DRIP instructions SHR:WP meets with Division’s human resource managers and planners. The purpose of the meetings is to coordinate the development and consolidation of human capital components of the SAR.

  4. Following the Strategic Assessment Phase SHR:WP develops and publishes the IRS Workforce Plan. Applicable actions identified in the Workforce Plan are then incorporated into Division Business Plans (Refer to Workforce Analysis - Phase IIB Process - IRM 6.251.1.10, and Implement Workforce Plans Process - IRM 6.251.1.11).

  5. Business plans are communicated, implemented, and monitored through the Performance Management aspect of the SPB&PM process. SHR:WP coordinates and maintains the Servicewide AHP and provides periodic status reports (Refer to Monitor, Evaluate and Revise Process - IRM 6.251.1.12).

  6. The overall Workforce Planning process is evaluated annually to determine how well its component parts are functioning and where adjustments are needed. Necessary revisions to the process are made prior to the continuation of the cycle (Refer to Monitor, Evaluate and Revise Process - IRM 6.251.1.12).

6.251.1.9  (07-01-2003)
Workforce Analysis - Phase IIA

  1. The following figure shows Workforce Analysis - Phase IIA Process.

    Figure 6.251.1-2

    This image is too large to be displayed in the current screen. Please click the link to view the image.

6.251.1.9.1  (07-01-2003)
Phase IIA - Overview

  1. Phase IIA of Workforce Analysis supports Strategic Assessment within the SPB&PM process. The workforce analysis report provides Divisions and the SLT with an independent analysis of the labor market, major long-term business trends, and a profile of the current workforce.

6.251.1.9.2  (07-01-2003)
Phase IIA - Roles and Responsibilities

  1. WPC (or applicable decision making body) will review and provide feedback and direction on the IRS Workforce Analysis Report.

  2. SHR:WP will:

    1. Conduct workforce analysis (demand, supply and gap analysis) and develop a report.

    2. Coordinate the review and publication of the Workforce Analysis Report.

    3. Coordinate with Divisions, as required, during workforce analysis.

    4. Develop a Five-Year Staffing Plan based on results of workforce analysis.

  3. Divisions (Planners/ Human Resources (HR)/Budget Experts) will:

    1. Support SHR:WP with staffing information and strategy development throughout the workforce analysis phase.

    2. Maintain and update, the Authorized Staffing and Charting (ASC)/HR Connect system when changes to staffing occur [as specified by the Commissioner (or applicable decision making body)].

    3. Review and provide feedback on the Five-Year Staffing Plan.

  4. Office of Research, Analysis and Statistics will provide access to business trends and analysis information/reports and assistance, as required, in interpreting the information.

6.251.1.9.3  (07-01-2003)
Phase IIA Process - Demand Analysis

  1. SHR:WP conducts a Demand Analysis by scanning the external environment for trends, issues and problems that may impact IRS and through examining internal business trends that may provide additional insight into workforce changes.

  2. SHR:WP performs an environmental scan by researching reports and other information obtained from various sources such as the Bureau of Economic Analysis, Bureau of Labor Statistics, and various business outcome measures. Information gathered is analyzed for applicability to the IRS labor market.

  3. Demand analysis also includes the review of the IRS business environment. Trends are reviewed by SHR:WP from information obtained from the IRS Office of Research Analysis and Statistics, Office of Program Evaluation & Risk Assessment (OPERA), and Divisions. Analysis encompasses:

    1. Prior year DRIPs.

    2. Major long-term trends.

    3. Impacts of planned and completed organizational studies (i.e., analyst study, planned commercial activities studies, productivity, efficiency, and effectiveness studies/analysis).

    4. Outcomes approved by the Executive Steering Committee for Organizational Change (ESCOC) (or applicable decision making body).

  4. The completed demand analysis results in a forecast of the type of skills, quantity, and location of the workforce needed in the organization over the next three to five years.

6.251.1.9.4  (07-01-2003)
Phase IIA Process - Supply Analysis

  1. Supply Analysis focuses on analyzing IRS demographics and identifying IRS employment trends. This analysis provides both descriptive and forecasting models which describe how turnover will affect the workforce in the absence of management action.

  2. SHR:WP obtains raw data from Treasury Integrated Management Information System (TIMIS), the ACS/HR Connect system, Authorized Staffing Pattern (ASP), or other special studies. Analysis of the data includes:

    1. Distribution of employees by organizational unit, type of appointment, job series, and grade level.

    2. Projected retirement eligibility/trends/rates.

    3. Projected attrition eligibility/trends/rates for other than retirement.

    4. Profile of management control positions.

    5. Employment trends for critical or hard-to-fill positions.

    6. Turnover rates (transfers to other agencies) and movement between IRS Divisions and between positions series.

  3. The completed supply analysis results in the projection of the employee population over the next three to five years if nothing were done to replace attrition.

6.251.1.9.5  (07-01-2003)
Phase IIA Process - Gap Analysis

  1. Once supply and demand analysis is completed, a gap analysis is performed. SHR:WP analyses of the differences between the workforce supply projection to the workforce demand forecast.

  2. The result is the identification of future gaps and surpluses within the IRS with particular emphasis on gaps in critical skills and in the identification of "at risk" occupations.

  3. SHR:WP, with input from Divisions, will addresses the following types of questions:

    1. What will be the potential sources of the "new" staff that will be required?

    2. What attrition and retirement can be expected?

    3. Will attrition make it easier or harder to achieve workforce objectives?

    4. What kinds of positions will need to be filled?

    5. How can training/re-training help?

    6. What are the succession planning implications?

    7. How can contractors help? Do on-board contractors have the needed capabilities or would new capabilities need to be procured?

    8. Are new hires going to be required, and if so are they going to replace current employees or go into new types of jobs?

    9. What actions need to be taken to "place" surplus staff?

    10. What is the impact of budget decisions on mission critical series?

6.251.1.9.6  (07-01-2003)
Phase IIA Process - Strategy Development

  1. SHR:WP develops potential strategies that resolve issues surfaced during the analysis of demand and supply data (gaps, surpluses, critical skills issues, and "at risk" occupations). During strategy development, SHR:WP will coordinate with Divisions, SHR: Career Management & Recruitment (CM&R) and SHR:Personnel Policy, as required.

  2. Such strategies might include recruitment, staff retraining, succession planning, contract work, job classification, reorganization, policy decisions, hiring actions, etc.

6.251.1.9.7  (07-01-2003)
Phase IIA Process - Update IWPS

  1. Using the information obtained from the supply and demand profiles, SHR:WP updates the IWPS. The following information is incorporated into the database:

    1. On-board counts

    2. Funded but unfilled vacancies (from prior year)

    3. Funded DRIPs from current planning year

    4. Retirement projections

    5. Workforce age

    6. Non-retirement separation projections

    7. Sourcing sequence ratios (Occupational Migration)

    8. Policy options, DRIPs, and program adjustments

    9. Yearly staffing requirements by Division and series/grade

  2. The Five-Year Staffing Plan produced by the IWPS is included in the Workforce Analysis Report.

6.251.1.9.8  (07-01-2003)
Phase IIA Process - Workforce Analysis Report

  1. At the completion of the Workforce Analysis phase, SHR:WP develops and coordinates a report for review by the WPC (or applicable decision making body), Divisions and all key stakeholders (e.g. SHR: CM&R) in early December of each year. SHR:WP incorporates review comments and finalizes the report by the end of February of each year. The report summarizes gaps and potential impacts to human capital. Recommendations and potential strategies are provided along with a Five-Year Staffing Plan. This information is used by Divisions to support development of their SPB&PM deliverables.

6.251.1.10  (07-01-2003)
Workforce Analysis - Phase IIB

  1. The following figure shows Workforce Analysis - Phase IIB Process.

    Figure 6.251.1-3

    This image is too large to be displayed in the current screen. Please click the link to view the image.

6.251.1.10.1  (07-01-2003)
Phase IIB - Overview

  1. Phase IIB of Workforce Analysis summarizes and converts program decisions made during the SPB&PM process from Full-Time-Equivalent (FTE) dollars to position information. The Five-Year Staffing Plan is revised and a comprehensive Workforce Plan published.

6.251.1.10.2  (07-01-2003)
Phase IIB - Roles and Responsibilities

  1. WPC (or applicable decision making body) will: review and provide feedback and direction on the IRS Workforce Plan.

  2. SHR:WP will:

    1. Submit information requests and/or schedule and coordinate meetings with the Divisions and CFO:CPP in order to translate program decisions into positions.

    2. Update the Five-Year Staffing Plan to reflect program decisions.

    3. Publish the Workforce Plan.

  3. Divisions (Planners/HR/Budget Experts) will:

    1. Translate program decisions made during the SPB&PM process from FTE dollars to mission critical position requirements, with assistance from CFO:CPP and SHR:WP, as required.

    2. Communicate position information to SHR:WP.

    3. Review and provide feedback on the Five-Year Staffing Plan.

    4. Maintain and update, the Authorized Staffing and Charting (ASC)/HR Connect system to reflect positions and staffing changes.

    5. Incorporate the Workforce Plan actions into Business Plans.

  4. CFO:CPP and CB will:

    1. Provide SHR:WP an electronic copy of the final program decisions resulting from the Strategic Assessment Process.

    2. Support Divisions and/or SHR:WP with financial information, as required, during the translation of FTE into positions.

6.251.1.10.3  (07-01-2003)
Phase IIB Process

  1. SHR:WP obtains from CFO:CPP a copy of final program decisions resulting from the Strategic Assessment process.

  2. SHR:WP submits information and/or schedules and coordinates meetings with the Divisions and CFO:CPP/CB to translate the program decisions (i.e. DRIPs) into mission critical position requirements. Specifically, the following information is identified:

    1. Prior year funded but unfilled positions.

    2. Number of positions required for each DRIP.

    3. The occupational series, grade, and location of each position.

      Note:

      Identification of occupational series and grades are used in planning documents and are not to be construed as classification approval. Employee mix and position type is established through sound position management policies and principals.

  3. The above information is updated in the IWPS and a revised Five-Year Staffing Plan is generated.

  4. SHR:WP develops the IRS Workforce Plan and distributes it to the SLT, WPC (or applicable decision making body), Divisions, and key stakeholders (e.g. SHR: CM&R) in June of each year. The report will incorporate components of the Workforce Analysis Report (published in December of each year) and the SHR Strategic Assessment Report. It also includes final program decisions, an updated Five-Year Staffing Plan, and a plan outlining specific actions necessary in order to achieve IRS’s human capital goals and objectives. The Workforce Plan is used by Divisions to develop tactical action plans to support implementation of program decisions.

6.251.1.11  (07-01-2003)
Implement Workforce Plan - Phase III

  1. The following figure shows the Implement Workforce Plan - Phase III Process.

    Figure 6.251.1-4

    This image is too large to be displayed in the current screen. Please click the link to view the image.

6.251.1.11.1  (07-01-2003)
Phase III - Overview

  1. Incorporating the IRS Workforce Plan occurs during the Business and Resource Planning Phase of the SPB&PM process. During this phase each Division translates the Workforce Plan and Strategy and Program Plans (SPP) into tactical actions to accomplish its goals.

6.251.1.11.2  (07-01-2003)
Phase III - Roles and Responsibilities

  1. Divisions (Commissioner, Director, Chief, Planners/HR/Budget Experts) will:

    1. Develop a Division and Functional Unit Business Plans, which incorporate the IRS Workforce Plan and the SPP decisions.

    2. Develop Division Annual Hiring Plan (AHP) for FTP positions (i.e., mission critical and management-controlled positions). Provide a copy of the hiring plan to SHR:WP, once finalized.

    3. Collaborate with representatives at all levels to ensure organizational buy in and alignment with IRS strategic goals and objectives.

    4. Begin implementation of the Business Plan at the beginning of the new fiscal year.

6.251.1.11.3  (07-01-2003)
Phase III - Implement Workforce Plan Process

  1. Each Division collaboratively works with its organizational components to translate its SPP and the IRS Workforce Plan into a Business Plan that articulates what tactical actions, applied resources, and performance milestones and measures will be implemented to drive the day-to-day operations. Detailed guidance in the development of the Business Plan is provided in the SPB&PM Guidebook. Although the plans vary by function, they typically include the following elements:

    1. A description of the overall goals.

    2. Specific strategies and operational priorities.

    3. Actions to accomplish operational priorities and improvement projects.

    4. Milestones, including measures, workload indicators, diagnostic indicators, and targets.

    5. Responsible organization component(s).

  2. Each Division prepares an AHP for FTP mission critical positions. The hiring plan identifies by position title/series, and grade level the following:

    • Quantity of FTP

    • Planned month of hire

    • Quantity of internal or external hire

  3. During the development of the Division Business Plan the Division Commissioner, Director, Chief and applicable direct reports meet periodically to ensure consistent alignment, thoroughness, and prioritization of the organizational component plans with the consolidated Division Business Plan.

  4. Once the Division Business Plan is finalized it is communicated throughout the applicable organization. Also, a copy of the Division Annual Hiring Plan is provided the SHR:WP for the purpose of reviewing progress of IRS hiring against what was originally planned and budgeted.

  5. Implementation of the Division Business Plan begins in the upcoming fiscal year. Progress is monitored through the Business Performance Review System (BPRS).

6.251.1.12  (07-01-2003)
Monitor, Evaluate, and Revise - Phase IV

  1. The following figure shows the Monitor, Evaluate, and Revise - Phase IV Process.

    Figure 6.251.1-5

    This image is too large to be displayed in the current screen. Please click the link to view the image.

6.251.1.12.1  (07-01-2003)
Phase IV - Overview

  1. Ongoing evaluation and adjustments of workforce planning are built-in to the SPB&PM process. The BPRS is the central process for measuring, reporting, and reviewing a Division’s performance against approved plans and linking these results to achievement of the overall mission and strategic goals of the IRS.

6.251.1.12.2  (07-01-2003)
Phase IV - Roles and Responsibilities

  1. WPC (or applicable decision making body) will review and provide feedback and direction on improvements to the workforce planning process.

  2. SHR:WP will:

    1. Maintain the Servicewide AHP for mission critical and management controlled positions.

    2. Coordinate with Divisions during AHP updates.

    3. Provide statistical AHP performance updates in support of BPRS.

  3. Divisions (Planners/HR/Budget Experts) will:

    1. Support the BPRS process as defined in the SPB&PM Guidebook.

    2. Develop, maintain and update Division AHP.

    3. On the last day of each quarter, provide SHR:WP with AHP updates with an explanation of hiring deviations.

    4. Provide suggestions for improvements in the workforce planning process.

6.251.1.12.3  (07-01-2003)
Phase IV Process - Business Performance

  1. The Performance Management - Phase IV of the SPB&PM cycle includes executing, measuring and monitoring results; and reviewing strategy, program and budget. In this phase, Division Commissioners, Directors, Chiefs execute their business plan and are held accountable for unit performance against the plan through the BPRS.

  2. Each month Divisions conduct analysis on monthly performance results and analyze performance against the plan. Monthly Business Performance Summary (MBPS) reports are submitted to the Commissioner/Deputy for review.

  3. Business Performance Review (BPR) bi-monthly or quarterly meetings are held between the Divisions and the IRS Commissioner/Deputy. The meetings provide managers and executives the opportunity to assure that the implemented programs are consistent with strategic intent or adjusted to allow for unexpected events (e.g., Treasury Inspector General for Tax Administration (TIGTA) or Government Accounting Office (GAO) reviews). During the meetings:

    1. Actual performance of the programs are compared to planned performance.

    2. Actual expenditures are compared to the planned budget.

    3. Significant program obstacles are discussed.

    4. Progress of improvement project are evaluated.

  4. Additionally, specific Human Resource issues, activities and progress are discussed. For instance, hiring, transition employees, retention, and training.

  5. Information from the performance review system is then utilized in preparing the IRS Performance and Accountability Report (PAR), which is required by GPRA.

6.251.1.12.4  (07-01-2003)
Phase IV Process - Staffing, Hiring, and other Human Capital Components

  1. In support of Division and SHR reporting requirements, SHR:WP maintains the Servicewide Hiring Plan.

  2. On the last day of each quarter, Divisions provide AHP updates with an explanation for plan deviations to SHR:WP. Agencywide deviations from the AHP by occupational series, grade level and organizational unit are calculated. Also, a comparison between what was originally planned and what was budgeted is provided. Once updated, SHR:WP forwards the Servicewide Hiring Plan to Divisions and key stakeholders.

  3. On a quarterly basis SHR:WP conducts analysis of hiring performance for use during the BPRS. Some of the measures utilized might include the following:

    1. Total number of hires by month.

    2. Number and percent of positions filled to date by Division.

    3. Number and percent of position hiring to date by Occupation.

    4. Number and percent of positions filled by external hiring. Sum of the number of people by grade and years of service.

6.251.1.12.5  (07-01-2003)
Phase IV Process - Workforce Planning Process

  1. The workforce planning process is evaluated annually to determine how well each of its component parts are functioning and where adjustments are needed.

  2. During August of each year SHR:WP will solicit input at the WPC (or applicable decision making body) and other customers to determine if changes are needed in the process. If so, changes are incorporated into the following year planning cycle.

Exhibit 6.251.1-1  (07-01-2003)
Definitions

Annual Hiring Plan (AHP) An annual plan at the Division level as well as at the Agency level that defines hiring plans for Full Time Equivalent (FTE) positions (i.e., mission critical positions and management-controlled positions). The plan identifies by position title/series and grade status (journey, above journey, line manager) the following:
* Baseline Profile (Onboard employees, funded but not filled positions, hiring requirements to replace attrition, and quantity of external hires)
* Division Hiring Plan (expected internal and external FTE hires)
* Division Hiring results (quantity of actual FTE hires)
 
* Expected quantity of internal or external hires
 
 
 
AHP execution is monitored at the division level as well as at the agency level.
Authorized Staffing and Charting (ASC) A database that contains organization structures and authorized staffing positions. The database identifies authorized, vacant, and encumbered positions, employees in each position, and information on details and temporary assignments.
Authorized Staffing Pattern (ASP) The number of personnel by grade that is allowed for each permanent employee category within an activity. The ASP is developed for permanent positions based on the related permanent FTE allotment. Note: HR Connect will eventually replace this database.
Business Plan In the SPB&PM process each Division creates a Business Plan, which translates the IRS Strategy, and Program Plan (SPP) into action plans that articulate what tactical actions, applied resources, and performance milestones will be implemented to drive the day-to-day operations.
Business Performance Review System (BPRS) The central system for measuring, reporting, and reviewing a Division’s performance against plans established within the SPB&PM cycle. This evaluation system enables a periodic review of strategic and operational issues and Division performance, facilitating the assessment of the IRS’ progress in achieving its mission and strategic goals.
Demand Analysis Process of identifying the workforce needed to carry out the mission of an organization. It includes an examination of the external environment to obtain a better understanding of what is happening in the environment in which IRS operates.
Divisions Divisions consist of:
* Four Operating Divisions (ODs): Small Business/Self Employed (SBSE), Wage & Investment (W&I), Tax Exempt/Government Entities (TEGE), Large-Mid Size Business (LMSB).
* Functional Divisions (FDs): Taxpayer Advocate Service (TAS), Criminal Investigation (CI), Appeals, and Counsel.
* Support Areas: Modernization, Information Technology & Security Services (MITS), Agency Wide Shared Services (AWSS), National Headquarters (NHQ), and Communications & Liaison.
Drivers of Program Resources (DRIPs) Analysis phase in the SPB&PM cycle where Divisions identify and analyze the drivers that will cause an increase or decrease in resource requirements, and that will influence the achievement of strategy and program plans. DRIPs analysis address these questions: What are the costs and savings generated by the proposed solution of the Trend, Issue, Problem (TIP), what is the proposed funding source, and what performance measures are impacted?
Executive Steering Committee for Organizational Change (ESCOC) A committee established by direction of the Commissioner on April 4, 2003. The committee, chaired jointly by the Chief Human Capital Officer and Deputy Chief, Agency Wide Shared Services (AWSS), consists of Deputy Division Commissioners and representatives from Business Systems Modernization Office (BSMO), Chief Financial Officer (CFO), AWSS, MITS and Equal Employment Office (EEO). The committee, on a Servicewide basis, guides proposed workforce restructuring and transition proposals that have the potential to significantly alter the IRS mission or its performance, and ensures comprehensive and consistent interactions with the Service’s workforce.
Full Time Equivalent (FTE) Total number of regular hours (i.e., not including overtime or holiday hours) worked by employees divided by the number of paid hours applicable to each Fiscal Year (FY). Annual leave, sick leave, compensatory time off and other approved leave categories are considered to be "hours worked" for purposes of defining full-time equivalent employment. OMB A-11 states that there are 261 paid days or 2088 available hours in FY 2003 and 2005. In FY 2004 there are 262 days or 2096 available hours. Some years have 260 paid days or 2080 available hours. Therefore, one FTE can equal to 2080, 2088, or 2096 available hours depending on the FY.
Gap Analysis Process of comparing the workforce supply projection to the workforce demand forecast.
HR Connect Treasurywide initiative and refers to the PeopleSoft Human Resources Management System. The primary function of HR Connect is the automation of various personnel and human resources-related processes. It will also provide tools for performance management, succession planning, and career planning, and will allow the IRS’ Divisions to access their inventory of employee skills and plan for future needs.
Integrated Workforce Planning System (IWPS) A multi-staged planning and analysis model, which factors in a variety of workforce parameters and integrates related budget and planning data. The models output includes estimates of retirement and attrition by Division and occupation. It also estimates internal transfer and reassignment of personnel that are driven by budget allocation and losses of the current workforce external to the IRS. The IWPS also evaluates these changes in terms of likely training requirements changes and also factors in the time it takes " new employees" to reach full performance.
Management Controlled Positions Positions or types of positions that are of high interest to the Senior Leadership Team. For instance:
* High Grades (GS 14 and above, excluding SES equivalent positions)
* Management positions above the front line
* Occupational area of Interest (e.g., Management Analyst)
Mission Critical Positions Jobs in series mission critical to IRS frontline operations, which include Revenue Agents, Revenue Officers, Tax Compliance Officers, Tax Specialists, Tax Examiners, Appeals Officers, Settlement Officers, Customer Service Representatives, Tax Resolution Representatives, certain Engineers and Economists (LMSB), certain Tax Law, Federal/State/Local Government Specialists and Tribal Government Specialists (TEGE), Special Agents and Information Technology Specialists.
Senior Leadership Team (SLT) Senior IRS leaders consisting of the Commissioner, Deputy Commissioner, Assistant Deputy Commissioner, all Division Commissioners, as well as Directors, and Counsel
Strategy & Program Plan (SPP) Translation of strategic decisions made during the Strategic Assessment and Commissioner’s Guidance phases of the SPB&PM process into program narrative, cost, and measurement data. The SPP is a means of communicating Division goals, objectives, strategies, operational priorities and improvement projects.
Treasury Integrated Management Information System (TIMIS) Database for storing and tracking all employee personnel and payroll data.
Workforce Plan Identification of current and future workforce needs of the organization, based on anticipated current and future development in the organization and its products, services, markets, technologies, and business processes. The Workforce Plan sets long-term objectives for workforce activities at the organizational and unit levels.
Workforce Planning Process whereby a strategic plan is developed which sets the organization’s objectives for competency development and workforce activities. These objectives are supported by workforce allocation with each organizational unit to satisfy both unit needs and strategic objectives. The workforce planning process fundamentally involves identifying the gap between the existing workforce supply and the future workforce competency needs and position requirements based on projected workload and strategic objectives. The plan may also enumerate or recommend closing gap strategies and or options for the Senior Leadership Team.
Workforce Planning Council (WPC) Established by direction of the Commissioner on September 21, 2001. The Council, chaired jointly by the Chief Financial Officer (CFO) and Chief Human Capital Officer (CHCO), is involved with issues of Servicewide staffing, hiring and issues that cross cut both financial and human resource management

Exhibit 6.251.1-2  (07-01-2003)
Acronyms

AHP Annual Hiring Plan
APP Annual Performance Plan
APPR Annual Program Performance Report
ASC Authorized Staffing and Charting
ASP Authorized Staffing Pattern
AWSS Agency-Wide Shared Services
BPR Business Performance Review
BPRS Business Performance Review System
CBU Corporate Budget Unit
CFO Chief Financial Officer
CHCO Chief Human Capital Officer
CPPU Corporate Planning and Performance Unit
DRIPs Drivers of Program Resources
FD Functional Divisions
FTE Full-Time-Equivalent
FTP Full-Time-Permanent
GAO General Accounting Office
GPRA Government Performance and Results Act
HR Human Resources
IRS Internal Revenue Service
IWPS Integrated Workforce Planning System
MBPS Monthly Business Performance Summary
MITS Modernization, Information Technology & Security Services
NHQ National Headquarters
OD Operating Divisions
OMB Office of Management and Budget
OPERA Office of Program Evaluation & Risk Analysis
PAR Performance and Accountability Report
SHR Strategic Human Resources
SAR Strategic Assessment Report
SLT Senior Leadership Team
SPB&PM Strategic Planning, Budgeting and Performance Management
SPP Strategy & Program Plan
TIGTA Treasury Inspector General for Tax Administration
TIMIS Treasury Integrated Management Information System
WP Workforce Planning
WPC Workforce Planning Council

Exhibit 6.251.1-3  (07-01-2003)
Workforce Planning Model

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Exhibit 6.251.1-4  (07-01-2003)
Linkage Between SPB&PM and Workforce Planning

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Exhibit 6.251.1-5  (07-01-2003)
Summary of Major Deliverables in Support of the Workforce Planning Process

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