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The United States Office of Personnel Management

Picture of William Tygart

The United States Office of Personnel Management (OPM) is an independent agency of the U.S. federal government that manages the federal civil service. Established in 1979 with the dissolution of the U.S. Civil Service Commission following the Civil Service Reform Act of 1978 1, OPM is the chief human resources agency and personnel policy manager for the Federal Government 2. The agency provides federal human resources policy, oversight, and support, and tends to healthcare (FEHB), life insurance (FEGLI), and retirement benefits (CSRS and FERS, but not TSP) for federal government employees, retirees, and their dependents 1.

OPM is responsible for the government-wide human resources management, providing leadership, and support to federal agencies to help the federal workforce serve the American people 1. OPM leads and serves the federal government in enterprise human resources management by delivering policies and services to achieve a trusted and effective civilian workforce 4.

OPM's Mission, Vision, Values, and Strategic Goals

OPM's mission is to lead federal agencies in workforce policies, programs, and benefits in service to the American people 5. Their vision is to create a new vision of work, together, by positioning the federal government as a model employer for past and present employees through innovation, inclusivity, and leadership. They aim to build a rewarding culture that empowers the workforce to solve some of the nation's toughest challenges 5.

OPM's values are respect, innovation, service, and excellence 5. These values guide the agency's actions and interactions with federal agencies, employees, retirees, and the public.

OPM's strategic goals are to:

  • Make searching and applying for Federal jobs easier and faster 3.
  • Provide Federal employees with benefits that are relevant, flexible, fair, and rewarding 3.
  • Make Federal employment accessible — and possible — for every American who seeks it 3.
  • Retain a Federal workforce as diverse and versatile as the work it does and the people it serves 3.

Services and Programs Offered by OPM

OPM offers a wide range of services and programs to federal agencies, employees, and retirees. These can be categorized as follows:

Recruitment and Hiring:

  • Human capital management: OPM provides policy direction and leadership in all areas of human capital management, including recruitment, hiring, classification, compensation, benefits, performance management, and employee relations 6.
  • Oversight: OPM oversees all policy created to support Federal human resources departments — from classification and qualifications systems to hiring authorities and from performance management to pay, leave, and benefits 7.
  • USAJOBS: OPM manages USAJOBS, the federal government's official employment site 8. USAJOBS provides a centralized location for federal job seekers to find and apply for jobs, making the process more efficient and accessible.

Employee Benefits:

  • Benefits administration: OPM administers a variety of benefits programs for federal employees, including health insurance, life insurance, retirement, and long-term care 6.
  • Retirement services: OPM provides retirement benefits and services for all federal employees, including processing retirement applications, calculating benefits, and providing counseling services 9.
  • Healthcare and insurance: OPM ensures the availability of quality benefits for the federal family by facilitating access to high-caliber healthcare and insurance programs offered by the Federal Government 7. This includes health services, dental and vision benefits, flexible spending accounts, life insurance, and long-term care programs.

Other Services and Programs:

  • Work-life programs: OPM promotes work-life programs to help employees balance their work and personal responsibilities. These programs include telework, flexible work schedules, and employee assistance programs 10.
  • Training and development: OPM provides training and development programs to help federal employees develop their skills and knowledge. These programs include leadership development, supervisory training, and technical training 11.
  • Employee assistance programs: OPM develops and administers programs that provide high quality and affordable health insurance to uninsured Americans through Affordable Insurance Exchanges, uninsured Americans with pre-existing medical conditions who cannot otherwise purchase coverage, and employees of tribes or tribal organizations 7.

OPM's Recent Activities and Initiatives

OPM has been actively involved in several recent activities and initiatives aimed at modernizing and improving the federal workforce:

  • Return to In-Person Work: In response to changing political priorities, OPM has issued guidance to federal agencies to end telework and remote work and require employees to return to in-person work full-time 12. This shift has generated controversy among federal employees and unions, who argue that telework increases productivity and work-life balance 15.
  • DEI Initiatives: OPM has created an email account (DEIAtruth@opm.gov) to collect reports of suspected diversity, equity, and inclusion initiatives 16. This initiative reflects the current administration's focus on reducing DEI efforts across the federal workforce.
  • Responding to the COVID-19 pandemic: OPM provided guidance and support to federal agencies on how to manage their workforce during the COVID-19 pandemic, including guidance on telework, leave, and workplace safety 17. This highlights OPM's role in adapting to unforeseen challenges and ensuring the continuity of government operations.
  • Implementing the President's Management Agenda: OPM has been working to implement the Biden-Harris Administration's President's Management Agenda, which includes priorities such as strengthening and empowering the Federal workforce 18.
  • Modernizing federal hiring: OPM has been working to modernize the federal hiring process, including making it easier for job seekers to find and apply for jobs and reducing the time it takes to fill vacancies 18. This initiative aims to make the federal government a more competitive employer in the current job market.
  • Advancing diversity, equity, inclusion, and accessibility (DEIA): OPM has been working to advance DEIA in the federal workforce, including providing guidance and support to agencies on DEIA initiatives and collecting data on the diversity of the federal workforce 18.
  • Improving customer service: OPM has been working to improve customer service to federal employees and retirees, including by modernizing its technology systems and streamlining its processes 17. This effort aims to enhance the experience of federal employees and retirees when interacting with OPM.
  • Improving pay equity and increasing early-career recruitment: OPM has focused on improving pay equity and increasing early-career recruitment of federal workers 17. These efforts aim to attract and retain a highly qualified and diverse federal workforce.

OPM's Leadership and Organizational Structure

OPM is headed by a director and deputy director appointed by the President and confirmed by the Senate 19. In FY2021, the agency had 2,737.9 full-time-equivalent employees located in the central office in Washington, D.C., and in field offices around the country 19. OPM's organizational structure is divided into four different types of offices: Executive, Program, Mission Support, and Others 21.

The Executive Offices include:

 

Office Name

Key Responsibilities

Office of the Director (OD)

Provides guidance, leadership, and direction necessary to achieve OPM's mission 21

Office of the Executive Secretariat and Privacy and Information Management (OESPIM)

Responsible for privacy, Freedom of Information Act, records management, forms management/Paperwork Reduction Act, Controlled Unclassified Information, correspondence management, and coordination of OPM's internal clearance processes 22

Office of the General Counsel (OGC)

Provides legal advice and representation to the Director and OPM managers and leaders 21

Congressional, Legislative and Intergovernmental Affairs (CLIA)

Fosters and maintains relationships with Members of Congress and their staff 21

Human Capital Data Management and Modernization (HCDMM)

Leads the Government-wide use of human capital data as a strategic asset 22

Office of Communications (OC)

Coordinates a comprehensive effort to inform the public of OPM's goals, plans, and activities 22

Office of Diversity, Equity, Inclusion & Accessibility (ODEIA)

Committed to leading and providing Government-wide guidance on DEIA initiatives 22

In addition to the Executive Offices, OPM has several key components that contribute to its mission:

  • Retirement Services: Oversees the Civil Service Retirement Service (CSRS) and the Federal Employee Retirement Service (FERS) 1.
  • Healthcare & Insurance: Oversees the Federal Employee Health Benefits (FEHB) and Federal Employee Group Life Insurance (FEGLI) programs 1.
  • Employee Services Branch: Provides a range of services to federal employees, including assistance with personnel matters, benefits, and work-life programs 1.

OPM's Budget and Financial Performance

OPM's budget for fiscal year (FY) 2024 was $461,764,000 in discretionary resources 18. This includes $37,675,056 to implement the Postal Service Health Benefits program 18. OPM's budget request for FY 2025 is $465,800,000 in discretionary resources 23. This budget will allow OPM to maintain its progress in processing new retirement applications, support advancements in Federal hiring, and strengthen agency operations 23.

OPM's financial performance has been strong in recent years 24. The agency has received clean audit opinions on its financial statements and has been recognized for its financial management practices 24. However, OPM has faced challenges in modernizing its legacy financial systems 25.

To address these challenges, OPM initiated the Trust Funds Modernization (TFM) Program to replace its outdated Federal Financial System (FFS) 25. While OPM has made progress in this effort, it has encountered cost increases and schedule delays 25. The Government Accountability Office (GAO) has recommended that OPM fully implement leading IT management practices for cost and schedule estimation and cybersecurity to mitigate these risks 25.

The following table outlines OPM's budget requests and enacted budgets for FY2021 and FY2022 26:





Budget Category

FY2021 Requested

FY2022 Enacted

FY2023 Requested

Discretionary Appropriations

$299,762,000

$329,755,000

$372,000,000

Salaries and Expenses Total

$145,137,000

$160,130,000

$197,000,000

Trust Fund Annual Total

$154,625,000

$169,625,000

$175,000,000

OPM's Role in the Federal Government's Human Resources Management

OPM plays a central role in the federal government's human resources management. The agency is responsible for:

  • Setting human resources policy: OPM develops and issues government-wide policies and guidance on all aspects of human resources management 3. This includes policies related to hiring, classification, compensation, benefits, performance management, and employee relations.
  • Overseeing agency human resources programs: OPM oversees the human resources programs of federal agencies to ensure that they are compliant with laws and regulations 3. This oversight function helps to ensure consistency and fairness in the application of human resources policies across the federal government.
  • Providing human resources services: OPM provides a variety of human resources services to federal agencies, including recruitment, hiring, classification, compensation, and benefits administration 3. These services help agencies to effectively manage their workforce and ensure that employees are treated fairly and in accordance with applicable laws and regulations.
  • Administering benefits programs: OPM administers a variety of benefits programs for federal employees, including health insurance, life insurance, retirement, and long-term care 1. This ensures that federal employees have access to comprehensive and competitive benefits packages.
  • Conducting background investigations: OPM conducts background investigations for federal employees and contractors to ensure that they are suitable for employment 1. This helps to protect national security and maintain the integrity of the federal workforce.
  • Supporting diversity and inclusion: OPM supports diversity and inclusion by aligning business intelligence tools to help decision-makers analyze workforce data, including applicant flow, attrition/retention, and inclusion indicators 3. This helps to ensure that the federal workforce reflects the diversity of the American people and that all employees have an equal opportunity to succeed.
  • Focusing on the employee life cycle: OPM focuses on the federal employee life cycle to ensure that the workforce can hire and develop the best talent from all segments of society 3. This includes initiatives to improve recruitment, onboarding, training, and development opportunities for federal employees.
  • Enhancing policy, procedures, and processes for vetting job candidates: OPM has taken steps to define executive branch-wide quality standards for background investigations, automate processes, and implement revised Federal Investigative standards 3. These initiatives aim to improve the efficiency and effectiveness of the vetting process while maintaining high standards of security and integrity.
  • Holding agencies accountable for human capital management: OPM evaluates agencies' human capital management programs and ensures compliance with laws and regulations 3. This helps to ensure that agencies are effectively managing their workforce and adhering to established standards.
  • Maintaining independence and neutrality in the administrative law system: OPM plays a crucial role in maintaining the appearance of independence and neutrality in the administrative law system by hiring administrative law judges (ALJs) 1. This process removes discretionary employment procedures from other agencies and ensures that ALJs are selected based on merit and qualifications.

Conclusion

The United States Office of Personnel Management plays a vital role in the federal government by managing the federal civil service and providing human resources leadership and support to federal agencies. OPM's mission is to recruit, retain, and honor a world-class force to serve the American people 1. The agency offers a wide range of services and programs to federal agencies, employees, and retirees, and is committed to modernizing its operations and improving customer service.

OPM is actively adapting to the changing needs of the federal workforce, including the rise of telework and the emphasis on diversity and inclusion. The agency has been instrumental in guiding federal agencies through the COVID-19 pandemic and supporting the transition to a more hybrid work environment. However, recent political changes have led to a shift away from telework and DEI initiatives, posing challenges for OPM in balancing competing priorities and maintaining employee morale.

OPM also faces challenges in modernizing its legacy systems and processes, particularly its financial systems. While the agency has made progress in this area, it needs to fully implement leading IT management practices to ensure the efficiency, effectiveness, and security of its operations.

Despite these challenges, OPM remains a critical component of the federal government's human resources management infrastructure. By effectively managing the federal workforce, OPM contributes to the overall effectiveness and efficiency of the federal government and its ability to serve the American people.

Works cited

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