The Office of Inspector General (OIG) at the Federal Deposit Insurance Corporation (FDIC) issued a Memorandum to the FDIC regarding its Management of Employee Talent. We conducted an evaluation of the FDIC’s allocation and retention of its examination staff to determine whether (1) the FDIC’s activities for retaining safety and soundness examination staff and subject-matter experts (SME) were consistent with relevant OIG-identified criteria and (2) the FDIC’s process for allocating examination staff and SMEs to safety and soundness examinations was consistent with relevant OIG-identified criteria. We found that the FDIC’s activities for retaining safety and soundness examination staff and SMEs and its process for allocating examination staff and SMEs were consistent with relevant criteria, and thus concluded our evaluation.
However, in conducting our evaluation, we identified broader concerns regarding the FDIC’s overall management of employee talent, and this Memorandum advises the FDIC of weaknesses in this area. The term, “talent management,” encompasses attracting and retaining talent for improving organizational performance, while also considering attrition. Talent management refers to a process to address competency gaps, by implementing and maintaining programs to attract, develop, promote, and retain talent, particularly for mission-critical positions and occupations. Talent management should be a focus for the FDIC, especially given the need to retain employees with skills, experience, and leadership capabilities. Additionally, talent management is important as the FDIC looks to reshape its workforce to transition the Agency and operations following the pandemic.
While the FDIC employs certain talent management activities, the FDIC’s retention management strategy did not have clearly defined goals, a process for collecting and analyzing data, and a process for measuring the effectiveness of its retention activities.
Therefore, we recommend that the FDIC:
- Develop and implement defined, objective, quantifiable, and measurable goals related to retention management at the FDIC.
- Develop and implement a process to collect and analyze the relevant data regarding employee retention across the FDIC and provide the data and analyses to Divisions and Offices.
- Develop metrics and indicators to assess the effectiveness of the FDIC’s employee retention activities and to determine if the FDIC’s retention activities are achieving their desired results and outcomes.
The FDIC concurred with the three recommendations.