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This chapter explores the evolution of public service preparation in America, emphasizing the transformation of federal hiring from a respected bureaucratic process to one marred by political conflicts and indifference to talent. Using a supply and demand model, the chapter analyzes the labor market for federal public servants, demonstrating changes over the past 40 years, particularly in the last 5 years. Through case studies, it concludes that the government’s lack of support for professional education, coupled with growing student indebtedness and sector neutrality, has disrupted the pipeline of talented graduates entering the Federal Civil Service.
In the United States, the path to public service lacks a centralized structure, unlike counterparts in Europe and Asia. This article, part of a special issue on the turmoil in U.S. public administration, explores the transformation of federal hiring from obscurity to a focal point of political conflict. The absence of a defined training academy, a prescribed course, and lax gatekeeping exams for aspiring senior public servants is highlighted. Political maneuverings, legal decisions, and special interests have hindered federal hiring, jeopardizing the recruitment of the best and brightest, especially considering the financial burden on recent graduates and their declining interest in government service. The article concludes that significant reforms are essential to restore the ideal of public service in America.
THE HISTORY OF ENTRY INTO THE CIVIL SERVICE AND THE CURRENT PATHWAY
In 1883, the Pendleton Act marked the beginning of the modern era of government service in the US by replacing the “spoils system” with competitive exams and the Civil Service Commission. Despite subsequent reforms, arbitrary treatment of applicants persisted until the 1979 Civil Service Reform Act, which established the Merit System to eliminate political patronage. However, this reform faced challenges, especially at the senior level. The government struggled with effective hiring practices through the 1990s and 2000s, sending mixed signals to applicants, emphasizing outsourcing during the George W. Bush administration.
President Obama’s 2010 “Pathways Programs” Executive Order aimed to make government service appealing to young people, introducing three pathways for students. However, a decline in the federal workforce and the rise of contractors created uncertainty for aspiring public servants. The ethos of public service, once a noble calling, endured, but challenges persisted, including government shutdowns and a decline in respect for public service.
President Obama championed public service, but the erosion of foundations continued. Various analyses attribute the decline in respect for public service to public cynicism and anti-government sentiments. As paths into public service remain informal, the future of American governance relies on each generation’s response to the call to serve.
A SUPPLY AND DEMAND MODEL OF PREPARATION FOR PUBLIC SERVICE
The General Schedule
The federal employment system has historically functioned differently from a market, relying on public spiritedness and a rigid pay scale known as the “General Schedule.” Job seekers were motivated more by a sense of public service and job security than salary considerations. However, the highest entry-level positions in the federal government, often requiring graduate degrees, offered minimal financial advantages over lower-level positions, creating a recruitment challenge. Studies by the Congressional Budget Office and the Federal Salary Council revealed that federal employees earned, on average, 30 percent more than their private sector counterparts, with the pay gap most pronounced for highly educated individuals.
A model illustrating the workforce dynamics highlighted the diminishing presence of publicly spirited workers as high achievers became less inclined to work for the government. The labor supply function was influenced by public service wages, wages in other sectors, and the substitutability of workers with a public service mentality. Trust in government has declined sharply in the United States, impacting the willingness of individuals to pursue public service careers. The General Schedule’s fixed salary structure, apart from regional cost-of-living adjustments, posed challenges, leading to potential worker shortages or the need for adjustments to attract qualified candidates.
Graduate Education for Public Service
In the United States, individuals aspiring to pursue a career in public service are required to personally finance their preparation, excluding a few fields. Unlike many other OECD countries, the American system lacks government-sponsored training programs or grants for prospective civil servants. Notably, the government neither dictates the preparation process nor provides financial support. Traditionally, the Master of Public Administration (MPA) has been the focal point for graduate education in government service. However, recent trends indicate a shift towards other degrees such as JD, MBA, and STEM disciplines. Despite the MPA’s sustained popularity, fewer graduates are entering federal employment, with a significant proportion opting for non-profit and social enterprise sectors. Furthermore, the pathway from undergraduate to graduate to federal employment has become less common, with a decline in the number of young hires entering the government workforce. Despite an impending retirement crisis, the government seems to be minimizing the recruitment of young professionals.
The Effect of Student Loan Debt on Applicants for Public Service
The student loan repayment landscape underwent a significant shift in 2007 with the introduction of the Public Service Loan Forgiveness (PSLF) program through the College Cost Reduction and Access Act. This initiative aimed to reduce the financial burden on individuals pursuing careers in public service by forgiving any remaining student loan debt after 10 years of public service. Unlike the traditional 10-year repayment plan, PSLF targets federal student loan borrowers utilizing the “Income-Based Repayment” (IBR) scheme introduced in 2009. IBR allows borrowers to repay a percentage of their income over 20 years, offering flexibility and risk-sharing. However, the program’s extension to government workers raises controversy, particularly regarding subsidies for low-income public employees pursuing graduate degrees. The financial challenges for high-skilled government workers, earning less than their private sector counterparts, highlight the need for potential public subsidies to incentivize graduate education in public service, given the potential negative financial returns for individuals in these roles.
A Case Study in Financing a Public Service Education: The Higher Education Reauthorization Act bill of 2017 (The “PROSPER” Act)
Since 2016, there has been a continuous threat to federal support for graduate education loans in the United States. A 2017 Congressional tax bill aimed to tax tuition waivers for graduate students, but this provision was eventually dropped. In 2018, Congress successfully imposed a $350 million cap on the total amount of loan debt forgiven in the Public Service Loan Forgiveness program. Subsequently, the PROSPER Act, a bill to reauthorize federal support for higher education, was introduced but failed to pass in 2018, signaling significant cuts for students preparing for public service.
The PROSPER Act sought to make income-contingent repayment plans for graduate education open-ended, causing concern among students. Public perception of graduate education has shifted, with some viewing graduate students as part of the elite, challenging the idea of public subsidies for their education. However, in fields like public service, the belief that future professionals should not receive public support is considered misguided.
The Master of Public Administration/Affairs (MPA) and the Master of Public Policy (MPP) are essential degrees for public service, with associated costs ranging from $60,000 to $140,000. Despite the high cost, there is limited institutional aid available, leading to substantial student debt. The federal government, as a major stakeholder in the education of its workforce, must consider the impact of student debt burden on its workers. The government’s ability to set salaries and loan repayment terms allows it to influence the return on investment for graduate education.
Federal workers with master’s degrees entering the Civil Service face challenges in repaying loans, impacting their effective income. The situation is exacerbated by the extended repayment periods, making it difficult for individuals to manage their debt. The U.S. Department of Education’s denial of 99.1% of applications for public service loan forgiveness in 2019 further discouraged students from pursuing public service careers. Despite legislative setbacks, administrative decisions have contributed to the challenges faced by graduate students seeking support for their education.
A CASE STUDY IN HIGH FLYER RECRUITMENT TO PUBLIC SERVICE
This section explores high flyer recruitment, its motivations, and applies the framework to compare the PMF program with other similar initiatives, revealing an international perspective that highlights a suboptimal pathway for the most qualified individuals to join public service, thereby compromising the strategic capacity of the US civil service.
The US Presidential Management Fellowship
The Presidential Management Fellowship program (PMF), established in 1977 by President Jimmy Carter, aimed to attract top management graduate students to pursue careers in public service. Initially, it offered a two-year fellowship for training and development, with the potential for conversion to a permanent position. Designed as a flagship federal hiring initiative, the PMF aimed to recruit the brightest graduates to become future leaders in the US Civil Service, reflecting American social and political values in public service recruitment.
In its early years, the PMF focused on recruiting elite students from public management schools, but in 1982, it expanded eligibility to all graduate students. The program faced challenges, including a disproportionate number of veterans due to the application of “veterans’ preference.” To address concerns of disparate impact, the knowledge-based test was replaced with a “situational judgment” assessment, making the selection process unpredictable and likened to a lottery.
Over time, the PMF underwent changes, including a shift to OPM in 2014 with new management, attempting reform and improvement. Despite these efforts, the program’s popularity declined, with a significant drop in applicants by 2019. Although the PMF made strides in updating testing and services, the number of finalists and successful appointments dwindled.
Critics noted that the PMF’s superiority was sometimes measured against the regular competitive hiring system rather than against world-class talent recruitment efforts in other governments. A more meaningful comparison, they argued, would involve assessing the PMF against similar high-flyer recruiting programs in peer countries.
An International Typology of High Flyer Programs
High flyer recruitment, in essence, is a government’s quest for outstanding candidates in public service. Governments undertake this process for various reasons, employing diverse structural approaches and operational methods. The main motivations can be distilled into meritocracy and strategic human capital, forming the basis for a typology explored in this chapter. In the 21st century, high flyer recruitment is primarily justified by a belief in meritocracy, emphasizing the inclusion of highly capable individuals from diverse backgrounds into government service. However, this clashes with the egalitarian principle prevalent in bureaucratic contexts, where uniform selection criteria and treatment for employees are advocated to prevent corruption and discrimination.
Historically, elite recruitment paths were reserved for privileged groups, but democratic governance has eliminated such explicit goals. Critics argue that meritocratic practices still conceal a desire to maintain the status quo by recruiting from well-connected individuals. Some countries adopt hyper-egalitarian public sector hiring policies due to rigid social structures, support from high-income groups for employment remedies, low public trust in government, risk aversion, or concerns about the reliability of selection tools. Extreme egalitarian measures, such as lotteries or low-bar selection processes, aim to eliminate discrimination but may result in a workforce lacking necessary skills for effective governance. The tension between meritocracy and fairness pervades discussions on personnel management and recruitment.
Veterans Preference and Federal Hiring
In the realm of American high flyer recruitment, the emphasis on social policy rather than academic merit is exemplified by the increasing significance of Veterans Preference in selecting Presidential Management Fellows (PMF). The U.S. stands out for utilizing federal hiring as a means to address broader social policies related to veterans, a trend that gained momentum after the cessation of the military draft in 1973. While some argue that military service predominantly attracts minorities and the economically disadvantaged, recent studies refute this notion, revealing a diverse composition within the military. Despite the declining number of veterans in Congress, legislative bodies have consistently passed laws providing extensive educational benefits for veterans, viewed as crucial for military recruitment in a nation with a substantial volunteer force. Federal policies now actively address the social implications of military service by offering unique benefits, such as free healthcare and preferential hiring for veterans. However, the human resources community within the Federal Government acknowledges the challenges and conflicts arising from these policies, as expressed by the Partnership for Public Service. The preference for hiring veterans has deep historical roots, originating with the Pendleton Act of 1883, which granted hiring preferences to honorably discharged military personnel. Over time, Congress has formalized and expanded these preferences, emphasizing the legitimate public policy goal of recognizing and rewarding the sacrifices made by those in the uniformed services, as affirmed by the United States Merit Systems Protection Board.
Strategic Human Capital and High Flyer Recruitment Programs
The high flyer recruitment strategy emphasizes the government’s dedication to identifying and nurturing future leaders in the civil service. To distinguish this initiative from mainstream efforts, the program must offer enticing incentives to attract top-tier candidates. Unfortunately, challenges arise due to funding constraints and the decentralized nature of hiring, with agencies prioritizing specific positions rather than grooming future leaders. Despite concerns about training expenses, data indicates that younger hires, including millennials, show comparable commitment to government service if provided with opportunities for growth (Viechnicki, 2015).
A Model of High Flyer Recruitment
The endeavor to attract top student recruits to government service involves multiple facets. Examining the discourse on meritocracy and strategic human capital reveals eight key elements, divided into four each for meritocracy and strategic human capital, collectively defining the entire endeavor. Cheema and McFarland (2014) proposed a typology and an eight-component framework, exploring its applicability to various high flyer program settings. In gauging the balance between equity and meritocracy, four measures were established, while four additional measures assessed the equilibrium between elitism and competitive recruitment. Together, these measures depict a spectrum, showcasing recruitment programs ranging from efficiency-focused to equity-oriented initiatives, and from small, elitist endeavors to more inclusive, larger-scale programs.
The United States PMF in Comparative Analysis
A global collaborative research initiative conducted by civil service scholars through NASPAA has provided valuable insights into the positioning of high-flyer recruitment programs on the elitism and efficiency spectrums. Examining programs such as the United States PMF, the British Government’s Fast Stream, Canada’s Recruitment of Policy Leaders (RPL), and South Korea’s Competitive Recruitment Program Grade 5, the study reveals that the PMF lacks strategic value due to its emphasis on weak matching and social policy over academic rigor and optimal selection. Compared to other programs, the PMF appears more akin to a random lottery than a discerning selection process for the best candidates. Furthermore, it is depicted as a hyper-egalitarian program with minimal meritocracy within the OECD.
The study points out that the PMF’s structure, reliant on agency funding and lacking central government support, hampers its ability to offer government-wide opportunities and rotations. The absence of proactive encouragement for qualified students, coupled with the unpredictable nature of agency postings, makes successful matching challenging. To enhance the program’s strategic and meritocratic aspects, the study suggests that central government funding be provided to pay PMFs, enabling rotation across agencies and fostering healthy competition among agencies for quality placements. Additionally, central funding would empower OPM to strategically create positions in agencies targeting skill enhancement and future leadership.
While acknowledging some successful initiatives like Agile Startup 18F and the US Digital Service, the study underscores the decline of these efforts by 2019. Despite OPM’s attempt to attract STEM applicants through a dedicated track within the PMF, broader reforms are needed to address systemic issues and enhance the overall effectiveness of high-flyer recruitment programs in the government.
CONCLUSION: THE FUTURE OF PUBLIC SERVICE PREPARATION
This article explores the preparation of highly educated graduate students for public service, focusing on their entry into the Federal Government for future leadership roles in the Civil Service. In a country lacking a well-defined government service pathway, market analysis reveals the varied career paths individuals create for themselves. The analysis suggests that rising student debt and stagnant, capped salaries at the top levels of civil service diminish the appeal for sought-after graduates to pursue public service. Additionally, the decline in public spiritedness among young Americans and a preference for non-profit or contractor sectors contribute to the challenges faced by government efforts to attract talented individuals. Without reforms addressing selection rigor, meritocracy, and improved opportunities, the nation may confront a future crisis in the caliber of the federal workforce and governance performance.
Source:
McFarland, L. (2019). Preparation for government service in the United States. Revue française d’administration publique, 170, 365-384. https://doi.org/10.3917/rfap.170.0365