PERSONNEL RECRUITMENT PROBLEMS IN THE PAYROLL BRANCH,FISCAL DIVISION OF THE COMPTROLLER'S OFFICE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-05246A000100100002-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: August 3, 2001
• Sequence Number: 2
• Publication Date: January 15, 1957
• Content Type: REPORT

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15 January 1957
PERSONNEL RECRUITrENT PROBIEMS IN THE PAYROLL BRANCH,
FISCAL DIVISION OF THE COMPTROLIERIS OFFICE
Assessment and Evaluation Staff
Office of Training
This study was requested jointly by the Acting Comptroller and the
Deputy Director of Personnel because of difficulty they had experienced in
keeping the T/O for payroll clerks in the Fiscal Division filled.
Various explanations for this difficulty have been offered: mechaniza-
tion of the work, particularly too rapid mechanization without employee
acceptance of the change; recruitment of personnel whose characteristics did
not suit the requirements of the job; adverse impressions regarding the nature
of the job, gained by potential employees while in the Interim Assignment
Section; poor supervision; inadequate payscale; and the friction between
employees with seniority and the new employees.
The employees of the Payroll Branch have been repeatedly surveyed and
interviewed during the past year. Rather than disturb them further at this
time, it was considered desirable, as a first step, to see what could be
learned from the personnel records and from interviews with supervisory and
management personnel. Three findings emerged from these limited steps:
(1) Turnover did not appear to be a problem until 1956. (2) This increase
in turnover was coincident with the shift from block to functional (or pro-
duction line) accounting. (3) The payroll clerks are divided into two
distinct age groups.
While all of the explanations which have been offered may be true in
part, the three findings above lead to an interpretation which the Comptroller
may wish to consider before further study is undertaken. This interpretation
stresses the presence of two distinct and widely separated age groups as the
major predisposing cause; and the change in methods of accounting as the pre-
cipitating cause. The other factors that have been mentioned as causes are
viewed as contributory. Verification of this interpretation can come only
from intensive interviewing or from changing the situation in some way to
prevent the interaction of these two age groups. These considerations are
elaborated in the body of the report.
II. BACKGROUND
A preliminary review of the experience of other agencies with respect
to turnover of payroll clerks indicated that this problem is widespread and
is generally attributed to the repetitive nature of the work and the lack of
job satisfaction which can be obtained even under optimum conditions. Dif-
ficulty in recruiting has been one reason, at least in some agencies, for the
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increasing mechanization of payroll operations. The shift to machine accounting
and to more efficient methods of performing the remaining necessary hand opera-
tions has further reduced the possibilities for job satisfaction to the indi-
vidual payroll clerk.
Although this moveme abb nation has tended to reduce the
number of payroll clerks needed, the Civil Service Commission continues to
have difficulty in recruitment and is currently considering a proposal to
upgrade payroll clerks on a nation-wide basis.
III. OBJECTIVE OF THE STUDY
In light of the experience of other agencies it was assumed that the
nature of the work induced high employee turnover and that this turnover
would exist independently of the working conditions in this or any other
agency. It was therefore decided to attempt to identify in this payroll
unit:
A. Any unusual trends in staff turnover.
B. The characteristics of employees who remained on the job as con-
trasted with those who quit.
The above information would then provide a basis (1) for determining whether
any specific situation or circumstance had affected the normal turnover rate,
(2) for defining characteristics of individuals most likely to remain on the
job, and (3) for evaluating the probable effect of administrative actions
which might be taken to reduce turnover.
IV. METHOD OF INVESTIGATION
A roster of 71 employees (25 Male - 46 Female) who had been on duty in
the Payroll Branch between 1 Jan 50 and 1 Oct 56 was obtained from the Comp-
troller's Office. Data for the study were obtained from the personnel files
of 66 people (22 Male - 44 Female) on the above-mentioned roster and from the
test record of 53 people (17 Male - 36 Female) on whom the Assessment and
Evaluation Staff had psychological test information. Test records were not
available on 13 people (5 Male - 8 Female).
The number of months each employee in the sample had served in the
Payroll Branch was determined from personnel actions; length of service in
the Payroll Branch was then compared with characteristic(age, education,
etc.) of the employees.
V. RESULTS
A. The following Table shows the number of individuals hired and
separated from the Payroll Branch since 1950.
1 See Appendix for list of characteristics tabulated.
11
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Individuals Entering and Leaving Payroll Branch*
1950
1951
1952
1953
1954
1955
1956**
M F
M F
M F
M F
M F
M F
M F
EOD
6 5
4 7
2 7
5 4
0 5
2 8
2
9
Transferred
2 0
3 0
2 3
3 3
2 3
0
3
Resigned
1 1
1 3
0 3
1
11
Number on board has varied from 22 to 30 giving an average annual resigna-
tion rate of less than 15% prior to 1956. This compares with an agency-wide
rate for grades Q3 4 through Ca 6 of 20%.
**1956 data complete through October.
These data raise two major questions: (1) Why so few separations
prior to 1953, and (2) Why so many separations in 1956. On rechecking with
the Comptroller's Office it was determined that their records of employees
separated during 1950, 1951, and 1952 may have been incomplete. The abnormal
separation rate in 1956 (12 resignations in 10 months as compared with an
average of 3 resignations per year in the preceding 3 years) indicated a
situation factor not present in prior years. This situational factor was
presumably the change in accounting methods.
B. With the exception of some relationship of age and length of service,
other analyses of data in the Personnel Files were inconclusive, although
containing hints that might warrant further study. Table 2 gives the age
distributions of those who left before and after 2 years of employment.
Table 2
Age at EM in Payroll Branch
A&#
Left in 2 years or
less prior to 1956
Left after 2 years
--Prior to 1956
M
M
F
60t
0
0
1
55 - 59
0
0
2
50 - 54
0
0
0
45 - 49
0
1
4
40- 44
0
1
3
35 - 39
1
0
1
30- 34
2
25 - 29
3
3
3
1
2
20 - 24
2
3
3
* Age as of 1950 was used for those employees on board before 1950.
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The first point to be noted from this table is the unusually large
age range. The second point to be noted is the tendency for there to be a
smaller proportion of those 35 and over who leave before 2 years. The third
point to be noted is that for those under 35 there is no difference between
the proportion leaving before 2 years and the proportion leaving after 2
years.
C. Interviews and briefings brought out the following:
1. Within a year or less, a new employee will achieve the same
grade level ({-5) as employees with several years' service.
2. Personnel in the Payroll Branch divide into two groups - over
and under forty (40) years.
3. Many employees in the Payroll Branch of the Fiscal Division
would prefer to work in the Finance Division. No analysis was made of the
payroll operations in the Finance Division, but this Division is known to
offer prospects for promotion and overseas duty which are not available in
the Fiscal Payroll Branch.
4. Many employees in the Interim Assignment Section are reluctant
to accept placement in this Payroll Branch.
A. Except in 1956, the records do not show turnover as abnormal even
though prior to 1956 this Branch had a "built-in" turnover resulting from
assigning individuals for training with the intention of transferring them
after they became familiar with the operation.
B. The severe turnover in 1956 cannot be related exclusively to any
single factor, but rather to predisposing conditions which were triggered
by the change to functional accounting.
C. Of these predisposing conditions, the existence of conflicting
groups is believed to be the most basic. The older group was (and is)
cohesive. It gets from the job quite different kinds of satisfaction than
the younger group does. In this instance those who are senior in age also
tend to be senior on the job and could be expected to form cliques to resist
the intrusion of juniors on an equal level. This resistance would stem from
the conviction that senior employees should be entitled to some reward or
superior status for continued service. Under the present policy, however,
senior employees find little recognition, either psychological or monetary,
for continued service in this Branch. Within six months to a year, a new
employee can reach the same grade level as an employee who has been on the
job several years. The older employeets dissatisfaction with his position
is compounded when he sees better qualified, but younger, individuals pro-
moted. Moreover, both age groups would question the difference in opportunities
for advancement between the Fiscal and the Finance Divisions. Both would be
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affected by instances of poor recruitment, unfavorable discussion of the
payroll job in the IAS, any undesirable factor in the physical environment,
and by the poor supervision. In our view, correction of any of these factors,
save possibly the last, would not solve the basic problem. Efforts to change
any of these factors should be held in abeyance until a basic policy covering
age group desired has been determined. Concerning supervision, it would
require an outstanding supervisor to cope with this situation, and it will
take a strong supervisor to work out the problem. We do not believe, however,
that poor supervision can be considered a direct cause of the turnover in
1956.
D. The precipitating cause for the sharp increase in separations in
1956 clearly emerged as a charge in accounting methods which reduced the
possibilities for employee satisfaction within the job situation. In this
connection, it should be noted that this change did not directly involve
increased mechanization. It did, however, accentuate a change associated
with machine accounting by reducing the variety of operations performed by
an individual employee. It also reduced his sense of importance by removing
the individual's feeling of sole responsibility for assuring that a group of
people were paid. Since the change in accounting methods should have required
no new skills, but only a redirection of efforts, it can be assumed that the
new system proved inoperable because of resistance, either conscious or un-
conscious, on the part of the payroll clerks. Further, it appears probable
that this resistance would. be most felt by the older employees who were
deprived of the opportunity to use various skills which they had learned.
A. Before further study is made, a basic decision by the Comptroller
is needed concerning the age group he wishes to work towards for the Pay-
roll Office.
Because of this conclusion, this report is submitted on the basis
of the limited information gained to date and does not contain detailed
recommendations.
B. Factors that will need to be considered following this basic
decision are:
decision.
1. Method of approaching the goal of a homogeneous group.
2. The kind of supervisor that will be needed to implement the
3. The kind of rewards this job will emphasize (this includes
both monetary and psychological and has implications concerning the type of
accounting system which should be used).
C' N IAL
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C. Further steps to be taken by the Assessment and Evaluation Staff
will depend on decisions reached on the points in A and B, above.
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Assessment and Evaluation Staff
Office of Training