Mention of the SEC can be a joy killer for some of the hedge funds and insider traders pegged in its investigations. Apparently, though, it can also be a killjoy for the agency’s own employees.
A report by the US government accountability office (GAO), mandated by the Dodd-Frank Act, has found widespread job dissatisfaction, poor communication, an ineffective performance appraisal system and a widespread atmosphere of distrust among staff.
The agency ranked 19th among 22 similar-sized agencies in the US in terms of employee satisfaction and commitment, the GAO says, citing data from the government’s office of personnel management.
‘In describing [the] SEC’s culture, many current and former SEC employees cited low morale, distrust of management, and the compartmentalized, hierarchical, and risk-averse nature of the organization,’ the study authors write. The ‘SEC’s organizational culture is not constructive and could hinder its ability to effectively fulfill its mission.’
The GAO issued a series of recommendations for change at the SEC, including better workforce planning to identify competency gaps and promote leadership training. It also recommends better performance management to address employees’ concerns of an ‘unclear link’ between performance and job ratings, and improved communications through consistent management focus.
The report calls on the SEC to ‘implement an accountability system to monitor and evaluate its personnel management’ to ‘assess whether personnel policies are effective.’
In a response to the GAO study, Mary Jo White, who was appointed to chair the agency earlier this year, says ‘the agency’s staff and leaders remain committed to building upon and sustaining an organizational culture where innovation, collaboration and transparency are encouraged.’
‘In addition, we believe our efforts in enhancing have yielded significant results. We recognize that we still have work to do in these areas and are committed to ensuring that progress continues.’
