The Hidden Impact of the New Executive Order on Federal HR

 

March 13, 2025

Subscribe and listen anytime on Apple Podcasts, Spotify, or at FedGovToday.com.

 

A new executive order is reshaping the way federal agencies classify their Chief Human Capital Officers (CHCOs), and while the order itself makes no direct demand to politicize these roles, the potential consequences could be significant. Former Department of Homeland Security CHCO, Jeff Neal, recently joined Francis to break down what’s really at stake.

At first glance, the order appears to be a procedural shift, allowing agencies to reclassify CHCO positions from career-reserved Senior Executive Service (SES) roles to SES general positions. However, as Jeff explains, the real impact isn’t just in what the order says—it’s also in what it doesn’t say. It doesn’t mandate that CHCOs become political appointees, but it does create a pathway for agencies to make that change if they choose. And that shift, even if only in select cases, could have lasting effects on how HR policies are developed and implemented across the federal government.

The Value of Career CHCOs

Drawing from his own experience, Jeff recalls when he served as a political appointee at DHS. As he prepared to leave, he strongly encouraged leadership to replace him with a career executive. His reasoning was simple: HR in the federal government is vastly different from HR in the private sector. The laws, regulations, and policies are complex, and they require a deep level of expertise that only career professionals with years of government service typically have.

“When you ask a question, you want an answer from someone who knows it—not someone who has to ask their staff for guidance,” Jeff explains. A seasoned, career CHCO understands the intricacies of federal HR laws and can provide informed, immediate responses to leadership. When these roles become political, the risk is that individuals without that deep institutional knowledge step in, potentially slowing down or misguiding critical decisions.

The Potential Chilling Effect

One of the biggest concerns with the executive order is its possible chilling effect on current CHCOs. Even though the order doesn’t force agencies to politicize the role, career CHCOs might feel pressured to be more cautious in how they challenge or push back against political leadership.

Under the previous system, CHCOs in career-reserved SES roles had more protection. If they disagreed with political leadership, they could provide unfiltered, expert advice without fear of losing their jobs. Now, with the ability to shift CHCO roles into SES general positions, agencies have more flexibility to replace career executives with political appointees. This might make some CHCOs think twice before voicing concerns, particularly if they fear being sidelined or reassigned.

However, Jeff points out that the best CHCOs—those who are truly committed to good governance—will continue to speak up. “Their job is to tell leadership when something is a bad idea, even if it’s not illegal,” he says. But the change in classification could still lead to a culture where fewer CHCOs feel secure enough to push back.

Choosing the Right Battles

Jeff also shares a lesson in choosing which battles are worth fighting. Using a recent example from the IRS, he highlights a case where a CHCO reportedly refused to onboard employees over a weekend because their team had been working long hours. While work-life balance is important, Jeff argues that refusing such a request isn’t a strategic hill to die on. “If leadership wants employees onboarded on a weekend, that’s part of the job,” he says. “Save your battles for the real fights—like protecting veterans, ensuring fair hiring practices, and preventing politically motivated terminations.”

The Future of Federal HR Leadership

Jeff explains that this executive order is just one piece of a broader conversation about how federal leadership roles should be structured. The political landscape shifts with every new administration, but the career workforce remains a steady force behind government operations. Ensuring that CHCOs remain focused on policy and expertise rather than political alignment is crucial for maintaining an effective federal workforce, explains Neal.

For now, Jeff advises agencies and CHCOs to stay vigilant. The executive order doesn’t mandate political CHCOs, but it opens the door for change. Whether agencies walk through that door—and how career HR professionals respond—will shape the future of federal human capital management.

Check out Jeff’s full analysis at chiefhro.com 

Join our Newsletter

Please fill out the requested information below