Elon Musk and the Department of Government Efficiency have been making headlines—and prompting protests—in recent weeks for their unconventional approach to carrying out the Trump administration’s pledge to reduce federal spending: mass layoffs, demands for weekly task accountability and more.

What’s really behind the purported federal waste DOGE says it is tackling? According to one veteran government leader who testified before Congress last month, skills gaps are playing an outsized role in dragging down efficiency and driving up the potential for waste—a reality that experts say has important takeaways for the private sector.

At a Feb. 25 hearing before the House Oversight and Government Reform Committee, Comptroller General Gene Dodaro told lawmakers that the federal workforce “doesn’t have the proper skills that are needed to address many of these important areas that are providing critical services to the American people, and at the heart of providing public safety.”

Dodaro, of the U.S. Government Accountability Office (GAO), presented the GAO’s annual High-Risk List, identifying the areas where fraud and abuse could proliferate within the federal government. Nearly half of the 38 items on the 2025 list, according to an analysis by Federal News Network, are related to government agencies lacking the skills or the people they need.

“We’re not saying you need more government,” Dodaro told lawmakers. Throughout the hearing, legislators debated DOGE’s strategy of massively overhauling the federal workforce, with some Democrats arguing that there is not enough strategic focus on upskilling federal workers and planning for skills loss with retirements.

“Not enough” young talent, Dodaro added, “have been coming into the government with the kind of skills that are needed going forward.

“What we’re saying is, you don’t have the people in order to accomplish what Congress has set in statute and what the administration’s priorities are.”

Skills: A critical component of efficiency

More strategic human capital management that plans for the skills needed tomorrow can help mitigate the vulnerabilities that are exposing the federal government to waste, Dodaro advised.

It’s a reality many private sector organizations are also confronting.

A report released earlier this year by learning company Pearson found that the U.S. economy is losing more than $1 trillion annually because of “inefficient career transitions and learning gaps.”

ADP found similar results in its recent survey of 38,000 global workers about career barriers. The firm reports that of those who have opportunities to advance at their current company, about one-third plan to stay with the organization because of professional training and skills development offerings.

Yet, many organizations aren’t prepared to take advantage of the retention value of skills-building initiatives: According to i4cp’s longitudinal data from 2021-24, 70% of organizations struggled to build workforce skills during that time. CHROs realize they need to “advance on their workforces’ continuous (and urgent) learning needs,” researchers wrote in the organization’s 2025 Priorities and Predictions report.

How can HR meaningfully move the needle forward? HR Executive‘s HR Tech editor recently consulted a series of HR experts about the skills gap challenge, who advised people leaders to focus on:

• Personalized learning: Highly customized learning experiences, including those that leverage AI, says Andrea Lagan, chief operating officer at performance management solution Betterworks, enable HR to “understand and respond to individual aspirations,” leading the organization to “demonstrate genuine investment in their people’s growth.”
• Infusing L&D with tech: AI, augmented reality, simulations and other emerging tech tools can create hands-on skills-building experiences with a high level of engagement, experts say.
• Leaning into data: Continuously evaluate the effectiveness of learning and development initiatives by looking at metrics around productivity, engagement and retention. Skills programs should be designed and measured with an eye toward “long-term value creation,” says Rob Porter, head of market and business development at virtual training platform CoSo.
• Working across functions: CHROs, chief learning officers and chief technology officers should collaborate to align learning and business objectives, says Brian Hackett, founder of The Learning Forum.
• Building human skills: While much of the skills gap discussion centers on advancing the workforce’s tech skills, HR shouldn’t lose sight of the so-called “soft” skills needed for success in an evolving workplace. These include “divergent thinking, emotional agility and resilience,” according to Anthony Stephan, chief learning officer at Deloitte U.S. Neglecting investment in these areas, he wrote in a recent report, “could end up impeding innovation.”

To drive engagement in skills-building strategies, they should be designed with a holistic focus, with emphasis on the benefit for the individual and the organization, Rachel Rosenfeldt, managing director and head of training at leadership development firm Kotter, recently wrote for HR Executive.

Make such programs, fun and creative—leveraging gamification and hands-on experiences, she says—and demonstrate the impact of enhancing skills on employees’ day-to-day work and the company’s purpose.

“By embracing these principles and incorporating them into learning and development initiatives,” Rosenfeldt writes, “HR leaders can create a culture of continuous learning that empowers employees to grow both personally and professionally. Investing in employees’ growth is investing in a company’s future.

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