Strategic human capital is an essential part of any organization’s efforts to maximize performance and assure accountability for achieving results. Like many Federal Government agencies, the IRS is experiencing workforce challenges, including recruiting, training, and retaining employees, as well as an increasing wave of retirements. During FY 2012, nearly 35 percent of the IRS’s executives and nearly 21 percent of its nonexecutive managers will be eligible to retire. In addition, to fill the projected leadership shortage, the IRS has stated that it must recruit one manager a day for the next 10 years. The IRS’s challenge.