The research reveals a failure across the public sector to renew and adapt talent management strategies in line with radical changes brought about by government spending cuts – despite a widespread need to develop new leadership roles and workforce capabilities.
Yet the research also highlights a very real danger that cost cutting will impact the capacity to develop and retain future leaders and talent.
The study, Mind the talent gap: dealing with the deficit, was conducted with 131 public sector leaders ranging from board and executive level to middle management.
Jody Goldsworthy, associate director at Hay Group, comments:
“The report raises concerns over whether public sector leaders can steer their organisations through unprecedented reform, and whether leaders are being developed for the sector’s future needs.
“Many organisations are overlooking the leadership and workforce development strategies crucial to success in a changed landscape. These need to be reviewed as a matter of urgency.”
The concern is even more acute when looking to the future. Three fifths (60 per cent) fear that their leadership population does not possess the right skills and capabilities to successfully meet future challenges.
Organisational restructuring is progressing largely to plan in the public sector, Hay Group found.
The majority (60 per cent) of public sector leaders have reviewed the core purpose of their organisation. Of these, 58 per cent are radically changing their long term strategy and some 70 per cent are adapting their operating model.
Interestingly, more than two thirds (69 per cent) of this group recognise that new types of leadership roles are required to deliver future strategy.
Yet talent management is not keeping pace. Almost three quarters (73 per cent) of organisations have not renewed their talent management strategy or systematically addressed how to identify and retain high potentials.
Hay Group’s report also highlights a failure to build new capability requirements into future workforce plans.
A significant majority (62 per cent) are failing to assess people based on new capabilities required to meet the needs of reform. Over two thirds (68 per cent) have not incorporated these new capabilities into their recruitment plans.
Less than half (48 per cent) have clearly defined the type of talent, skills and capabilities they currently require. Only a third (33 per cent) have done so for the next two years, and less than a fifth (19 per cent) have done so for the next five years.
Jody Goldsworthy, associate director at Hay Group, comments:
“To operate in a new way, it is critical that organisations identify the new structures, roles and behaviours they will need at leadership level and across the workforce.
“As the landscape shifts around them, public sector organisations realise this but are yet to take steps to address it.
“Only with the right capabilities in place will the sector meet the challenge of maintaining and improving services against a backdrop of fundamental change.”
