Talent Development and Management: Optimizing Human Performance in the

Public Sector

Harvey L. White, Ph.D.

Director, The Initiative for Public Service and Diversity
Associate Professor, Public and International Affairs
Graduate School of Public and International Affairs
University of Pittsburgh
2007-08 President, American Society for Public Administration
Fellow, National Academy of Public Administration

INTERNATIONAL CONFERENCE ON ADMINISTRATIVE DEVELOPMENT:

TOWARDS EXCELLENCE IN PUBLIC SECTOR PERFORMANCE
King Faisal Hall for Conferences, Riyadh
Kingdom of Saudi Arabia November 1-4, 2009
Abstract

This paper addresses the paradigm shift in the way human resources managers are

defining their mission and measuring their success using the concepts and techniques of

talent development and management. The primary focus is on how organizations are

redesigning and rethinking talent processes, and using new technologies to transform the

way human talent is managed to enhance performance. Talent management practices in

both the public and private sectors are examined.

In addition to discussion of pertinent perspectives, methodology and theory, survey

information from human resource managers is used to explore drivers of talent

management decision making in a variety of organizations. Consideration is also given to

impending global workforce demographic challenges and how talent management can help

prepare public sector organizations to address them. A brief review is then provided of the

successful Implementation of talent management in Ontario Canada. Moreover, this paper

gives attention to one of the key strategic human resource imperatives for contemporary

public sector organizations: shifting to the Human Talent Development and Management

Paradigm.

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Talent Management: An HR Paradigm Shift?

There is growing recognition in the Human Resources (HR) profession of a need to

shift away from valuing employees as mere capital assets toward what is described as the

more salient tenets of human talents. This shift is more than just mere semantics. At its

core is a fundamental change in how organizations value people, which includes changing

how they recruit, develop, align, assess and retain employees. As Heidi Spirgi, President of

Knowledge Infusion, points out, the new focus on talent management represents “ . . . a

paradigm shift in the way HR defines its mission and measures its success” (Reuters,

2008). Research suggests that the talent management paradigm Spirgi envisions is an

imperative for optimizing human performance in the public sector.

This emerging paradigm can enable public sector organizations with a framework for

redesigning and rethinking talent processes, and using new technologies to transform and

enhance the way human talent performs (Spirgi and Corsello, 2009). Its application in the

public sector can also help position policy makers to better respond to the growing global

talent crisis. Moreover, talent management can serve as a vital management tool for

achieving excellence in public service at all levels of government.

This paper examines the talent management paradigm. In addition to discussion of

pertinent perspectives, methodology and theory, survey information from human resource

managers is used to explore talent management drivers in both the public and private

sectors. Attention is given to workforce demographic challenges and how talent

management is providing organizations with a strategic perspective to address these

challenges. The paper ends with a review of talent management in Ontario Canada. First,

however, consideration is given to “Talent Management as an HR imperative!”

Talent Management as an HR imperative!

Research findings from several studies suggest that talent management is rapidly

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becoming recognized as a top management priority. A 2005 global survey of over 9,000

executives revealed that the supply of talent is ranked as their most significant managerial

challenge (Lubitsh and Smith, 2007; McKinsey quarterly survey, 2005). Similarly, a 2006

IOMA HR Critical Issues Survey found talent management to be the top issue for 75% of

its respondents (HRfocus, 2006). The time priority executives give employee related

activities also reveals the increased focus placed on talent management.

Survey data gather by the Economist Intelligence Unit indicate that executives

allocate as much as 50% of their time for responding to talent management challenges

(Smutniak, 2004). These include important employee related activities, such as:

1. Attracting and retaining enough talent at all levels to meet current and future needs;
2. Creating a value proposition that appeals to multiple generations;
3. Developing a robust leadership pipeline;
4. Rounding out employees capabilities to prepare them for global leadership; and
5. Transferring key knowledge and relationships to new workers (Erickson, 2008).

Why has talent management become such an imperative for these executives? The reason

often cited is convergence of dynamic global demographic, economic, social and business

trends whose scope and speed are producing a major “talent gap”. A gap believed so deep

and so wide it is impossible for organizations to acquire and retain talent necessary for

success using standard HR approaches. Three trends, in particular, are viewed as causes of

this gap (Powell and Lubitsh, 2007):

• Demographics that are producing an impending shortage of talented workers;

• Workers with deficiencies in skills necessary for the knowledge economy; and
• The transitory work orientation new workers bring with them to the job market.

These trends are expected to be particularly pronounced in the United States and other

industrialized nations.

The U.S. Bureau of Labor Statistics projects a shortage of 10 million qualified

workers by 2010 (Dohm, 2000). U.S. employers are not along in experiencing talent

shortages. Similar trends exist in Europe, Asia, and other parts of the world. In Europe,

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birth rates are effectively zero, and some industries are experiencing severe labor

shortages. The projection for Japan is equally dire because of the expected 15% drop in the

working-age population by 2025 (Malthus, 2009). Acquiring skilled talent is becoming a

major challenge in many public and private organizations.

The 2007 Manpower Inc. Annual Survey of nearly 37,000 employers in 27

countries reveals that 41% of companies worldwide have problems filling skilled positions.

Forty-one percent of U.S. employers also report talent voids. Manpower’s 2009 survey

indicates a continuation of these talent shortages. Even in the current recession, 30% of

employers worldwide report problems finding qualified candidates for skilled positions. As

indicated in Table 1, Latin American, Australian and Asian employers are experiencing

similar talent shortages (Katz, 2007; Manpower, 2009). (See Table 1) Data suggest that

this talent shortage is also impacting the public sector.

Research findings indicate that 50% of U.S. federal, state and local employees are

approaching retirement age (Ibarra, 2006). Governments in Canada are expected to lose up

to 40% of their workers during the next five years (Eggers, Phelan and Phoenix 2008).

Similar statistics are reported for governments in other regions as well. Replacement of

these employees is expected to take up to 7 years of on-the-job training or 2.5 new

employees to replace one skilled and experienced retiree. The challenge is made more

pressing by skill gaps in younger workers (Schooley, Moore and Fossner, 2005).

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 Table 1: Employers’ Difficulty Filling Positions
Talent Shortages in 2007 Talent Shortages in 2009
Country
Costa Rica 93% 48%
Mexico 82% 44%
New 37%
62%
Zealand
Australia 61% 49%
Japan 61% 55%
South 35%
38%
Africa
Germany 27% 35%
Sweden 32% 29%
Italy 23% 26%
Canada 36% 24%
India 9% 20%
USA 41% 19%
France 40% 18%
China 19% 15%
UK 34% 11%
Source: Manpower Inc., 2007 and 2009

Many employees entering the workforce are not adequately prepared to meet the

demands of the knowledge economy, which requires talent that can excel amist technology

and diversity (Umpstead and Fardel, 2007). These employees come with documented

deficits in reading, math and other skills that are requisites for effective use of technical

information predicted to double every 72 hours (National Science Board, 2006). The skills

gaps in younger workers are particularly challenging for the public sector because it

employs a higher percentage of knowledge workers than other sectors and a larger

percentage of its knowledge workers is approaching retirement. Consequently, government

will hire more of these individuals as knowledge workers.

An America’s Promise Alliance (2006) study has discerned soft skills weaknesses in

younger workers that can hinder their performance in an increasingly diverse and complex

work environment. Weaknesses include skill deficiencies in decision-making, teamwork,

5
leadership, and communications. These are also skill sets valued for high performance in

the public sector. Although soft skills deficiencies can often be addressed through talent

management “Personal Development Plans” (PDP), the transitory work orientation of

younger employees places limits on the effectiveness of this option.

The U.S. Department of Labor estimates that new workers will have 10-14 jobs

during their career, a third more than previous generations. Fifty percent of employees in

the workforce have been with their employers less than five years. And, according to the

Bureau of Labor Statistics, approximately half of U.S. employees ages 20 to 24 have been

with their employers for a year or less; 13 percent have been with their employers for up to

23 months, and only 10 percent for more than two years. Reducing this high turnover rate

must be an objective of talent management (Testa, 2008).

Talent shortages, skill deficiencies and the work orientation new employees bring

with them make talent management an imperative for organizations in all sectors.

Recruiting, developing and retaining high performing talent constitute major challenges

and are recognized priorities. Nowhere, however, is talent management more of an

imperative than in the public sector, which will lose nearly 50% of its workforce over the

next five years.

The evidence for a talent management imperative is plentiful and persuasive.

Neither the evidence nor the research that spawn it, however, provides a consensus

approach for implementing this paradigm. Numerous theoretical and applied perspectives

suggest constructs that attempt to explain the talent management paradigm, which makes it

extremely difficult to discern “a” definition that is universally acceptable.

While the absence of an agreed upon definition is of concern, there is a danger,

however, that focusing on defining talent management will fail to convey the core beliefs,

processes, social issues and outcomes that are important aspects of the dialogue in the

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different sectors. For instance, return on investment, leadership, management, the intrinsic

value of human talent, gender, diversity, innovation and culture are only a few of the issues

found in the literature on talent management, which make it difficult to define. Clustering

similar perspectives on talent management into sets can help mitigates this definitional

concern.

Perspectives on Talent Management

The multiple approaches and diverse theories in the literature on talent management

offer different perspectives of human talent activities in organizations. These perspectives

are categorized into three sets for discussions in this paper. The first set is derived

primarily from scholarship on business enterprises. A second addresses social movement

issues, which are linked to talent management. And, the third focuses on roles of

individuals and achievement of performance outcomes. Collectively, these perspectives

provide an expansive body of information that can inform and contribute constructs for a

public sector talent management system.

Eddie Blass (2007) summarizes the Enterprise Perspectives on talent management in

his work for the Chartered Management Institute, which is subtitled “Maximising talent for

business performance”. These perspectives approach talent management as a “return on

investment”. As Blass notes, “finding the right measure of return on investment is

important and should stem from the perspective that is driving the talent management

strategy.” His work describes how different enterprise perspectives might measure return

on investment. Blass’s framework for analyzing these perspectives consist of five factors:

(1) Core Belief; (2) Recruitment and selection; (3) Retention; (4) Succession; and (5)

Talent Development. These factors are offered as common operational dimensions of

organizations that conform to the enterprise perspectives on talent management and are

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used in this paper to analyze other sets of perspectives as well.

Devine and Powell (2008) also discuss the enterprise perspectives in their work on

“Talent Management in the Public Sector.” Even though they avoid much of the business

terminology Blass uses, they come to similar conclusions relative to the enterprise focus of

this set of perspectives. Powell and Lubitsh, (2007) extract five of the six perspectives

from the literature, identified by Blass, in their work on “Courage in the face of

extraordinary talent”. The five are delineated in Table 2. (The other perspective, identified

by Blass, is discussed in conjunction with the third set of perspectives below)

There is considerable agreement that Competitive, Process, Cultural, Developmental

and HR Planning perspectives represent approaches to talent management. Analyses from

the authors cited above are drawn upon in the following discussion of these perspectives.

The Competitive Perspective is the most developed approach to talent management

in the literature. Its underpinning is the belief that talent management should be used to

identify outstanding individuals in the enterprise, find out what they want and give it to

them. The reasoning for this belief is that, if highly talented people are not given what

they want, the competition will use this to recruit them away from the organization. This

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Table 2: Enterprise Perspective on Talent Management

Perspectives Core belief Recruitment Retention Succession Development

& Selection Planning Approach
Competitive Keep talent Pay the best Good people Geared Both planned
away from so you attractlike to work towards and
the the best. with good retention opportunistic
competition. Poach the people. Aim – Letting approaches
best from the to be people know adopted.
competition. employer of what their Mentors used
choice. target jobs to build
are. loyalty.
Process Include all Competence Work-life Routine PDPs and
Processes to based, balances review development
allow consistent processes & process reviews as
talented approach. intrinsic based part of
people to factors that on performance
excel and make people performance management;
optimize feel they review intervention
belong. cycle. as needed
HR Planning Right people Target areas Turnover Detailed in- Planned in
in the right of shortage expected, house cycles
jobs at the across monitored mappings according to
right time. organization. and for organization’s
Numbers and accounted individuals. needs and
Targets for in plans. requirements.
approach.
Developmental Accelerate Ideally only Clear Identified Both planned
the recruit at development groups will and
development entry point paths and be opportunistic.
of high and then plans to lock developed
potentials. develop. high for each
potentials level of the
into career organization.
paths.
Cultural Belief that Look for raw Allow Develop in- Individuals
talent is talent. Allow people the house if negotiate
needed for introductions freedom to possible, if their
Success from in- demonstrate not look development
house. their talent, outside. Paths, with
and succeed Coaching &
and fail. mentoring
Source: Blass, E. (2007) Talent management: Maximising Talent for business
performance, Chartered Management Institute/Ashridge Consulting.

9
perspective is said to flourish in talent driven organizations where intellectual property is

paramount. Examples often cited are consulting, public relations, advertising and law

firms. As Blass and others point out, if the most talented people leave these types of

organizations for a competitor, they not only take critical knowledge and experience with

them but valuable customers as well. Failure to retain crucial talent in these firms can,

therefore, result in the lost of core capability and the ability to remain viable (Blass, 2007).

Recruiting the best talent and keeping it away from the competition are also

important concerns in the competitive perspective. The success achieved in the competitive

perspective usually depends on financial rewards for recruiting, motivating and retaining

talented individuals. There are limitations to this approach during serious talent shortages

and other amenities (i.e., titles, office size or location, parking spaces, etc) may have to be

provided (Powell and Lubitsh, 2007).

The Process Perspective focuses on practices needed to optimize workers’

accomplishments within organizations. The core belief is that future success depends on an

organization having the appropriate process for high achieving talent to reach its potential.

Thus, systems should be put in-place that enable talented individuals to excel and develop

successful careers within the organization. Moreover, talented people will thrive and

progress if they meet the competency and performance requirements of the talent

management process (Blass, 2007).

The HR Planning Perspective is similar to the process perspective but it focuses on

management decision-making. The objective is to make sure the right people are matched

with the right jobs at the right time and doing the right things. The “talent process” is

usually supported by advanced IT systems that provide different options and future

possibilities. This perspective is prescribed for organizations experiencing rapid growth

(Devine and Powell, 2008).

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 The Developmental Perspective concentrates on accelerated development paths for

employees with the highest potential for success. In this perspective the goal is to “lock in”

high potential talent for success by targeting the organization’s recruitment at the entry

level and then developing and promoting from within to maximize career opportunities for

current employees. The effective outcome is an “informal contract” in which the individual

makes a commitment to the organization and the organization looks after his or her career

(Devine and Powell, 2008).

The Cultural Perspective views talent management as more of a mindset than a

collection of activities. It is characterized by the absence of rules and processes, especially

around promotion. 
T his perspective revolves around the belief that individuals will

succeed if they are talented enough and their success equates with the business’ success.

The cultural perspective is the least structured and described as the talent management

approach most likely to attract creative individuals, entrepreneurs and mavericks who

value the freedom to create their own opportunities (Blass, 2007).

Perspectives that constitute enterprise approaches to talent management are most

likely to prevail within a thriving internal labor market. That is, where open market

principles of supply and demand, and skills determine talent’s value. (Devine and Powell,

2008). Each perspective has a level of relevance for public sector organizations,

particularly those that operate enterprise activities. According to Devine and Powell, the

development perspective offers the greatest possibilities for the public sector.

The Social Movement set of talent management perspectives focuses on societal

issues and their expression or lack of in organizations. The social issues manifested in

these perspectives are salient concerns integrated into talent management discussions. The

issues considered in this paper enter talent management discussions through humanistic,

diversity, gender, and employee/labor perspectives. While enterprise activities represent an

11
appropriate focus for talent management, as these perspectives illustrate, organizations

have social purposes, which are often paramount. Even though the primary focus is on a

social issue, each perspective makes the argument that the core belief it puts forth enhances

organizations’ success (See Table 3).

The Humanistic Perspective on talent management focuses on people as the center of

and purpose for organizations. It has two threads: Intrinsic value and Human Development.

The Intrinsic Value thread stresses the innate worth of humans and nonconformity of their

labor attributes to market precepts, such as human capital. Human Development parallels

and draws impetus from the United Nations Human Development Index. Both threads

emphasize human needs, albeit different arrays of these needs.

M.U.J. de Silva champions the intrinsic value thread in the humanistic perspective on

talent management. de Silva argues, "People are not mere resources, but human beings

with feelings, ambitions and thought power” (de Silva, 2000). He calls the “Human

Resources” expression, often use to describe workers, as misleading and dangerous

because: "People are not resources and resent being treated as such.” He also condemns the

concept of human capital, prevalent in the literature for both the private and public sectors:

“Contrary to what employers claim, people are not human capital". As de Silva also points

out, the expectations of workers drastically changed with the advent Table 3: Social

Perspective on Talent Management

Perspectives Core Belief Recruitment & Alignment Commitment Talent

Selection & Retention Development
Humanistic People are Provide work Provide all Behavior The leader
not mere that Employees flexibility, must be a
resources but maximize the opportunities mental nurturer of
human release of to perform at innovation talents, a
beings with individual, their highest and people catalyst in
feelings team and levels. orientation search of
company synergy"
talents
Diversity A diverse Reflect the Create Treat Intensive
workforce is diversity of opportunities individuals training and
a potent society and for employees with dignity education

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 competitive extend far to fully and respect; must be
force beyond participate value available to
traditional and be differences facilitate
concept of rewarded for and personal
diversity their similarities grow and
contributions development
Gender Recognition Look beyond Align men Embed a new Energize the
of a traditionally and women gender productive
multiplicity held ‘strong with their language that balance -in
of effective man’ and natural style ensures that any mix of
gender ‘gentle and strengths. female can team, male or
woman’ types rise up the female
for talent ladder
Employee/Labor Employees Attract and Involve Build Invest in
are the retain employees in personal employee
greatest multitalented, defining relationships; outcomes,
assets, and multi- processes Know and celebrate
wielding skilled that will workers, their
both employees greatly affect listen to victories;
expertise and from all their work them, and authoritative
vast generations and career show you expertise; and
knowledge care about Let them get
to move their success it done.
things. and them as
individuals.

of knowledge-based enterprises, social transformations and economic evolution. The

results, he insists, are new concomitant psychological needs in line with the profile of new

employees entering the workforce. Leaders effective in managing today’s talent, de Silva

asserts, must be flexible and adjust to prevailing psychological and material needs of

knowledge workers. This includes developing an organizational culture that not only

tolerates but also “encourages a variety of mental styles” (de Silva, 2000).

The Human Development thread of the humanistic perspective stresses activities and

interventions that build capacity and develop competencies within individuals, which

enable them to fill critical personal and wider societal talent needs. Competencies

necessary to meet these needs are defined as the knowledge, skills, abilities and attitudes

required to perform a productive role for society (Coleman, 2006; Schoonover, 1998).

Within the organizational context, this means investing in employees and providing them

access to quality education opportunities, efficient health care, a safe work environment

13
and opportunities for career success. The competencies acquired and resulting human

development will empower employees to better meet personal needs and also enhance their

capacity to contribute to the organization’s success.

The Diversity Perspective focuses on embedding “diversity in all aspects of talent

management. This includes when organizations “source and select, . . . go to the

marketplace, . . . target future candidates and diverse talent, and . . . communicate with that

diverse talent” (Nisen, 2008). The premise is that diversity enhances market access and

effectiveness. This “business imperative", as the Ontario Office of Public Service argues,

allows organizations that take advantage of diversity to better position themselves “to

succeed –to provide better services more effectively and to have a more engaged and

productive workforce” (OPS, 2008). Or, as Greg Greene, executive vice-president and

chief human resources officer at Ryder System Inc. points out, “It's simply good business

to be able to mirror the population that represents your employment base"(Nisen, 2008).

From a public sector point of view, diversity enhances governments’ ability to know,

understand and address the needs of those they serve (White and Rice, 2005).

The Gender Perspective advances the position that female talent is critical for the

synergism necessary to achieve and sustain success, particularly in the knowledge

economy where women are expected to make up nearly half of the workforce and a

majority of consumers (Kock and Burke, 2008). While every man and woman is said to

have varying degrees of both masculine energy and feminine energy, the call is for a

correct synergy of these energies within organizations. Masculine energy is described as

valuable because it provides the task-focused, strong leadership, direction and steel

determination to build business and profit. In contrast, feminine energy is viewed as

valuable because it holds business relationships together by providing the glue within the

culture for stability and harmony. Moreover, the gender perspective maintains that the

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desired synergy of masculine and feminine energies cannot be achieved without adequate

female participation in all activities at all levels of the organization. Thus, it is considered

essential that talent management uses innovative and nontraditional methods to acquire,

develop, align and retain female employees. As Wittenberg-Cox and Maitland insist, “It’s

a serious business issue, not a female issue” (Mitchell and Crawford, 2008).

The Employee/Labor Perspective views human talents as those knowledge assets

workers use to produce outcomes for the organization. That is, workers know that they are

the organization’s greatest assets because they possess the expertise and knowledge

necessary for achieving and sustaining success. As Peter Drucker (1994) observes: “In the

knowledge society, the most probable assumption for organizations––and certainly the

assumption on which they have to conduct their affairs––is that they need knowledge

workers far more than knowledge workers need them.” Or, as Ron Baker (2006) posits in

addressing this issue: “knowledge workers themselves own the firm’s means of production

in their heads . . . . in today’s capitalist society labor trumps capital as the chief source of

all wealth.”

From the Employee/Labor perspective, workers’ expertise and knowledge must be

constantly engaged for human talent to make its optimal contribution in organizations.

Likewise, if employees have no involvement in defining, designing and implementing an

activity, they are less likely to support it. The lack of “employee engagement” would

weaken workers long-term commitment to the organization, making it even more difficult

to attract, develop, align and retain highly talented employees. The employer-employee

relationship in this perspective is articulated by Steve Jobs, Founder of Apple Computer:

“It doesn’t make sense to hire smart people and then tell them what to do; we hire smart

people so they can tell us what to do.” Human talent, in the employee/labor perspective, is

both the primary locus and focus for organizational activity (Baker, 2006).

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 The focus on societal issues makes the Social Movement perspectives extremely

compatible with talent management in the public sector. Many of the social issues

manifested in these perspectives reflect public service values, such as participation,

diversity, social equity and justice. Similar to these perspectives is the public sector’s

compatibility with and connectivity to enterprise activity while maintaining the primacy of

the “public good”. Thus, constructs from this set of perspectives can be extremely useful in

developing a talent management framework for the public sector.

The Outcome Perspectives on talent management focus on the roles of individuals

and the achievement of performance outcomes in organizations. They include the

leadership, change management and performance perspectives. (See Table 4) The

enterprise and social values discussed above are secondary in these perspectives to what

individual and collective talent can achieve within and across levels of the organization.

The Leadership Perspective seeks to elevate the significance of leadership in

achieving high performance in organizations by asserting that the leader’s role is as vital to

the enterprise as the manager’s. Leadership, therefore, must be recruited for, expected

from, and developed within all employees. Leadership, in this perspective, affects

everything employees experience, provide and receive, and must be given a higher priority

in talent decisions. This includes providing a rich, engaging, dynamic, and compelling

learning and performance environment where leadership can flourish (Gandossy and

Freiberg, 2009).

Change Management as a perspective encourages the use of talent to instigate

innovations within organizations. In this perspective, talent management’s appropriate use

is to seek out mavericks and change agents to join the organization. These change agents

will develop others who align with them and become the next generation of talent

innovators within the organization (Blass, 2007).

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 The Performance Perspective emanates from the belief that talent must be enabled

for strategic execution that results in enhanced effectiveness. Findings from a 2006 survey

of 360 organizations by Knowledge Infusion support this belief. Respondents cited

performance management as their organizations’ highest talent management priority for

the next three years (Spirgi, 2007). The performance perspective calls for casting a wide

net when recruiting new talent and developing measures to discover and expand hidden

talent in current employees. It also embraces the strategic

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Table 4: Outcome Perspective on Human Talent Management

Perspectives Core Belief

Recruitment Alignment Retention Talent
& Development
Selection
Leadership Talent Screen and Allow all Provide a Believed in,
leadership select with employees to rich, invest in
encompasses the highest perceive the engaging, communicate
everything probability connection dynamic, with, create
employees for success between their and opportunity
experience as leader, work and the compelling for growth
and receive being realization of learning and and measured
retained, and goals and performance talent
remaining metrics support
committed environment
Change Use talent Seek out Can be a bit Projects and Change
Management management mavericks opportunistic assignments agents
to instigate and change initially until keep change develop
change in agents to change is agents, but others who
the join the embedded. turnover of align with
organization. organization. mainstay them and
staff can become the
occur. next
generation
Performance Enable Cast a wide Share, Develop Uncover and
Management Talent- net- beyond collaborate, agile talent expand
strategic organization and create a within and “hidden”
execution and culture/social across all talents of
geographic network levels current
location employees

development of agile talent within and across all levels of organizations (Powell and

Lubitsh, 2007).

Three fundamental assumptions about talent management pervade each of the

Outcome Perspectives that are germane to talent management in the public sector:

1. The key enabler of organizations is talent;

2. The quality of organization’s talent is its true differentiator; and
3. Talent drives performance.

There is also wide consensus that effective talent management requires strong leadership

with an engaging, dynamic and compelling performance environment. Similar to other

approaches a major objective of the outcome perspectives is “having the right talent doing

18
the right work at the right time” (Powell and Lubitsh, 2007).

The multiple perspectives on talent management and the sets they constitute are

informative and suggest useful constructs for considering a public sector talent

management program. Each provides a unique interpretation of human talent activities

within organizations. Regardless of the perspective taken, the fundamental questions of

what should be included in a public sector talent management program and what needs

should be addressed must be answered by the organization. Even though the answers will

be unique to each organization, the three sets of perspectives, reviewed above, provide

constructive guidance for the inquiry to determine appropriate talent needs.

Value of Talent Management in the Public Sector

Questions about talent management usually reflect the perspectives individuals

bring to bear on the topic. Two questions not addressed in perspectives likely to arise are:

1. Is talent management more than just the newest fad in a field that aims to give
itself a strategic advantage by advancing to the public sector?
2. And, can it really provide value in the public sector?

Information available from several recent studies (See Table 5) facilitates a response to

these questions.

Research findings suggest that human talent management is a fresh way of looking

at work activities, and generating new and more powerful ways to optimize human

performance in organizations. The conclusions drawn from available data are that better

talent management delivers substantial financial benefits to organizations and the

Table 5: Recent Talent Management Research

•The 2009 Fourth Annual Softscape Global HR Survey

•2009 Camden Consulting Group’s survey of Massachusetts Employers
•2008 by The Conference Board Survey of CEO’s and Managers from Global
Corporations
•2008 Integrated Talent Management Survey of Public and Private Sector

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Organizations by IBM and the Human Capital Institute
•2008 2nd Annual Talent Management Survey by New Talent Management Network
and DDI
•2008 and 2006 Talent Management Surveys in the Belgian market by Deloitte
•2007 Performance & Talent Management Trend Survey by the Business
Performance Management Forum and SuccessFactors in cooperation with the Human
Capital Institute
•2006 Performance and Talent Management Trend Survey by SuccessFactors
•2006 and 2005 surveys from the Conference Board Talent Management Strategies
conference by DDI

skills, abilities and capacity it stimulates enhance employee performance in both the public

and private sectors. Data further suggest that talent management is a key strategic issue

facing many organizations and moving up the agenda of top-level executives and managers

in both sectors. Moreover, research indicates that effective talent management is required

to successfully acquire, develop, align and retain the services of high performing workers

for public service and enterprise activities.

Managers and executive leaders in the public and private sectors provide evidence

to support these conclusions. In this regard, survey responses from CEO’s and managers of

global organizations are particularly revealing. An analysis of The Conference Board

survey responses from executives in 2003 and 2008 indicates that talent issues move from

7th to being ranked as the second most important issue for many international organizations

during the five-year period. A benchmarking study of more than 4,500 leaders from over

900 organizations has shown talent management to be a key strategic issue facing

managers and leaders in Asia, Europe and the United States (Wellins, 2006).

Public and private sector human resource managers and executives in a recent

survey recognized the value of talent management for the future success of their

organizations. The 2009 Softscape Fourth Annual Global HR Survey of public and private

executives reveals a high regard for the contribution of talent management in large and

small organizations. For example, 3 out of 4 respondents indicated that an integrated talent

20
management program is “mission critical”; 74% for all organizations and 83% for large

organizations. The top five challenges identified by respondents in this survey are obvious

talent management related Issues:

1. Hiring skilled talent and filling key positions;

2. Improving the leadership succession pipeline;
3. Engaging and motivating the workforce;
4. Identifying and retaining high performers; and
5. Building a performance-oriented culture

As research and scholarship clearly demonstrate, talent management is more than a passing

fad. It is rapidly becoming an imperative for optimizing the performance of human talent

in organizations. The strategic vision, leadership, management and talent development it

facilitates are valuable contributions for enhancing individual and organizational

performance. Talent management has significantly improved organizations’ competitive

advantage in attracting and retaining talented employees in the private sector. The public

sector can derive similar enhancements from an effective talent management program.

A Public Sector Framework for Talent Management

Neither research findings, scholarly works, nor the perspectives describe above

provide a consensus for a public sector talent management framework. Collectively,

however, they divulge a collection of related concepts that can inform talent decision-

making within government organizations. They also provide constructs and initiatives that

can be infused with public service values and integrated into a coherent set of parameters

that convey: ethos, focus, positioning, structure, and system criteria for a public sector

talent management framework (Ashton and Morton, 2005). Each parameter in-turn helps

provide the context for talent management activities in the public sector.

Ethos of a public sector talent management framework nurture and embed public

service values and behaviors that emanate from the “social contract”. They also cultivate a

21
“talent mindset,” that embraces the view that everyone involved in the delivery of public

service has potential which merits developing. Although the primary emphasis is on

government employees, there are allowances for others who are co-producers (citizens,

not-for-profits, contractors, etc) of public goods and services (Ashton and Morton, 2005).

Focus provides knowledge of which jobs are critical in the delivery of public

services and makes sure that the right talent from the right source is used at the right time.

Positioning makes sure public officials and executives give priority to talent management

within government organizations to assure that it is a leadership as well as a management

function, and not merely an HR initiative. Structure creates the tools, processes and

techniques with defined organization and individual accountability for ensuring that public

services are provided effectively and efficiently. And the System facilitates interactive,

dynamic and holistic approaches for designing and implementing a talent management

program within a public sector organization (Ashton and Morton, 2005).

As proponents point out, the goals and objectives of talent management are

organizational rather than individual. The public service values infused into the framework

for talent management provide the impetus for goals and objectives in government

organizations. The outcome is expected to be more effective, efficient and equitable

delivery of public goods and services. This entails capacity building in people and

organizations so that talent can achieve optimal performance in the public sector.

Building capability necessary for achieving optimal performance requires a

platform with organizational goals and performance objectives for human talent

management and development. This must include processes for understanding what

available talent can do; deploying talent better today, and making sure talent can do more

tomorrow. The ethos, focus, positioning, structure, and system within a government

22
provide the framework for its talent management program, which in turn influences the

platform decision makers select.

Although the talent management platform in government organizations will vary,

four components are consistently cited in the literature: Talent acquisition; Talent

Development; Talent Alignment; and, Talent Assessment. Retention is a fifth talent

concern that is also frequently mentioned and is included as a platform component for

public sector talent management in this paper. The platform does not function as a linear

process but as a dynamic system in which the five components are constantly interacting to

assure optimal performance of human talent. Several functions of each component are

outlined in Table 6.

Talent acquisition, in addition to performing several traditional personnel functions,

places attention on predictors of success, which are the major components in criteria for

Table 6: Platform for Talent Management in the Public Sector

I. Acquisition II.Development III. Alignment IV. Retention V. Assessment

1. Talent 1. Performance 1. Talent Audit 1. Engaging 1. Talent

Sourcing Management Talent Analytics and
Profile
2. Contingent 2. Career Planning 2. Reporting 2.Empowerment 2. Performance
Labor
Procurement
3. Selection 3. Leadership 3. Goal 3. Recognition 3. Readiness
Development Management
4. Onboarding 4. Succession 4. Internal 4. Advancement 4. Willingness
Planning Mobility and Capacity
Bellissimo, 2006

employee selection activities. This includes considering personal chemistry and culture

compatibility with public service values. The focus of talent development is primarily on

job-specific success factors that predict performance, and secondarily towards others

important public service delivery considerations (Bellissimo, 2006).

Talent Alignment involves assessing strengths across a variety of jobs to

23
determine best use of talent in public employment. The emphasis is on deploying the right

people with the right skills and experience into the right positions. The talent audit is a

critical tool and is used to determine competences, performance potential, coaching needs

and focus training that may be required (Bellissimo, 2006).

Talent Retention seeks to enhance personal engagement in one’s job, in the

immediate team or department, and in the public sector. The intent is to empower the

employee to do his/her job, integrate each individual into a closely-knit team and provide

recognition of his/her value to the organization and public service. This engagement is

expected to result in stronger commitment to public service and greater retention outcomes

for the organization (Bellissimo, 2006).

Talent Assessment provides actionable feedback on current talent and forecasts for

future needs. This involves using techniques to assess employees’ mindsets, behaviors and

skills and then suggesting effective training, development and performance management

interventions. Assessment is a major activity in talent management systems. It provides

data on each employee’s performance, readiness and willingness for advancement in the

organization (Bellissimo, 2006).

Performance assessment examines an individual’s level of productivity relative to

mutually established goals and objectives established for his/her current position.

Readiness assessment considers an employee’s ability for responsibility in a higher job

classification or in a more complex role, based on demonstrated behaviors and reasonable

opportunities for development. Readiness assessment also includes developing criteria to

assist with evaluation of readiness for success at next level, an employee’s readiness self-

assessment, the managers’ readiness assessments, and assignment of a readiness rating.

The Willingness assessment indicates the degree to which an individual is willing to

24
assume a new role as well as the organization’s capacity to accommodate movement to a

new role. A summary of assessment categories is presented in Table 7.

The assessment of talent is the most rigorous and least prevalent component

according to recent talent management survey data (Camden, 2009). Most respondents in

this survey reported a focus on development and retaining existing talent. Developing

talent was noted as the primary focus by 81.0% of the respondents; retaining talent was the

focus by 76.2%; deploying/aligning talent was the focus by 52.4%; and acquiring

talent the focus by 38.1%. The strong focus on developing and retaining talent is perhaps a

reflection of the shortage of highly skilled workers, the expense of replacing

Table 7: Talent Assessment Activities and Actions

Activity and Highest Level Potential for Focus on No Promise

Assessment for Promotion Promotion success at for Success at
Action current level current Level
Performance Outstanding Fully Effective Conditional Transfer or
(current) Achievement Terminate
Readiness Promote Now Promote with Contribute at Focus on
(New) (within 2 to 6 Development Current Level success at
months) (within 24 mts) Do not promote current level
Willingness Move Now Move in the Maximize Focus on
(New) Future (support Contribution success at
Performance) current Level
Source: Bellissimo, 2006

employees, knowledge lost with departing employees, and talent shortfalls that limit the

assessment capacity within many organizations. These circumstances ironically should also

serve as “drivers” for talent management programs (Camden, 2009).

Drivers of Talent Management in the Public Sector

A government’s goals and Performance objectives establish the key drivers for

talent acquisition, development, alignment, assessment and retention activities. These

drivers define the talent needs to be addressed and may vary from government to

25
government and from year to year. Key drivers of talent management priorities recently

identified by executives and managers include:

• Leadership and management development (68.3%);

• Building or maintaining organizational culture and values (41.5%); and
• Top talent development (41.5%) (Camden, 2009).

These drivers are strategic response to the emerging talent crisis.

As mentioned earlier, data suggest four reasons the talent crisis will be a much

greater challenge for the public sector:

1. The talent pool is smaller and more competitive;

2. The government employs more knowledge workers;
3. A larger percentage of public employees is approaching retirement; and
4. The work preferences of the next generation of workers and fiscal constraints
make it more difficult for government to retain younger talent.

The 80 million baby boomers in the United States (born 1946-1964), retiring over the next

ten years, will be replaced by only 50 million Generation Xers (born 1965-1981). The US

General Accounting Office predicts that by 2015, there will be a 73 percent increase in the

number of workers older than 55 (Rappaport, et. al., 2003; Wellins, 2006). In the United

Kingdom, the number of young people reaching working age has fallen by 60,000 each

year since 2000 (Devine and Powell, 2008). Other nations are experiencing similar talent

gaps. Hence, the competition for this more limited global talent pool will be fierce and

expensive.

This competition will be exacerbated by the public sector’s need for more

knowledge workers. As a 2007 study by the Center for State and Local Government

Excellence noted, 68 percent of all government employees in the U.S. are classified as

knowledge workers, compared to only 32 percent of private sector employees. (Benest,

2008; Kellar, 2008). Consequently, many governments are experiencing serious skills

shortages. In 2006, 87 percent of all governmental agencies “encountered difficulties in

recruiting people with professional skills” (Devine and Powell, 2008).

26
 The higher rate of government employment by baby boomers is a compounding

factor for both the talent gap and skills shortages governments are experiencing.

Governments are not only losing a larger percentage of their knowledge workers, they will

have to replace then from a much smaller talent pool. Canada is expected to lose 40% of it

public employees over the next five years. As mentioned above, up to 50% of public

employees in the US will become eligible for retirement in the next five years. The average

public sector employee is also more than 10 years older than workers in the private sector.

It is much higher in many public organizations (Kellar, 2008; Eggers, Phelan and Phoenix

2008).

The USDA Natural Resources Conservation Service (NRCS), for example, has

approximately 11,900 employees and 62 percent are baby boomers. Without an effective

talent management program to fill the imminent abyss that will occur as these workers

retire, NRCS’s capacity to carry out its mission will be greatly diminished. NRCS’s story

can be used to describe the challenge government faces at all levels (Wickman, 2008).

As the U.S. President's Management 2002 Agenda points out, approximately 71

percent of the federal government's permanent employees will be eligible for regular or

early retirement by 2010. A 2009 report by the Local Government Association of the

United Kingdom indicates that nearly 90 percent of local governments are having

recruiting difficulty in at least one area. A report on public employment in the United

Kingdom notes that 60 percent of councils in the North East of England have recruitment

problems, while in London and the South East 75 percent of councils indicate staffing

shortages (Local Government Association, 2009). "The statistics are frightening," said

Keith S. Dalton, senior vice president at the American Management Association.

The culture, policies, and fiscal constraints in public sector organizations often

limit their ability to acknowledge and reward individual performance, which can result in

27
talent being poorly managed (Wickman, 2008). Human talent management must become a

strategic imperative for the public sector in order for government organizations to address

their talent challenges. It is important to recognize, however, that acquiring talent is only

part of a talent management program; developing, aligning, assessing and retaining talent

are also intricate components.

Contemporary Government Talent Management Practices

An IBM and HCI survey of 1,900 professionals in over 1,000 organizations,

including a variety of public sector employees, revealed major concerns about government

talent management practices (MacMillan, 2008; Ringo et. al, 2008). The Report identified

government as one of the industries “significantly less likely to practice enlighten talent

management practices.” As the report points out, government devotes less time, attention

and resources to talent management efforts than other industries (Ringo, et. al, 2008).

Similarly, very few researchers and scholars use their resources to study talent

management practices in the public sector. There are a several exceptions. The works of

Ringo et al. (2008); Devine and Powell (2008); Frank Benest (2008); and Kim Bellissimo

et. al, (2006, 2008, 2009) are examples of these exceptions.

Ringo et al. devoted a section of their work on “Integrated Talent Management” to

how “government agencies, educational institutions and some healthcare firms” fall short

in managing talent and sustaining change. In addressing the need for more integrated talent

management practices in the public sector, they observed:

“Across the board, government agencies and educational organizations face the
most challenges, particularly in areas of motivating and developing the workforce.
. . . These agencies also struggle to ‘Transform and Sustain’ change, which we
believe is a critical capacity for the public sector in the 21st century” (p. 10).

28
While their research highlights serious talent management weakness in the public sector,

they were not forthcoming with effective recommendations for how government might

improve its practices in this area.

Devine and Powell point out, in “Talent Management in the Public Sector”, the

over reliance on the competitive perspective by public sector organizations. They

encourage more use of the development perspective and offer seven very specific steps for

governments’ consideration. They sagely note; “Perhaps most importantly, public sector

organisations need to develop talent management strategies that reflect their values around

inclusivity and public service” (p. 6). While providing helpful advice, their work is also

lacking technique and methodology for developing a talent management program in the

public sector.

The focus of Frank Benest’s work focuses on the relevancy of talent management

in local government. The disproportionate impact of the talent crisis on local government

led him to conclude: “ . . . it is imperative that governments ‘grow’ their own leaders and

other key professionals” (p. 1). Benest makes a strong case for more effective talent

management at the local level. He also provides sage advice to local governments in his

five strategies for “winning the war for talent.” Again, while helpful, this work does not

provide the basis for developing a public sector talent management program.

Kim Bellissimo and her colleagues in the Ontario Ministry of Government Services

have developed a model talent management system that is worthy of emulating (OPS,

2005-08). A complete articulation of its vision, values, challenges, priorities, strategies,

roles and responsibilities, assessment criteria and timelines with techniques and metrics are

delineated in “Framework for Action” reports developed by the Ministry. These reports

and the talent management system they prescribe are briefly examined in the discussion

that follows.

29
The Ontario Talent Management System

The Ontario government has used its human talent management program to achieve the

goals of increasing Ontarians’ satisfaction with government services and to become a

world leader in delivering services electronically. Its success in these areas is widely

recognized. The progress achieved is discussed in the Ontario Public Service (OPS) 2009

Framework for Action Report: “Driving Change, Delivering Results.” As Shelly Jamieson,

Secretary of the Cabinet proclaims in this report:

“What we do in the OPS makes a difference to the quality of life of Ontarians. In

the end, our success will always be measured by the impact we have on people’s
lives” (p. 3).

Ontario public officials recognized early that a requisite for achieving it objectives is a

highly talented workforce.

Ontario’s Talent Management System strategies and methods for developing this

workforce are described in its 2008-2011 OPS Human Resources Plan, “Great people.

Great careers.” The report declares: “People are the foundation of everything we do in the

OPS”. The OPS Human Resources Plan identifies three key drivers as talent management

priorities that reflect this value:

• Attracting new talent to our organization – talent that reflects the diversity of
the population we serve;
• Building capacity to ensure successful ongoing public service delivery; and
• Having an engaged workforce composed of people who are proud to say they
work for the OPS and who demonstrate core public service values day after day
(OPS Framework for Action, 2009).

These drivers are strategic responses to emerging talent issues in the Ontario Providence of

Canada (OPS Framework For Action, 2009). Talent acquisition, talent development, talent

alignment, talent assessment, and talent retention are components of the platform for

Ontario’s Talent Management System.

30
 Ontario’s Talent Management (TM) System uses an array of Digital HR technology

to facilitate employee engagement, collaboration, interaction and development within and

between levels of the organization (Knowledge Infusion). The online Talent Management

Promotion Kit for Ministry TM Coordinators and HR Directors, and the digital Talent

Management Toolbox for the Target Group are key features of the system. This includes

digital access to learning and development services, assessment activities, and performance

management.

Employees have online access to hundreds of short leadership video briefings and

articles, over 300 language courses and a variety of distance learning webcasts. An “On-

Line Talent Management System” allows each individual to create a talent profile, conduct

a talent assessment, design learning and development strategies, and receive coaching and

mentoring. Performance planning and assessment are also conducted online. “The

Performance Management Annual performance plans for those participating in Talent

Management were created online by March 2008. And 99 per cent of those plans were

reviewed by managers” (OPS Framework For Action, 2009).

Utilizing its On-Line Talent Management System facilitates the creation of a

“Talent Map” for employees and managers in the Ontario Public Service. The talent map

allows employees, through a participatory process, to be assigned to one of five categories

with personalized learning and development strategies for progression toward optimal

utilization of their talents. The talent profile, talent assessment and performance

management activities are critical to the effective design and implementation of the

personal learning and development strategies. These strategies require significant

investment of resource from both the organization and the individuals to be successful and

must be taken very seriously.

31
 The Ontario government has achieved an organization-wide, talent-focused public

service with a commitment to performance excellence, innovation, and transformation,

yielding internationally recognized results. The Ontario Public Service (OPS) was

selected as one of Canada's Top 100 Employers for 2009. This is the first time a public

service in Canada (federal, provincial or territorial) has made it to the list compiled by

publisher Mediacorp Canada Inc. OPS is designated as one of the “Top 75 Employers in

the Greater Toronto Area. The Ontario government has been recognized as an e-

Government leader, ranked 3rd in a global third-party study. Recently, the United Nations

prestigious Public Service Awards Program recognized Ontario's Public Service for its

language initiative, which will be part of the 2009 UN Compendium of Best Practices and

Innovation in Public Administration. (OPS Framework For Action, 2009)

The progress made to date has become the springboard for new OPS IT, business

services, environment, health, and education initiatives. As Angela Coke, Associate

Deputy Minister, HROntario, Ministry of Government Services points, out in the 2009

OPS Framework For Action:

“Our goal, over time, is to be a best-in-class organization providing human

resources and business transformation strategies and supports that enable the
OPS to be an employer of choice and to deliver quality public services for Ontario
citizens.”(p. 12)

Ontario’s Talent Management System continues to be a vital instrument for building and

sustaining a world-class public service. Talent acquisition, development, alignment,

assessment and retention have been enhanced. Progression towards creating the talent

capacity to meet today’s and tomorrow’s needs has been accomplished. The Ontario

government is well on its way towards achieving talent management goals and objectives

set forth in its 2008-2011 OPS Human Resources Plan, “Great people. Great careers.”

Summary Conclusion:

32
This paper contains a discussion of the paradigm shift in the way human resources

managers in the public and private sectors are defining their mission and measuring their

success. The review of perspectives, concepts and techniques useful for developing talent

management programs is a major aspect of the discussion. The primary focus is on how

organizations are redesigning and rethinking talent processes and using new technologies

to transform the way human talent is managed to enhance performance.

In addition to the review of pertinent methodology and theory, recent survey

information from human resource managers are used to explore the drivers of talent

management in both the public and private sectors. Considerable attention is also given to

differential impact global workforce demographic challenges are having on public sector

organizations. Talent management is suggested as a mechanism to help prepare public

sector organizations to address these challenges. Although more research on talent

management in the public sector is needed, Ontario’s Talent Management System is very

promising and merit more research.

Data suggest that the Ontario Public Service is using its talent management system to

significantly transform service delivery and increase the government capacity to respond to

and tackle complex issues. The results are more efficient use of talent, improvements in

government services, and better citizens’ satisfaction with their government. Ontario

Public Service is receiving international acclaim for its accomplishments.

As the Ontario Public Service success illustrates talent management can be

effective in public sector organizations. Shifting to the Human Talent Development and

Management Paradigm proved to be a key strategic imperative for success. This paradigm,

however, is not only an imperative but also an opportunity for Optimizing Human

Performance in the Public Sector.

33
Recommendations:

The following recommendations are offered to support the public sector’s shift to

the Human Talent Development and Management paradigm:

1. Public service organizations at all levels should take steps to design and
implement an integrated talent development and management program. To be
successful, this will require instilling public service ethos and focus into the
goals and objectives of the program and appropriately positioning it in the
structure of the organization.

2. Senior leaders and managers should play a central role in the development of
talent management in public sector organizations. It should not be just an HR
initiative. There is a crucial role, however, for HR in talent management
activities.

3. More research and scholarship should be devoted to talent management in the

public sector. In addition, to evaluative research and case studies of the existing
talent management programs, there is also a major need for theoretical
discussions of the basic talent management concepts and perspectives and their
application in the public sector.

4. Talent management and development should become a standard component of

public administration education and training. As of this writing, no graduate
program in public administration in the United States has indicated any
substantial treatment of talent management in its curriculum. This must change.

5. Public sector public service professional associations, conferences and meetings

should make talent management a significant program initiative. Neither of the
major public sector professional associations has talent management as an item
on its program agenda. This to must be addressed.

34
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