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The Talent Race: How Governments Can Compete
Elizabeth Kellar
Center for State and Local Government Excellence
American Society for Public Administration
March 25, 2017
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“Talented people need organizations
a lot less than organizations need
talented people”
Daniel Pink, Author
“Workforce of Tomorrow,” Center for State and Local Government Excellence and Local Government Research Collaborative, December 2015
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Kellar, Elizabeth, “Why Local Governments Are Talking about Millennials,” LGR: Local Government Review, ICMA, December 2016
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Attracting and Retaining Talent:
Underlying Trends and Issues
Fewer affordable housing choices
Less generous benefits for new hires
Fewer younger workers in government
Some younger workers come from families or
cultures without a tradition of public service
High levels of education/skills required
Low unemployment rate for educated workers
Higher turnover rates for younger workers
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US Labor Market Environment
• Unemployment rate: 4.7% (May 2016)
…for those with a college degree (and
higher): 2.4%
• Overall job opening rate is the highest it
has been since 2001.
Source(s): US BLS - Table A-4. Employment status of the civilian population 25 years and over by educational attainment;
US BLS Job Openings and Labor Turnover Survey (nonfarm)
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The State and Local Sector
• In 2015, 26% of the state and local workforce
was over 55, compared to 14% in 1995.
• Workforce separations related to retirements have
increased by over 16% - over the past decade.
• Close to half (46%) of retirement-eligible
employees were delaying retirement in 2009. In
2016, 21% were delaying.
• Annual job opening rate is highest it has been
since 2007.
Source(s): SLGE analysis of Flood, King, Ruggles, and Warren. Integrated Public Use Microdata Series, Current Population Survey: Version 4.0. [Machine-readable database]. Minneapolis:
University of Minnesota, 2015.; US BLS Job Openings and Labor Turnover Survey; SLGE/IPMA-HR/NASPE ‘State and Local Government Workforce’ survey series.
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2016 Workforce Trends#1 Issue: Recruitment and Retention
• 54% said retirements were higher
• 41% hired temporary or contract
employees
• 40% gave broad-based pay increases
• 52% made changes to health benefits
• 21% made changes to retirement
benefits
State and Local Government Workforce: 2016 Trends, SLGE, May 2016
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77% Hired Last Year
State and Local Government Workforce: 2016 Trends, SLGE, May 2016
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The Quiet Talent Crisis
• Turnover slowed after the Great Recession but is increasing
• More movement now
– Many retirement-eligible employees have rebuilt their retirement savings
– Better economy
– 40% report that quits were higher in 2015
• Succession planning is rare
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Source: State and Local Government Workforce -2016 Trends, SLGE
Most Important Workforce Issues
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Why Succession Planning
Is Lagging
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What Do Younger Workers Want?
• Quick responses
• Continuous feedback
• Opportunities to do more
• Clarity about WIFM
• Quick rewards
• Work-life balance – flexibility
• Up-to-date technology tools
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Generational Differences and
Organization Challenges
• Four to five generations must co-exist
• Different skill sets among age groups
• Managing expectations and turnover
• Different learning needs & opportunities
• Work styles vary
• Face-to-face versus e-communications
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Selling Points for Job Candidates
1. Wages
2. Benefits
3. Flexible practices
4. Opportunity to serve the public
5. Gain unique experience
6. Working for a great brand/person
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Competing for Talent
• Highly educated specialists are in greatest
demand – and the list is growing
• Changing economy requires different skills
• Attracting and retaining talent requires
changes in recruitment practices, incentives
for older workers, and staff development
• Does our compensation package work for the
diverse needs of our workforce?
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Benefit packages matter
“Two out of ten employees left their
job or accepted a new job due to the
benefits package”
– Dallas Salisbury, Retirement Security Summit,
June 2015, quoting 2015 EBRI retirement
confidence survey
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How Flexible Is Your Workplace?
• Part time work?
• Fiscally responsible return to work
policies for retirees?
• Able to adjust benefits for talent needs?
• Multiple ways to save for retirement?
• Recruitment and hiring policies?
• Space? Telework? Schedules?
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“Today’s young talent are lifelong
learners…and they intend to
continue their education – formally
and informally – for life.”
Rebecca Ryan, Live First, Work Second
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What Works?
• An intergenerational workforce that
appeals to all ages & stages
• Cross-cutting assignments
• Outlets for their interests and leadership
• Speedier recruitment processes (on-line
advertising; appealing job ads;
internships that lead to jobs)
• Great onboarding & ongoing feedback
• Talent management & succession plans
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Hire right Onboard
Engage:
Mentor
Train
Develop
Engage:
Variety
Autonomy
Decisions
Engage:
Feedback
Career Plan
One-on- Ones
Social Events
Engage:
Recognition
Individualized
Rewards
How to Retain Them
Candy Saris, Deputy Commissioner, Georgia Department of Administrative Services, Presentation at Council of State Governments, October 2016
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Action Strategies
1. Reinvent human resources to be more flexible,
nimble, creative, can-do, and strategic.
2. Revamp antiquated policies and practices.
3. Be an employer of choice.
4. Focus on talent management, leadership
development, and succession planning.
5. Create a culture that values and engages
employees.
6. Leverage technology, data, and automation.
Workforce of Tomorrow, Center for State and Local Government Excellence and Local Government Research Collaborative, December 2015
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The Bottom Line
• A change in perspective is essential to
effective talent management.
• Governments can be incubators of
talent if they offer good opportunities for
employees to learn and grow.
• The selling point: Government offers
meaningful work that makes a
difference in people’s lives.
.
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For more information, visit:
slge.orgResearch- local and state government pensions, health benefits,
demographics, and workforce issues
icma.org