Executive summary: a lack of urgency

Many public sector organizations appear worryingly slow to react to the challenges of an aging society. That’s one of the main findings of the latest 2009 Ipsos MORI survey of public sector employees from around the world. Only around a third believe that its senior management is serious about this issue and taking active steps to address its implications.

If such an approach persists, the sector may struggle to attract new talent, retain key workers and make essential organizational changes, which could ultimately threaten the quality of its services.

The public sector does acknowledge demographic change Despite the perceived complacency of senior management, a majority (64 percent) of those taking part in the survey recognize that an aging workforce is a very or fairly signifi cant issue. And a similar proportion agree that the retirement of key workers will hit them hard.

With a declining workforce having to take on the burden of a growing number of retired people, it’s no real surprise that over 70 percent of respondents are concerned about increasing or changed demands upon services.

More could be done to retain and re-hire key workers Public sector employers are perceived as not doing enough to either retain older workers or tempt retirees back into the workforce. Only half of the respondents feel that benefi ts packages are fl exible enough to meet the needs of employees at different stages of their careers. Staff are deterred from working either part or full time if this means relinquishing their hard-earned pension rights in any way.

On the plus side, a majority claim that their organization provides fl exible working arrangements and supports professional development – both important issues in engaging the workforce. However, there is considerably less satisfaction with the way employers adapt to the needs of workers from non-traditional backgrounds, something that could lead to greater attrition if not addressed.

There’s also a lack of attention to the needs of older employees – some of whom may struggle with new technology. Thirty-four percent of respondents believe their organization fails to provide adequate technology training for this group, which could have a negative impact on productivity. ...

Download Rising to the challenge? The impact of global demographic change on the public sector

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CONTENTS
Executive Summary: a lack of urgency 6
The aging society 9
Why we’re getting older
A sector under siege 11
The public sector will have to achieve more with fewer resources
HR strategies for a 21st century workforce 15
- Hiring: a war for talent or the pick of the bunch? 17
- Retention: giving employees greater fl exibility 21
- Knowledge transfer: stemming the brain drain 27
- Re-thinking the organization 30
Conclusions: next steps 32
About the survey 34

ABOUT THE SURVEY
The survey was carried out by Ipsos MORI for KPMG between April and July 2009. The research covered respondents in Australia, Canada, Germany, the Netherlands, Singapore, South Africa, the UK and the US.

The main responses were gathered via an online survey of 100 public sector employees in each of the eight countries above. Approximately 30 percent of those responding were managers, and 70 percent staff.

These results were augmented by 25 extensive one-to-one telephone interviews with senior managers in public sector bodies across the eight countries. The interviewees were primarily HR and Financial Directors working in both central and local government.

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