Global MPM Insight

Latest global trends in public personnel administration : a view from the OECD Global MPM Insight Vol.5 The following three trends are central to shaping this transformation and redefining the future of public service work:. First, Constrained budgetary environments have led many administrations to introduce hiring freezes, limit replacements for departing staff, and implement targeted reductions in specific sectors as part of fiscal consolidation packages. Successfully implementing these measures requires public service leaders to maintain service standards while operating with reduced staffing levels. But the challenge is not only one of efficiency; it also involves leaders deciding what matters most, simplifying and reorganising workflows, and finding practical ways to boost productivity so essential services can continue to function well despite reduced capacity. Third, Many OECD countries feature an ageing workforce. This has important implications for how downsizing pressures are managed. Ahead of forthcoming retirements, governments may face a temptation to rely on natural attrition as the main downsizing mechanism. But without careful planning this might unintentionally reinforce skills gaps and result in the loss of hard-to-replace institutional knowledge. Managing the career trajectories of experienced staff requires careful planning. The leadership question is to frame demographic shifts not simply as a cost-saving opportunity and more as an opportunity to renew skills, diversify entry pathways, and create more flexible, attractive, and intergenerational career models. Ensuring knowledge transfer, promoting continuous learning, and designing roles that accommodate longer and more dynamic working lives will and should remain firmly on the leadership agenda for the future. Second, AI offers substantial potential for redesigning services, automating routine tasks, and enhancing analytical and decision-making capacity. However, most public service institutions remain in the early stages of adapting structures, procedures, and skill sets to fully absorb these technologies. This includes the need for reconfiguring organisations and processes and making sure that public servants are able work effectively in a new environment characterised by greater integration of AI and digital tools, alongside reconfigured processes and procedures. This is especially true for public servants whose roles or jobs are likely to be significantly affected by AI, and who may consequently require specific types of re-training. It also requires the development of the policy and ethical frameworks required for its responsible and trustworthy use. Building these foundations is a leadership task and the pre-requisite for realising productivity gains from AI. Addressing these trends requires leadership. If public service leaders can seize the moment, there is an unparalleled opportunity to build more capable and trusted public administrations. Korea’s Ministry of Personnel Management (MPM) and the OECD continue to work together on these issues. The OECD–MPM Asia Public Service Network has become a bridge between global standards in public service leadership and capability and the gathering momentum for public workforce transformation across Asia. Introduction a unique opportunity for public workforce transformation The public service is entering a period of profound change. This period is characterised by urgency on a number of levels, but also by a rare opportunity to reshape the public workforce for the future. Across the OECD, three connected shifts are driving this transformation, creating the conditions to fundamentally re-design how work is organised, re-think the capabilities that public servants need, and build a more agile and productive public service. These shifts illustrate the growing pressure on public service leaders to steer comprehensive workforce transformation. Doing this requires balancing fiscal realities with long-term capacity, integrating emerging technologies into everyday practice, and managing the impact of ageing public workforces. In this context, public service leadership is increasingly defined by the ability to transform the public workforce at scale. There are a number of common threads across t ransformat ion plans in OECD countries. These include improving productivity, integrating AI tools, streamlining and simplifying outdated processes and administrative structures, and improving the skills and capabilities of public servants. Lasting transformation – rather than surface-level adjustments – will only succeed if the right incentives and accountabi l i ty structures are in place. For senior leaders, this means creating space for experimentation, careful ly re-cal ibrating the approach to risk, and ensuring both operational delivery and strategic workforce change. D ó nal Mulligan Analyst of Public Management and Budgeting Division, OECD Latest global trends in public personnel administration : a view from the OECD Global Trend 18 19