Human Capital Trends

People constitute the living core of any organization. But the current economic crisis is taxing the capacity of the women and men who make government work—state employees. As residents suffer joblessness, health care gaps and housing worries, they are demanding more from state governments, whose own workforces are in the midst of layoffs and hiring freezes.

It may seem counterintuitive to suggest that states put time and effort into strengthening their workforces now, but doing so will yield higher employee morale, performance and productivity, resulting in improved, cost-effective services for residents.

In 2009-2010, Pew released three reports as part of the "People Forward" series:

• Human Capital Trends and Innovations;
• Recruiting, Hiring and Retaining Talent in State Government; and
• Human Capital Shared Services: Cutting Costs and Strengthening State Operations.

Human Capital Shared Services: Cutting Costs and Strengthening State Operations

Historically, states have sought to reform their human resource (HR) management function by either centralizing or decentralizing decision-making power. A fully centralized HR system makes sense for an organization that operates a single line of business. A fully decentralized HR system works well for organizations where individual business units are managed in a completely independent manner.  

But states generally fall between these two models.  They operate a wide variety of agencies with different needs while requiring the ability to maximize any synergies that rise among them.

Recently, states have begun adopting a model that balances centralized and decentralized delivery of human resources: shared services. Under this model, central HR management professionals work in partnership with agency and department HR management professionals to determine what services are needed and to provide a high level of customer service. Agencies are granted greater autonomy to make human resource management decisions, while central human resource management offices take on a more supportive, consultative role. 

This paper argues that states’ adoption of shared services is an excellent way to leverage the benefits that both centralized and decentralized personnel systems have to offer.

This report was researched and written by Sally Coleman Selden, professor of management at Lynchburg College, with financial support from Pew. It is the final report in the “People Forward” series.

Download the report. (PDF)

Recruiting, Hiring and Retaining Talent in State Government

Recruiting, hiring and retaining an effective workforce are critical elements of human resource management. But in tough economic times, human resources (HR) professionals in state government are balancing cutbacks with retaining employees who can provide a high level of service to citizens. Adding to their challenges, HR professionals must also compete with the private sector for the best possible employees.

This report, Recruiting, Hiring and Retaining Talent in State Government: Promising Practices and Emerging Trends, showcases successful strategies for recruiting, hiring and retaining that some states, using long-term human capital plans, have implemented. These selected best practices hold promise for all states—and some are relatively easy to execute even in times of economic stress. The lessons are particularly applicable for those managers who must justify any new human capital policies or practices to their governors, legislatures and citizens. 

Topics addressed include branding, onboarding, social media networking, salary and benefits, work/life balance and career development.

This report was researched and written by Sally Coleman Selden, professor of management at Lynchburg College, with financial support from Pew

Download the report. (PDF)

Human Capital Trends and Innovations

Human Capital Trends and Innovations identifies a number of creative management practices that states are using to increase employee productivity and meet agency goals. This first report in our People Forward series is part of the Pew Center on the States’ commitment to helping state policy makers and managers effectively address human capital issues during these challenging times.

These examples of human capital planning and implementation provide important lessons for managers who must justify their actions and ideas to governors, employees, legislators, and the public.

Download the report. (PDF)

State Fact Sheets

Below are individual fact sheets that describe each state’s efforts to address the following human capital concerns:

• Workforce analysis
• Hiring and retaining skilled workers
• Training and development
• Performance management systems

All State Fact Sheets (Adobe PDF)

Human Capital Trends and Innovations Report (Adobe PDF)