2019 HR Trends and

Priorities for Public

Sector HR Leaders

Overview
A tightening global labor market, emerging social and economic trends and new
competitive threats are challenging HR executives to create new strategies to drive
their organization’s mission critical priorities. This research shares results from the
2019 Gartner Future of HR Survey and examines top key initiatives for HR leaders
overall, as well as how key initiatives vary between the public and private sector in
2019.

Key Findings

■ Throughout the public and private sectors, HR leaders prioritize similar key
initiatives for 2019.
■ Building critical skills and competencies for the organization ranks as the most
prioritized key initiative for public sector HR leaders, followed by current and future
leadership bench, organizational design and change management.
■ Problems surrounding aversion to risk, resistance to change and delivering on
the workforce’s expectations for more advanced technology are areas where
public sector respondents perceived much greater obstacles to capitalizing on key
initiatives than the global sample.

HR Key Initiatives and Corporate Objectives

Key initiatives organize Gartner research, resources and tools around our clients’
most important projects and programs. Key initiatives typically arise from significant
business opportunities or threats and have defined objectives and timelines,
substantial financial implications and high organizational visibility. They often cross HR
disciplines, roles and topics, but individual leadership roles typically have the primary

© 2019 Gartner, Inc. and/or its affiliates. All Rights Reserved. 1

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responsibility for each key initiative. Key initiatives can comprise many projects but
are usually implemented by designated teams with defined roles, responsibilities
and performance objectives. For descriptions of key initiatives, please refer to the
Definitions of Key Initiatives section.

Key Initiative Prioritization

While a successful organization will work on all key initiatives, HR leaders prioritize
some more than others for 2019. When public sector HR leaders were asked to select
the key initiatives they are prioritizing, nearly eight out of 10 (77%) selected building
critical skills and competencies for the organization, making it the most frequently
selected key initiative for all HR leadership roles in 2019 (see Figure 1). The two
key initiatives that directly follow building critical skills and competencies for the
organization in prioritized ranking are current and future leadership bench (56%) and
organizational design and change management (54%) (see Figure 1).

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Figure 1: Key Initiatives for HR Leaders in 2019

Contrasting percentage of public sector HR leaders selecting each key initiative as a priority
with all respondents; HR leaders selected two to five key initiatives they are prioritizing in the
next 12 months.

To understand how different key initiatives affect the broader HR function, HR leaders
must grasp how different leadership roles prioritize these initiatives. For example,
heads of recruiting would be expected to choose recruiting as a top key initiative, while
heads of learning and development would be expected to choose building critical skills
and competencies for the organization among their top key initiatives. While different
leaders did indeed choose key initiatives that are obviously aligned with their specific
leadership roles, many roles share several top key initiatives for 2019 (see Figure 2).
This creates many opportunities for cross-functional cooperation among HR leaders.
To capitalize on many of these important key initiatives, HR leaders must work across
their functions, using a wide range of HR resources and staff.

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Figure 2: Top 5 Priorities Across All HR Leadership Roles

HR leaders across many roles share similar priorities for key initiatives in 2019.

Organizational Objectives According to HR

Leaders
We surveyed HR leaders to find out the top objectives for their overall organization
in 2019. The top organization-level objectives cited by public sector HR leaders are
improve operational excellence and execute business transformations, with 91% and
84% of respondents ranking these in their top three, respectively (see Table 1).

Table 1: Top 3 Organizational Objectives of HR Leaders in 2019

Organizational Objective Public Sector All Respondents

Improve Operational 91% 64%
Excellence
Execute Business 84% 58%
Transformations
Innovate for Success 51% 52%

© 2019 Gartner, Inc. and/or its affiliates. All Rights Reserved. 4

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 Organizational Objective Public Sector All Respondents
Optimize Costs 27% 39%
Manage Risk and 25% 15%
Regulatory Demands
Grow the Business 22% 72%

n = 843 (55 public sector)

Source: 2019 Gartner Future of HR Survey

Key Initiatives and Challenges Within Each

Initiative
HR leaders were asked to identify problems related to each key initiative they selected.

Building Critical Skills and Competencies for the

Organization
Consistent with the broader sample, public sector HR leaders selected building critical
skills and competencies for the organization as the most prioritized key initiative for
2019. HR leaders’ greatest problems with building critical skills and competencies
for the organization centered on one challenge — ineffective managers. The top two
problems for this key initiative are: “We do not effectively develop employees through
our managers” and “We struggle to develop effective managers,” cited by 70% and
32% of respondents, respectively (see Table 2). These two problems were consistent
in their importance for the public and private sector.

Table 2: Problems With Building Critical Skills and Competencies for the
Organization

Problem Statement Public Sector All Respondents

We do not effectively 70% 46%
develop employees
through our managers.
We struggle to develop 32% 45%
effective managers.
Our workforce does not 24% 28%
have the skills it needs to
drive future performance.
We do not have the 19% 21%
learning and development

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 Problem Statement Public Sector All Respondents
solutions to develop the
skills we need.
We do not effectively 19% 21%
integrate learning into
employee workflows.

n = 563 respondents (37 public sector)

Source: 2019 Gartner Future of HR Survey

Current and Future Leadership Bench

For the public and private sector, HR leaders selected current and future leadership
bench as the second most prioritized key initiative for 2019. Public sector HR leaders’
greatest problems with current and future leadership bench focus on two aspects: the
development of leaders and the diversity of leaders. “We struggle to develop effective
leaders” and “Our succession management processes do not yield the right leaders at
the right time” were selected by 52% and 37% of HR leaders, respectively (see Table
3). “Our leadership bench is not diverse” was selected by 41% (see Table 3). These
three problems also represented the biggest challenges on this key initiative for the
broader sample.

Table 3: Problems With Current and Future Leadership Bench

Problem Statement Public Sector All Respondents

We struggle to develop 52% 45%
effective leaders.
Our leadership bench is not 41% 44%
diverse.
Our succession 37% 43%
management processes do
not yield the right leaders
at the right time.
We struggle to retain our 11% 9%
current leaders.
Our investments in high- 11% 8%
potential talent have not
paid off.

n = 510 respondents (27 public sector)

Source: 2019 Gartner Future of HR Survey

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Organizational Design and Change Management
Public sector HR leaders placed greater importance on organizational design and
change management than the broader sample, selecting it as the third most prioritized
key initiative for 2019. Public sector HR leaders’ greatest problem with organizational
design and change management is the pace of change, with 69% of HR leaders
selecting “Our organization changes too slowly.” Half of public sector leaders indicate
“Our employees are fatigued from all the change” (see Table 4). These problems
for organizational design and change management are found at the organization
level — not necessarily the HR level — and indicate many HR functions may feel
comfortable with change management that is explicitly related to HR change, but their
organizations have change-related challenges that HR cannot easily ameliorate. These
two challenges also represented the greatest problems for the broader sample.

Table 4: Problems With Organizational Design and Change Management

Problem Statement Public Sector All Respondents

Our organization changes 69% 38%
too slowly.
Our employees are 50% 46%
fatigued from all the
change.
Our organization does not 15% 32%
have the right structure to
succeed.
My function does not have 15% 17%
the capabilities to support
organizational change
We do not identify 15% 14%
opportunities for
innovation within our
function.

n = 398 respondents (26 public sector)

Source: 2019 Gartner Future of HR Survey

Employee Experience
Public sector HR leaders selected employee experience as the fourth most prioritized
key initiative for 2019 — one place below all respondents. HR leaders’ greatest
problems with employee experience surround the employment value proposition and
monitoring the employee experience, with 44% of public sector leaders selecting
“We struggle to bring our employment value proposition to life in employees’ day-
to-day work” and “We cannot effectively monitor the employee experience at our

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organization today” (see Table 5). These were also the most frequently cited problems
for the broader sample.

Table 5: Problems With Employee Experience

Problem Statement Public Sector All Respondents

We struggle to bring 44% 55%
our employment value
proposition to life in
employees’ day-to-day
work
We cannot effectively 44% 30%
monitor the employee
experience at our
organization today
We struggle to provide 28% 25%
employees with an
experience that helps them
do their work.
Our culture does not 20% 18%
support business
performance.
We don’t have a good 8% 11%
business case for investing
in employee experience.

n = 434 respondents (25 public sector)

Source: 2019 Gartner Future of HR Survey

Diversity and Inclusion

Public sector HR leaders selected diversity and inclusion (D&I) as the fifth most
prioritized key initiative for 2019, significantly higher than the broader sample (ninth).
However, the top three problems were relatively consistent across industries, with
66% of public sector leaders selecting leader accountability, 43% selecting manager
effectiveness at creating an inclusive environment and 38% selecting recruiting
diverse talent as the most significant (see Table 6).

Table 6: Problems With Diversity and Inclusion

Problem Statement Public Sector All Respondents

We struggle to hold 66% 56%
business leaders

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 Problem Statement Public Sector All Respondents
accountable for D&I
outcomes.
Our managers are 43% 31%
ineffective at creating an
inclusive environment on
their teams.
We struggle to recruit 38% 42%
diverse talent.
Our unconscious bias 9% 10%
training is ineffective at
mitigating bias.
Other, please specify.. 9% 13%

n = 251 respondents (21 public sector)

Source: 2019 Gartner Future of HR Survey

Talent Analytics
HR leaders selected talent analytics as the sixth most prioritized key initiative for
2019. Public sector HR leaders’ greatest problem with talent analytics is “Our data
quality (e.g., data is insufficient, inaccurate, inconsistent) prevents us from delivering
the talent analytics our business needs,” with 58% of respondents selecting this
problem statement (see Table 7). Public sector respondents also identified generating
actionable insight as a more acute challenge than the broader sample, with 32%
selecting “We struggle to derive actionable insights from our talent data” (see Table 7).

Table 7: Problems With Talent Analytics

Problem Statement Public Sector All Respondents

Our data quality (e.g., data 58% 50%
is insufficient, inaccurate,
inconsistent) prevents us
from delivering the talent
analytics our business
needs.
We struggle to derive 32% 26%
actionable insights from
our talent data.
We struggle to use the 26% 19%
newest talent analytics

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 Problem Statement Public Sector All Respondents
technologies and
techniques.
Talent data does not 26% 20%
impact business leaders’
decision making
Our nonanalytics HR staff 26% 31%
do not effectively use
talent data.

n = 278 respondents (19 public sector)

Source: 2019 Gartner Future of HR Survey

Driving Digital Business Transformation for the Organization

Public sector respondents selected driving digital business transformation for the
organization as the seventh most prioritized key initiative for 2019, behind the broader
sample’s ranking of fifth. Public sector organizations’ greatest problems with driving
digital business transformation for the organization center on corporate culture and
operating processes, as 75% of public sector HR leaders selected “Our corporate
culture is too risk-averse to capitalize on digitalization” and 50% selected “Our
operating processes and structures are too rigid for digital transformation” (see Table
8). Both figures far exceeded the magnitude of these problems in the broader sample
of respondents.

Table 8: Problems With Driving Digital Business Transformation for the

Organization

Problem Statement Public Sector All Respondents

Our corporate culture is 75% 34%
too risk averse to capitalize
on digitalization
Our operating processes 50% 37%
and structures are too rigid
for digital transformation.
We have unclear 13% 24%
performance outcomes for
digital transformation.
We have inadequate 38% 46%
talent to drive digital
transformation.
Our digital plans are 25% 20%
misaligned across the
enterprise.

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n = 314 respondents (19 public sector)
Source: 2019 Gartner Future of HR Survey

Future of Work
HR leaders selected future of work as the eighth most prioritized key initiative for
2019 — the same ranking as the broader sample. Problems with talent needs are
one of HR leaders concerns for future of work, with 72% of public sector HR leaders
selecting “We struggle to plan for future talent needs” (see Table 9). Additionally,
leaders have problems managing technology’s impact on the workforce; 50% of public
sector HR leaders selected “We do not have an effective plan in place for addressing
how technology will change the skills we need and don’t need in our workforce” (see
Table 9). These two areas also ranked as the most significant future of work problems
for the broader sample.

Table 9: Problems With Future of Work

Problem Statement Public Sector All Respondents

We struggle to plan for 72% 49%
future talent needs.
We do not have an 50% 41%
effective plan in place for
addressing how technology
will change the skills we
need and don’t need in our
workforce.
Our organization struggles 22% 26%
to manage multiple
employment models (e.g.,
employees, contractors, gig
workers).
Our organization lacks a 17% 32%
clear strategy for how we
will change our operations
to succeed in the digital
era.
Our organization’s 11% 13%
strategy for implementing
automation is nonexistent
or ineffective.

n = 250 respondents (18 public sector)

Source: 2019 Gartner Future of HR Survey

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Performance Management
Public sector HR leaders selected performance management as the ninth most
prioritized key initiative for 2019, slightly ahead of the ranking in the broader sample
(10th). Public sector HR leaders’ greatest problem with performance management
concerns the effectiveness of manager feedback, with 63% of leaders selecting “Our
managers are not able to provide effective performance feedback” (see Table 10).
Public sector leaders also acknowledged that recognition and review processes were
problem areas, selecting them at higher rates than the broader sample, at 31% and
25%, respectively.

Table 10: Problems With Performance Management

Problem Statement Public Sector All Respondents

Our managers are not 63% 56%
able to provide effective
performance feedback.
We do not have 31% 19%
mechanisms for
recognizing team
performance or
collaboration.
Our performance review 25% 22%
processes don’t adequately
reflect employees’ true
contribution.
Our performance 19% 19%
management system
does not help managers
effectively align employee
performance to rewards.
Our employees do not 19% 26%
effectively set individual
goals.

n = 233 respondents (16 public sector)

Source: 2019 Gartner Future of HR Survey

Recruiting
Public sector prioritization of recruiting lagged the broader sample and represents the
10th most important key initiative for 2019 (seventh for all respondents). HR leaders
for all industries were clear: Their greatest recruiting problem is attracting the right
talent and identifying talent needs, with 44% of public sector leaders selecting “We
struggle to attract our target talent” (50% all respondents) and 44% selecting “We
struggle to define clear hiring needs” (28%, all respondents) (see Table 11).

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Table 11: Problems With Recruiting

Problem Statement Public Sector All Respondents

We struggle to attract our 44% 50%
target talent.
We struggle to define clear 44% 28%
hiring needs.
We have difficulty 31% 18%
assessing talent.
Our onboarding process is 19% 28%
not effective.
We are not providing 13% 17%
a good candidate
experience.

n = 263 respondents (16 public sector)

Source: 2019 Gartner Future of HR Survey

Strategy and Management of My Function

Public sector HR leaders selected strategy and management of my function as the 11th
most prioritized key initiative for 2019, slightly ahead of the broader group’s ranking
of 13th. HR leaders throughout all industries perceived operating model challenges
as their most significant problems, with 57% of public sector respondents selecting
“My team’s operating model (e.g., use of shared services, manager and employee self-
service, HR technology, outsourcing, automation) does not allow us to add strategic
value to the business” (see Table 12). Public sector respondents also identified risk
aversion as more significant than the broader sample, with 29% selecting “My staff are
too risk averse” versus only 14% of all respondents (see Table 12).

Table 12: Problems With Strategy and Management of My Function

Problem Statement Public Sector All Respondents

My team’s operating 57% 40%
model (e.g., use of shared
services, manager and
employee self-service, HR
technology, outsourcing,
automation) does not allow

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 Problem Statement Public Sector All Respondents
us to add strategic value to
the business.
My staff are too risk averse. 29% 14%
We don’t have a 21% 26%
compelling strategy for our
function.
Other, please specify. 21% 21%
My staff lack the 14% 23%
capabilities to add business
value.

n = 173 respondents (14 public sector)

Source: 2019 Gartner Future of HR Survey

Technology for My Function

Public sector HR leaders selected technology for my function as the 12th most
prioritized key initiative for 2019, slightly behind the broader sample’s ranking of
11th. Public sector HR leaders’ greatest problem with technology for my function
surrounds the effectiveness of current technology solutions, with 69% of leaders
selecting “Our current HR technology solutions hinder, rather than improve, employee
experience” (see Table 13). Public sector leaders also have more pronounced problems
with delivering on workforce expectations; 38% selected “We cannot deliver on our
workforce’s expectations for more advanced technology in the workplace” (see Table
13).

Table 13: Problems With Technology for My Function

Problem Statement Public Sector All Respondents

Our current HR technology 69% 46%
solutions hinder, rather
than improve, employee
experience.
We cannot deliver 38% 13%
on our workforce’s
expectations for more
advanced technology in
the workplace.
We do not know how 23% 18%
evolving technology trends
(such as AI or virtual

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 Problem Statement Public Sector All Respondents
reality) will impact talent
management processes.
We do not have a 15% 17%
technology strategy that
supports our business’
digital transformation.
We do not sufficiently 8% 16%
partner with IT and other
functions to optimize
employees’ digital
workplace.

n = 192 respondents (13 public sector)

Source: 2019 Gartner Future of HR Survey

Internal Labor Market

Public sector HR leaders selected internal labor market as the 13th most prioritized
key initiative for 2019, ahead of the broader sample’s ranking of 16th. Overwhelmingly,
public sector HR leaders’ greatest problem with internal labor market is “Career paths
are unclear in our organization,” with 50% selecting this problem statement (see
Table 14). Additionally, one-third of leaders selected “We do not know what skills
are available in our workforce” and “Our talent review processes are ineffective” —
consistent with the rankings in the broader group (see Table 14).

Table 14: Problems With Internal Labor Market

Problem Statement Public Sector All Respondents

Career paths are unclear in 50% 58%
our organization.
We do not know what 33% 30%
skills are available in our
workforce.
Our talent review 33% 29%
processes are ineffective.
Other, please specify. 25% 5%
Managers do not 25% 25%
encourage internal
mobility.

n = 154 respondents (12 public sector)

Source: 2019 Gartner Future of HR Survey

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Working With the CEO, Board and C-Suite
HR leaders selected working with the CEO, board and C-suite as the 14th most
prioritized key initiative for 2019 — consistent with the broader sample. However,
conflict on the senior leadership team and ineffective responses to emerging social
issues/trends presented as greater challenges for public sector respondents, with 29%
selecting both of these problems (see Table 15).

Table 15: Problems With Working With the CEO, Board and C-Suite

Problem Statement Public Sector All Respondents

We have too much conflict 29% 23%
on our senior leadership
team.
Our organization is not 29% 21%
effectively responding to
emerging social issues/
trends.
Other, please specify. 29% 17%
The board has insufficient 14% 25%
insight into the
organization’s talent health.
Our succession plan for 14% 54%
the CEO or other senior
executives is insufficient.

n = 170 respondents (seven public sector)

Source: 2019 Gartner Future of HR Survey

Definitions of Key Initiatives

■ Building critical skills and competencies for the organization: Manager
development, learning and development solutions and on-the-job learning.
■ Current and future leadership bench: High-potential employees, succession
management and leadership development.
■ Diversity and inclusion: Diversity recruitment, unconscious bias and team inclusion.
■ Driving digital business transformation for the organization: Digital services, digital
skills and digital preparedness.
■ Employee experience: Culture, EVP and employee engagement.
■ Future of work: Gig economy, strategic workforce planning and automation.
■ HR cost optimization: HR spend, structure and service delivery.
■ Internal labor market: Career pathing, talent mobility and talent reviews.
■ Leading the next-generation HR workforce: Job design and future skills.

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 ■ Organizational design and change management: Organizational structure, change
management and innovation.
■ Performance management: Performance reviews, rewards and recognition and
team performance.
■ Recruiting: Attraction, candidate experience and onboarding.
■ Strategy and management of my function: Operating model and staff
performance.
■ Talent analytics: Data management, dashboards and reporting and analytics
capabilities.
■ Technology for my function: Technology selection, technology implementation
and digital workplace.
■ Total rewards: Well-being, compensation and remuneration plan design and
rewards communication.
■ Working with the CEO, board and C-suite: Board presentations, executive
succession, executive compensation and senior team dynamics.

Conclusion
While different industries prioritize some key initiatives in different ways to accomplish
their organizational objectives, key initiatives are highly consistent throughout the
public and private sectors. There is similar consistency in the importance of key
initiatives across HR leadership roles. HR leaders should work to understand the
challenges their peers face and the key initiatives their counterparts prioritize to
maximize their impact.

About This Research

We surveyed 843 HR leaders around the globe and in almost every industry in the 2019
Gartner Future of HR Survey, including 302 heads of HR, 198 regional or business unit
heads of HR, 65 heads of learning and development, 79 heads of talent management,
21 heads of diversity and inclusion, 65 heads of total rewards, 50 heads of recruiting,
54 heads of talent analytics and nine heads of HR technology. We assessed their
priorities and expected changes for 2019 and what key initiatives they were prioritizing
to accomplish their goals in the next 12 months. This report describes the data from
this survey.

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