Why Competencies Are the New Currency of the Public Sector

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Contributed by
Fabio Sola, Director of PRAXI Alliance, and Tiziana Poli, PRAXI People & Culture
Date of Publication
June 3, 2026
  • People & Culture
  • Training
  • Public Administration
  • Recruiting
  • Article
Why Competencies Are the New Currency of the Public Sector

Competencies are becoming the defining asset of successful public organizations. Across Italy, public administration is undergoing a profound transformation—one that extends far beyond regulatory reform or digital innovation. At its heart is a fundamental shift in how public organizations attract, develop, and lead people.

Against a backdrop of demographic, technological, and societal change, public administration is rethinking the capabilities needed to continue serving the public interest effectively. The conversation is no longer focused solely on structures, processes, or compliance. Increasingly, it centers on leadership, organizational culture, and the competencies required to navigate continuous change.

These themes were explored during The Public Administration in Transition: People, Competencies, and Practices, an event that brought together general managers and municipal secretaries from across Tuscany for an interactive discussion featuring:

  • Lucia Bartoli, General Manager, City of Florence
  • Marco Degli Esposti, General Director, University of Florence
  • Simone Gheri, Director, ANCI Tuscany
  • Giacomo Parenti, General Manager, Metropolitan City of Florence
  • Giovanni Palumbo, Director of Organization and Human Resources, Tuscany Region
  • Stefania Sparaco, Head of Human Resources and Organizational Innovation, Emilia-Romagna Region

The discussion highlighted a fundamental transition: moving from an administrative approach to people management toward one centered on competencies—understood as the combination of knowledge, skills, and behaviors that enable individuals and organizations to perform effectively. More than an organizational change, this represents a new way of thinking about public service itself.

A Shift That Can No Longer Be Delayed

Recent legislative reforms—from the PA Decree to the Merit Decree—have provided important momentum for change by introducing new tools and opportunities. Yet one message emerged consistently throughout the discussion: regulation alone does not transform organizations.

Without sustained investment in people, leadership, and organizational culture, reforms risk remaining little more than policy intentions. Real transformation depends on how competencies are developed, applied, and embedded in everyday practice.

The urgency of this shift is reinforced by demographic trends. By 2030, Italy’s public sector is expected to experience an unprecedented generational transition. According to projections from Unioncamere and the Excelsior System, around one million public employees will retire, while between 700,000 and 800,000 new hires will be needed, largely to replace departing staff.

Beyond the recruitment challenge, this transition raises a broader concern: preserving institutional knowledge while managing workplaces where as many as five generations coexist, each bringing different expectations, values, and ways of working.

Artificial Intelligence Raises the Stakes

Generative artificial intelligence adds another layer of complexity. Its impact will extend well beyond routine activities, reshaping highly qualified professions—including management, engineering, and information technology.

As automation transforms technical work, technical expertise alone will no longer be sufficient. Competencies such as critical thinking, sound judgment, decision-making, emotional intelligence, and the ability to navigate uncertainty are becoming increasingly important.

Paradoxically, this shift may also create new opportunities for the public sector. As private organizations rethink demand for certain highly specialized roles, public employers could become more attractive to STEM professionals who have traditionally been difficult to recruit.

Turning Strategy Into Practice

One of the event’s strongest messages came from organizations that have already begun putting these principles into practice. Over the past three years, a number of public institutions have redesigned their talent management approaches in response to immediate operational challenges—from implementing Italy’s National Recovery and Resilience Plan (PNRR) to delivering post-pandemic investment programs and broader organizational transformation initiatives.

Among the most significant developments is the adoption of competency-based recruitment, including for senior leadership positions. Selection processes increasingly assess candidates’ behavioral competencies, leadership potential, and aptitude alongside their technical expertise.

Participants also highlighted the importance of aligning learning and development with organizational priorities. Areas such as risk and crisis management, inclusive leadership, and organizational effectiveness are no longer viewed as standalone training topics, but as strategic capabilities that directly support institutional performance.

Equally important is the growing emphasis on collaboration across public organizations. Networks for knowledge sharing, co-design, and experimentation are helping transform common challenges into shared solutions. Rather than competing for scarce talent, participants emphasized the value of territorial partnerships and a system-wide approach capable of strengthening the public sector as a whole.

Why People Join—and Leave—the Public Sector

Employee surveys, including exit interviews, provide valuable insight into what attracts people to public-sector careers—and what ultimately drives them away.

Job security and work-life balance remain the primary reasons professionals choose public service. By contrast, departures are most often linked to perceived limitations in compensation, career opportunities, and leadership quality.

Addressing these challenges requires more than financial incentives. Participants emphasized the need to rethink the employee experience—from strengthening decentralized collective bargaining and redesigning career pathways to prioritizing the quality, rather than the quantity, of learning opportunities. Structured onboarding programs, intergenerational mentoring, and initiatives that support employee well-being also emerged as essential components of a modern people strategy.

Rediscovering the Purpose of Public Service

Alongside organizational practices, the discussion highlighted the importance of purpose.

Public service offers a unique value proposition: the opportunity to contribute to the public interest and create lasting value for citizens and communities. This sense of purpose remains one of the public sector’s greatest strengths and a powerful differentiator in an increasingly competitive labor market.

The challenge is to create workplaces where people can apply their competencies, continue to grow, and feel connected to a shared mission.

Integrating Recruitment, Learning, and Development

Building a competency-based organization begins with recruitment.

Leading public organizations are moving beyond selection processes focused primarily on technical knowledge and formal examinations. Instead, they are adopting more sophisticated approaches that assess candidates’ broader competencies and long-term potential. While larger institutions have often led the way, smaller organizations are increasingly embracing these practices through collaboration with peer administrations and specialized partners.

Learning and development play an equally strategic role. Effective capability building starts with understanding individual development needs before aligning them with team priorities and organizational objectives.

This also redefines the role of managers. Beyond overseeing performance, leaders are increasingly expected to develop their people, provide meaningful feedback, and create opportunities for continuous growth.

The objective is to build an integrated talent system in which recruitment, learning, and professional development reinforce one another throughout the employee lifecycle.

Rethinking Performance and Leadership

Performance management is undergoing a similar evolution.

Traditional models, often shaped by seniority or short-term governance priorities, are gradually giving way to approaches that recognize potential, clarify role expectations, and integrate performance evaluation with learning and career development.

Professional growth is also being redefined. Career progression is no longer viewed solely as vertical advancement but increasingly includes cross-functional mobility as a means of broadening experience and strengthening organizational capability.

Leadership is central to this transformation. Managers are expected to move beyond supervision and become enablers of growth—creating the conditions for people to succeed, offering constructive feedback, and helping develop the next generation of public-sector leaders.

Looking Ahead

One conclusion emerged consistently throughout the discussion: competencies are no longer simply a regulatory requirement. They have become a strategic imperative for navigating the digital, generational, and organizational transitions reshaping the public sector.

Participants translated this shared understanding into practical priorities, from modernizing recruitment processes and aligning learning with organizational strategy to creating credible leadership development pathways.

Ultimately, investing in people means investing in better public services for citizens, businesses, and communities.

Against this backdrop, the launch of a Strategic Roundtable marks an important step toward building a community of practice where public organizations can share experience, develop common approaches, and scale successful initiatives. By strengthening collaboration across institutions, the Roundtable aims to generate lasting value for public administrations, their people, and the communities they serve.

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Contributed by
Fabio Sola, Director of PRAXI Alliance, and Tiziana Poli, PRAXI People & Culture
Date of Publication
June 3, 2026
  • People & Culture
  • Training
  • Public Administration
  • Recruiting
  • Article
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