Decentralization

Retention In addition to recruitment, the management and retention of employees pose serious challenges for the public sector. Globalization has opened up opportunities for talented people to leave their government jobs and work for the private sector with an increased salary. In the developed world, employee turnover in government jobs has far-reaching consequences in terms of the recruitment and training of new employees. The loss of the psychological contract worsened the problem of retention. Some authors have emphasized talent management as one of the major ways to deal with retention problem. Buttiens and Hondeghem (2015) focused on talent management in public sector and offered a contingency based system.

RetiRement One of the major challenges faced by governments is to sustain the pension benefits due to the increasing number of retirees in OECD countries. The problem is pronounced in the senior-level executive positions. As a result, it is a challenge to maintain continuity and to preserve a degree of specialization in public service. There is a shortage of skilled labor in many developed countries. One solution is to import from other countries, which causes a brain drain in developing countries, which suffer from a lack of skilled people as the brightest and best travel to the developed world. Moreover, a high degree of patrimonialism in developing countries is pushing the skilled people out of their homeland to migrate to the western countries. Globalization has facilitated skilled people to work for the developed world. The skilled and talented people in the developing countries are frustrated to see their opportunities blocked by politicization and patrimonial recruitment. The lack of skilled people further complicates the efficiency of the governments by lowering the capacity to deal with complex problems. Government inefficiency creates the problem of legitimacy and effectiveness, causing political and economic problems. The emigration of skilled people can benefit developing countries by remittances from western countries. However, the damage to the government capacity as a result of the loss of the skilled people far outweigh the benefits of remittances.

To deal with the retirement of experienced people, HRM needs to develop effective succession planning. Succession planning is based on the assessment of the future vacancies and the training of people to assume