SETTING THE FOUNDATIONS FOR A DIGITAL CULTURE: From Recruitment Transformation to Skills Enhancement Deliverable 3.1 Activity 3: Develop a policy note for implementing the selected recruitment model(s) with a focus on digital skills. ITALY Innovative Recruitment and Assessment Process in the Public Administration May 2022 1 DISCLAIMER © 2022 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. 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Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522- 2625; e-mail: pubrights@worldbank.org 2 Contents Acronyms ...................................................................................................................................................... 5 Acknowledgments ........................................................................................................................................ 6 1. Toward a Digital Culture ...................................................................................................................... 7 2. From Bureaucratic to Digital Recruitment ............................................................................................ 9 Understanding the Critical Shift ................................................................................................................ 9 Getting the IT Basics Right ...................................................................................................................... 10 Critical Stages to Digitally Transforming Recruitment ............................................................................ 14 3. Digital Skills for a Transformed Public Sector ......................................................................................... 18 Spectrum of Digital Skills......................................................................................................................... 18 Understanding Digital Skill Supply and Demand Issues .......................................................................... 20 Approaches to Closing the Digital Skill Gaps........................................................................................... 24 Compensation ......................................................................................................................................... 33 4. Key Recommendations for Formulating a Sound Digital Talent Policy ................................................... 35 References .............................................................................................................................................. 40 Boxes Box 1: Digital Recruitment: Some International Examples ......................................................................... 17 Box 2: International Examples of Centralized Employee Value Proposition Communications Materials .. 28 Box 3: International Example of Career Pathways: Australian Government’s Digital Profession .............. 32 Figures Figure 1: Development of a Digital Culture .................................................................................................. 7 Figure 2: From Bureaucratic to Digital Recruitment ................................................................................... 10 Figure 3: Digital Recruitment Stages ........................................................................................................... 14 Figure 4: Spectrums of Digital Work ........................................................................................................... 19 Figure 5: Digital Skills for all Occupations ................................................................................................... 20 Figure 6: Workforce Planning for Digital Skills ............................................................................................ 20 Figure 7: STEM Graduates (per 1,000, ages 20-29) .................................................................................... 21 Figure 8: Workers in ICT-related Jobs with a University Education (percentage) ...................................... 21 Figure 9: Increase in ICT Specialists between 2010 and 2020 .................................................................... 22 Figure 10: Clear System for Identifying Staff Skills ..................................................................................... 22 Figure 11: Approaches to Closing Digital Skill Gaps .................................................................................... 25 Figure 12: Barriers to Attracting Candidates with Strong Digital Skills ....................................................... 26 Figure 13: Average Annual IT Salaries (European countries, 2020) ........................................................... 33 Figure 14: Average Italian IT Salaries vs. Average Italian Public Sector Salaries ........................................ 33 3 Tables Table 1: In-demand Digital Skills ................................................................................................................. 24 Table 2: Most Widely Held IT Certifications................................................................................................ 24 4 Acronyms AI Artificial Intelligence CTMS Cyber Talent Management System DDaT Digital, Data and Technology DFP Department of Public Function DHS Department of Homeland Security (United States) EIG Public Interest Entrepreneurs Program (France) EU European Union EVP Employee Value Proposition GDS Government Digital Service (United Kingdom) HR Human Resources HRM Human Resource Management HRMIS Human Resource Management Information System ICT Informatation and Communication Technologies IT Information Technology MDA Ministry, Department and Agency NRRP National Recovery and Resilience Plan OECD Organisation for Economic Co-operation and Development RGS State General Accounting Office STEM Science, Technology, Engineering, Math UK United Kingdom WFP Workforce Planning 5 Acknowledgments This report was prepared by the World Bank team led by Shiho Nagaki (Senior Public Sector Specialist, Task Team Leader). The team consisted of João Ricardo Vasconcelos (Senior Governance Specialist), Donna Andrews (Global Lead, Public Institutions Reform), Khuram Farooq (Senior Financial Management Specialist), and Margherita Fornasari (Governance Specialist). The team received overall guidance and support from Arup Banerji (former Country Director for European Union [EU] countries), Ed Olowo-Okere (Global Director for the World Bank Governance Global Practice), Lalita M. Mooty (World Bank Regional Director for Europe and Central Asia), and Roby Senderowitsch (Practice Manager, World Bank Governance Global Practice, Europe and Central Asia) throughout the project. The team also benefited from technical advice from the peer reviewer, Mr. Vikram Menon. The team would like to express its gratitude to the DG REFORM team of the European Commission, including Daniele Dotto, Angeliki Votsoglou, and Ledri Hysenaj for their extensive support and guidance during project implementation. Finally, the team would like to sincerely thank all the government officials of Italy for their cooperation, engagement, and facilitation of project implementation, notably, representatives from the Department of Public Function, and the School of National Administration. The team would particularly like to thank Cecilia Maceli, Michaela Travaglini, Enrica Della Gala, Maria Cristina Tedesco, and Sabrina Bandiera. 6 1. Toward a Digital Culture 1. The digital transformation currently underway is significantly changing today’s economies and societies. Digital technologies have become ubiquitous in how citizens live and companies work, shifting practices and altering behaviors. Rapid technological evolution is a certainty. This ongoing revolution requires individuals and institutions to adjust to unprecedented levels of fast-paced change. In this regard, governments are not exempt from these dynamics. Indeed, the public sector has a fundamental role in tackling and driving the transformation that is underway, curating and reinforcing the ties between the various economic and social spheres. Particularly in disruptive contexts, sound public government is the backbone of fairer, more equitable and healthier socioeconomic development. Openness, transparency, integrity, collaboration, inclusion, and cohesion are some of the values that citizens are increasingly demanding from governments, and these values equally apply to the digital transformation. How governments embed digital technologies and data (GovTech) in their fabric will determine the sustainability of this important task. 2. A digitally transformed government requires a shift toward a systems approach that enhances the change underway to modernize the public sector, with the citizen at the center of the reforms. This GovTech imperative goes beyond focusing on technology to enable the more efficient and effective operation of the government. Indeed, it represents an advanced stage of a government’s digital transformation that prioritizes citizen-centric public services that are universally accessible. It includes a whole-of-government approach to digital governmental transformation, as well as simple, efficient, and transparent governmental systems (World Bank 2020). Figure 1: Development of a Digital Culture Source: Authors’ schematic. 3. The development of a digital culture across the civil service is critical to securing coherent and sustained change (see Figure 1). Since the transformation underway is important to be considered as 7 a technical issue, governments increasingly need to invest in having the cross-cutting talent and skills in the public sector workforce. Such a workforce will recognize the opportunities and challenges brought about by a digital culture to governmental operations and services. A digital culture is, in this sense, an important building block for governments to navigate and nurture in the current transformational context. It is a mindset requirement for civil servants across various levels of seniority. As such, it should embed the philosophy, processes, services, and technological approaches of the digital transformation to respond to citizens’ needs and expectations. 4. Different foundations are required to attract, retain, and develop qualified professionals in the public sector. Having a public sector recruitment system that can respond to the demands of the Internet era is an essential foundation for strengthening a digital culture. Governments have been using online features in public sector recruitment for decades. The announcement of public sector job vacancies through central portals is a good example of mainstream efforts to digitalize recruitment procedures. Although examples from different countries show that there is substantial room for improvement in integrating digital technologies to truly transform public recruitment, several basic benefits brought by digital technologies can be highlighted: • Efficiency – Paperless recruitment procedures allow for improved coordination across the different sectors and levels of the public administrations, contributing to reducing the carbon footprint. The automation of strategic steps of the recruitment procedures (for example, applications and the first screenings of applicants) also improve the government’s capacity to process a high volume of services and transactions. • Agility – They also strengthen capacity to deliver customized approaches to different demands and target audiences, adjusting easily to various types of recruitment procedures. Also, the 24/7 availability of different channels represents an important improvement for applicants. • Resilience – Such procedures also improve accessibility due to the capacity to deliver services remotely and reinforce capacity to face natural disasters (for example, the climate change dimension) and public health emergencies (for example, the COVID-19 pandemic). 5. The civil servant’s digital skills represent another important foundation for developing a digital culture within the public sector. Governments around the world have been discussing the nature and means of developing the skillsets required to tackle and take full advantage of the digital transformation. Public servants are expected to develop new cognitive skills, as well as greater adaptability that can allow them to operate in a fast-paced, changing environment. 6. Human capital is a central piece of the GovTech transformation journey that governments are navigating. The integration of digital technologies is leading to the replacement of “old� jobs. In addition, the creation of new digitally reliant jobs is increasing the urgent demands for new competencies and profiles in the public sector. The World Bank GovTech Maturity Index (2021) and the Organisation for Economic Cooperation and Development (OECD) Digital Government Index (2020) highlight the substantial space for policy improvements that governments around the world still face in terms of developing a sound GovTech skills policy in the public sector. The GovTech skills gap is due to several factors, such as the difficulty in attracting and retaining digital talent due to strong private sector competition, as well as insufficient numbers of graduates with relevant qualifications. This skills gap represents a significant handicap to achieving the digital government transformation. 8 7. Section 2 of this note will analyze and discuss how recruitment systems in the public sector are being transformed by digital technologies, including the data that they generate. An important focus will be on how the Government of Italy can move away from more bureaucratic recruitment processes toward digital recruitment approaches. These new processes will enable them to take full advantage of technologies to achieve a more simplified, coherent, and candidate-centric recruitment process. 8. Section 3 will take a detailed look at the spectrum of digital skills that are needed in the public sector, highlighting the importance of workforce planning and discussing different approaches to closing the digital skills gap in the public sector. It will also address other specific challenges, such as compensation, job design, flexibility, and staff rewards and recognition. The note will conclude with a section containing conclusions and key recommendations for developing a sound, digital talent policy. 2. From Bureaucratic to Digital Recruitment Understanding the Critical Shift 9. The use of digital technologies to support recruitment processes is a practice that has been underway for more than two decades in most digitally advanced countries. Indeed, online advertisement portals with some basic functionalities for job applications are far from being innovative approaches nowadays. The most common trend observed is that governments start by digitizing the existing analogue and paper-based processes, but without necessarily using this moment as an opportunity to transform recruitment based on the benefits and challenges brought by digital technologies (Figure 2). Small efficiency-oriented changes are naturally embraced, but frequently without changing the mindset from a bureaucratic to a truly digital approach. The COVID-19 pandemic disrupted this by requiring an acceleration of government efforts toward the full digitalization of public recruitment processes. It also provided the opportunity to rethink how this specific workstream could be adapted to a totally remote and paperless approach. 9 Figure 2: From Bureaucratic to Digital Recruitment Source: Authors’ schematic. 10. The key challenge that most digitally advanced1 countries such as Italy face is how to overcome the legacy of bureaucratic recruitment approaches, which have typically been based on complex and administrative-centered processes. There is a risk that countries will fall into the electronic recruitment trap that typically makes digital what was previously analogue. As such, they may miss a clear opportunity to use technology to transform the full lifecycle of recruitment processes. 11. Digital recruitment should not be understood by governments as an additional, technical digital layer to be established on top of bureaucratic analogue processes. On the contrary, it should be embraced as an opportunity to maintain recruitment processes that are digital by default, that is, processes that take advantage of the full benefits of digital technologies and data to adopt a candidate-centered approach (see Figure 2). This means being proactive in the various stages of the recruitment lifecycle (see next section), including through simple, seamless, and data-driven models, as well as by mobilizing social media and emerging technologies as strategic tools. Getting the IT Basics Right 12. The establishment of the e-recruitment system should start with the identification of the various users and their requirements (use cases). It should be supported by an integration process with the current Human Resource (HR) systems, while also adopting a more user-centric design approach. E- recruitment systems have some basic functionalities and use cases, that is, special recruiting scenarios from the user perspective, that should be kept in mind when defining the scope of specific systems. These should be integrated with existing HR core systems and follow a user-centric design. 1 The term ‘digitally advanced’ is used in the World Bank GovTech Maturity Index. 10 Use cases 13. E-recruitment systems have different personas and use cases. The current recruitment system in Italy is described in detail in deliverable 2.1. The key use cases that describe the basic functionalities of an e-recruitment system, based on current practice as well as future design aspects that may be needed in Italy, are described below. • Hiring administration/Human Resource Management (HRM) Department: During the development of the three-year personnel needs, the hiring department of each administration should carry out a skills and competency gap analysis against the competency framework. This will help to inform the HRM department concerning the type of professional profiles needed. After identifying the type of professional profiles needed in terms of skills and competencies, the line department should then open a requisition request in the e-recruitment system. As part of the requisition request, the hiring department should describe the professional profiles needed using specific job descriptions in line with the requirements of the position. The requisition request is then received by the HRM Department and will inform the development of three-year personnel needs plan. From the the strategic worforce planning, a requisition list could be created in the e-recruitment system. Once the plan has been approved and authorized by the State Accountant of the State General Accounting Department (Ragioneria Generale dello Stato - RGS) and the Head of the Department for the Department of Public Function (DFP), each responsible administration for recruiting develops the call for competition2. This would be a major improvement over the current system. Currently, public administrations identify their personnel needs gaps via a series of consultations between the line and HRM departments. However, they are rarely supported by an e-recruitment system. Furthermore, public administrations have no competency and job description frameworks to inform the development of the strategic workforce plan in terms of the kinds of skills and competencies needed3. • Organizations and departments performing recruiter functions - HRM Department/DFP, Formez and RIPAM Comission: The recruiters publish the job posting on the portal. In the case of Italy, the call for competition is published in the Official Gazette (Gazzetta Ufficiale della Repubblica Italiana) and posted on the recruitment portal. The call for competition for public competitions coordinated by the DFP, FormezPA and the RIPAM Commission are posted on the recruitment portal, Step-one 2019. To recruit temporary staff to work on implementing the activities envisaged in the National Recovery and Resilience Plan (NRRP), the call for competition is posted on the InPA portal. In all cases, applications are initially screened based on general requiremets (hard information) indicated in the call for competition, such as educational qualifications and nationality4. After the screening, eligible candidates are admitted to the public competition. In many countries, the screening on hard information is followed by an additional evaluation conducted by a short-listing committee. Looking at international best practices, for those candidates who were not admitted to the public competition, 2 See World Bank develiverable 2 for more details concerning the authorization and approval of the three-year personnel needs plan. 3 See World Bank develiverable 1 for more details concerning the process of identification of personnel gaps in terms of skills and competencies. 4 The D.P.R. 487/1994 lists general requirements to participate in a public competition. They include: (i) Italian citizenship (exceptions admitted for European Union citizens); (ii) majority age (that is, 18 years old); (iii) enjoyment of political rights; (iv) the absence of obstructing elements (for example, those who have been dismissed or exempted from employment in a public administration for persistent insufficient performance cannot apply); and (v) educational qualifications specified in the call for competition. 11 the online portal should be designed to send rejection letters, either directly or through the hiring HRM department. After the selection and hiring of successful candidates, the HRM department of the hiring administration should create and send the offer. The offer letter should be created automatically from the offer management module of the system as a control measure. As such, the offer letter should be pre-populated with the job and candidate information from the e-recruitment systems. At the same time, the offer management module should provide successful candidates with the option of accepting/refusing the offer. The HRM departments of the hiring administration should also be able to enter evaluation scores of interviewers in the system, if each member of the selection committee does not have direct access to the system. Indeed, the HRM department of the hiring administration should have access to an analytics module within the system to monitor the performance of the recruitment process. The module should also create various business intelligence reports and dashboards. • Candidates: The candidate searches for the job in the recruitment portal. In the case of the Step-one 2019 portal, the candidate registers in the portal using their digital ID (Spid) and enters key information, including: personal information and educational qualifications. Candidates have also the option of uploading of official certificates. Regarding the InPA portal, candidates are required to fill in a comprehensive online application form, registering personal information, the educational path, previous work experience, and competencies gained. This information is divided across tabs and navigation steps. Thus, candidates know exactly at what tab or information form he/she is at any given time. As discussed in the World Bank Deliverable 2, the innovative features of the InPA portal should be extended to all centrally managed public competitions, thereby providing a single point of access. Looking at an international platform, such as Oracle, special input fields should be provided to make provisions for storing links to social media profiles (such as Linkedin), if the candidate wants to provide them. At the same time, the recruitment portal should envisage an option for providing notifications to candidates concerning vacant positions, matching selected parameters such as job grade, position, job family, and key words. Lastly, providing candidates with up-to-date information regarding the amount of time it typically takes to fill in the form helps in improving user-centricity (see below). Integration process 14. An important aspect of an e-recruitment system is its integration with core HR systems. Key aspects of integration should be considered. For example, during the requisition request stage, the job requirement should be based on vacant positions identified in the three-year personnel plan. The completed job description in the requisition request should then be based on the competency framework stored in the competency module or library. The specific job description should be customizable from standard and general job descriptions derived from the competency framework. These should be made available on the system. After the offer and acceptance, the candidate should go through the on-boarding process, which provides another integration point for this system. In general, the on-boarding process is performed on a separate system through which candidates enter personal information, such as criminal and financial records. At the same time, the HRM department should share key documents and information with candidates, such as information about the ethical code, pensions, and so on. Therefore, the information stored on the recruiternet portal should be automatically transferred to the onboarding process. Likewise, the information concerning the 12 selected candidates in the recruitment system should be sent to the payroll system through automatic data exchange, thus ensuring adequate controls on recruitment. Looking at international experiences, calls for competition can also be posted on social media channels, such as Twitter and LinkedIn, which provide another integration point. All of these integrations should be carefully planned. In many settings, this is done manually, using the Twitter handle or LinkedIn account of the recruiting entity. In the absence of integration, manual inputs at the above-mentioned touch points should be planned. This can occur while integration through the automatic exchange of data and interoperability is being worked out. 15. However, e-recruitment should not necessarily be on the same platform as the core HR system. Despite being very different from the core HR system, adopting an e-recruitment application technology platform that best meets the specific needs is often preferable. This provides space for a much wider choice of platforms and the possibility to use the best possible technological platform for e-recruitment based on specific needs and cost effectiveness. A cloud-based/Software-as-a-Service e-recruitment system, integrated with back-end Human Resource Management Information System (HRMIS) scenarios are common and offer cost-effectiveness and flexibility in the choice of technology. User-Centricity Approach 16. The design of the e-recruitment system should reflect a user-centricity approach. E-recruitment applications are often designed from an internal administration perspective, mainly by the HR department staff; thus, the applicant’s perspective is often an afterthought. It should be underscored that these systems are both for internal recruitment teams and external candidates, with the applicant’s perspective being built into the design upfront. 17. A recruitment portal, serving as a single point of interaction between candidates and the recruiting and/or hiring administration, and supported with email notifications, goes a long way toward making it user-centric. Step-by-step navigation through multiple tabs – including personal information, qualifications, experience, references — combined with tracking functionality features, improves user-centricity. The portal should have upload functionality, providing applicants with an easy interface to upload information, including PDF and video files. Furthermore, the portal should generate automatic emails to confirm application submissions or registrations. Referrals to a colleague or friend, and space to submit applications on behalf of someone else5 also improve user- friendliness. Candidates should also have a special area in the system for correspondence or interaction with the hiring team and HRM department. Automatic alerts for jobs of interest, based on key words, level, positon title, and so on, also improve user-centricity. The development team could also include a user-experience (UX) expert who could involve potential candidates in the design of a user-centric application portal. 5Some senior-level executives sometimes delegate to staff the filling in of the applications. However, at later stages of the process,the applicant could still provide confidential information to HR to ensure privacy. 13 Critical Stages to Digitally Transforming Recruitment 18. As the public sector is increasingly challenged to shift from a bureaucratic to a fully digital recruitment approach, it is fundamental to consider how digital approaches and the data they generate can transform the full recruitment lifecycle. From job requisition and design to evaluation, the passing through intermediate stages — such as vacancy publicity, candidate application, examination and evaluation, digital technologies — should be embedded from the start in the redesign of recruitment processes (see Figure 3). The digitalization of recruitment represents an opportunity for public sectors to reinforce applicant-centricity and mitigate the legacy of administrative-driven processes. Figure 3: Digital Recruitment Stages Source: Authors’ schematic. 19. Institutional attractiveness is a preliminary and cross-cutting stage when digital technologies can play a leading role. A comprehensive and active online presence is critical to attracting the best- qualified candidates. In areas with high recruitment demand or where competition with the private sector is seen as a barrier to attracting quality candidates, reinforcing and promoting the attractiveness of working in the public sector is critical. An active and engaging social media presence contributes decisively to institutional branding, creating awareness about the public sector mission and initiatives. However, it also mirrors its culture and clearly communicates a compelling employee value proposition. See Box 1: Digital Recruitment: Some International Examples 20. Job requisition and design can also benefit from new digital approaches. Simple and interconnected requisition procedures through centralized or properly federated platforms can be used efficiently by the different sectors and levels of government. These platforms can be an important asset, improving the efficiency, transparency and accountability of recruitment processes. Building on the principles of simplicity and finite attention of the internet culture, digitalization can also contribute to improving the design of job descriptions, making them less bureaucratic. They can also be more focused and based on plain language that can be easily understood by potential applicants. The requisition management module should be able to support additional functionalities, such as making the 14 requisition list filterable with multiple parameters such as job type, requisition ownership, Ministry, Department and Agency (MDA), location, and so on (see international examples in Box 1). 21. Vacancy publicity using centralized online portals has become a regular practice in digitally developed countries. Although its complexity varies, public sector recruitment portals have become a central instrument used by governments to manage recruitment demands. However, shifting from bureaucratic and reactive recruitment to a digitally proactive approach requires governments to embrace ambitious models. The use of targeted online advertisements, focusing on groups where there is most likely to be interest for specific jobs (for example, reaching out to information (IT) qualified individuals for IT specialist roles), helps to increase the pool of qualified candidates. The use of social media tools, such as LinkedIn or Twitter to promote vacancies and encourage current public sector employees to share vacancies among their professional networks, is also a useful model. (see Box 1 for international examples) 22. The candidate and application management module provides a single source of information about candidates. Key module functionalities include candidate files, candidate lists, candidate comparisons, candidate matching with requisition, and candidate social media profiles, such as LinkedIn and candidate metrics. Strongly investing in the user journey and experience in the application stage can also bring substantial benefits. Public sector recruitment portals tend to frequently replicate the previous analogue models without substantial improvements, continuing to make the application process painful for interested candidates. This is a missed opportunity to truly transform the recruitment experience for applicants. Design simplicity and plain language are fundamental requirements to improve the user journey. The possibility to reuse information through existing standards (for example, national, or international model Curriculum Vitae [CV]) or online networks (for example, LinkedIn) can also make a real difference; so too, it is important to invite candidates to focus on the quality of the application — and not on its process. The use of chatbots that can immediately respond to applicant questions and the offering of online information sessions to support candidates in the application procedure can also make a difference. (see Box 1 for international examples). 23. Examination is one of the stages of the recruitment lifecycle whereby advancements toward full digitalization can be more clearly observed in recent years. The COVID-19 pandemic accelerated the requirement for public sector organizations to quickly adapt to a fully remote mode. Public sector organizations can use the benefits of the digital mode in the examination preparation stage, for example, by making training materials and trial tests available online. Additionally, three critical examination types being transformed by digital can be considered (see Box 1 for international examples): 1) Written Examinations. The use of digital examinations offers the opportunity to conduct online tests for an almost unlimited number of participants. Public sector organizations can benefit by using technologies to manage written examinations in a more flexible and effective way. 2) Oral Examinations. Job interviews using online meeting tools, such as Zoom, Microsoft Teams or Webex, have become commonplace in public sector organizations around the world. Although this practice was being increasingly used in the last decade, the COVID-19 pandemic accelerated this trend. 3) Critical Competencies Examinations. Different methods can be used to examine critical competencies through the use of technologies. For instance, role play exercises allow the 15 recruiter to better determine the different skills of the candidates. Gamification, or the use of games in non-game environments, such as recruitment is also a practice gaining increasing acceptance. 24. Evaluation stage. The use of digital technologies in the evaluation stage of recruitment procedures can also present an important opportunity to improve efficiency. Automation techniques can be used for the marking of short queries or tests based on pre-defined answer alternatives (for example, yes/no, or choosing the correct answer), enabling an important first screening of candidate results. International examples are provided in Box 1 below. 25. A candidate offer management module offers support for managing offers, rejections, and candidate responses to the offer. This module typically has a workflow to ensure adequate approvals are taken and tracked for all the decisions regarding offers, rejections, and other associated actions. 26. A pipeline management module could also be considered as an option for digital recruitment systems. This module typically tracks contacts or the talent pool. These are potential candidates that are maintained as contacts. They are not candidates per se, as they never applied for the job. Yet, they could be potentially suitable for some future opportunity due to their skills, experience and background. This is especially useful for highly skilled individuals who do not apply for the job as candidates, but who could be proactively approached and encouraged to apply for the job. 27. Integration stage. Finally, the integration stage of a newly recruited employee can also benefit substantially from the proper adoption of digital technologies and data. The COVID-19 pandemic meant that public sector organizations globally had to suddenly adapt their onboarding and induction processes to a fully remote approach. The existence of an online onboarding and induction component that can lead recently hired employees though all the requirements to get properly oriented in their new roles can allow organizations to facilitate a smoother integration into the new working environment. The online availability of required training modules, including both function- specific and more general modules, can help manage the learning curve for new staff with much needed flexibility during this key transition time. Remote or hybrid onboarding and induction can also facilitate the adoption of mentoring and coaching approaches with colleagues through the use of remote meeting platforms, such as Zoom, Webex or MS Teams. Integration can also enhance efficiencies in the recruitment process by utilizing the interoperability of the digital recruitment system with the workforce planning (WFP) systems, competency management/competency libraries that provide customizable job descriptions, and headcount compliance/establishment controls with budget systems. (see Box 1 below for international examples). 28. As demonstrated, the different stages of the recruitment process can benefit significantly by utilizing a transformative integration of digital technologies and data. This does not simply entail making digital what was previously analogue; rather, it entails the use of digital technologies as an opportunity to rethink the processes and approaches and make them candidate-centered. Thus, such systems can support the recruitment of the most qualified and better skilled staff for public careers. 16 Box 1: Digital Recruitment: Some International Examples Institutional Attractiveness: The United Kingdom’s Government Digital Service (GDS), the public sector entity responsible for the overall digital government policy, has a very active presence in social networks, such as LinkedIn and Twitter. Its agile approach to communicating with the public using blogs and sharing positive stories of the achievements of government agencies contributes to strong employer branding, thus, disrupting the bureaucratic image typically associated with the public sector. Leading digital companies also provide good examples in prioritizing institutional attractiveness. Microsoft has a very well-developed portal dedicated to recruitment. Vacancies are publicized and the portal also shares testimonies of staff members, as well as the values of the company in terms of inclusion, diversity and sustainability (Microsoft 2022). Job Requisition: In Denmark, the workflow of the recruitment process is totally digitalized, and efforts are underway to integrate/federate recruitment, HR management and training platforms, thereby improving the seamless experience of the user. Vacancy publicity: In Portugal, the Agency for Administrative Modernization (AMA), the public sector organization responsible for the national digital government policy, uses its active presence on social networks to advertise its vacancies. Its workers also play an important role in disseminating this information. In Belgium, a digital fair has become part of the recruitment system of the Federal Public Service of Finance, and social media campaigns publicize vacant positions. Facebook live events are also used so that different departments can present their functions,helping to better inform potential candidates. Regarding the company, Meta, the career portal highlights job recommendations based on the profile of the users, allowing for a more personalized and efficient navigation experience. Instead of having to research a significant pool of job advertisements, from the start, the user receives an important group of recommendations, significantly contributing to better connect job supply and demand (Facebook 2022). Candidate and application management module: In the United States (US), the chatbot, Sergeant Star from the US Military, is one of the pioneer examples of the virtual recruiter. It can respond in a very sophisticated way to questions coming from citizens interested in joining the US army (US Army 2013). The United Kingdom’s Government Digital Service frequently uses information sessions for specific topics, such as product and delivery management and interaction design, It also helps potential candidates understand how to effectively apply for vacancies. Regarding Google, the careers portal is designed in a very simple way, allowing for an easy and intuitive application process to the vacancies available, taking full advantage of a “look and feel� that is today familiar to all of its users. Examinations: • Written examinations: In Denmark, the Agency for Public Finance and Management secures the examination of public sector recruitments in the various sectors of governments. This is done remotely by using applications properly linked with the existing recruitment platform. 17 • Critical competencies: In Belgium, the Federal Public Service of Finance used remote examinations for digital assessments consisting of a mock presentation and/or a role-play exercise (OECD 2021). Scoutible is a game-based hiring platform, using immersive mobile games to pinpoint perfect-fit candidates for jobs (Scoutible 2022). The combination of serious use with a fun environment allows the gaming technology to discover important cognitive and personality traits of the applicant, such as creativity, curiosity and grit. Evaluation: In the United Kingdom, short questionnaires in the application form are used to develop a first screening of candidates, allowing for a quick first selection of candidates. Emerging technologies can also be mobilized for CV and application first screenings, thus allowing evaluators to focus on the final selection stages. In Korea, artificial intelligence is used to navigate the pool of potential candidates based on the requirements, such as job specialty, career field or grade, received from the public sector organization responsible for the recruitment. Feedback received from the recruiting organization on how it used the received recommendations are then fed back into the artificial intelligence mechanism, which will take these into consideration for the next recommendations (Ministry of Personal Management 2022). Onboarding and induction: In Belgium, the Federal Public Service of Finance embraced virtual welcome days and digital training to integrate its new employees (OECD 2021). In Denmark, the Agency for Public Finance ensures that the integration of new public sector officials is done in the HRM platform and on the training platform, with efforts currently underway to improve the integration of both systems. Sources: Microsoft 2022, Facebook 2022, US Army 2013, OECD 2021, Scoutible 2022, Ministry of Personal Management 2022. 3. Digital Skills for a Transformed Public Sector 29. To support and accelerate the development of a digital culture, governments must invest in digital skills together with the necessary technology investments . One without the other will result in under-utilized technology and/or wasted skills. Spectrum of Digital Skills 30. Digital development over the past twenty years has resulted in changes to the types of jobs that require digital skills, as well as dramatically increasing the extent of digital technology use within these jobs. These changes to jobs can be seen as a continuum across several spectrums, moving from digital-enabled to digital-dependent and to digital-intensive (Figure 4: Spectrums of Digital Work below). 31. Digital-enabled work tasks are enhanced or improved by using digital tools; however, they could still be performed without these digital tools, for example, work in accounting, research, and graphic design. Digital-dependent work tasks use digital tools to the extent that the tasks cannot be 18 performed without these tools. Thus, technology is fundamental to the work. This includes jobs that involve call centers, social media, and online freelance work. Digital-intensive work involves the creation, production, and/or maintenance of digital or technology tools. These tasks require the intensive use of digital tools, for example, network engineering, mobile application development, or machine learning. The need for advanced or professional-level skills increases across these spectrums, with basic skills required for digital-enabled work tasks and more specialist professional and advanced skills required for digital-intensive work. Figure 4: Spectrums of Digital Work Source: World Bank (2022). 32. With the introduction of more technology into the workplace, nearly all occupations will require some level of foundational digital skills. However, it is also important to recognize that as the level proficiency of digital skills needed increases, the percentage of the workforce that requires these skills will decrease (Figure 5). This means that the percentage of staff that will require highly specialized digital skills will be significantly smaller than the proportion of staff that will require an intermediate level of digital skills to effectively perform their roles. This distribution of required digital skills should influence the number and type of digital skills that need to be recruited, as well as the availability and focus of training courses. Thus, a greater number of foundational digital skills training options will be needed as compared to advanced or highly specialized digital skill training options. 19 Figure 5: Digital Skills for all Occupations Source: World Bank (2022). Understanding Digital Skill Supply and Demand Issues 33. The pace of change in technology means that public sector organizations will need to adapt to performing work in different ways; further, new skills, knowledge and experience will be needed from public servants. Workforce planning will be necessary to understand the current workforce environment and identify where there are gaps with the existing skills and capacity (see more details in Deliverable 1). 34. Workforce planning is a process (Figure 6) that begins with an understanding of the strategic direction of the organization, including identifying the broader digital goals and aims of the organization. Without a clear strategic vision, there is likely to be a mismatch in the kinds of skills needed to achieve this vision. Figure 6: Workforce Planning for Digital Skills Source: World Bank (2022). 20 35. The next step in the workforce planning process is to understand the current state of the supply of digital skills. This includes the type of digital skills available within the organization, as well as the type of digital skills that may be available from other sources, such as information technology (IT) graduates from universities or technology colleges, or other job seekers with the requisite digital skills. Supply of Digital Skills: The Italian Context 36. There are known misalignments between the supply and demand of competences in the Italian labor market. About 3 million workers have more skills than those required for their jobs (over- skilling), and 1.5 million workers have a skills deficit (under-skilling) (OECD 2017). In addition, approximately 4 of 10 adults have a qualification that is not aligned with the needs of the labor market (overqualification and underqualification). The increasing demand for digital skills — without the necessary increase in training and qualifications — is hampering a sufficient supply of digital skills in the Italian labor market. As the Government considers where the supply of digital skills may come from, Italy is challenged with a poor pipeline of graduates with digital skills. Science, Technology, Engineering, Math (STEM) is the branch of university education where information and communication technologies (ICT) professionals come from. In this regard, Error! Reference source not found. shows that the number of STEM graduates is low as compared to France, Spain, and the United Kingdom. This lack of ICT graduates can also be seen in the percentages of Italian workers in ICT-related jobs that have a university education, which is significantly lower than graduates from the European Union (EU) ( Error! Reference source not found.). Figure 7: STEM Graduates (per 1,000, ages 20- Figure 8: Workers in ICT-related Jobs with a 29) University Education (percentage) Source: Source: https://www.morningfuture.com/en/2021/09/01/digital- https://www.morningfuture.com/en/2021/09/01/digital- mismatch-ict-market/ mismatch-ict-market/ 37. EU countries have continued to see a growing demand for ICT specialists over the past decade, with France seeing an increase of 77 percent, Germany 35 percent, and Spain 35 percent (Figure 9). However, at 18 percent, this demand has been much weaker in Italy. Developing a stronger pipeline of digital talent can be a vicious cycle, with weaker demand for ICT specialists presenting a challenge to encouraging greater numbers of graduates to undertake digital studies. Italy has a significantly lower percentage of workers in ICT-related jobs with university educations. However, without an 21 increase in the supply of graduates with digital skills, the demand for ICT specialists will continue to be weaker. Figure 9: Increase in ICT Specialists between 2010 and 2020 Source: https://www.morningfuture.com/en/2021/09/01/digital-mismatch-ict-market/ Measuring the Digital Skills of Existing Public Servants 38. To understand where efforts for recruitment and training would be best placed, it is necessary to determine the extent of digital skills within the existing workforce as a crucial data point. Results from the World Bank’s Italy Public Recruitment Survey show that public sector organizations do not have a clear system for identifying staff digital skills (Figure 10). Figure 10: Clear System for Identifying Staff Digital Skills Source: Italy Public Recruitment Survey, World Bank (2021). 39. For existing public sector staff, there are three surveys and exams by which to measure individual skills: 22 • Self-reported skills surveys. Using an online skills survey provides a low-cost and timely way of gathering data and information about the skills of existing staff. The challenge with self-reported data is the inherent bias and lack of third-party validation. • Knowledge-based exams or surveys. This may be the approach taken through formal education qualifications, where testing is focused on the demonstration of knowledge. The challenge with knowledge-based exams is that they may not require any demonstration of skills or practical application of knowledge. • Performance exams. This approach allows participants to demonstrate their ability to complete digital skills tasks. These tests can have a high level of validity, but they can be costly to administer. 40. One simple strategy is to transition the civil service recruitment from a paper-based process to an e-recruitment process, thus enabling the assessment of basic digital skills of new applicants for public service roles. Applicants without a basic level of digital skills will not be able to access the application process. In addition, integrating ICT competency-oriented questions into the application process, requiring the completion of specific online tests/exercises, as well as specific testing at an assessment center, will help to provide a better picture of the extent of digital skills available within an organization. It is also important to ensure that digital skills are included and updated in all job/position descriptions. This will help to ensure that recruitment and performance evaluations focus on these competencies. Applicants can then be screened for these competencies. In addition, current staff can receive additional training, if needed. 41. After developing a good understanding of the supply of digital skills, the next step is to clearly understand the demand for digital skills based on the strategic needs of the organization. Often the focus of discussions about digital skills is on specialist IT skills, such as cybersecurity, artificial intelligence, or full-stack developers. However, as Figure 5 shows, the largest proportion of the workforce needs to have foundational digital skills. When identifying the digital skills that are needed to meet the agreed strategic direction and objectives, it is critical to ensure that a broad range of skills and qualifications are considered, including non-technical skills. It is also important to ensure that consultations occur with senior technical (IT) staff, as well as with managers/supervisors from key IT technical areas. This will help to determine what specialized skills and qualifications will be needed over the following one to five years. Demand for Digital Skills 42. The types of digital skills that are in demand are highly dependent on the strategic priorities of the organization. However, at a global level, there are some technical, non-technical and soft skills that are commonly in demand (see Table 1). Technical digital skills, such as cloud computing, artificial intelligence (AI), machine learning, blockchain and enterprise architecture continue to be in high demand. However, there is also strong demand for non-technical skills, such as project management, leadership and management skills, as well as data policy and governance. In addition, soft skills such as creativity, persuasion, collaboration, adaptability, and emotional intelligence are important for effective staff. The most widely held IT certifications are aligned with the technical digital skills that are in demand (see Table 2). 23 Table 1: In-demand Digital Skills Source: World Bank (2022). Table 2: Most Widely Held IT Certifications Certification Skill area Information Technology Infrastructure Library Data policy/Leadership and (ITIL) Foundation management Certified Information Systems Auditor (CISA) Governance Google Cloud Professional, Cloud Architect Cloud Certified Information Security Manager (CISM) Cybersecurity Cisco Certified Network Associate (CCNA) Cybersecurity, networking and wireless Microsoft Certified: Azure Fundamentals Cloud Amazon Web Services (AWS) Certified Solutions Cloud Architect Associate Google Cloud Associate Cloud Engineer Cloud CompTIA Security+ Cybersecurity Windows Server – Microsoft Certified Systems Networking and wireless, and Engineer (MCSE): Windows Server enterprise/technical architecture. Source: Authors from Global Knowledge IT Skills and Salary Report (2021). Approaches to Closing the Digital Skill Gaps 43. Once the gap between the supply and demand of digital skills has been identified, the emphasis shifts to developing options to close the digital skill gaps. There are three broad approaches to closing skill gaps (Figure 11): • Build the skills that are needed. This includes upskilling (improving existing skills) and reskilling (developing new skills) • Buy the necessary skills. This includes recruiting new staff with the desired skills. • Borrow the skills. This includes using temporary or contract staff, as well as the redeployment of existing staff, secondments, and fellowships. 24 Figure 11: Approaches to Closing Digital Skill Gaps Source: World Bank (2022). 44. Each approach has its own advantages and disadvantages; however, there is often a strong emphasis on building skills due to the limited availability of digital skills in the labor market. A global survey of IT leaders in 2021 showed that 56 percent were intending to train existing staff, 17 percent intended to hire outside contractors, 15 percent to hire additional staff with the skills needed, and 11 percent had no plans to address the skills gaps6. 45. Results from the World Bank’s Italy Public Recruitment Survey concerning the barriers to attracting digital skills to the public sector show that there are a variety of contributory factors7, with salary and poor career opportunities being the most significant (Figure 12). In order to respond to this range of factors, multiple strategies will be needed, focusing on the build, buy and borrow approaches. 6 Global Knowledge IT Skills and Salary Report; Global Knowledge Training (2021). https://go.globalknowledge.com/2021salaryreport. 7 These are the perceptions of Italian public sector HR and senior managers. 25 Figure 12: Barriers to Attracting Candidates with Strong Digital Skills Source: Italy Public Recruitment Survey, World Bank (2021). Buying Digital Skills 46. The first approach to reducing a digital skills gap is to recruit and hire new skills from outside the government. The most significant advantage of buying the necessary digital skills is that the skills can be quickly acquired. Once the recruitment process has been completed and the new staff are in the workplace, the digital skills can be used. Recruiting for digital skills can also bring long-term benefits to the organization by expanding and deepening the range of skills and qualifications that are available within the organization. They can also enable the organization to perform a greater range of digital functions. 47. Existing human resource management systems and practices may be barriers to successfully implementing this approach, particularly if the systems and practices are outdated, rigid or insufficient to complete the recruitment processes in a timely manner. An effective employee value proposition (EVP) is one of the key elements on a successful recruitment strategy. An EVP should clearly explain to potential applicants why they should work for the organization. See Box 2 for international examples of centralized EVP communication materials. 48. Recruiting additional staff will be more costly in the long term, given increasing salaries and pension obligations. Organizations should not assume that recruiting staff with existing digital skills will mean that there will not be a need for regular training and professional development. To maintain and improve specialist skills, staff will need to attend targeted training, which may only be available outside the public sector. 49. In the United States, a Digital Corp program targets early career technologists for a two-year program, with an opportunity to transition to a permanent civil service position at the conclusion of the program. The program is focused on targeted skill areas – software engineering, data science and analytics, product management, design and cybersecurity. Successful program applicants receive 26 standard civil service salaries with the addition of a recruitment incentive. In addition, staff are eligible for promotions in the second year of the program, as well as upon the completion of the program. The Digital Corp program has a dedicated learning and development curriculum, as well as individual performance plans. 50. The program does not use the standard civil service application process; rather, applicants initially submit a three-page resume and complete a short take-home assignment. The next step in the application process is a virtual interview with a subject matter expert. Qualified applicants will then participate in an interview with host agencies based on areas of interest and the alignment of skill sets. 27 Box 2: International Examples of Centralized Employee Value Proposition Communications Materials The following are examples of centralized attraction communications materials from the United Kingdom Civil Service, and the Governments of Belgium, Canada, and Singapore. UK Canada Belgium Singapore The United Kingdom Government Digital Service (GDS) provides a good example of strong and consistent branding with easy to understand explanations of the benefits of working with GDS. 28 Source: UK Civil Service, https://www.civil-service-careers.gov.uk/ ; Government of Canada, https://www.canada.ca/en/services/jobs/opportunities/government.html; Belgium Government (Selor), https://www.selor.be/nl/; Singapore Government, Careers@Gov, https://www.careers.gov.sg/home; UK Government Digital Service, https://gdscareers.gov.uk/ 29 Borrowing Digital Skills 51. Digital skill gaps can also be closed by adopting temporary measures to borrow the digital skills. This can include directly engaging temporary staff or contracting a firm to provide the digital skills that are needed for a specific time. It can also include redeploying existing staff within the organization or seconding staff from other public sector organizations to higher priority roles or projects for a defined period of time. Organizations may also develop specific, short-term employment arrangements to help attract particular digital skills through dedicated and expedited hiring arrangements. 52. The key advantage of the borrow approach is the speed at which the skills, which may not be available elsewhere, can be acquired. Engaging temporary or contract staff can be done very quickly. Borrowing skills may be cost-effective when compared to the costs involved in delayed projects or the unavailability of systems or services. There is considerable flexibility in using temporary or contract staff, as organizations are able to adjust their staffing needs according to the workloads. However, if temporary arrangements are used over the longer-term, this approach may be more costly. 53. The main disadvantage of the borrow approach is that it does not contribute to building skills beyond the immediate needs. Temporary or contract workers may contribute to building some digital skills for existing staff. However, unless this is part of a structured and deliberate training and development strategy, this is likely to be ad-hoc in nature. 54. In France, the Public Interest Entrepreneurs Program (Entrepreneurs d’Intérêt Général, EIG) is a 10- month program whereby a range of digital talent are hired. Specialists include data scientists, data engineers, geometricians, developers, designers and digital lawyers. They work within an agency on a specific problem, mostly linked to data and public service delivery. The program was launched in 2017, and it is currently preparing for its third cohort. It is a structured program that includes an initial week-long onboarding workshop; collective work sessions; and two seminars throughout the program to discuss progress, present ideas and prototypes, and final presentations. The program includes a salary of between US$3,800 per month (for up to 5 years of experience) and US$4,350 per month (for more than five years of experience). The program is open to anyone who has a master’s level qualification. In particular, the EIG looks for candidates who have some experience (five years). Building Digital Skills 55. One of the most popular ways to reduce the digital skills gaps is to provide training to existing staff. This could be through upskilling, that is, improving or strengthening the existing skills of employees, or through re-skilling, that is, providing employees with new or different skills to enable them to move into a different role or perform different tasks. This approach has long-term benefits for staff and the organization. Developing or improving skills can help staff perform their current roles more effectively or progress to a higher or more complex level/role in the future. Providing staff with training and development can also have a positive benefit on employee engagement, lessening the organization’s reliance on external sourcing for skills. When compared to the buy or borrow strategies, investing in training and development may also be a cost-effective approach. 30 56. The main disadvantage to building skills is the time involved in developing skills, particularly for complex or highly technical skills. Existing training options may not be suitable for all of the digital skills that are needed. Therefore, organizations will need to assess which training and development options they are best placed to deliver, and which skills may need to be delivered by external training sources. Embracing a greater emphasis on building new skills or improving existing skills will also require a dedicated training plan and budget to ensure that staff can plan for and attend training in a timely way. 57. The impact of the COVID-19 pandemic has accelerated the need for public sector staff to improve their digital skills, especially with significant numbers of staff being required to work remotely over the past two years. A survey conducted in April 2021 showed that 50 percent of people working in the Italian public administration indicated that their digital skills had improved over the previous year. This compares with 41 percent of Italian workers overall8. 58. The United Kingdom’s Government Digital Service has recognized the benefits of building digital skills within the civil service. As such, it established a Government Digital Service Academy. The Academy offers training and courses on digital-related topics such as digital leadership, artificial intelligence in government, user-centered design in government, and digital and agile awareness and foundation courses. 59. The learning and development opportunities at the Academy are aligned with the Digital, Data and Technology (DDaT) Capability Framework, which provides a common set of roles, skills and career paths. Staff can use the capability framework to learn about the different DDaT roles in government, and identify the skills that they would need to develop for career progression. Staff can access a range of different programs from short online modules, single day and multi-day courses, including a digital and agile foundation course — and even a 10-week Emerging Technology Development Program. This Program focuses on technical-level skills, including artificial intelligence. 60. There are also a range of specific offerings targeted to senior leaders, including a digital leadership course for senior leaders without a technology background. This is for senior leaders who need an overview of digital transformation in government, as well as how they can support and govern. It also includes a leader’s agile course to improve the leadership of self-organizing and cross-functional teams working to deliver digital services or programs. 61. As Figure 12 showed, a lack of appropriate career opportunities is seen as a barrier to attracting candidates with strong digital skills. Thus, it will be important for the Italian public sector to more deliberately promote opportunities for digital careers, both as part of attraction activities for new staff, as well as to encourage existing public sector staff to consider transitioning to a digital career. In this regard the Australian Government has created a digital profession. It seeks to raise awareness of this new career pathway, as well as identify opportunities for learning and development for staff at the entry, mid-career and leadership levels. (See Box 3). 8 https://www.statista.com/statistics/1251678/improvements-in-digital-skills-and-job-training-attitude-in-italy-by- industry/. 31 Box 3: International Example of Career Pathways: Australian Government’s Digital Profession Source: Australian Government Digital Profession, https://www.digitalprofession.gov.au/ 32 Compensation 62. Compensation is often quoted as the most significant barrier to attracting digital skills to public sector organizations; Figure 12 showed this is also the case in the Italian public sector. While there certainly is a gap between the average annual salaries for IT and public sector workers, it would a mistake to assume that increasing salaries alone will solve the digital skills gap in the Italian public administration. Beyond pay disparity, the public sector also competes with the private sector in terms of innovation, infrastructure, opportunities for career advancement and social mobility. In Argentina, for example, the Secretariat of Modernization attributed high employee turnover within its digital and innovation agencies to more alluring opportunities and salaries in the private sector, as well as a more agile and innovation-driven mindset and culture. 63. The average IT salaries in Italy are at the lower end of the scale as compared to those in other EU countries (Figure 13). This may contribute to challenges in attracting and recruiting international IT professionals. The challenges related to salary levels are even clearer when comparing the average public sector salary of US$41,577 to the average salary for IT workers of US$54,511 9 (Figure 14). Figure 13: Average Annual IT Salaries (European Figure 14: Average Italian IT Salaries vs. countries, 2020) Average Italian Public Sector Salaries $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 IT salary Public sector salary Source: Skillsoft 2021 IT Skills and Salary Report, Italian Ministry of Finance, average wages, https://www.contoannuale.mef.gov.it/spese-e-retribuzioni/retribuzione-media 64. The Italian public sector is constrained in its ability to offer greater levels of compensation without legislative or regulatory changes; however, there are a variety of different approaches. If adopting a ‘buy’ approach and focusing on bringing in permanent staff, the compensation frameworks seem to be the most rigid. Some countries, such as Australia, continue to use existing public sector pay scales for digital professionals.Although there are still significant challenges to recruitment in Australia, the public sector has developed a more comprehensive career package for digital professionals (competency framework, learning and development, clear EVP, and career pathways). The United Kingdom has adopted a different pay approach, whereby staff are remunerated based on their capabilities/skills, and aligned to three levels, including: developing, proficient and accomplished staff. The approach sets a maximum pay for each level of capability, with agencies able to make their own 9 For the purposes of this comparison, the average public sector salary is the average annual salary for public employees in non- managerial positions in other organizations (such as the Italian Civil Aviation Authority, ENAC, and the National Council for Economics and Labour, CNEL). 33 decisions for each staff member. The UK’s pay approach is based on market benchmarking and demand across the government. Given the legislative and regulatory limitations on public sector compensation in Italy, adopting an approach that focuses on non-compensation aspects — including career pathways, learning and development options — is likely to be more effective in the shorter- term. 65. Adopting a ‘borrow’ approach and using fixed-term, temporary or secondees from the private sector may offer greater opportunities to provide more flexible compensation for digital professionals. Often temporary and fixed-term staff are compensated at higher rates than permanent staff, reflecting the lack of security that is associated with these types of employment. However, if temporary staff are used over a long period of time, higher levels of compensation will make temporary staff a less cost-effective option. Offering higher, market-based rates of compensation also risks bringing the public sector into a bidding war with the private sector. As noted, simply offering higher levels of compensation will not solve the digital skills challenges. Providing a broader range of benefits and building an innovative and flexible organizational culture can be significant ways of attracting potential staff, whether they are permanent, temporary or fixed-term. It may also be possible to offer attraction and retention bonuses in order to attract digital professionals. Offering initial bonuses upon signing an employment contract, together with further bonuses payable throughout the term of employment, can also be useful strategies to both attract and retain highly specialized staff. 66. The United States Department of Homeland Security (DHS) has also adopted a more market-based approach to employment and compensation for cybersecurity skills. The DHS faced significant and long-standing challenges in recruiting and retaining individuals with in-demand cybersecurity skills. As the scope of cybersecurity threats had grown in recent years, the agency had experienced a spike in attrition, as well as longstanding cybersecurity vacancies. In 2014, the US Congress gave the agency the authority to design its own talent management system, one that is exempt from many of the usual hiring, classification and compensation rules. Under the new Cyber Talent Management System (CTMS), the DHS does not have to meet the usual job posting requirements. Instead, it can strategically target new talent using, for example, social media. It can ask candidates to participate in simulations, tests and other interviews in order to demonstrate their expertise. The CTMS compensation also works differently than compensation in accordance with the usual government rules. Salaries are benchmarked to the market. As such, they are subject to pay level caps, as well as an aggregate CTMS compensation cap. There are no automatic salary increases and the length of service is not a factor in CTMS compensation. Compensation increases and bonuses are based on work, mission, impact and/or acquiring deeper levels of expertise to progress to higher career levels. 34 4. Key Recommendations for Formulating a Sound Digital Talent Policy Recommendations 67. The recommendations follow the structure used within this Note. Recommendations are offered to facilitate the movement/transition toward a digital culture within the Italian public sector. These are the building blocks for the more concrete recommendations presented under Doing the IT Basics Right and Digital Skills for a Transformed Public Sector. 1. Towards a Digital Culture: 1.1. Ensure that the digital culture is a priority across the administration, benefiting from strong political support. It should also be promoted by different sectors of the administration, expanded to the large majority of public functions, and embraced by the various seniority levels of the civil. The example of the UK is particularly relevant, where the combination of continuous high-level support beyond political lifecycles and a coordination implementation institution, such as the GDS, were able to reinforce the digital culture across the administration. 1.2. Reinforce the shift from bureaucratically led and complex-by-default recruitment processes toward a more interconnected, transparent and reinvented digital recruitment paradigm. Such a paradigm will be more candidate-centric, thereby avoiding the policy trap of simply digitizing what was previously analogue. 1.3. Prioritize the permanent hacking of the recruitment life cycle, ensuring that digital technologies and data can be used to rethink and uplift how public sectors manage the different stages of the recruitment process (for example, institutional attractiveness, job requisition and design, vacancy publicity, application, examination, evaluation and integration). The examples of Belgium’s Federal Public Service of Finance and Denmark’s Agency for Public Finance and Management are particularly relevant, considering their efforts to fully rethink the recruitment cycle based on the potential benefits of digitalization. 2. Getting the IT Basics Right: 2.1. Simplify and streamline recruitment processes: Simplify and streamline the recruitment process through the adoption of laws, regulations, policies. Also, review business processes, as recommended in ‘Analysis and Options for the New Recruitment System in the Public Administration in Italy (Deliverable 2.1) 2.2. Enhance and integrate HR systems to achieve the vision of an integrated digital recruitment system. An integrated talent management system should be implemented to digitize the end-to- end, user-centric recruitment process. Some of the existing talent management modules will need to be enhanced and integrated to achieve this vision. The central administrations, the RGS, and the DPF should use the shared digital recruitment system to consult and approve workforce and recruitment plans online. The system should also support a centralized recruitment system process for public officials and public managers (Dirigenti II fascia). 35 2.3. Strengthen the core HR System for organizational management with new modules and enhancements of the existing modules with a focus on user-centric actions as specified below: 2.3.1.The job architecture supports structured job catalogues, and includes job families, jobs and positions. The job descriptions should be provided in the jobs and positions /HR systems. The current professional classifications provided by the National and Integrative Collective Agreements can serve as a basis for developing a job catalogue and descriptions. 2.3.2. The competency catalogue supports the development of a competency framework, as detailed in the World Bank Deliverable 1: “Guidance Note for Identifying Job Profiles and Competencies in Italian Public Administration�, and further discussed in the recommendations for digital skills below. 2.3.3.Workforce planning digital tools should be enhanced to enable public administrations to prepare workforce and recruitment plans to support more transparent and collaborative recruitment planning. The approval of the workforce plans by the DFP and the RGS should be done online. 2.3.4.Job postings on the portal should be based on job descriptions aligned with the revised competency framework. Public administrations should be able to customize the job postings from the standard templates. 2.3.5.Online testing systems should be deployed to test the candidates at the pre-selection stage. The reasoning tests should be conducted and combined with the assessment of basic skills, especially digital and language skills. This aids in the quick screening of a high volume of applications. Assessing candidates' qualifications against the requirements at this stage will facilitate a more targeted screening in the next phases. In Denmark, the example of the Agency for Public Finance and Management is particularly relevant. It ensures that the examination of public sector recruitments in different governmental sectors is done remotely using applications properly linked with the existing recruitment platform. 2.3.6.The use of AI to screen the candidates’ CVs for basic criteria should be considered, as discussed in the World Bank Deliverable 2. 2.3.7.A talent pool list should be maintained in the digital recruitment system. This could include candidates who have registered, as well as those who were rejected in the previous rounds. The example of Korea can be used as a reference. Specifically, AI is used to navigate the pool of potential candidates based on the different requirements presented by recruiting organization. The feedback received from the recruiting organization regarding how it used the received recommendations are then fed back into the artificial intelligence mechanism, which will then take these into account in its next recommendations. 2.4. Integrate key HR systems and processes to achieve an integrated talent management environment. 2.4.1.Competency framework integration. A competencies catalogue should be integrated with job architecture. Public administrations should link competencies to the job architecture, namely the Job Family, Job, and Position. Competencies at higher levels of the architecture should automatically populate the competencies at the lower levels, that is, from job family to job, and from job to position. 36 2.4.2.Workforce planning. Public administrations should use workforce planning systems to develop the workforce plan (WFP), which should be integrated with the digital recruitment system. The vacancy information in the workforce plans should be extracted from the position management/HR administration systems. This will help to ensure that only the approved vacancies with confirmed budgets are posted. 2.4.3.Recruitment/workforce plans in the workforce planning system are integrated with the job requisition module of the digital recruitment system to automatically exchange information electronically. 2.4.4.Job requirements are integrated with the candidate portal. After the requirements are approved, the requirements are then posted on the candidate portal. 2.4.5.Social media. Job postings on the portal should be published on social media sites, such as LinkedIn and Twitter. 2.5. User-centricity and branding: The DPF should engage in a review of the candidate portal design through professional user experience experts, as well as by using design-thinking methodologies to enhance user-centricity of the portal. The UK’s example of how the GDS brands its work and makes it attractive in a competitive job market should be considered. 3. Digital Skills for a Transformed Public Sector 68. In order to improve the digital skills within the Italian public sector, it will be necessary to adopt multiple approaches, which could include buy, borrow and build strategies. 69. Buy approach. As part of implementing a centralized recruitment system, the Italian public sector could: 3.1. Develop and utilize consistent communications and branding for public sector employment. There should be consistent branding and communications of employment opportunities through the centralized recruitment website, as well as through social media channels. 3.2. Adopt a more proactive approach to attracting digital professionals for permanent civil service roles. There are several key activities that can contribute to achieving this outcome: 3.2.1 The DPF should develop a clear employee value proposition (EVP). This could be part of a broader attraction program to the Italian public sector, or it could be specifically focused on digital work within the public sector. This EVP should answer the question: “Why should I work for the Italian public sector?� This is an opportunity to promote the broader benefits of public sector employment, beyond compensation. 3.2.2 Conduct a survey of digital professionals from the private and public sectors to inform the EVP. An effective EVP should be informed by an assessment of the needs of digital professionals, specifically the answers to the following questions: What motivates digital professionals? What do they value in a work environment? What may be holding them back from public sector employment? Other issues such as job security, job autonomy, opportunities for professional growth, and motivation to provide services to citizens will also be critical to understand. 37 3.3. Strengthen recruitment processes to support the better identification and assessment of digital skills. 3.3.1.The DPF should ensure that the assessment of digital skills is included as part of recruitment process for every public sector role. The level and depth of the assessment will depend on the type of role. with digital specialist roles requiring an in-depth technical assessment. All other roles should include a basic knowledge or practical test. In addition, it should include a test of digital competencies, such as internet use, data analysis or basic system use. Requiring that applicants apply and respond online is a good start to assessing digital competence. 3.3.2.Incorporate online tests in the recruitment process to assess candidate eligibility against the specified competencies. For digital specialist roles, the pre-selection and written tests should focus on the technical knowledge and skills that are required, with a particular emphasis on the practical demonstration of relevant technical skills. For example, applicants for a programming role could be asked to complete an online coding and debugging test. 3.3.3.Include digital specialists on recruitment panels for digital professional roles . The composition of recruitment panels is critical for digital roles. Senior digital specialists should be involved in the entire recruitment process to ensure that job descriptions, skill assessments and other tests are relevant. They will also provide valid and useful information that can be used to evaluate an applicant’s technical skills. 3.3.4.Streamline recruitment processes to improve recruitment timelines and attract digital talent. As recommended in deliverable 2.1, it is critical that recruitment and testing processes be streamlined to ensure that good applicants with digital skills do not lose interest in the process and accept a role elsewhere before the public sector recruitment process is complete. 70. Borrow approach: 4. Develop a digital fellowship program for entry- and early-career level digital professionals. This program can help to raise the profile of digital work in the public sector as it seeks to attract specialized skills on a temporary basis. This program could be for a fixed term (9 or 10 months), with a new cohort of fellows onboarded annually. It should be a structured program focusing on the identified digital challenges/problems identified by the line ministries. The program should be developed and administered centrally, with the fellows being placed in specific line ministries to work on digital issues. The program should also target entry level and early career digital professionals. In this regard, it should include several structured learning weeks throughout the program. It should also require the presentation of achievements at the conclusion of the fellowship. 71. Build approach: Building the digital capacity of existing staff is a cost-effective way to strengthen skills within the public sector. There are a number of key activities involved in this approach: 5.1. Ensure that digital skills are included in competency frameworks. This should also include general digital skills that are required by all public sector employees, from entry-level administration officers to senior managers. Furthermore, the competency framework, including digital skills, should be linked to recruitment, evaluation and promotion decisions. 38 5.2. Develop a specific competency framework for digital professionals . This framework, which should also be linked to recruitment, evaluation and promotion decisions, should be more technical in nature. It should also help to identify specific career development options as well, clearly articulating the type and depth of technical skills that may be required for specific jobs/grades/levels. 5.3. Identifying the digital competence of existing staff. In order to effectively develop and implement digital learning and development activities, it is critical to understand what digital competencies currently exist among existing staff. Advice during consultations indicated that there is already work underway in some ministries to identify the types of digital competencies that already exist within the public sector. This work should be prioritized and expanded, particularly focusing on staff in digital specialist roles or in departments/ministries with high digital skill demands. This data will be fundamental to identifying the extent of the digital skills gaps, and the priority areas where needs are greatest. Policy makers will then need to explore the options available to reduce the skills gap. 5.4. Identifying priority areas for training and development. Staff are already enrolled in a range of digital training courses available within the public sector. Using data about the existing digital competencies of staff will enable training institutions to identify the priority areas for training and development and ensure that quality and accessible training options are available. The range of digital training and development opportunities should be communicated on a single website, even if different training institutions are offering the courses. See the example of the Australian Government. 5.5. Digital career opportunities for staff. One key aspect of the ‘build’ approach is to encourage existing staff who may be interested in pursuing a career change to a digital role. This fits neatly with the identification of existing digital competencies, as well as priority areas for training and development. It can also be a more cost-effective option to up-skill or re-skill an existing staff member rather than seeking to attract a new employee. The Italian public sector could consider creating an internal scheme whereby staff can be supported with training and development, as well as work experience, in order to pursue a digital role. This type of scheme would involve matching staff who are interested in changing careers with vacancies or identified areas where digital skills have proven difficult to recruit. This would be a medium- to long-term investment, as some technical roles will require significant training before staff could become fully competent. 39 References Agency for Administrative Modernization (AMA). 2022. 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