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1FromCrisistoOpportunity:HumanResourceChallengesforthePublicSectorintheTwenty-FirstCenturyViduSoniCentralMichiganUniversityAbstractAgreatdealofattentionhasbeenfocusedonthehumancapitalcrisisinthepublicsectorsincethemid-1990s.Expertsandpractitionersgivemanyreasonswhythecurrentcrisisemerged.Thisarticleexaminestheimportantfactorsthatledtothecrisis,whatisbeingdoneaboutthemthroughpresidentialagendas,legislators,oversightagencies,professionalsocieties,andpublicpolicythinktanks.Concernsaremanyintermsofalargenumberofupcomingretirements,earlyretirements,unplanneddownsizing,difficultyinattractingnewgenerationstopublicservice,andthechangingnatureofpublicservice.However,thehumanresourcecrisisalsopresentsanopportunitytofundamentallychangethosefeaturesofpublicsectorhumanresourcemanagementpracticesthathavebecomeoutdatedforcontemporaryorganizationsandpositiongovernmentagenciesforthetwenty-firstcenturybymeaningfullyreformingthecivilservice.Thistransformationwouldrequirepublicsectororganizationstotakeamorestrategicviewofhumanresourcemanagementandtogivegreaterpolicyattentiontohumancapitalissues.IntroductionIn1989,theNationalCommissiononthePublicService(commonlyreferredtoastheVolckerCommission)issuedareportonthestateofpublicservicecharacterizingitasa“quietcrisis,”whichreferredtotheslowweakeningofthepublicserviceinthe1970sand1980s.Thisperiodwasmarkedbylossofpublicconfidenceinitselectedandappointedofficials,heightenedbureaucratbashingbythemediaandpoliticalcandidates,andadistressedcivilservice.Fordifferentreasons,thequietcrisisofearlierdecadescontinuedthroughthe1990sandispresenttoday.Thecurrentcrisisisbuildingaslargenumbersofgovernmentworkersareexpectedtoretireinthecomingyearsandnotenoughyoungerpeopleareinthepipelineforgovernmentjobs.Addingtothecrisisis2understaffedgovernmentagencies,askillsimbalance,andalackofwell-trainedsupervisorsandseniorleaders.TheseconcernsarereinforcedbyapreliminaryreportofthesecondNationalCommissiononPublicService(Light,2002),whichpaintsamoredirepictureandforeshadowsamorepronouncedcrisis.Lightcontendsthat“theUnitedStatescannotwinthewaronterrorismorrebuildhomelandsecuritywithoutafullydedicatedfederalcivilservice”(p.2).MillickandSmith(2002,p.3)haveasimilarreactionwhentheystate“whilethefirstNationalCommissiononPublicServicereferredtoa‘quietcrisis’inthecivilservice,thesecondCommissionisfacingwhatcanonlybecalledanimminentcatastrophe.”Scholarsandpractitionersalikehavebeenprojectingseriousshortagesinqualifiedworkforceinfederalgovernment(Light,1999;Voinovich,2000;Walker,2000).Thesetrendsinpublicservicepartlyreflectthegenerationalshiftinattitudestowardgovernmentitself.Theyoungergenerationtendsnottochoosepublicservicecareersbecauseofthenegativereputationofgovernment’shiringprocess,lackofchallengingwork,anditssystemofrewards.TheseconcernsledtheGeneralAccountingOffice(GAO)toaddhumanresourcesmanagementtothegovernmentwide“high-risklist”offederalactivitiesin2001.Similarly,inspectorsgeneralatninemajoragencieshavelistedworkforceproblemsamongthetoptenmostseriousmanagementchallengesthattheiragenciesface(GeneralAccountingOffice[GAO],2001).Thefederalgovernment’shumanresourcecrisisthreatensitsabilitytoservethepublicwellandmeettheexpectationsoftheAmericanpeople.Federalagenciesmustrespondbypublicizingjobopportunitiesmoreaggressively,includingofferingyoungerworkersinterestingandchallengingworkandthepotentialforadvancement.Light(2002)arguesthatastrongcivilservicehasfivecharacteristics:itis(1)motivatedbythechancetoaccomplishsomethingworthwhileonbehalfofthecountry,(2)recruitedfromthetopofthelabormarket,(3)giventoolsandorganizationalcapacitytosucceed,(4)rewardedforajobwelldone,and(5)respectedbythepeopleandleadersitserves.However,Lightalsopointoutthat“byallfivemeasures,thefederalservicehaslostgroundsinceSeptember11”(p.2).Thisarticleexaminesthecontextandnatureoftheimpendingworkforcecrisisin3federalgovernmentanddiscussesvariousareasofchangethatmustbeaddressedtoavertthecrisisor,atleast,minimizeitsimpact.Theissuesrelatedtorecruitinganddevelopingpublicsectorhumanresourcesinthetwenty-firstcenturynotonlyrequireconsiderationofthetraditionalremediessuchascivilservicereform,politicalsupport,andmoremanagerialflexibility,butalso,considerationofthechangingnatureofpublicservice(Light,1999)andtheworldofworkacrossallsectors(Spiegel,1995).Manyexternalandinternalorganizationalforcessuchasworkforcedemographics,technology,andprivatization,aswellaserodingtrustingovernmentinstitutionshavedrasticallyalteredtheenvironmentofgovernmentservice.Accordingly,traditionalhumanresource(HR)managementapproachesnolongerwork.TheHRsupplyanddemandproblemmustbeaddressedatmultiplelevels.Educatingpeopleaboutgovernmentservice,raisingtheimageofgovernmentworkers,providingcompetentandreliableleadershipingovernmentagencies,conductingcareerdevelopmentandtrainingofexistingpersonnel,andactivelyrecruiting,particularlyintechnologicalandscientificfields,allwillhavetobedonesimultaneouslytoadequatelyrespondtothehumanresourcecrisisinthepublicsector.Next,thearticledocumentsanddiscussessomeof