Governments employ people in a variety of ways through different types of employment contract, or “contractual modality”. One of the most common distinctions is between people hired as statutory civil servants (usually governed by a distinct legal framework) and other employees hired under a different type of legal framework, such as the private sector labour law, with different employment conditions. Employment modalities can affect pay, job security, performance evaluation and access to training, among others. They also have a clear impact on the effectiveness of public employment systems in attracting and retaining skilled employees, and motivating them to contribute at the best of their potential to the production of good governance outcomes. If used well, different employment modalities can give public services the flexibility they need to develop and manage a workforce with the appropriate range of skills. However, without a clear understanding of the ideal mix of modalities and employment contracts for various occupational functions, public administrations risk fragmentation of their internal labour market.

Historically, the recruitment and development model of the public sector in many countries has been to recruit at entry-level and develop civil servants through specific training. However, cuts to training budgets implemented during recent periods of austerity have reduced access to traditional classroom training in many OECD countries (OECD, 2016). Nevertheless, strategic and targeted learning and development investments are essential for public services to keep up with fast-changing demands of citizens and technological advancements. Furthermore, access to learning opportunities can be an important attractor and motivator for high-performing civil servants. The 2019 OECD Recommendation on Public Service Leadership and Capability recommends that adherents create a learning culture and environment in the public service that extends well beyond traditional classroom training.

Senior civil servants and managers work at the interface of political and administrative authority, often drawing on vast institutional knowledge and networks built over the course of a broad and varied career. They are responsible not only for a wide variety of outputs and outcomes but also for overseeing the processes, budgets and people that achieve these. Increasingly, civil services of OECD countries use performance management systems to help focus leadership and management efforts and align incentives with desired behaviour and outcomes. When designed and used effectively, performance management systems can ensure accountability for results and develop important professional and leadership competencies. Previous OECD research has suggested, however, that all-encompassing, technocratic performance monitoring systems and contractual arrangements have had mixed results, as have performance-related pay reforms (OECD, 2015).