Small Countries, Big Performers: In Search of Shared Strategic Public Sector HRM Practices in Successful Small Countries

ABSTRACT

This article compares strategic public sector HRM practices between 10 small countries that have consistently shown extraordinary economic, social, and governance performance. The fact that these small countries, which are traditionally considered to be disadvantaged, have become benchmarks of good government suggests they have uniquely maximized and leveraged their key resource: people. In search of novel lessons, we assess through secondary data how their public sectors have organized and institutionalized four key HRM activities: 1) selection, 2) appraisal, 3) training, and 4) compensation, and whether they engage in strategic, centralized efforts to architect and “bundle” these activities. Our exploratory case study findings show that these high performing countries employ various integrated efforts to attract the best and brightest into their public sectors, and train and reward them well, although they differ in terms of their centralization dynamics. We conclude our article with seven propositions for future research and implications for emerging small countries.

KEYWORDS:

• Good governance
• performance
• quality of government
• small countries
• strategic HRM

Notes

¹ Half of these well-performing countries are also relatively “small” in size measured in square miles (see Table 1).

² One may argue that this is not that surprising given that around 70% of countries classify as small according to our definition. However, this argument may easily be reversed. If there are 58 big countries in the world, half of which have a population of over 45 million, and thus a much larger workforce, domestic labor market, economies of scale, and—in many cases—more natural resources, why do not more of them feature in the top rungs of global rankings?

³ http://www.pco-bcp.gc.ca/index.asp?lang=eng&page=clerk-greffier&sub=archives&doc=20060926-eng.htm

⁴ We are well aware that Hong Kong is not a “country” but a special administrative region (SAR) of the People’s Republic of China. However, given its separate inclusion in almost all key rankings we include it in our analysis.

⁵ In 2010, Newsweek published a special with a ranking of the “World’s best countries,” together with McKinsey & Co. and several academic institutions. Through a variety of data points they tried to develop an aggregate assessment of best countries to live in. Although we do not aim to produce (such) a new metric with our selection of small countries, our approach is comparable to theirs given our broad focus on social, economic, and policy success. All 10 countries we selected are also in Newsweek’s top 20. Twelve out of their top 20 countries qualify as small using our definition. See also: http://www.newsweek.com/interactive-infographic-worlds-best-countries-71323.

⁶ We were unable to obtain comparable data on two categories we considered to be relevant: lateral entry and pre-recruitment training requirements. However, it is clear many of the high performing countries have been experimenting for some time with lateral hiring for more senior positions, often aiming to increase the number of public managers with private sector backgrounds (with varying success; see Pollitt & Bouckaert, 2011; Van der Wal 2011). This trend coincides with the decrease of job security and tenure at more senior levels throughout the countries under study. None of the 10 countries requires extensive pre-job interview training; however, almost without exception their mid-level and senior positions require graduate degrees.