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Public Pension Funds Close Talent Gaps, CBIZ Survey Shows

Public pension funds have closed measurable portions of their talent gaps, according to a CBIZ survey. HR leaders point to compensation, recruiting, and internal development as the levers that drove the progress.

Updated

Nathan Brooks

· 3 min read

Public pension funds have narrowed their talent gaps, according to a CBIZ survey of public sector employers. The finding signals progress on a workforce challenge that has troubled the sector for years and drawn sustained attention from public sector HR leaders across state and local government.

The talent picture in public pensions has long worried HR leaders. Funds have struggled to recruit actuaries, investment professionals, and benefits administrators. An aging workforce raised succession concerns. The CBIZ data indicates those pressures have eased, though demographic pressure has not disappeared.

For HR leaders, the report raises a direct question: which people-process decisions drove the improvement? CBIZ has not yet released the survey's full methodology or detailed results, so the answer rests on the headline conclusion and the broader pattern of public sector workforce practice.

Why does the finding matter for HR?

The talent picture in public pensions has long served as a cautionary example. Funds that could not match private sector pay often lost experienced staff to competitors with deeper resources. Funds that could not build internal pipelines faced succession gaps as senior staff retired in concentrated waves over the past decade.

The CBIZ survey, by indicating progress, suggests that disciplined intervention can move the needle even in constrained budget environments, and that conclusion carries weight for HR leaders in state and local government, higher education, and nonprofit organizations, all of which face similar workforce dynamics.

What levers typically matter most?

Public sector HR leaders have historically focused on three areas: compensation, recruiting, and internal development. The literature on government workforce planning has generally found that employers who address all three in tandem tend to outperform those who treat them as separate problems.

Compensation typically leads the list. Public employers that benchmark salaries against the private sector and adjust pay scales on a regular cycle tend to retain staff more reliably than those that do not. Funds that froze compensation during budget pressure often saw departures accelerate.

Recruiting typically ranks second. Employers that widened their candidate pools, including through remote work arrangements and broader geographic outreach, filled positions faster than those that relied on traditional posting channels alone. The shift helped funds compete for talent they could not previously attract.

Internal development typically ranks third. Mentorship programs, formal succession plans, and tuition support have given public employers a stronger internal pipeline. Those practices reduced reliance on costly outside hiring for senior roles.

What should HR leaders watch next?

Sustainability is the next test. The public sector workforce still faces demographic pressure. New retirement waves remain visible on the horizon across government and nonprofit employers. The CBIZ survey captures a moment of progress rather than a permanent resolution.

HR leaders at pension funds will need to translate the survey's positive signal into durable workforce planning. That work means ongoing compensation review, continuous recruiting outreach, and formal succession plans that survive leadership changes and budget cycles.

CBIZ has not yet published the full survey methodology or detailed results. HR leaders who want to act on the findings should request the underlying report and compare it to their own workforce data before adjusting strategy or committing additional budget.

The next CBIZ survey will likely show whether the gains hold, and HR leaders across the public sector will be watching closely.

Source: Google News: Compensation survey

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Nathan Brooks

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News editor covering people, launches and day-to-day practice in Recruiting and talent acquisition, learning and development at HR Briefing.

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