Britain’s got talent … Leveraging talent across sectors for an evolving Britain

We are now approaching three months since the general election result—how time flies! In this period, the Government announced a flurry of transformative policies: the nationalisation of the railway and energy sectors, a continued commitment to net zero, and the devolution of more power to local authorities.

I have long championed the concept of porosity– the flow of talent between the private and public sectors. The new policies proposed by the current Labour Government present an opportunity to build more bridges for this talent exchange, driven by the inherent parallels between these sectors.

You may remember that last year, Odgers Interim created the OLASE, an alternative to the FTSE index, designed to highlight the similarities between local authorities and listed UK companies by delving into the stats. For example, Government departments such as the DWP registered over 85,000 employees and were in regular contact with 20 million UK customers—figures that would be impressive in the private sector.

The statistical comparisons serve as an interesting reminder of the scale and breadth of government departments. Still, I think there is more to be said about some shared characteristics between the public and private sectors, especially concerning function and the role of talent.

Planned state-owned enterprises, such as Great British Railway and Great British Energy, have clear counterparts in the private sector, like Avanti West Coast, Cross Country, British Gas, and EDF Energy. The skills required in these sectors are highly transferable, facilitating smooth transitions for professionals moving between public and private roles.

Plans to reach net zero are also a shared endeavour with many companies in the private sector. As of 2021, a third of the UK's biggest companies have committed to net zero – of course, with different target dates due to the varying natures of the businesses, including BT Group, Sainsbury’s, and Unilever.  As the UK strives to reach its target of net zero by 2030, the demand for expertise in the area will be crucial.

The parallels between the public and private sectors are not just limited to central Government – there is certainly a place for local authorities, too. Labour’s devolution plans mean that more power will be put in the hands of local government, who have such a wide-spanning reach over all aspects of society – from sporting initiatives, arts, heritage and culture to housing and waste collection, there is a nearly comprehensive mix of responsibilities. Local authorities are complex and sophisticated; commercial skills are necessary for council executive teams. This is driven home by some of the data from OLASE, which showed that five local authorities recorded an income of over £2bn in 2021-22, ranking higher than businesses such as Tate & Lyle, JD Wetherspoon and Virgin Money.

The role of local government is too often underappreciated. Still, a shift in perspective certainly shows that the role of corporate executives mirrors that of local council executives, at least when it comes to breadth and scale. The shared skill set needed to navigate both complex types of organisations unearths a natural pathway for top talent to transition between sectors.

This also shows that crossing the boundary between public and private sectors doesn’t necessitate a like-for-like change. Leaders across various market areas possess the skills to transition to previously unfamiliar fields.

This point was particularly evident at two recent internal events we hosted at Odgers: a financial services dinner and a private equity healthcare networking event. The attendance itself highlighted our own breadth and scale, and conversations with clients underscored the value of porosity. Many attendees had public sector experience and/or had the experience and skills that would be valuable in government roles.

The new government has certainly intended change, and the changes made will affect large portions of the market. Luckily, at Odgers Interim, we work across a wide array of sectors and functions – in fact, all of the ones mentioned in this article and more - collaboratively making placements that suit the dynamic needs of our clients. Britain certainly has talent! And it’s our job to leverage it to help organisations navigate an evolving Britain.

If you would like to learn more about the sectors we operate in, please do get in touch.