Internal Audit of Organizational Talent Readiness
April 2026—Internal Audit and Evaluation Office
Table of Contents
Statement of Assurance
This independent assurance report was prepared by the Internal Audit and Evaluation Office at the Office of the Auditor General of Canada (OAG) regarding organizational talent readiness. Our responsibility was to provide objective information, advice, and assurance to assist the OAG in assessing the adequacy of its management control framework for ensuring organizational talent readiness. Recognizing that talent readiness encompasses a number of elements, we covered elements that included definitions, roles and responsibilities, tools, processes and guidance, current and future competencies, and reporting.
In conducting the audit work, we complied with the independence and other ethical requirements of the relevant rules of professional conduct applicable to the practice of internal audit, which are founded on the principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. In accordance with our regular audit process, we obtained the following from management:
- confirmation of management’s responsibility for the subject under audit
- acknowledgement of the suitability of the criteria used in the audit
Management was given the opportunity to provide comments on the draft report, including confirming that all known information that could affect the findings or audit conclusion has been requested and provided. Management also provided input on the level of significance for the observations and recommendations.
The audit conclusions and recommendations are based on a comparison of the conditions as they existed at the time covered by the audit (April 1, 2023, to March 31, 2025), against pre‑established audit criteria that were agreed on by management. The Appendix provides details on the audit and the methodology used to derive sufficient evidence to conclude on the engagement objectives.
It is acknowledged that between the end of the audit period and the finalization of the report, management has undertaken some actions. The Internal Audit team will assess the adequacy and progress on the implementation of the proposed actions as part of the regular follow-up process conducted to evaluate management’s implementation of the agreed-on recommendations.
In my professional judgment as Chief Audit and Evaluation Executive, the conduct of this engagement was done in accordance with the Institute of Internal Auditors’ Global Internal Audit Standards.
I would like to thank my team, all employees at the management and non‑management levels, and all groups within the OAG for the cooperation received on this engagement.
Julie Bastarache
Chief Audit and Evaluation Executive
1. Audit Conclusion and Summary
The audit was undertaken with the objectives of assessing the efficiency and effectiveness of the talent management approach and talent readiness across the OAG and whether human resource governance structures served to align the talent management approach across the OAG.
On the basis of the period covered by the audit, which was from April 1, 2023 to March 31, 2025, the Internal Audit team found that the OAG’s talent management program is in the early stages of development. The audit recognizes that the creation in January 2025 of a dedicated team within Human Resources (HR) to focus on talent management demonstrates the OAG’s commitment to managing its talent. While initial efforts have been made and the OAG continues to take steps to further develop the maturity of its talent management practices, the state at the end of the audit period did not yet support an efficient and effective approach to talent management, including organizational talent readiness.
The Internal Audit team also identified the visibility of available talent and talent recognition as areas for improvement for management’s consideration.
By addressing these areas, the OAG will be better positioned to build a sustainable, future-ready workforce and fulfill its strategic mandate more effectively.
2. Audit Conclusions and Recommendations by Focus Area
The following includes the context, the conclusions, and the recommendations by focus area.
2.1 The OAG’s definition and program for talent management
An organizational talent management program can be essential for ensuring talent readiness by providing a structured and strategic approach to attracting, developing, retaining, and effectively deploying people to meet current and future business needs. It enables an organization to proactively identify critical skills and capability gaps, align workforce development with strategic priorities, and foster a high-performance culture through clear expectations, continuous learning, and recognition of talent. Without a cohesive program in place, an organization risks fragmented efforts, underutilized potential, and a workforce that is not adequately prepared to respond to evolving demands or deliver on its mandate.
Criterion: Efficient and effective processes are established, and tools are in place to support talent management.
Conclusion: The OAG has defined its talent management program. However, there is a lack of clarity across the OAG regarding what talent management entails, which can contribute to inconsistent understanding and engagement with related activities.
Recommendation 1: The Assistant Auditor General responsible for Human Resources should clarify what talent management means within the organizational context and improve communication and transparency around the program’s design, related activities, objectives, outcomes, and implementation.
2.2 Roles and responsibilities for talent management
Various interested parties are involved in a talent management program. A well-defined governance structure with clear roles, responsibilities, and accountabilities is essential for effective talent management in any organization.
Criterion. The Internal Audit team expects that there is an established governance structure in place that clearly defines roles, responsibilities, and accountabilities related to talent management that works effectively.
Conclusion: While roles and responsibilities for talent management have been documented, there were inconsistencies in their execution. Results from consultations with employees and management indicated that there remains a perception that they are not clearly established. This suggests that it could be one of the contributing factors that have an impact on the effective execution of roles and responsibilities.
Recommendation 2: The Assistant Auditor General responsible for Human Resources should clarify roles and responsibilities in a way that increases their consistent understanding, providing additional guidance and support and fostering a culture of accountability around their consistent execution to ensure effectiveness.
2.3 Processes, tools, and guidance for talent management
It is important for management and employees to have the tools, guidance, and support to effectively fulfill their roles and responsibilities regarding talent management. These foundational elements help provide the necessary tools, guidance, and support to ensure that talent management strategies align with what is expected and that those expectations are met.
Criterion: Efficient and effective processes are established, and tools are in place to support talent management.
Conclusion: The processes, tools, and guidance in place to support talent management were not as efficient and effective as management expected from both the designer and user perspectives.
Recommendation 3: The Assistant Auditor General responsible for Human Resources should continue to implement Human Resources’ plans to update processes, tools, and guidance to facilitate an efficient and effective talent management program.
2.4 Assessment of current and future competencies
Competencies are the knowledge, skills, abilities, behaviours, and personal attributes that employees use to successfully perform their work. Employees demonstrate their competencies through observable and measurable expected behaviours. These behaviours are documented in the OAG’s competency model to help support management and employees in assessing and developing these competencies.
From a talent readiness and management perspective, it is essential for organizations to identify the competencies that are needed to meet strategic and operational objectives, both today and in the future. Organizations can identify competencies that all employees need to have and competencies that are specific to management, other functions, and specific technical areas. The competencies identified by organizations can inform recruitment, promotions, performance management, and talent readiness and management.
Criterion: Current and future critical competencies and capabilities are identified and assessed as part of talent management.
Conclusion: The OAG’s current competency model, established in 2016, has not undergone a formal and comprehensive review to evaluate its continued relevance or alignment with evolving new competencies.
Recommendation 4: The Assistant Auditor General responsible for Human Resources should coordinate a comprehensive review and update of the OAG’s current competency model and approach to ensure that it reflects the essential competencies needed to support both operational and strategic priorities across the OAG.
2.5 Reporting on talent management activities
Reliable data and analysis are important elements of effective talent management and developing talent readiness. Effective data management, including identifying, gathering, analyzing, and reporting data, enables organizations to make informed decisions that support workforce readiness, succession planning, and talent management. Organizations can use reliable and useful data to identify potential talent, inform talent management programs and plans, and develop talent readiness.
Criterion: The Internal Audit team expects that reliable reporting on talent management activities is available to support effective monitoring and decision making.
Conclusion: The OAG does not have a systematic process in place to consistently gather, analyze, and regularly report on information regarding talent management.
Recommendation 5: The Assistant Auditor General responsible for Human Resources should establish a talent management reporting framework, work with senior management to develop relevant and measurable metrics aligned to strategic priorities, and use this framework to regularly report on progress and inform decision making through its established governance.
3. Management Response and Action Plan
Management accepted the findings and is addressing the audit recommendations. The Internal Audit and Evaluation Office will continue to work with management to monitor and report on the implementation of management action plans.
Appendix—Audit Methodology
About the planning of the audit
The engagement was included in the approved Risk-Based Audit and Evaluation Plan for the 2023–24 and 2024–25 fiscal years.
Key definition
Talent readiness: For the purposes of this audit, talent readiness refers to the strategies and initiatives designed to ensure that the OAG has the necessary skills, competencies, and workforce capacity to meet evolving challenges.
Audit objective and scope
The objectives of the engagement were to:
- assess the efficiencyFootnote 1 and effectivenessFootnote 2 of the talent management approach and talent readiness across the organization
- assess whether human resource governance structures serve to align the talent management approach across the organization.
The audit covered the period from April 1, 2023, to March 31, 2025.
Approach
The team used an agile approach to deliver this engagement. This ensured timely collaboration with management in terms of the work and the sharing of the engagement results as work was being completed.
Criteria
The following criteria were used to conclude against our audit objective:
- There is an established governance structure in place that clearly defines roles, responsibilities, and accountabilities related to talent management that works effectively.
- Efficient and effective processes are established, and tools are in place to support talent management.
- Current and future critical competencies and capabilities are identified and assessed as part of talent management.
- Reliable reporting on talent management activities is available to support effective monitoring and decision making.
The following are the sources of the criteria:
From the OAG:
- People Management Strategy 2023–2026
- People Management Committee Terms of Reference
The following are other documents also reviewed and considered:
- Policy on People Management, Treasury Board, 2021
- Directive on Performance Management, Treasury Board, 2020
Coverage
The audit included coverage of all groups within the OAG.
Methodology
The methodology used for this audit included performing various procedures to address the engagement’s objective. These include, but are not limited to:
- The Internal Audit team had more than 45 meetings with various employees across the OAG.
- Interviews with different communities of practice. The Internal Audit team had interviews with communities of practice across the federal public service, including the Treasury Board of Canada Secretariat and Shared Services Canada.
- File review of talent management plans. Talent management plans within the HR journals for various employees across the OAG were sampled for review.
- Documentation review and analysis.
- Data analytics. The audit team obtained and reviewed data from various sources. These included:
- a review of the OAG’s demographic data published in the Government of Canada InfoBase
- a collaboration with the Reporting team to review and analyze reports
- a collaboration with HR for data on staffing
- Survey of non‑management and management employees. In consultation with the Data Analytics and Research Methods team, the Internal Audit team conducted a survey to obtain the perspective of employees both at the management and non‑management levels.
- Benchmarking of good practices. The Internal Audit team researched and analyzed good practices regarding talent management within the core public service, the private sector, and international organizations, such as the International Organization of Supreme Audit Institution