The think tank argues proposed cuts to the public sector workforce, if not planned and executed properly, could pose significant long-term problems for public bodies.
Research from the organisation shows the average cost of recruitment in the public sector per vacancy is £7,750, the average time before a vacancy is filled is 186 days and local authorities in London alone are spending more than £500 million every year on temporary staff.
Seven out of 10 public sector staff have not gained any additional qualifications over the past 10 years.
Link Tank's co-founder, Richard Tyrie, said: "Our approach to preparing and managing our skills base hasn't changed since the dawn of the industrial age. As the notion of a ‘job for life' becomes increasingly unsustainable, enabling people to invest in themselves through continuous learning and development will increase the UK's competitiveness in an increasingly globalised, knowledge-based economy."
"Given the proposed cuts to the public sector workforce, employers need to ensure they have a firm handle on their existing skills and, more importantly, future skills requirements. Failure to understand both these dimensions could result in a significant loss of expertise which could impact the quality of services provided to citizens."
And Tony Baldry, conservative MP and co-founder of Link Tanks, added: "The greatest national asset is the skills of our people, and we have to make sure we use those skills to the best possible advantage.
"We have got to use the power of technology to manage our skills more effectively; especially in helping people get back into work."
