The NSW public sector is developing a number of initiatives to gain a clearer understanding of the capabilities of its workforce and its levels of equity and diversity. The focus over the past 12 months has been on leadership development, implementing the performance and capability frameworks, and developing strategies around diversity, including those for Aboriginal employees and employees with a disability. A few agencies report highly developed talent management strategies and more have commenced work in this area. Employee perceptions of agency approaches to training are moderately positive but views about options for career development are more mixed. A new focus is required on the wider definition of diversity and the benefits of inclusion for service quality and business outcomes. There are no common measures for reporting the extensive work on capability building by agencies but PSC will consider key performance indicators and discuss options with department secretaries in 2015.