Imagine a national tax authority that operates less like a bureaucratic institution and more like a cutting-edge technology firm—one where human capital is treated as the most valuable asset, managed through advanced systems designed to maximize potential. This vision, once considered futuristic, is becoming reality in the African nation of Lesotho.
The Lesotho Revenue Authority (LRA) has recognized that enhancing operational efficiency, increasing revenue collection, and improving taxpayer services all depend on cultivating a highly skilled, professional workforce. To achieve this, the agency has embarked on a comprehensive modernization of its human resources management system, shifting toward a competency-based framework that aligns employee capabilities with organizational needs.
International Partnership Drives Capacity Building
To support this transformation, LRA has partnered with the World Customs Organization (WCO) through its HRMC-WCO-UNCTAD Programme. The collaboration featured a five-day workshop on competency-based human resources management, part of WCO’s flagship EPCB-HRMP initiative. Held from April 4–8, 2022, the workshop brought together LRA’s modernization task force—previously trained through WCO’s virtual programs in 2020—for advanced in-person instruction.
A certified HRMD expert from Liberia facilitated the sessions, exemplifying South-South knowledge exchange. The training equipped participants to serve as strategic partners in institutional reform, enabling them to independently develop and implement competency-based HR tools.
Workshop Curriculum: Bridging Theory and Practice
The intensive program covered critical aspects of modern HR management, including:
- HR’s role in customs performance: Demonstrating how strategic workforce management enhances operational effectiveness.
- Strategic HR principles: Aligning human capital development with organizational objectives.
- HR department positioning: Transitioning from administrative functions to strategic business partnership.
- Competency-based management: Implementing frameworks for recruitment, training, evaluation, and retention.
- HR project management: Techniques for planning, executing, and monitoring workforce initiatives.
- HR leadership: Developing skills to motivate teams and drive organizational change.
Action-Oriented Outcomes
Under the leadership of HR Director Khopotso Liphoto, LRA participants developed a concrete action plan featuring:
- Clear objectives for competency-based tools (e.g., improving hiring efficiency, reducing turnover)
- Detailed competency models for all positions
- Assessment mechanisms including simulations and 360-degree reviews
- Personalized training programs addressing skill gaps
- Performance management systems tied to capability development
- Continuous improvement processes
Why Talent Management Matters for Tax Authorities
LRA’s initiative reflects broader recognition that human capital development is critical for:
- Revenue collection efficiency: Skilled personnel better identify and mitigate tax risks.
- Taxpayer service quality: Capable staff improve compliance through enhanced client support.
- Organizational innovation: Professional workforces drive process improvements.
- Institutional credibility: Competent, ethical teams build public trust.
A Global Shift in Tax Administration
Lesotho’s reforms mirror international trends as tax authorities worldwide compete for talent amid:
- Increasingly complex global tax environments
- Digital transformation pressures
- Demands for improved service delivery
Progressive agencies are responding through enhanced recruitment, robust training systems, performance-based incentives, and international cooperation—positioning human resources as the cornerstone of institutional modernization.
Lessons from Lesotho
The LRA case demonstrates that resource-constrained nations can achieve meaningful progress through strategic reforms and international partnerships. By prioritizing workforce development, even smaller tax administrations can build the capabilities needed to support economic growth and effective governance.