The review found almost half - 48 per cent of people surveyed - had witnessed bullying at work. Almost a third - 29 per cent - said they had been bullied in the past 12 months and 6 per cent had formally complained about bullying behaviour.

Premier Barry O'Farrell welcomed the report, released by the new Public Service Commissioner Graeme Head on Tuesday.

"This is the first time any government has had a thorough look at the NSW public sector - warts and all," Mr O'Farrell said.

Mr O'Farrell said that the report found a highly educated workforce, but a culture of bullying that needed to be addressed.

"It also highlights areas that need to be improved including workplace bullying, the focus on accountability, financial management expertise and workforce planning," he said.

Mr Head said the inaugural State of the NSW Public Sector Report was the most comprehensive review of the state's public sector and the first independent review of the public sector's performance.

More than 60,000, or 16 per cent of NSW government employees responded to the survey, which asked people about their views on core public sector values of trust, service, accountability and integrity.

"It is likely that a proportion of what people perceive as bullying arises from the absence of good performance management practices and organisational culture," Mr Head said.

WorkCover NSW describes workplace bullying as "repeated, unreasonable behaviour directed towards a worker or a group of workers that creates a risk to health and safety".