With one third of the government workforce projected to retire in the next five years, the public sector will face reverberating consequences for years unless municipalities start preparing now for what will be one of the largest shakeups in the government labor pool.
What’s the problem?
Unlike the private sector, those who work in the public sector tend to stay in government for the majority of their careers. But roughly a third of those public sector employees are nearing retirement. The coming wave of retirements combined with shrinking unemployment rates and an increasingly competitive job market will create fierce competition for talent. As a result, municipalities face an uphill battle over how they will attract and retain employees. Organizations must approach mitigating this talent risk through smart and agile solutions.
Local government agencies that establish themselves as employers of choice will stand out among the competition when recruiting, on-boarding, developing and retaining staff. One way to stand out is to upgrade outdated technology systems with modern, user-friendly solutions that employees will want to use on a daily basis. More specifically, governments should focus on upgrading their human resources technology solutions to a unified software suite that manages all HR functions from hire to rehire. By prioritizing a user-friendly, end-to-end human capital management (HCM) solution in their next technology upgrade, municipalities will be much better positioned to accomplish their goals in the coming years.
Why should municipalities focus on upgrading HCM?
In most industries, the largest expense typically is salary and wages. The public sector naturally has a need to be fiscally responsible due to its accountability to the public. Because technology has the potential to enhance an organization’s growth and development, along with the talent within, it is a great enabler for municipalities looking to be smarter with their taxpayer dollars. Having the right technology tools to assist a municipality in this decision making thus becomes critical.
With a modern HCM solution that unifies everything from onboarding, compliance and payroll processing to employee development through organizational development, risk management and off-boarding, human resources professionals can manage every interaction with their employees during the entire employee hire to retire lifecycle. The right solution for an HCM technology upgrade can provide an organization significant process improvements, including:
- Faster onboarding: Streamlines the process by which new-hire documents are collected and processed before an employee’s first day to get them up and running from the start.
- Automated compensation planning: Automatically assesses and applies performance-based changes through merit increases.
- Easier performance management: Simplifies the way HR manages performance assessments by configuring performance management workflows to unique organizational processes.
- Intelligent succession planning: Assesses the strengths and weakness within each department to identify critical talent gaps and determine how to fill them.
- Predictive modeling: Accesses meaningful insights about your employees, including predictive analytics that can alert you when an employee is likely to leave.
- Simplified off-boarding: Manages the process of an employee’s exit, from paperwork to exit interviews.
Using these insights allows a municipality’s HR team to make smarter decisions when planning for organizational changes or initiatives. Instead of working in a vacuum, municipalities gain a comprehensive view of the big picture across each department, synchronizing teams as they work to determine where help or resources are needed the most.