Addressing the growing talent crisis in government agencies
The battle for talent is intensifying, and government agencies are feeling the pressure. Once considered a stable and attractive career path, public sector roles are now competing with remote-friendly private employers offering greater flexibility and technology-driven workplaces.
According to a PwC survey, 54% of New Zealand CEOs believe labour and skills shortages could have a large impact on their company’s profitability over the next 10 years. At the same time, demographic shifts and increasing workforce mobility are making it harder for government agencies to retain skilled workers.
To remain competitive, public-sector employers must rethink their approach to recruitment, compliance, and workforce engagement.
Is there a talent crisis in government agencies?
‘Crisis’ might be a strong term, but there are signs that the New Zealand public sector will need to address.
Government agencies have long relied on job security and benefits to attract talent. But today’s workforce increasingly values flexibility, career development, and modern digital tools. With cost-of-living pressures driving skilled workers out of cities, recruitment is becoming harder.
Agencies are also competing with remote-first companies offering better work-life balance. Meanwhile, the government is pushing for more in-office attendance, with Public Service Minister Nicola Willis stating, “working from home is not an entitlement.”
Without modern HR strategies, agencies risk losing top talent to private sector roles that better align with evolving workforce expectations.
Compliance challenges and workforce morale
While regulation is essential for fair employment, increasing compliance burdens can cause stress, especially in frontline and infrastructure roles. These roles face greater oversight, increasing workload and impacting morale. Combine that with complex payroll conditions and workforce planning becomes a lot more challenging.
Without the right HR infrastructure in place, these challenges can – and do – lead to burnout and higher attrition rates.
To attract and retain talent in this evolving landscape, government agencies need to embrace technology-driven HR solutions.
How HR technology can modernise recruitment and retention
Integrated HR and payroll platforms simplify and automate key workforce processes, making public sector roles more attractive to prospective employees.
Integrated HR and Payroll software, such as TechnologyOne’s, commonly provide the following key benefits:
- Faster recruitment and onboarding: Agencies using fully integrated HR platforms have reduced time-to-hire by up to 33%, helping fill critical vacancies faster.
- Improved internal mobility: Transparent job posting and career development tools allow existing employees to explore new roles within the organisation, reducing the need for external hiring.
- Data-driven workforce planning: real-time insights enable HR teams to track workforce trends, assess skills gaps, and implement proactive recruitment strategies.
Empowering employees through self-service and automation
Providing employees with greater autonomy over their work experience is essential for improving engagement and retention. Self-service HR platforms allow employees to update their records, manage benefits, and track career progression without relying on HR teams for administrative support.
Automation further enhances the employee experience by reducing manual processes and ensuring real-time access to critical workforce data. This leads to higher accuracy in payroll processing, faster approvals for leave and training requests, and improved overall job satisfaction.
We’ve seen plenty of examples where local councils and government departments have improved employee retention through technology-drive, integrated HR solutions.
Some of the most effective strategies include:
- Automating performance management: Real-time feedback and structured check-ins have helped increase engagement and reduce turnover.
- Investing in training and development: Providing employees with access to digital learning tools and skills development programs has improved retention rates.
- Enhancing workforce flexibility: Hybrid work policies supported by digital HR solutions have helped government agencies compete with private-sector employers.
The average person tends to regard public sector work as things like ‘slow’, ‘outdated’ and ‘frustrating’ by default. Investing in modern HR solution and prioritising the employee experience will be key to changing these perceptions, resulting in higher-quality candidates that become long-term hires.
Building a future-ready workforce with TechnologyOne
TechnologyOne’s Human Resources & Payroll (HRP) helps government agencies manage the entire employee lifecycle. With over 37 years of experience, TechnologyOne is trusted by over 230 government departments across Australia and New Zealand.
Automating critical HR functions and receiving real-time workforce insights with TechnologyOne enables agencies to reduce admin, enhance job satisfaction, and build a more sustainable workforce.
