How local councils and governments are adapting to the hybrid work era
According to the New Zealand Public Service Commission, hybrid work arrangements have become the norm for a significant portion of the public sector. About a third (33%) of NZ public servants generally work from home one or two days per week.
With hybrid work becoming a permanent fixture, many government agencies are finding new ways to balance workforce flexibility and efficiency with employee engagement.
While this flexibility brings opportunities, it also presents challenges that councils and governments must navigate.
The impact of hybrid work on government HR and payroll
Hybrid work has expanded governments’ access to a broader talent pool, making it easier to attract skilled workers in competitive job markets.
However, this shift also brings complexities in HR and payroll management, particularly in managing varying workplace conditions, contractual entitlements, and remote work policies across different departments.
In some cases, councils have struggled to adapt their legacy HR and payroll systems to accommodate remote and hybrid work. Issues such as data inconsistencies, manual processes, and inefficiencies in tracking employee hours have made payroll management more complex, and that’s before factoring in potential issues related to employee wellbeing.
New work-from-home rules apply
The New Zealand Government has made it clear that it wants to see fewer public servants working from home, with Public Service Minister Nicola Willis saying that “working from home is not an entitlement and must be agreed and monitored.”
“Data is not currently being centrally collected by the Public Service Commission regarding the prevalence of working from home arrangements,” Ms Willis said.
“I have asked the Public Service Commission to support agencies to implement the Government’s expectations, including ensuring information about working from home arrangements is captured in a way that allows for easy comparison between agencies.”
Overcoming compliance and workforce engagement challenge
Flexible work arrangements have made it more difficult to consistently apply minimum entitlements, raising concerns about wage equity and fairness. Furthermore, compliance with work-hour regulations is now a critical issue governments must address.
Government departments must also ensure that remote employees stay engaged and can access the same career development opportunities as in-office staff. Without proper performance management frameworks in place, disparities between employees who work
on-site and those who work remotely could appear.
Wellbeing initiatives, such as regular check-ins and structured feedback sessions, are essential for maintaining productivity and morale in a hybrid environment.
How integrated HR and payroll platforms support hybrid workforces
Managing a hybrid workforce requires an integrated approach to HR and payroll. Governments need real-time insights into employee attendance, work locations, and performance metrics to ensure that hybrid work arrangements are both effective and equitable.
A fully-integrated HR and payroll system with real-time workforce analytics helps streamline operations, improve compliance, and enhance workforce engagement.
Real-time workforce data
Data-driven insights allow agencies to check trends in workforce engagement, track productivity, and find compliance risks. By using workforce analytics, agencies can:
- Identify patterns in hybrid arrangements and adjust policies accordingly;
- Set up alerts for excessive overtime and leave balances, ensuring employee wellbeing stays a priority.
- Monitor the effectiveness of hybrid work policies through real-time performance tracking and feedback.
Automation and payroll efficiency
With the recent push to increase visibility over work-from-home arrangements in NZ, agencies need automated, data-driven insights to monitor productivity trends and anticipate future staffing needs.
A fully integrated and automated HR and payroll platform enables agencies to:
- Accurately process timesheets, ensuring that employees are compensated correctly based on their work hours;
- Reduce manual interventions by integrating payroll with finance and HR systems, improving efficiency;
- Minimise errors and enhance audibility by tracking payroll adjustments in real-time.
One Australian local council that implemented automation through TechnologyOne found that cutting manual payroll processing significantly improved efficiency and reduced payroll errors.
That agency reduced payroll corrections and improved financial reporting accuracy by ensuring that employees could only log time against valid cost codes.
Supporting hybrid work with TechnologyOne
Hybrid work is here to stay, albeit in a potentially reduced capacity for some government departments. Providing employees with the tools and support they need to succeed in a hybrid environment will be key to maintaining high levels of productivity and satisfaction.
TechnologyOne is trusted by over 230 government departments and agencies across Australia and New Zealand. TechnologyOne’s Human Resources & Payroll (HRP) simplifies payroll processing, automates compliance, and integrates with finance systems to offer real-time insights into workforce data.
