Author: Scott McNea, Alliant Public Entity
According to a recent study conducted by the National League of Cities, there is a workforce crisis that is inhibiting the ability of federal, state and local governments to adequately serve the citizens of their respective districts: attracting and retaining qualified people to fill essential roles.
Currently, there is a significant global shortage of talented and qualified workers in every facet of modern business. Competition for qualified candidates has increased, and the public sector is losing candidates to the private sector.
According to the same post-pandemic study by the National League of Cities, the consequences from high turnover and difficulties hiring have strained governmental resources and hindered the ability to provide essential services, such as:
These are essential roles of everyday modern society and the additional burden on each of these sectors is significant. Donald Kettl, former dean of the University of Maryland’s School of Public Policy, explains in an interview with Time Magazine that there are smaller short-term nuisances such as longer lines and wait times at licensing offices, but also long-term consequences.
The impact of a continued workforce crisis in the public sector would have far-reaching implications, leading to larger-scale problems like the deterioration of roadways and infrastructure due to deferred maintenance, disruption of basic utilities, impairments to clean water systems, significant delays in first responder arrival time and deterioration of public education institutions.
“The bottom line is that the people rely on government services, often without realizing it, and the core of the government services on which they rely is the people,” said Kettl to Time Magazine. He goes on to say, “A neglect on those issues is something that will have an enormous impact on every single citizen of this country.”
According to a Mission Square Research Institute study conducted in January 2022 amidst what was denoted as The Great Resignation, “As state and local governments face unprecedented workforce shortages, more than half (52%) of public sector workers are inclined to leave their jobs voluntarily.” As these roles remain vacant, they further strain the current government employees with shouldering the additional work and responsibility, leading to burnout and high turnover rates.
To be successful, public entity leaders need new and creative strategies to compete with the pool of talent that is being lured away from public work. In an article published by Governing, Robert J. Lavigna, an award-winning public sector leader and innovator, identified areas of improvement within the public sector that can help them attract and retain talent and revitalize their current predicament.
Filling the wage gap between the public and private sector is the best way to compete for talented and qualified candidates and increase the pay for public entity employees. However, it's not just about increasing salary or hourly wages. Public entities could entice prospective employees by communicating the unique benefits that public sector employees receive in comparison to private. These include contributions to retirement funds and bonuses on achieved goals that would require team-oriented collaboration.
These days, new hires are looking for other benefits that haven't always been available, such as remote working and flexible schedules. Unfortunately, the nature of many public sector employment opportunities cannot be done remotely; however, there are opportunities such as more flexible scheduling, additional PTO days and bonuses for achieved goals.
It's no secret that the pandemic made it very difficult to engage employees and grow a thriving workplace culture. Many institutions are still reeling from the consequences of the new normal of working from home, which can be seen throughout the many empty office spaces throughout the United States.
Because of this, local and state governments have to increase efforts to build and strengthen employee engagement to solidify a positive and collaborative work culture. They will have to embrace flexible work options and prioritize employees’ needs. This can also help attract new qualified personnel. People who work in a positive and rewarding culture will often share their experiences with others in the field, which will inevitably lure potential candidates from other entities to curiously inquire about the opportunities within.
The financial burden of a bachelor’s or master’s degree is keeping many talented people out of colleges and universities, according to a study from BestColleges. Rather than acquiring thousands of dollars of debt, they are bypassing traditional higher education programs in lieu of apprenticeships, associate degrees and professional certifications.
This prompts the question: Is a master's degree really required for specific positions in the public sector? Is a minimum of 15 years of experience absolutely necessary for a particular position?
Many young people looking for opportunities in the workforce are turned away from a public sector career simply due to their education requirements, rather than their ability to complete the necessary tasks in a competent and quality manner, according to an article from Governing. These minimum qualifications for candidates need to be reevaluated to ensure alignment with the needs of the entity and the pool of potential employees.
Employee surveys are still some of the best opportunities to ask staff how they feel, what could be done better and how it needs to be done. They can provide management with honest feedback and constructive criticism in real time.
With one caveat: Management must use the information constructively.
Listening to your current employee’s needs, requests and demands are imperative for a successful operation. This small act provides a sense of importance to the employee that will drive high performance and strengthen the overall employee experience. In addition, it will cultivate a sense of belonging that supports a harmonious culture, further incentivizing employees to fulfill their duties with professionalism and diligence.
Studies have shown that the public sector has one of the slowest processes for application review, interviewing, hiring and onboarding, when compared to the private sector. In fact, according to a Public Sector Time-to-Hire report from NEOGOV, a market leader in public sector human resources software, the average time-to-hire was 96 days for state governments, 119 days for educational institutions and 130 days for local governments – in other words, public sector hiring can take more than three times the average of the private sector.
Streamlining the process and shortening the time-to-hire is crucial for securing top quality talent before they find alternative offers and demonstrating the integrity of the organization to fill its commitments. NEOGOV recommends improving the time-to-hire process by implementing the right tools and management systems. This can include systems that track metrics, identify bottlenecks within the process and automate the selection of potential candidates. In addition, public entities will have to continue sourcing opportunities from employees and regularly communicating with an entity’s hiring managers to ensure goals and expectations are aligned.
Public entities must focus on creating positive outcomes for the citizens they serve. However, the inability to acquire and retain qualified personnel can stall their goals. Mistakes made by underqualified or overworked personnel can have consequences that can result in a rise in insurance claims.
These workforce concerns are prevalent in public utilities, transportation, law enforcement, emergency response management and public health – all of which have the potential to injure people, increasing the chances of large insurance claims and nuclear verdicts.
Public entity risk management teams should work with their broker to determine if there is a need for additional or expanded insurance coverages, such as law enforcement liability, general liability or officers and directors’ liability. Alliant can help your organization receive the tailored coverage you need to mitigate risk.
Keep in mind that insurance coverage can only protect public entities from the symptoms of the workforce crisis. Therefore, public entities must work to increase acquisition and retention rates to resolve this crisis. Contact us today for more risk management guidance and insurance solutions.