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Enterprise App StoreAddressing 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, 82% of Australian CEOs believe labour and skills shortages could have a large impact on their business 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.
Australia's workforce is experiencing significant demographic changes. By 2050, individuals aged 55 and over are expected to make up about 40% of the adult population, indicating an aging workforce that could shrink the future talent pipeline.
Additionally, younger workers tend to have higher turnover rates than older age groups, contributing to increased workforce mobility.
These factors make it increasingly challenging for government agencies to keep 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 Australian public sector will need to address.
Government agencies have traditionally relied on job security and benefits to attract employees. However, the expectations of today's workforce are evolving.
Many professionals now prioritise flexibility, career growth, and technology adoption over traditional job perks. At the same time, cost-of-living pressures have pushed many skilled workers out of high-cost urban areas, further straining recruitment efforts.
Agencies are now competing with remote-first companies that offer greater work-life balance and digital-first work environments. And yet, various politicians are posturing about return-to-work mandates for public servants.
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 to maintaining fair employment practices, increasing compliance burdens can create stress and anxiety for public sector workers.
Employees in high-risk roles, such as frontline services and infrastructure management, often face greater regulatory oversight, adding to their workload and impacting overall morale. Combine that with complex payroll conditions and workforce planning becomes a lot more challenging.
Government agencies must navigate diverse employment agreements, leave entitlements, and work conditions, all while ensuring pay equity and compliance with evolving regulations. 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.
As workforce expectations continue to evolve, government agencies must take a proactive approach to talent attraction and retention. 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 from hiring to retiring. With over 37 years of experience, TechnologyOne is trusted by over 230 government departments and agencies across Australia and New Zealand.
By automating critical HR functions and providing real-time workforce insights, TechnologyOne enables agencies to reduce administrative burden, enhance job satisfaction, and build a sustainable workforce for the future.
Book a demo today to see how TechnologyOne can transform your employee experience.
Human Resouces & Payroll demoOneGovernment demoFrequently asked questions (FAQs): Human Resources & Payroll
Read some of our most frequently asked questions (FAQs) below if you need more information on Human Resources & Payroll, OneGovernment, ERP, and more.
Human Resources & Payroll (HRP) by TechnologyOne is a purpose-built solution that automates and simplifies workforce management, payroll processing, and compliance reporting.
It ensures accurate employee payments, eliminates manual data entry, and enhances payroll efficiency with self-service capabilities.
OneGovernment is TechnologyOne’s integrated solution for government agencies, supporting day-to-day operations and strategic initiatives across departments.
Leveraging more than 37 years' experience working with statutory authorities across Australia and New Zealand, OneGovernment delivers a proven, secure, reliable and scalable government experience.
As part of OneGovernment, Human Resources & Payroll helps government departments manage workforce planning, pay processing and compliance in a secure, scalable environment. It streamlines approvals and reporting while reducing administrative burden.
Human Resources & Payroll simplifies HR and payroll tasks, reducing manual processing for council staff. With accurate, on-time pay and streamlined onboarding, councils can better attract and retain employees who are essential to delivering high-quality community services.
SaaS+ is TechnologyOne’s all-inclusive offering, specifically tailored for the industries we serve. With SaaS+, implementation, support, and upgrade costs are included, with TechnologyOne taking full ownership of the outcome of the solution experience, not just the software.
For more details, visit the SaaS+ information page .
ERP (Enterprise Resource Planning) software is a system that integrates and manages core business processes such as finance, human resources, supply chain, and customer relationship management into a single platform.
ERP software improves efficiency, reduces manual processes, and centralises data across your organisation. It supports smarter decision-making, enhances compliance, and delivers better service outcomes for customers and communities.
