How hybrid work is reshaping government workforce management

This article originally appeared in The Mandarin and has been republished with permission.

We’ve heard it all a thousand times before: the rise of hybrid work has transformed the way government agencies operate. Or it hasn’t, depending on who you ask!

According to the Australian Public Service Commission (APSC), the percentage of public servants working remotely increased from 22% in 2019 to 53% in 2020, before dropping slightly to 47% in 2024.

These figures vary depending on demographics, too. The Mandarin's Frank and Fearless Survey for 2024 found that 70% of public servants under 44 work in a hybrid model, while 61% of those aged 45 and above do the same.

Far too many articles and opinion pieces debate the pros and cons of hybrid working, so this is not one of those. Instead, this article will explore how this shift has introduced new challenges in managing payroll compliance, employee wellbeing, and operational efficiency.

Government HR teams must leverage data, streamline processes, and ensure consistent employee engagement to succeed in the new hybrid work environment.

Adapting to hybrid work models in government HR

Moving to hybrid work models has increased the variety of flexible work arrangements available to employees, which, in turn, has increased the potential skills and resource pools available to agencies at a time of an increasingly competitive talent market.

This has meant agencies have had to learn to embrace different working practices and models to allow for remote and hybrid working. However, this has also increased agencies' payroll challenges, which must cater for different occupational health and safety challenges and potentially manage different workplace conditions and awards.

Opening up to hybrid and remote working can also increase people risk, with employee wellbeing at the forefront of HR thinking. HR teams must also address operational challenges, particularly with the risk of cross-border and international working opening data privacy and compliance issues.

Overcoming compliance and productivity challenges

Managing payroll compliance and maintaining productivity are key challenges for government agencies.

With regulations varying across jurisdictions, payroll teams must ensure accurate and timely payments while complying with legal requirements. Technology plays a vital role in this process, providing employees with consistent access to payroll systems regardless of their location.

Maintaining employee wellbeing is essential in an ‘always-on’ technology environment. Agencies must establish boundaries to protect employees’ right to disconnect while promoting regular check-ins to monitor wellbeing and productivity. For example, initiatives such as ‘R U OK’ campaigns and manager-led conversations help create a supportive work environment that reduces burnout and enhances engagement.

How integrated HR and payroll systems support hybrid workforces

Integrated HR and payroll systems are essential for managing the complexities of hybrid work. It starts with data simplification and payroll automation: automated workflows simplify tasks such as onboarding, leave management, and performance tracking, reducing manual workloads and enhancing accuracy.

A centralised directory with real-time information enables employees to easily locate colleagues and access essential on-site skills, such as fire wardens and first aid officers. This improves operational efficiency and enhances the employee experience, fostering a collaborative environment that supports both remote and in-office teams.

The role of real-time data and workforce analytics

Developing workforce analytics to have accurate and timely data greatly helps government agencies understand the application of hybrid (or remote) work policies and the impact these arrangements are having on employee wellbeing.

By fully understanding how people are working and the time associated with said work through regular line management check-ins, agencies can ensure they are developing policies and practices to support employee performance management and development.

Properly analysing workforce data with the help of technology means agencies can better plan for office capacity too, ensuring that hybrid work models are implemented effectively. For example, setting alerts for key metrics such as increasing leave balances or excessive overtime allows HR teams to address potential issues before they impact productivity or compliance.

Real-world benefits of hybrid work and payroll automation

While many governments across Australia and New Zealand are returning to full office-based policies, such as the recent move by the NSW State Government, hybrid work is here to stay.

At least, the Productivity Commission appears to think so, predicting that working from home will "continue to be a key feature of future workforces, with organisations and employees becoming more effective at working from home and negotiating mutually beneficial outcomes."

Randstad's Workmonitor report found that more than two-thirds (63%) of Australian workers have made major changes in their lives, such as moving house, because working from home is now a norm.

Given that there are few studies providing causality of decreasing productivity under hybrid work arrangements, it makes logical sense for governments to steer into the skid, so to speak, and find ways to get the most out of remote and hybrid working.

Technology can help do just that.

TechnologyOne’s SaaS+ (Software as a Solution) delivery model supports government agencies in understanding and managing diversity in the workforce and provide real-time insights into employees' time, skills, and performance outputs.

Good HR and Payroll platforms ensure that accurate and up-to-date statutory compliance rules are always considered, with real-time insights into work patterns. TechnologyOne’s HR and Payroll platform allows for managers and employees to create ‘conversations’ and have regular check-ins, with natural language that support the performance management processes.

And having access to time and leave data allows managers to identify trends and potential risks to better support the employee experience while working both at home and in the office.

Building a future-ready government workforce

As hybrid work becomes the norm, government agencies must adapt their HR and payroll processes to support a more flexible and diverse workforce. By making the most of automation, real-time data, and integrated systems, agencies can reduce administrative burdens, improve compliance, and enhance employee wellbeing.

With the right technology in place, government HR teams can focus on delivering exceptional public services while supporting a workforce that is more engaged, productive, and resilient.

Discover how TechnologyOne HRP can help

TechnologyOne’s Human Resources & Payroll (HRP) simplifies payroll processing, automates compliance, and integrates with finance systems to provide real-time insights into workforce data.

Trusted by over 230 government departments and agencies across Australia and New Zealand, TechnologyOne helps agencies manage hybrid workforces, improve efficiency, and deliver better services to their communities.

Book a demo today to see how TechnologyOne can transform your employee experience.

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Andy Cox
General Manager for HR & Payroll Products