The Challenges and Competitive Advantages in Public Sector Hiring

Private sector employment is back above pre-pandemic levels, but local and state government employment remains below the peak in February 2020,[i] with growing difficulty in filling key positions.

Human resource managers and public sector employees themselves have weighed in on the factors contributing to this challenge.

MissionSquare Research Institute has been tracking trends in employment, recruitment, and retention since 2009 as part of a survey series in collaboration with the Public Sector HR Association and the National Association of State Personnel Executives.  The early years of that dataset were characterized by recessionary cutbacks and hiring freezes, with little challenge in filling vacancies.

That started to change long before the pandemic.  In the 2015 survey, two occupations (police and IT) were reported as hard to fill by at least 15% of respondents.  That total grew to 8 occupations in 2018 and 15 in 2019. In 2023, that total is 28 occupations, with 17 of those considered hard to fill by more than half of all respondents.

Source: State and Local Workforce: 2015-2023 Survey Findings. NOTE: Survey is conducted in March/April of each year, with 2020 data primarily reflecting the pre-pandemic time period.

Looking at one specific occupation, engineering positions were considered hard to fill by just 5% of respondents in 2009.  That grew to 12% in 2015, 29% in 2019, and now 73% in 2023.

For counties, the occupations most often identified as hard to fill also include corrections (77%) and nursing (75%).

What exactly does it mean for a position to be hard to fill?  That might mean a combination of:

·       Fewer qualified applicants than available positions

·       A need to reopen recruitments

·       An increase in time to hire

Source: State and Local Workforce: 2023 Survey Findings.

Governments are taking a multi-pronged approach to addressing these challenges, from the incremental to the structural.  In recruitment, that includes more advertising in more places – not just on agency websites, but also through commercial and professional media, colleges, targeted neighborhood or demographic outreach, and liaison to veterans and their family members.

Additional steps being taken include compensation studies, updates to job descriptions, and salary adjustments to better align with both the current duties and the increased cost of living.

Beyond salaries, which are typically higher in the private sector, public sector employers tend to be very competitive on the benefits they offer, including retirement, health insurance, and other financial or non-financial provisions, such as flexible work arrangements, voluntary coverages, and paid leave.  In fact, while 55% of HR managers see their wages as being competitive in the labor market, 89% perceive their benefit offerings to be competitive.

Bonuses can also play a part, whether paid to all new recruits, those in the hardest-to-fill occupations, or to current employees who refer successful job applicants.  To ensure that such bonuses do not simply result in a revolving door of hirings and resignations, 12% of respondents indicate they are tying those bonuses to new hires remaining on the job for at least a year.

Figure 2: Bonus policies

Source: State and Local Workforce: 2023 Survey Findings.

But just as important as the efforts to hire new staff are the efforts to keep them motivated to remain with the organization.  The top two offerings are employee assistance programs (91%) and exit interviews (78%), with a variety of professional development offerings close behind.

Figure 3: Retention programs

Source: State and Local Workforce: 2023 Survey Findings.

While each of these recruitment and retention efforts play a part, perhaps the most telling piece of information comes from the employees themselves.  When asked about what attracted them to their current employment, job security and personal satisfaction were the top priorities (see Figure 4).  A similar finding arose from a survey of new local government career entrants, who emphasized meaningful work.[ii]

Figure 4: To what extent did the following attract you to your current job?

Source: Morale, Public Service Motivation, Financial Concerns, and Retention.

Conclusion

The bottom line for public employers is that while it’s getting increasingly difficult to fill vacancies, there are a range of outreach programs, incentives, and retention initiatives that can help candidates or existing employees feel valued and engaged.  While salary increases to keep pace with inflation may be a part of that, it is also important to emphasize the full value of compensation (including benefits) and appeal to the personal satisfaction found in doing mission-driven work in service to the public.

For a more detailed discussion of recruitment, retention, benefits, DEI, and multi-generational changes in the workforce, see full State and Local Workforce: 2023 Survey Findings.

[i] State and Local Government Employment Trends 2023, MissionSquare Research Institute

[ii] New Career Entrants to Public Service: Lessons for Employers from Fellowship Applicants, MissionSquare Research Institute, 2023.