Agencies Need to Rethink Staffing Strategies

The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.

By Howard Risher
October 4, 2024

Three themes in recent reports portend increasingly serious staffing problems for government agencies. Keep in mind the difference between the commonly reported national data and regional/local and occupational data. The shortages in public schools and prisons illustrate the distinction.

• First, the data analytics firm, Lightcast, predicts the “largest labor shortage the country has ever seen.” Their prediction is based on “a ‘silver tsunami’ of Baby Boomers retiring; falling childbirth rates; younger generations desiring office-based jobs; and a shrinking number of working age adults participating in the labor market.” The shortages in some areas will be severe and long-term.
• The Conference Board’s chief economist contends: “Elevated wages are expected to continue into 2025. A shrinking labor supply is driving businesses to focus on retaining their current workforce, leading to sustained salary increases and higher real wage growth as inflation moderates.” Larger companies are budgeting “an average of 3.9 percent for the coming year.” In other sectors, adjusting pay levels to remain competitive is the standard practice.
• A third theme is the management problems associated with GenZ employees captured in headlines: “The Great Detachment,” “The Battle to Lower Turnover,” “Quiet Quitting” and “Gen Z Not Ready for Work.” Surveys show Gen Z workers want to work on their own terms: no more staying late, showing up early or attending non-mandatory meetings. When their values conflict with older workers, it creates a toxic work culture with higher turnover.

In addition, agencies will continue to lose skilled, older workers to retirement. The combined impact of these problems points to serious worker shortages going forward.

Compensation Is Not a Solution

The belief is that fair pay is more important to young workers than competitive pay, but with union and non-union jobs, rigid pay schedules, budget constraints, discrimination and noncompetitive pay, it is unlikely any group will see pay as a positive. Targeted increases, hiring and retention bonuses are temporary fixes but do not assure employees they will be paid fairly in the future.

A late 2022 MissionSquare survey found 59 percent were considering leaving their jobs. Improving salaries was seen as the best step to retain employees—but that is not the same as paying employees fairly.

An added problem is the dollars tied up in benefits. Government pensions and retiree health benefits are important to older workers—in Pennsylvania it’s almost $25,000 for an average employee—but that’s not going to attract Gen-Z job seekers.

Workers Available to Fill Vacancies

Government’s recruiting problems started years before the COVID crisis. A core problem, as reported in a Route Fifty column, was “. . . young adults have little interest in working for governments that they view as out of touch and exclusionary.” The writers highlight “the contrast between a modernized private sector and a public sector that has failed to pivot, change and respond to rapidly evolving worker expectations.” That was in 2022, but a search failed to find reports that agencies have adapted to the new world of work.

The survey’s sample included workers ages 18 to 36, the peak years when they are starting careers. It is also the cohort that is having trouble adjusting to the traditional work culture. Respondents reported “feeling excluded and unwanted . . . with just 24 percent agreeing with the statement: ‘I believe that local government wants to hire people like me.’”

If they cannot be enticed to apply, immigrants are a possibility. The United States has more than 30 million workers born in other countries—20 percent of the workforce. The barrier, of course, is the political opposition prominent today. Deportations will exacerbate the shortages.

Another possibility could be persuading older workers to defer retirement. That may be difficult in light of the reports of burnout and the clash with young workers. But the number of older workers in their late 60s and 70s is steadily increasing. They have proven skills and a better work ethic. The frequent barrier is the “double dipper” penalty reducing pensions. Today’s staffing problems should override this dated policy.

Switching the Focus to Managers

The pandemic, along with popular social movements, have shaped Gen Z and changed the rules in the workplace, making it important for public employers to reconsider their staffing practices. There have been numerous columns on what is important to young workers. One of the best is: “Helping Gen Z Employees Find Their Place at Work,” in Harvard Business Review.

An often unmentioned but obvious common thread is the role of managers in creating a positive work environment. Gallup research from years ago shows managers—more than any other factor—influence employee engagement and performance. COVID radically changed manager/worker relationships, making it important for agencies to understand how to keep their people engaged and fully productive.

The need for change is ongoing. To stay abreast of what’s best for work teams, it is suggested agencies create employee resource groups (ERGs) to develop recommendations for improving the work experience. This is a proven practice to gain employee support for change when they trust their leaders. Employees want to feel good about where they work.

But government’s “compliance culture,” the phrase used by the National Academy of Public Administration, is deeply entrenched, instilling resistance to change. The new work environment requires a different supervisory approach and different skills. Managers need to be receptive to ERG recommendations. Manager retraining should be a priority. The best should be recognized and the least effective moved to non-supervisory roles.

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Author: Howard Risher has 40 years of experience as a consultant and HR executive with clients in every sector. He has published frequently in HR journals and websites. He is the author or co-author of six books and a growing list of ebooks. The most recent is Older Workers Ready to Hire. He is associated with Grahall Consulting Partners. He can be reached at [email protected].

 

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