Addressing the Talent Shortage: How Digital Government Improves Satisfaction, Retention

By Kelly Davis-Felner, Chief Marketing Officer, PayIt.

Public sector leaders face ongoing challenges to do more with less, and the talent crunch is a key factor in that. So while the need to access public services continues to increase, many agencies are simultaneously struggling to meet staffing needs.

In fact, it was reported in 2023 that 650,000 public sector jobs remained vacant, impacted by the “Great Resignation” during the pandemic and the “silver tsunami” of public sector retirements that outpace hiring. And in 2022, a MissionSquare Research Institute survey revealed that 52% of state and local government employees were considering leaving their jobs.

Bridging the Talent gap with Technology

Staff vacancies can make it harder to drive modernization projects forward, as IT leadership is faced with competing priorities. Yet, government leaders have cited digital service delivery as a top priority for 2024. With increased demands, understaffed agencies find their workers feeling overworked and overwhelmed – add in the frustration of fielding support calls when technology solutions aren’t working effectively and there can be a real morale problem.

But, when technology is working well for staff, it’s a game-changer.

In fact, in a recent survey conducted by PayIt and The Harris Poll, we learned that 83 percent of respondents expect the transition to digital government to enhance or positively impact the overall job satisfaction and engagement of employees in their organization.

Reducing redundant manual tasks and providing better tools to support customers improves employee satisfaction. And, ongoing technical education and experience from adopting and using modern software makes frontline staff more valuable assets to their agencies.

Fort Smith, Ark. serves as a great example of this principle at work. “Since launching our digital customer experience – PayIt Fort Smith – we’ve been able to increase resident adoption and reduce the number of manual transactions and support calls our staff processes,” notes Maria Miller, Fort Smith Citizen Services Program Manager. “Customers are happy with the options that are offered by PayIt Fort Smith as well as the customer-friendly aspect of the experience.”

With more agency workers fulfilled in their roles, retention can be improved and residents and staff alike ultimately have a better overall experience.

How to Keep Modernization on Track

Even departments facing a worker shortage can still move to an agile, digital-first approach – and each step taken toward modernizing will make future upgrades that much easier. You can ignite a domino effect in your agency when you:

• Modernize the resident interface first. Providing a way for people to self-serve frees up staff, improving the productivity of the whole team (regardless of size).
• Buy, don’t build. Building in-house will take a lot of time and money, and if the department is already short-staffed, it’s probably impractical. Instead, work with a vendor and with a platform that’s ready to go and can integrate into antiquated systems – and do so quickly.
• Look for a partner that can function as an extension of your team. If the agency staff is already at capacity, prioritize finding a vendor that comes armed with dedicated and specialized assistance (e.g., customer support, engineers, or other technical support).
• Start small and grow iteratively. Find success in increments: digitize one service, and then add on. This approach allows you to do more with less – and each new service or feature builds on the previous launch, allowing the team to apply learnings and streamline the process.

Attracting and Retaining Talent

Investing in effective modernization efforts helps to reduce the workload, but state and local government staff are still a critical bridge between residents and the governments that serve them. So, what can governments do to ensure the “human touch” is still present and available for residents?

There isn’t a single solution that will help relieve staffing shortages, but there are a few shifts that agencies can make to attract fresh applicants (and keep experienced talent):

• Highlight the pros of working in the public sector. Although the private sector often pays better, it can be mundane and unpredictable. Many people want impactful, meaningful work so they can make a difference in their communities. The public sector also tends to offer more stable careers. Lean into those themes when hiring.
• Offer training and career development opportunities. A McKinsey survey reported a lack of career development opportunities as a top reason they’d leave a job. Show people that public sector jobs offer training such as conferences or technical certifications to upskill staff.
• Promote flexibility and other benefits. People are looking for things like remote or hybrid roles, child-care reimbursement, great health insurance, and generous vacation time – offering such benefits can help close the wage gap.
• Take equity and inclusion seriously. Multiple studies have reported that people are more productive in diverse environments – and they’re more likely to stay with a company that shares inclusive values.

How Agencies can use Digital Information to Their Advantage

The key here is consistent training and education for staff so they enhance their work with the tech solutions that governments are implementing. Upskilling or re-training staff with 21st-century skills gives the agency an edge – both in retaining talent and serving the community with modern digital services. Plus, by empowering staff with automation tools and allowing residents to self-serve, employees can devote more time to meaningful projects and programs.

According to Miller, “One of the primary benefits of taking some of the repetitive, manual tasks off our staff’s plates is that they can do what they do best: use their knowledge of the City to provide the best customer service, educate customers, and be proactive about addressing our residents’ needs — and at the end of the day, that’s why many of them came to work in the public sector.”