OP ED by Loretta Libke, TechnologyOne’s Local Government Expert.
Australia’s local government remains one of the country’s largest employers, employing almost 10% of the entire public sector nationwide.
For years it has battled a skills and talent shortage. But now, a perfect storm of housing pressures, funding uncertainty and an inability to compete with private sector salaries has seen staff turnover in the public sector reach 17% – higher than both the private and not-for-profit sectors. And there’s little sign of it slowing.
Technology-first approach to talent
Today’s talent shortage is turning into a crisis. Recent audits of Queensland, New South Wales, and Victorian councils highlighted the urgent need to address the growing gap across critical financial teams that is increasingly hindering councils’ ability to produce quality financial statements. Without a solution, the risk of reputational damage and penalties, as well as delays to vital local services is significant. Councils are being urged to seek solutions to attract and retain talent, all while being increasingly tasked to do more with less. So which way do councils turn first?
There’s no doubt that investment into digital services has revolutionised how local governments interact with their citizens. The extensive adoption of Software as a Service (SaaS) has played a crucial role in providing flexible, user-friendly services that meet citizens’ needs. To effectively tackle the skills and talent shortage, councils must take inspiration from their own playbook and implement a technology-first approach to attract, engage and retain staff.
Changing of the guard – the rise of digital natives in the workforce
A large percentage of Australia’s local government sector will be retiring in the coming years, while Gen Z will make up 32% of the country’s entire workforce by the end of the decade. This ‘changing of the guard’ makes it the ideal time for local governments to provide the online experiences these digital natives have come to expect. Embracing digital transformation not only allows councils to appeal to younger workers but to market themselves in ways that reach them where they are – online.
Our recent study in New Zealand – and we believe those findings to be equally applicable to Australia – revealed 18% of jobseekers consider the ‘clever use of technology’ a major factor when choosing an employer. This includes workplace technology that helps boost the accuracy and quality of work, improve communication and collaboration and enhance client services. Dr Joseph Sweeney, IBRS Senior Advisor who led the study stated that job seekers – particularly those from stable economic backgrounds – perceive organisations with innovative technology as forward-thinking, adaptable and committed to staying ahead of industry trends.
Transforming the employee experience through technology
Then there’s the power of technology to retain staff. According to Qualtrics, when employees are satisfied with their IT services and technology experience, they are 158% more engaged at work and 61% more likely to stay in a job.
High staff turnover directly impacts workforce culture and company reputation, so it is important organisations leverage technology that not only enhances productivity but also nurtures employee satisfaction and growth – empowering staff to make data-driven decisions.
We’ve seen the impact workplace technology can have first-hand in the City of Devonport.
Tasmanian Council uses tech to strengthen its recruitment strategy
Prior to committing to a complete digital transformation in 2018, Devonport City Council’s operations were completely desktop-based with many paper-only processes. By moving to SaaS, the council streamlined operations and demonstrated return on investment, paving the way for more innovation including equipping its outdoor workforce with mobile field devices and the roll out of Smart City initiatives.
Devonport City Council’s Deputy General Manager, Jeffrey Griffith, said: “It is this clever use of technology that sets us apart from other employers, demonstrating the long-term sustainability of our council and ongoing commitment to our community. Being based in Tasmania, our talent pool is much smaller, so modernising our operations was key to our recruitment strategy. For someone starting their career in local government, they’re already a digital native, they don’t want to be shuffling through literal paperwork, they want to be empowered with the latest tools to make an impact and serve their community.”
Tide is turning on AI, machine learning and automation
The use of digital services, artificial intelligence (AI), machine learning and automation is already having a transformative impact on the productivity of governments at a federal, state and local level. In New South Wales alone, modelling has shown technology could boost productivity by 2% a year and grow the government’s own-source revenue by as much as $4.5 billion in the next decade. A critical step forward at a time when local government authorities are supplementing 17% of their revenue stream with funding grants, on average.
There is still work to be done to reassure local governments about the return of investment of such technologies, and how they maintain a human touch in an increasingly digital world, but the message is clear – embracing smart technology is no longer a luxury but a necessity for financial sustainability, effective service delivery and engaging the talent of today.
