Human capital managers at government agencies face many challenges thanks to strict budgets, compliance policies, and organizational hesitancy for change. These challenges often prevent them from offering innovative projects to younger employees, using compensation as a performance motivator or touting growth opportunities, which are frequently defined by tenure rather than performance. As a result, 71 percent of local and state government workers are not engaged in their jobs, according to Gallup.

Considering this culture, HCM leaders must seek out innovative tools and leverage creative strategies such as job rotations, flexible work arrangements, or mentorship programs to increase engagement and provide continuous training and development. But it’s no easy task—The State of Human Capital Management in Government report highlights five key obstacles HCM leaders grapple with at government agencies, and how to overcome them.

Skills Gaps and Private Sector Competition

Recruiting people with the right skills for the job is one of the top three talent management priorities for 53 percent of leaders, according to the Human Capital Management Group (HCMG) study. An aging workforce, combined with an observed skills gap in the incoming workforce, means that HCM leaders must find ways to empower and excite employees to attract talent, boost retention rates, and remain competitive with the private sector.

Creating a formal mentorship program, putting shadowing opportunities in place, and allowing employees to explore different functional areas are ways to attract talent and build needed skills on the job. To sustain an empowering culture, lead administrative workshops on how to problem solve, create positive change, and implement core values in daily work.

Succession Planning

Succession planning is essential to building a well-trained workforce—36 percent of leaders report that improving succession planning is their greatest staff development need, and 70 percent say they are currently investing in leadership development.

By finding ways to develop internal employees for advancement, HCM leaders can build skill sets and create an environment that people want to stay at long term. Incorporating annual employee performance reviews, prioritizing professional development, and having clearly defined competencies can encourage learning across the workforce and inspire future leaders.

Limited Budgets

HCM leaders focus much of their time, energy, and resources on employee engagement. And rightly so—when employees feel undervalued or that there isn’t room for growth, they will either leave or disengage, resulting in low productivity and morale. For HCM leaders in government, engagement efforts are typically complicated by a smaller budget.

Despite this limitation, agencies are getting creative in their approach to engagement: 81 percent are implementing employee recognition programs and 71 percent are implementing flexible work-from-home options.

Listening to employees and implementing flexible solutions that align with their needs helps drive commitment and loyalty. Encourage employees to participate in town hall meetings, roundtables, focus groups, and employee surveys. Based on feedback from these activities, the agency creates targeted, focused, strategic initiatives around engagement.

Change Management

Other than budget, change management is the most cited barrier preventing agencies from reaching their talent management goals. To successfully roll out new initiatives, HCM leaders must first receive buy-in from organizational leaders.

Once they have approval, HCM leaders should discuss the goals, benefits, and rollout plan using a variety of communication methods, giving early adopters the tools they need to get the word out and be transparent and clear in messaging.

Data-Based Decision Making

HCM leaders can rely on data for information on employee skill level, engagement, and development so they can make better decisions for their workforce. Despite its far-reaching capabilities, data is underutilized by HCM at government agencies.

Currently, data is mostly being used to streamline onboarding and assessment processes. But, that is just the tip of the iceberg—data can also be applied to succession planning, recruiting, and talent retention efforts by using employee surveys to gain feedback, or people management software to identify and close skills gaps, or uncover themes and trends to boost satisfaction.

As agencies increasingly rely on data to enhance their talent management practices, they must also navigate the complexities of data security. This is particularly important for government agencies, where the stakes of data protection and cybersecurity are exceptionally high. Ensuring that their talent management platforms meet stringent security standards is not just a best practice but a necessity.

The Federal Risk and Authorization Management Program (FedRAMP) plays a crucial role in this regard. It is designed to authorize and monitor cloud products and services across the entire government landscape. FedRAMP provides security tiers ranging from impact-level 2 (IL2) to IL4, with IL4 authorization ensuring the highest security standards are met.

Despite the many challenges that government agencies face, HCM leaders can build a loyal employee base and nurture future generations of leaders by finding ways to boost employee engagement, provide learning and career development opportunities, and utilize data to generate insights and make decisions.