In 2022, public employers face hiring challenges, opportunity

Written by Andrew Castillo

In November, a record 4.5 million Americans quit their jobs—capping 2021, a year marked by fluctuating unemployment trends and a migration to remote work. The data from the U.S. Department of Labor quantifies a fundamental shift that’s occurred since the pandemic began in the way labor is valued by both employees and employers.

More than ever, employees are asking whether they want to keep their jobs or if there’s something better elsewhere. And likewise, amid unprecedented staffing shortages, employers are being forced to rethink the commodification of labor and its monetary value.

The public sector isn’t immune to the ongoing evolution of labor. According to the Mission Square Research Group, more than 30 percent of public sector employees say they could see themselves changing careers. Given this shifting economic landscape, the research firm recently released a series of recommendations to help local governments “manage and support their current workforce while positioning themselves to attract new, key talent” in the coming year.

The report, “Six Workforce Trends to Watch in 2022,” highlights the value of showcasing the importance of public sector work and encourages public organizations to track burnout among employees, support sustainable retirement benefits and prioritize diversity equity, and inclusion, among other things.

“Employees are reevaluating their professional goals and when, how, and where they want to work,” the report says. “While this is certainly concerning for the public sector (which was already facing recruitment and retention issues), it’s also an opportunity to focus on what gives public sector employers a competitive advantage.”

Those advantages include flexibility, the ability to extend remote work opportunities, childcare, paid family leave and mental health care.

While the pandemic has certainly brought with it many challenges, there’s been broad recognition of the value of local government and the public sector. Health initiatives, the public safety response and the adaptation of schools to remote learning environments have pushed the daily efforts of teachers and health care workers to the forefront of attention. Likewise, the implementation of lockdown orders, digital strategies and vaccination drives have highlighted the otherwise obscure role of behind-the-scenes administrators and the value of a strong community.

Over the last two years, “The public has learned much about the crucial roles that public health, education, and other key state and local government workers fulfill every day,” the report says. “There has been a renewed sense of public service pride and increased acknowledgement of the essential work these employees perform.”

Looking to the new year, local government and public sector employers have a unique opportunity to “leverage this pride and appreciation to attract new employees, including those who previously would not have considered a career in government,” the report continues.

To keep current employees, it’s imperative for employers to provide incentives and assistance through initiatives like Employee Assistance Programs, wellness programs and flexible work-from-home arrangements. With many shifting to telework during the pandemic, remote work opportunities have become an expected normal—and it’s expected to stay that way for the forseeable future. Research from Upwork predicts that more than 20 percent of the American workforce will be working online through 2025.

In this new normal, strong pension plans are another benefit that can be wielded by public employers to entice and keep talent, according to the report from Mission Square Research Group.

“Given the efforts of many governments to pay annual required contributions to their pension plans, along with healthy investment returns, overall public pensions are stable and well positioned heading into the new year,” the report says. “Also, defined contribution plans continue to play an important role in supporting retirement security in the public sector, both as primary and supplemental savings.”

Beyond retirement benefits, public employers can consider adopting “nontraditional benefits such as student loan repayment and holistic health” programs, the report says. And by hiring a diverse staff, public organizations can help “retention and morale as well as (foster) creativity, productivity, and improved organizational performance.” Notably, this requires collecting and analyzing data and adjusting hiring practices as people retire.

As local and county governments emerge from a difficult two years, 2022 will undoubtedly bring with it more staffing challenges and volatility. But with forethought and planning, leveraging those benefits that are unique to the public sector, the report stresses that public workforces can position themselves well for the future.