WASHINGTON, June 9, 2015 /PRNewswire-USNewswire/ -- For the second year in a row, state and local governments are reporting an increase in hiring. Pressure on benefits continues, with employees taking on greater shares of health care costs and contributions to pensions. As a large portion of the workforce becomes eligible for retirement, there is a greater sense of urgency about recruitment, retention, and succession planning.
“State and Local Government Workforce: 2015 Trends” is an annual survey conducted by the Center for State and Local Government Excellence (slge.org), the International Public Management Association for Human Resources (ipma-hr.org), and National Association of State Personnel Executives (naspe.net) of human resource professionals. Three hundred thirty-four (334) IPMA-HR and NASPE members took part in the survey, which was conducted in March and April 2015.
Seventy-three (73) percent of respondents reported hiring employees in the past year, with 54 percent hiring more than they did in 2013. Forty-two percent reported hiring contract or temporary workers, a significant increase from the previous year.
At the same time, the pace of retirements quickened: 47 percent reported higher levels of retirement in 2014 than 2013, and 13 percent reported employees had accelerated their retirement. As one respondent wrote, “Between now and 2020, we are looking at 40% of the workforce being able to retire.”
One way governments are coping with the talent crunch is to hire temporary or contract employees: 47 percent reported doing so in 2014 compared with 33 percent in 2013.
Changes to benefits continue:
- Fifty-three (53) percent reported their government made changes to health benefits for both active and retired employees. The most common changes were to shift more costs from the employer to employees (43 percent) and to institute wellness programs (24 percent).
- Twenty-nine (29) percent reported their government altered retirement benefits over the last year, with about one-fifth requiring increased contributions to pensions from both current and new employees.
A majority of respondents say their top concerns are:
- recruiting and retaining qualified personnel
- succession planning
- staff development
- competitive compensation packages
- retaining staff needed for core services
- employee morale
- employee engagement
“It’s a competitive job market for skilled workers so recruitment, retention, and succession planning are top priorities” noted Elizabeth Kellar, president/CEO, Center for State and Local Government Excellence. “The competition for talent and the preferences of younger workers are driving governments to pay more attention to staff development and the compensation package.”
“The survey results confirm that the economy continuing to improve. State and local governments reported increases in hiring for the second year in a row, although most government workforces are still smaller than they were in 2008,” said Neil Reichenberg, executive director, IPMA-HR. “The environment remains challenging for state and local governments due to a continued focus on reducing costs through changes to benefits and an increase in retirements as a large percentage of the workforce becomes eligible for retirement. This leads to a growing sense of urgency about recruitment, retention, and workforce/succession planning.”
“Some of the trends we see have been consistent over the last five years, such as a majority of personnel executives reporting changes to health care benefits each year,” said Leslie Scott, director, National Association of State Personnel Executives. “Still, 61 percent reporting changes in 2013 is the highest level to date.”
Download State and Local Workforce: 2015 at http://slge.org/publications/state-and-local-government-workforce-2015-trends
Access all the Center’s workforce research at http://slge.org/research/workforce
About the Center for State and Local Government Excellence
The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, www.slge.org.
For information contact: Amber Snowden at 202-962-3639 or asnowden@slge.org
About the International Public Management Association for Human Resources
The International Public Management Association for Human Resources (IPMA-HR) is the leading public sector human resource organization in the world. IPMA-HR represents the interests of human resource professionals at all levels and strives to promote excellence in HR management. Learn more at www.ipma-hr.org
For information contact: Jenny Chang at publications@ipma-hr.org
About the National Association of State Personnel Executives
The National Association of State Personnel Executives (NASPE) is the recognized authority on state government human resource issues, trends, practices, and policies and serves as a leader and catalyst for the development of state human resources and is dedicated to enhancing the image of state public service. NASPE provides educational resources for its members and a forum to share best practices in state human resource management through meetings, publications, surveys, and online discussion forums. Learn more at http://www.naspe.net/
For information contact: Leslie Scott at 859-244-8182 or mailto:lscott@csg.org
SOURCE Center for State and Local Government Excellence
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