Hiring qualified employees has never been easy for government agencies, and keeping them is becoming just as challenging. Many agencies are preparing for experienced employees to retire while trying to attract new talent, manage limited budgets, and figure out where artificial intelligence fits into daily operations.
For HR teams, these aren’t separate issues. Decisions about technology, hiring, and employee development all affect an agency’s ability to get work done. The Future of Human Capital in Government report examines how agencies are addressing these challenges, from updating outdated HR systems to helping employees build new skills and making government careers more attractive.
Rethinking Government HR Operations
Modernizing human resources isn’t simply about introducing new technology. It’s about making everyday processes easier for employees and giving HR teams more time to focus on the people they serve.
For many agencies, that starts with improving hiring, payroll, and workforce management systems. The results can be significant. According to the report, Milwaukee County reduced its time-to-fill by 30%, while a large Texas city cut hiring time by 57% and payroll processing time by 71%.
These improvements show how updating outdated processes can help agencies operate more efficiently while creating a better experience for employees and job applicants.
Helping Employees Adapt to AI
AI is becoming part of everyday government operations, but introducing new tools is only one piece of the puzzle. Employees also need to understand how those tools will affect their jobs and feel confident using them.
The report estimates that approximately 41% of public-sector tasks could be automated within the next year. This creates opportunities to reduce repetitive work and let employees spend more time on responsibilities that require human judgment and expertise.
For agency leaders, the challenge is finding the right balance. Clear policies, practical training, transparency, and human oversight can help employees see AI as a tool that supports their work rather than replacing it.
Looking Beyond Traditional Hiring Requirements
Finding qualified talent remains a challenge for government agencies, particularly when competing with the private sector for specialized skills.
Skills-based hiring offers another way to approach recruitment and workforce development. Rather than focusing primarily on degrees or previous job titles, agencies can focus more on what candidates and existing employees can do.
AI-powered talent tools can help identify transferable skills, uncover internal talent, and connect employees with new opportunities. The report points to the Department of Defense’s GigEagle talent marketplace as an example of how agencies can match existing employee skills with short-term mission needs.
Making Employee Well-Being a Priority
Technology and training are important, but agencies can’t overlook the everyday concerns that affect employee satisfaction and retention.
With 13.5% of the federal workforce already eligible for retirement, attracting and keeping employees is especially important. Financial stress deserves attention. According to the report, 78% of federal workers surveyed identified finances as a major day-to-day stressor, while 43% said financial concerns affect their job performance.
Offering financial education, coaching, and other wellness benefits can help agencies better support employees while strengthening their overall recruitment and retention efforts.
Building a workforce that’s ready for the future requires more than new systems and AI tools. It means giving employees the skills, resources, and support they need to succeed as government work continues to evolve.
Download the full Future of Human Capital in Government report at GovWhitePapers.com to explore practical approaches to HR modernization, responsible AI adoption, skills-based hiring, and employee well-being.
