2024-25 Public Sector Recruitment Report
Budget constraints in the public sector are nothing new. But for many it feels like the most recent spell of austerity lasted a little too long.
On the positive side, necessity being the mother of invention, the drive to accomplish more with less has created some interesting solutions in the field of recruitment. For anyone in the public sector who has oversight of hiring, this is a silver lining that holds the promise of being able to find new recruitment efficiencies that will last even after the purse strings have been loosened.
At Oleeo we’re keenly interested in how technology can improve recruitment, not just in terms of positive outcomes, but also around saving time and resources. To this end, we set out to learn more about how the public sector is adapting to budget constraints, and whether technology is being used to the fullest.
During the month of May 2024, we invited public sector workers, primarily in government and healthcare, to answer eight questions around their talent acquisition experiences.
The responses are all recorded in this report, along with our observations. And while some of the outcomes are entirely predictable (yes, of course budget constraints are hurting talent acquisition), there are some equally surprising results, especially related to the use of AI and data-driven processes.
We won’t spoil the outcomes for you, but suffice to say it appears that many public sector organisations have a lot of available efficiencies yet to be exploited. That should be good news for all concerned. To quote Benjamin Franklin, “Out of adversity comes opportunity”.
Oleeo believes there’s definitely opportunity in this report for those who care to find it.
— The Oleeo Team
Budget constraints comfortably tops the table as the main resourcing challenge for public sector employers, reflecting the austerity measures of the last few years and the internal competition for funds. Financial limitations not only make it difficult to properly execute recruitment campaigns, they also introduce uncertainty, making it harder to create long-term plans.
Lack of resources within the team are the inevitable consequence of budget constraints. Staffing cuts or limited ability to bring in new people increases the workload on existing employees which can, in itself, lead to higher turnover of staff.
Unfilled vacancies, lack of qualified candidates and talent scarcity, while not related to budget constraints, exacerbate the challenges. Limited resources can be managed comfortably if there is an excess of qualified candidates, but when there is a skill shortage or intense competition from the private sector, for example, this creates a perfect storm of difficulty for resourcing.
We fully expected budget constraints to be the most common resourcing challenge as it was our awareness of this problem that motivated us to commission this survey. However, it’s interesting to note that talent scarcity also scored highly, perhaps indicating that staffing challenges in the public sector are even more onerous than we suspected.
The instinct may be to hunker down and wait until the financial situation improves, but Oleeo believes it’s still possible to improve the situation in the short-term. This can be achieved, at least in part, by working on reducing time frames for recruitment campaigns. It’s not uncommon for government hiring processes to be longer than their private equivalent, with multiple stages of approval, security clearances and so on. This can result in losing the most desirable candidates to other, faster-moving organisations.
Although there will always be some elements of public sector hiring that are going to be necessarily more involved than the private sector, there are still plenty of opportunities for streamlining processes. For instance, automating routine tasks and using AI to help recruiters make better, faster decisions will reduce the workload for everyone concerned. AI is now fully capable of reading and interpreting candidate CVs and highlighting those which meet pre-approved job requirements.
The majority of respondents said, Yes, staffing challenges are a significant issue and risk serious problems with the ability of the organisation to function effectively.
This suggests that many public sector organisations are struggling to maintain service levels and fulfil their mandates because of inadequate staffing. Knock-on effects to this include overburdened employees, low morale and employee retention challenges.
Only one in five feel confident enough to reply No to this question, which implies that around 80% of respondents have at least the potential to experience problems in this area, either now or in the future.
We debated the wording of the question because “organisational failure” is a strong phrase. We likely would have seen a higher level of agreement if we had used, for example, “organisational difficulties”. Which is why it is quite shocking to discover that more than half of respondents feel their organisation is approaching some kind of breakdown.
The usual solution to this kind of challenge is to increase investment in HR, including recruitment, training and retention strategies. However, as we’ve already established, budget constraints are a key problem for most public sector organisations.
This serves to emphasise the critical importance of finding ways to do more with less and make strategic adjustments to how recruitment campaigns are being managed. Modifications that can reduce administration, speed up the “time to hire” and attract candidates without the need for expensive advertising campaigns should be prioritised.
However, there’s a clear picture being painted through this survey that, while HR personnel are working hard to increase staffing efficiency through a number of initiatives (see Question 3), there is the sense that these are going to be insufficient to stop organisational breakdown. It is vital that new approaches be found to mitigate these concerns.
Maximising internal mobility (69%) in times of austerity is a wise step because it’s about taking stock of what you already have and considering how you can make best use of current resources. This is especially true with employee retention since it is usually far more expensive to source a new hire than it is to improve job satisfaction for existing employees.
Embedding good practice (41%) is another smart measure that carries little to no cost, but can produce significant results. And while training and development does require some expenditure, it’s a good long-term investment for both the organisation and the employees.
Talent pipelining and building talent communities (38%) is a solid proactive approach that allows for the creation of pools of candidates that can be accessed as and when they’re needed. It’s an evergreen strategy but is especially valuable when there is a scarcity of talent.
Automating and streamlining pre-employment checks (26%) reduces administrative burdens, minimises delays and ensures compliance with regulations. Modern technologies are rapidly increasing the opportunities for automation which can lead to significant cost savings.
What the top responses have in common is that they’re all long-term solutions. Rather than simply allowing recruitment efficiency to stutter, it appears most public sector organisations are evolving positively and being proactive in their efforts to cope with financial limitations.
Embedding good practice is perhaps being underutilised given that there are various ways of implementing this without having to break the bank. A good ATS can guide the recruiter through the process and provide reminders for the critical tasks along the way.
Automation is also an area that we’re especially interested in, so it’s noteworthy that only one in four respondents identified this as a discipline they’re using. This suggests that there are many organisations with untapped potential to use technology to streamline elements of their hiring, such as onboarding processes, obtaining required information, mandatory vetting, etc. By removing the administrative burden from recruiters and providing automated updates to candidates, this will reduce overall time to hire and also improve the candidate experience.
But what really caught our attention is that only 4% of respondents are using AI to speed up and strengthen their hiring decisions. Which means even those who are automating their pre-employment checks have not yet embraced the significant benefits that AI has to offer. This could be down to a lack of awareness of the availability of the technology, or even unwarranted — although understandable — concerns over AI itself.
Either way, we would urge everyone in recruitment to take a look at the options available. One of the great advantages of Al is that it can draw from thousands of data points, including those found in test scores, CVs, application responses, and then assess the result without bias. This assists recruiters in making informed decisions in a fraction of the time it would take to review every application manually. Hiring can thus be completed faster and be based on prescriptive recommendations that measure skills, cultural fit, offer acceptance probability and expected retention.
86% of respondents either Agree or Strongly Agree that budget reductions are hindering their recruiting efforts.
This problem may be even more significant as the 8% who are Not Sure may not have sufficient information to make a judgement, and may arguably be unaware of the problem.
What is clear is that only 6% disagree with the statement and no one strongly disagrees. This underscores the severity of the challenges and that this is a widespread issue.
This is not a surprising outcome, but it reinforces the need to find innovative solutions. In addition to the aforementioned strategies for improving internal mobility and building talent pipelines, there may be scope for trying more cost-effective advertising, such as an employee referral program. Introducing flexibility into roles, such as remote working, can also be effective at drawing in candidates who might otherwise be unwilling to apply.
Making best use of the technology you have to hand is also important. It’s very common for software users to fail to use all of the available functions they have to hand. Speak to your software provider to find out if there are efficiencies available that you may have overlooked, or if there are new modules available that can improve your recruitment flows. It’s worth mentioning, again, that AI and data-driven automation can play a pivotal role in improving outcomes in this area, so speak to your provider to find out what they have available for you to test.
Stretching your budget to breaking point isn’t anyone’s idea of fun, but if you persist there are likely more avenues you have yet to explore.
All told, 83% of respondents said they either Agree or Strongly Agree that it is difficult to find candidates with the right skills and qualifications. The most obvious reason is that public sector roles often require specific expertise which is hard to find in the current job market,
This only leaves a small proportion who either Disagree or are Not Sure.
This is a problem mostly unrelated to budgetary constraints and drives home just how challenging recruitment is in the public sector right now. In more prosperous times it may be possible to offer above-average salaries to attract experienced personnel, but for many organisations this is likely not an option.
Upskilling existing personnel is a viable solution that, while not free, should be more cost-effective than increasing wages. Another strategy to consider is partnering with colleges and vocational schools to create tailored programs that form a pipeline to your organisation. This is not a short-term solution, but if you have stringent requirements for your roles this could be a worthy investment.
A more direct and no-cost approach is to review how you advertise your roles. Are you, for instance, creating unnecessarily strict criteria in your job descriptions that may be discouraging capable candidates from applying? Additionally, as mentioned earlier, can you find ways to make the role more attractive for reasons other than financial? Like it or not, flexible working arrangements are very desirable. If you can adjust the role to make it more accessible to more people, this could open a wider pool of candidates.
49% responded with Strongly Agree or Agree. This indicates that almost half of all respondents recognise that they’re behind the curve when it comes to recruitment technology.
A slight majority of respondents said that they were Not Sure which could either be a lack of confidence in their knowledge of current technology, or uncertainty around whether their existing software is positively or negatively impacting their results.
The 21% who said they Disagree or Strongly Disagree have likely either recently upgraded their ATS or are sufficiently confident in their existing resources.
Given that cutting-edge recruitment technology is our raison d’être, this question was as much for us as for the subjects of this survey. Our initial reaction was one of surprise that this turned out to be the most divisive of all the questions.
We expected to see a broader split in opinion than many of the other questions, but we didn’t predict that so many people would either be on the fence or simply unsure whether or not their technology was holding them back.
This is our area of expertise. And while we can’t say with certainty that not having access to current recruitment technology is negatively affecting your hiring results, we are confident that many of the new ATS features that are now available — especially those that are related to AI, data-driven automation, or data analysis — will significantly improve your ability to recruit successfully.
The results of this survey make it clear that budget constraints and talent shortages are negatively impacting the public sector, in at least some cases quite seriously. And it is in these areas that a modern ATS is best equipped to help. Not only can it provide a measurable improvement in “time to hire”, as well as the amount of time and administration involved, it can also help improve the volume, quality and diversity of applicants. Last but not least, it provides a superior experience for the candidates themselves, increasing the likelihood of filling the role.
Yes, budget constraints may make new technology investment difficult. However, we would encourage you to at least review your current system and explore the options out there. Upgrading your recruitment technology can, in the long run, pay for itself by improving your recruitment outcomes.
More than half of respondents said they either Agree or Strongly Agree that budget constraints have negatively impacted their ability to advertise roles. In other words, public sector positions do not have good visibility when compared to other parts of the job market.
Around 1 in 4 Disagree or Strongly Disagree, perhaps suggesting they’ve found effective workarounds, or simply that their advertising budget is sufficient for their needs.
There are a wide variety of free and low cost options for advertising jobs online so this result is also somewhat unexpected. If, as the numbers suggest, more than half of public sector organisations feel limited in this area because of their budget, this implies that financial cuts are running deep.
In the ongoing spirit of accomplishing more with less, this is a good time to look beyond your usual placements. Consider social media sites that you may previously have overlooked. Encourage employees to share your job openings and perhaps offer financial incentives to do so. And if you’re not already doing so, maintain a database of previous applicants and use email campaigns to advise them of new job opportunities.
A modern ATS may also offer additional support in this area. Oleeo’s Intelligent Job Posting feature, for example, uses smart algorithms to select the best channels for jobs, with access to global online channels at a pre-arranged, reduced cost. It also provides assistance in creating better-targeted job descriptions to help you attract the right person for the role.
Just over one-quarter of respondents said they Agree or Strongly Agree that their recruitment process is data-driven, making them a clear minority. It’s possible some public sector organisations are advancing in this area but are still too early in their application to be able to agree with the statement.
21% said they were Not Sure which perhaps indicates a lack of understanding of what data-driven recruitment looks like or what options are available.
A full half of respondents said that they Disagree or Strongly Disagree, which implies many organisations are still reliant on traditional recruitment practices such as manual CV reviews or unstructured interviews.
The limited take-up of data-driven recruitment could be simply down to budget constraints, but given that one in five fall into the “Not Sure” category, we’re inclined to think the issue is more to do with a lack of knowledge about the science behind the technology.
Data-driven recruitment processes are, in our view, the most exciting development in the field. Data and analytics have the ability to transform almost all stages of the hiring process. So while it’s not great that so many have yet to embrace this, it reveals that there is great potential for public sector organisations to benefit from this technology.
We could fill an entire second report on the different methods of data-driven recruitment and why they’re so valuable, but in short they accomplish far more than saving time and resources (which they do, and considerably so). Consider that one of the largest expenses in recruitment comes when a new hire doesn’t work out and leaves within a few months. The level of disruption to the organisation is significant, and then there’s the additional expense of having to repeat the recruitment campaign.
Data-driven recruitment campaigns can use historical and real-time data to predict candidate performance and improve the average retention rate of new hires. Given that the cost of a failed hire is often as high as six figures, this is an invaluable tool for recruiters.
This doesn’t even begin to scratch the surface of what data and analytics can achieve. As much as we love the development of AI and data-driven automation in recruitment and we encourage you to learn more about it, it’s data-driven recruitment technology that has the greatest power to improve every element of your hiring methodology.
If your recruitment campaigns have suffered because of budget and talent pool limitations, there is perhaps a small measure of comfort in learning that you’re not alone. But more importantly, we hope this report has given you some ideas for creatively tackling this problem. Here are our top five recommendations for areas of recruitment that you may wish to review:
There are many unique benefits to public sector work (job security, meaningful work, etc.), so review your branding to be sure that you’re not taking for granted that people outside of your organisation know what these are. These selling points can also be emphasised through employee testimonials, social media and career websites to create a positive image of working in the public sector.
Promoting from within is always less expensive than bringing in a new hire. Which means that training existing staff into a more senior role is highly costeffective. Creating internal opportunities are also great for staff morale and retention, making this a win for both the organisation and your employees.
This is very much a long-term strategy and it won’t be suitable for everyone, but if you’re hiring for a large organisation that recruits a significant number of new staff every year, this can save you a lot of time and money. Reach out to local educational institutions, professional associations and community organisations and see what collaborations you can create.
Your ATS can be the key to unlocking a myriad of new efficiencies, as well as improving the accuracy of your hiring. Speak to your supplier to find out how to get more from your software or what additional modules or upgrades are available. This doesn't have to be expensive as you're imagining. Oleeo, for example, has one of the most advanced ATS systems in the world and has a number of cost-effective solutions specifically tailored for public sector needs. Visit Oleeo.com for more information.
A limited talent pool means more competition. Which is why ensuring your job adverts are well-written, inclusive and appealing can be the difference between receiving a handful of applicants and more than you can handle. The Oleeo Inclusive Writing feature can assist with this by highlighting biassed terms in your existing job posts, and offering alternative neutral language that are more likely to appeal to all genders. You may also benefit from going further and looking for ways to improve your offer. Remember, financial incentives are not the only things that candidates are looking for. Enjoyable working conditions and flexibility (such as remote or hybrid working) will broaden the appeal of your roles.
Thank you for reading this report. We hope you found it useful and that it will inspire you to find new ways to enhance your recruitment processes.
To discuss your specific recruitment requirements and learn more about how Oleeo can assist with your public sector hiring, you can contact us here or call +44 (0) 20 8296 5907.
Oleeo provides talent acquisition technology to help companies attract, engage and hire amazing diverse teams. Using data-driven automation and machine learning, organisations can recruit smarter and more efficiently than ever before. Highly configurable to meet unique needs, Oleeo is trusted by many leading brands — Oleeo.com.
