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Government and public-sector institutions must adapt their organizations to cope with a range of different forces such as technological disruption, demographic shifts and other megatrends. More specifically, challenges presented by end-of-life technologies, pending waves of retirements, budget constraints and other trends are increasing risks to the effective delivery of public services.
Among these public-sector workforce risks, capability and capacity gaps can create distinct barriers for effective service delivery. Over time, the erosion of service quality can lead to an erosion of public trust.
Public-sector organizations can improve productivity and service delivery through updating technology, migrating to the cloud and adopting artificial intelligence (AI). But they will struggle to make the most of these opportunities unless their employees develop the skills required to thrive in a changing world of work.
Managing these external pressures with limited resources requires transformative changes within government and public-sector organizations. Against this backdrop, our 2024 Hopes and Fears Survey explored the sentiments of workers around the world, including hundreds of government and public-sector employees in Canada. We found workers are open to the future, but present-day pressures may be clouding their vision of what it could look like and how they can contribute.
We’ve pinpointed several critical actions to build a change-ready workforce:
Employees who feel overworked and overwhelmed by change may disengage from their work, leading to a drop in productivity. In extreme cases, these disengaged employees can negatively impact their coworkers’ productivity as well.
Public-sector leaders who make employee well-being a core value within their organization will be able to create a more engaging environment and a more engaged workforce. A more engaging environment also enhances an organization’s ability to attract and retain talent. Leaders can start by setting realistic expectations about the nature of change in their organizations. And, since the pace of change is unlikely to slow, leaders must also help workers learn to build resilience and adapt to change.
This involves targeted investments in employee experiences that help organizations retain the talent needed to preserve capacity and deliver services. For example, organizations can help employees adapt and grow through tailored upskilling programs and redesigned roles that fit the new needs of both the organization and its employees.
Collectively, these measures can enhance the fulfillment employees receive from their work. This is a unique opportunity for government and public-sector leaders: 76% of their employees told us it’s very or extremely important for their job to be fulfilling. That’s higher than any private-sector industry tracked in our survey.
of Canadian government and public-sector employees say there’s too much change happening at once.
say their workload has significantly increased over the last 12 months.
Employees depend on their immediate managers to help them interpret the changes happening around them and understand how they’re affected. Workers often feel disconnected when their managers fail to connect the dots for their team—or worse, when their managers don’t comprehend the connection themselves.
Mid-level managers need a clear explanation of why change is needed, the actions the organization is taking and the implications for roles and jobs. These conversations are particularly important as organizations adapt AI tools. Managers who share a clear narrative about AI and how it will affect their employees’ work can make the technology less intimidating for their teams. With these insights, employees can better see how their evolving role contributes to their organization’s broader goals.
Managers can also better engage employees by helping them see how their career trajectory fits with the future of their organization. Government and public-sector employees value this visibility. Many told us they could perform their jobs better if they saw more opportunities for advancement.
Managers can support and motivate employees by showing how their daily work helps their organization deliver on its mandate. They can reinforce this connection by aligning employees’ performance management metrics with their organization’s transformation strategy.
of Canadian government and public-sector employees say recent changes make them feel optimistic about their organization. That’s below the Canadian average of 51%.
understand the specific steps their leadership team is taking to achieve their organization’s long-term goals and objectives. That’s the lowest rate of any industry sector.
Canadian workers—and government and public-sector employees in particular—are falling behind in embracing AI. This limits their employers’ ability to build a future-ready workforce and make full use of the technology to develop new capabilities.
What’s behind workers’ reluctance to use generative AI at work? Respondents were most likely to say it’s because they don’t know how to use the technology (cited by 34% of those who don’t use generative AI at work), don’t think it will benefit their career (29%) and don’t see opportunities to use generative AI tools in their line of work (28%).
A human-led, tech-powered approach helps public-sector leaders change these perceptions. Organizations can start by giving employees greater access to generative AI tools, along with appropriate training on its responsible use and the proper data and usage policies.
Introducing generative AI with proper guardrails in place encourages workers to experiment appropriately with these tools and consider how they can be used in their roles. Additionally, managers can make the most of this opportunity and help their employees grow by creating a psychologically safe workplace that encourages experimentation and innovation.
Our global AI Jobs Barometer, which analyzed more than 500 million job postings in Canada and around the world, found that the share of ads demanding AI-related skills almost doubled between 2012 and 2023. Organizations that teach employees generative AI skills are investing in their employees’ careers while equipping them with tools that let them innovate, improve their productivity and deliver services more effectively.
of Canadian government and public-sector employees have used generative AI tools for work in the last 12 months. That’s the lowest rate of any industry sector.
have used generative AI tools outside of work in the last 12 months—also the lowest rate of any industry sector.
Building and strengthening public trust requires an investment of time and resources. Canadian government and public-sector leaders that focus on investing in their employees can strengthen their employer brand, while building a resilient and change-ready workforce with the capabilities needed to meet the dynamic needs of the public sector—now and into the future.
We’ve built a workforce risk diagnostic tool that lets leaders set data-driven priorities. It incorporates more than 400 risks to help organizations evaluate their enterprise-wide workforce risk landscape and make informed decisions on precise interventions.
Reach out to start a conversation
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Partner, National Workforce Transformed Platform Leader, PwC Canada
Tel: +1 416 419 9731