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Stretching the Public Sector Pound

Sinead Murphy Oct 7, 2024 4:04:04 PM

Right now, the public sector is facing what has been described asthe greatest workforce crisis in their history.”  

The situation, which is being exacerbated by such factors as the cost-of-living crisis, the pandemic, and an aging population, has created a vicious cycle in which demand for these services is growing faster than the number of professionals who can deliver them.  

As employers struggle to cut costs, further challenges have arisen. Public service productivity is still below its pre-pandemic level, and turnover within the sector exceeded that of the private sector by 5.7% between 2022-23.  

The increased pressure fuelled by high workload and staff shortages has placed additional stress on public sector employees, chipping away at their morale and depleting their mental, physical and emotional resources.  

In fact, when The House of Lords Public Services Committee released their Fit for The Future? Rethinking The Public Services Workforce report in July 2022, branches such as education, policing and care were found to be overstretched to the point of being “unable to meet the needs of people who urgently needed support.” 

The report also highlighted that:  

  • Employers were not doing enough to make public service careers attractive to prospective talent  
  • Many public service workers face intense pressure and unacceptable levels of discrimination 
  • The potential of many employees is untapped 
  • The public sector must rethink its training and development offer to allow staff to meet their full potential (“train to retain”)  
  • There are simple ways to enhance the offer of public service careers that should be taken 

 

Maximising Your Limited Public Sector Budget and Resources  

To tackle these mounting challenges, public sector leaders must focus on maximising their tight budgets and restricted resources through strategic planning and forward-thinking solutions.  

Doing this will help to ensure that their limited assets are used efficiently, which in turn will allow them to navigate the complex demands of their sector, deliver their services effectively, and help to attract and retain essential workers.  

 

Prioritise Staff Wellbeing  

By taking steps to assess and support the mental, physical and financial wellbeing of staff, public sector employers can equip the workforce with vital tools to build personal resilience and deal with issues before they escalate, affect performance or lead to absenteeism.  

A solution such as an Employee Assistance Programme (EAP) will not only help to keep staff well and in work through a blend of preventative and in the moment support, but will also enable employers demonstrate their commitment to the workforce and in turn help to attract and retain more valued staff.   

What’s more, every £1.00 spent on an EAP in the UK generates an average return on investment of £10.85 for employers. For the public sector, this ROI can be reinvested into other critical areas such as training, infrastructure, and service improvements.  

 

Focus on Workplace Culture 

Creating a culture where staff feel recognised is key to attracting talent, retaining workers, and enhancing productivity. With employee willingness to go the extra mile showing a decline in recent years, regular peer-to-peer recognition can help to incentivise staff when pay rises might not be possible.  

63% of employees would not look for a new role if their hard work was consistently recognised 

  

Provide Cost-of-Living Support  

The rising cost of living in the UK has left low paid workers in a very vulnerable position. 1 in 4 public sector workers say they have struggled to pay household bills over the last year, 22% have taken on additional debt to cope with living costs and 1 in 8 have gone without food. 

To help combat this and ensure public sector staff can bring their best selves to work without battling financial stress, it’s important to empower them through a range of support and education.  

To support financial wellbeing in your workplace, you can:    

  • Enhance financial education by providing resources and workshops on financial planning, debt management and savings   
  • Provide a competitive benefits package that helps staff save and spread the cost on essential items, everyday expenses, utilities, holidays, childcare and more    

 

Engage an External Provider  

Working with an independent benefit provider can help to reduce admin, improve customer service, and connect staff to confidential support. Often, employees are reluctant to approach their managers if they are struggling, so knowing they have access to external support can make them feel more comfortable in reaching out and addressing issues.  

Plus, an external provider can give you a strong idea of your people’s needs through data insights while arming you with regular material to engage staff with your offering. This helps to make your overall investment more worthwhile and improve your ROI.  

 

Using your budget to create a tailored support package can help to tackle core challenges like absenteeism, low engagement, high turnover, and waning morale. However, it can also help to uncover vital organisational savings that can give your budget a much-needed boost.  

This can be through direct savings, such as with salary sacrifice benefits, or indirect savings generated from reduced hiring and training costs and less days lost to absenteeism.  

 

About Perkbox Vivup 

As a multi-award-winning employee benefits and wellbeing provider, we deliver a comprehensive benefits platform that helps to connect workforces, boost wellbeing and unlock your people’s potential.  

Our benefits range from mental health assistance to helping employees with the cost of living, offering support for all areas of life and career stages - both in and out of the workplace.  

We currently work with over 80% of NHS Trusts, more than 7,500 public and private sector organisations, and 4 million employees across the globe.  

To learn about how we can help you maximise your budget and resources, book a demo with our friendly team today.  

 

Sources  

Navigating the public sector staffing crisis: A call for sustainable solutions (openaccessgovernment.org) 

Public sector morale is in decline | CIPD 

14 employee retention statistics and figures to know in 2024 (UK) | Stribe (stribehq.com) 

Fit for the future? Rethinking the public services workforce (parliament.uk) 

EAPA-Holding-It-Together-report-2023.pdf 

Nearly two-fifths of public sector workers have taken steps to leave their profession or are actively considering it | TUC