The Challenge of HR in Local Government
HR in local government is no walk in the park. You’re balancing tight budgets, juggling workforce challenges, and trying to keep one eye on the future while managing the day-to-day chaos. And let’s be honest—things aren’t getting any easier.
By 2025, successful HR Directors won’t just be keeping things ticking over. They’ll be driving real change. That means making data-led decisions, embracing digital transformation, and putting people first in a way that actually works—not just ticking boxes.
So, what’s going to separate the good from the great? Here are three key skills every HR leader in local government will need to master.
AI & People Analytics: Smarter Decisions, Bigger Impact
Gone are the days when HR could rely on gut instinct and best guesses. AI and workforce analytics are changing how councils manage talent, predict skills shortages, and tackle turnover before it becomes a problem. Data is no longer just “nice to have”—it’s the backbone of modern HR.
The best HR leaders will know how to track retention, recruitment costs, and engagement levels. More importantly, they will turn those numbers into real, strategic decisions. It’s not about drowning in spreadsheets. It’s about telling a clear, compelling story that makes senior leaders take action.
Because let’s face it—if HR can’t show measurable impact, getting buy-in for new initiatives is an uphill battle. The councils that get this right will build stronger, more stable workforces in the years ahead.
Doing More With Less: The HR Productivity Shift
Councils have been pushing digital transformation for years. Yet, HR still gets stuck with outdated systems and admin-heavy processes. That has to change.
HR teams that embrace AI and automation will free themselves from endless paperwork and manual tasks. Recruitment, onboarding, payroll, and case management can all run smoothly in the background. That gives HR the time to focus on what really matters.
But here’s the catch: digital transformation isn’t just about plugging in new systems and hoping for the best. HR leaders need to champion the change, ensuring tech makes life easier for employees, not just for IT. The best teams will be the ones that work smarter, not harder—cutting through the noise to create seamless, efficient HR processes. That leaves more time for the people-first work that truly makes a difference.
Employee Experience: Retention is the New Recruitment
Let’s not sugarcoat it—council employees are under pressure. Budget cuts, heavy workloads, and a tough recruitment market mean keeping good people has never been more important.
Retention isn’t just about salary. It’s about culture. People need to feel heard, supported, and valued. That means HR teams must listen—really listen—to what’s working and what’s not. It’s about building trust, creating flexibility where it matters, and tackling tough conversations around mental health, workload, and career development.
The councils that invest in their people, rather than constantly firefighting recruitment gaps, will be the ones that come out stronger. A workplace that genuinely supports its staff is the one that attracts and keeps the best talent—even when times are tough.
The Pressure to Change Culture—Is HR Carrying the Can?
The pressure to change culture is fast becoming the task of the HR director (eye roll) – rather than the leadership of the local authority! Maybe if we educate senior leaders on why culture is important, they’ll stop expecting the HR director to produce a brand spanking new one from a cupboard somewhere that they can pull out on demand!
It takes at least three years to see any meaningful cultural change—and it comes down to three key ingredients: repetition, simplicity, and engaging leaders.
Maybe instead of trying to change organisational culture, the task for the HR director is to ensure we have the right leaders, with the right mindset and skills, to drive culture?
This isn’t a task for the in-house HR, OD, or L&D team (cue the collective groan—yes, I know in-house teams would like to think they have the gravitas and influence to challenge and support senior leaders). But it’s not that simple.
It’s a short, outcome-focused task for companies that have the right specialism, lived leadership experience, and no organisational baggage. The job is to educate leaders, give them the tools, and equip the HR director with the blueprint to maintain the momentum!
It doesn’t need to be expensive, involve a thousand gimmicky engagement roadshows, or rely on new values and behaviours stuck up on a wall. Maybe that’s where we’re going wrong in local government!?
The Future of HR in Local Government
HR in councils is evolving fast. The leaders who thrive in 2025 and beyond won’t be the ones just keeping up. They’ll be the ones setting the pace. Data, digital transformation, and employee experience will be the foundation of a stronger, more resilient workforce.
It’s time to rethink how HR works in the public sector. Let’s build teams that are future-ready, adaptable, and built to last.
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