Federal Workforce Trends to Watch
Today's federal workforce is a diverse, multidisciplinary group whose roles and responsibilities support the mission-critical functions of our nation's largest organizations. The individuals who comprise the modern public sector are the lifeblood of these essential federal agencies - performing a range of functions that keep the agencies operational, relevant, and effective. The merit-based structure of federal service ensures that the federal government is "of the people, by the people, for the people," enabling the consistent delivery of benefits, policies, and programs to the American public.
Federal Workforce Overview
Here are some fun facts about the federal workforce:
According to the Partnership for Public Service, the federal workforce is slightly smaller than 50 years ago—an interesting revelation considering the extent to which America’s population has grown since 1970.
The federal government employs more than 4 million Americans stateside and overseas, making it the Nation’s largest employer.
While we think of Washington, D.C., as the hub of the federal government, the majority of federal employees (over 80%) live outside the area.
The three largest federal agencies in terms of federal employees are the Department of Veterans Affairs, the Department of the U.S. Army, and the Department of the U.S. Navy.
Based on the number of FTE civilian employees, the three smallest cabinet federal agencies are the Department of Education, the Department of Housing and Urban Development, and the Department of Energy.
The U.S. Office of Personnel Management (OPM) is the federal agency responsible for overseeing workforce management, processes, and policies across the federal government. In 2024, OPM released the Workforce of the Future Playbook - a must-read for anyone interested in federal HR!
The Ever-Changing Environment of Public Service
Shifts in organizational structure, technological capabilities, population demographics, employee and citizen needs and expectations are impacting the federal workforce. These changes are felt across various sectors, including private corporations, nonprofit organizations, and state and local government agencies. However, the federal government stands out due to its vast size, broad scope, public accountability measures, and governance structures. The federal workforce's ability to fulfill the mission of federal agencies directly impacts the quality of life for Americans and must be maintained despite these external changes.
Here are a few critical federal workforce trends to follow:
Recruiting and Retention in the Public Sector
The federal government competes with a variety of public and private sector organizations for talent. During times of widespread labor shortages across multiple industries, effectively recruiting and retaining employees with in-demand skills can be challenging. Unlike other organizations, the federal government may be unable to quickly increase benefits and compensation to match what less-regulated private corporations offer. In OPM’s Federal Workforce Priorities Report, “recruitment” was listed as a critical priority, emphasizing the need for innovative approaches to attract top talent and retain experienced professionals.
To successfully recruit and retain talent, the public sector must understand the needs of the modern workforce. While there is extensive diversity in terms of employee preferences and priorities, the top drivers of workplace selection include accessibility through remote work, flexible scheduling, equitable compensation and benefits, and opportunities for upward mobility. Additional “icing on the cake” incentives include organizational culture, meaningful work, and professional development opportunities that can further enhance the attractiveness of public sector employment to contemporary job seekers. Public service is well-positioned to meet the modern workforce’s expectations in these areas; however, innovative recruiting campaigns may be necessary to bridge the gap between prospective talent and open positions on USAJobs.gov.
The Rise of Hybrid and Remote Teams
The COVID-19 pandemic has permanently altered the traditional workplace model, as many federal agencies are further developing hybrid and remote work arrangements. This trend is expected to continue as federal employees seek flexibility and work-life balance. Federal agencies are investing in technology and infrastructure to support remote work, ensuring employees remain productive and connected regardless of their physical location. This shift improves employee satisfaction and can increase federal agencies’ access to diverse talent, including professionals living with disabilities, residing in rural areas, and military spouses, via increased workplace accessibility.
Remote work, however, is not automatically a positive experience for team members. Equipping federal employees to work remotely presents a real opportunity for the public sector. Success strategies for managing remote teams is an area of expertise for our management consultants.
Here is a round-up of related resources we have available online that may be helpful:
Mitigating Employee Burnout
Employee burnout is a growing concern across all sectors, and the federal workforce is no exception. High workloads, increased pressure, lapses in communication, and the challenges of adapting to work environments can lead to burnout. According to a post-pandemic survey by the American Psychological Association, over half of U.S. workers have experienced burnout and stress related to their current position. High levels of burnout that are not addressed can result in many negative outcomes for both the employee and employer. Burnout left unchecked can negatively impact effectiveness, productivity, morale, and retention at all levels of the organization.
Some federal agencies are increasing their focus on wellness programs, mental health support, and initiatives to promote a healthy work-life balance. At Becker Digital, we recently had the opportunity to develop and deliver training that provided skills to Department of Veterans Affairs (VA) employees to mitigate burnout, increase engagement, and support the agency’s mission. Our interactive training equipped employees with the skills and strategies needed to succeed in a high-stress, multi-domain environment. Customized training like this can significantly improve employee well-being, team synergy, and overall mission fulfillment. Organizations that prioritize their workforce should focus on providing effective work practices and continuous development through tailored training programs.
Enhanced Customer and Employee Experience Through Digital Transformation
Over the past few years, there’s been increased emphasis on enhancing the customer and employee experiences. Digital transformation plays a big part in turning these aspirational goals into reality for federal agencies. By leveraging advanced technologies, federal agencies can potentially enhance customer and employee experiences. Improved digital tools and platforms enable more efficient service delivery, streamlined processes, and better communication. Technology that works well can improve overall employee satisfaction and quality of work - a win-win for federal agencies! Additionally, as agencies modernize their operations, they are better equipped to meet the evolving needs of their employees, increasing retention and supporting recruitment across a very competitive labor market.
Digital transformation isn’t simply about downloading a new software program; instead, it’s a strategy for integrating technology support into workflows in ways that enhance the human experience (emphasis on “human”). When it comes to technology, it’s easy for professionals to fall into the trap of thinking that tech has the capabilities to fix all organizational problems; however, when implemented incorrectly, irresponsibly, or ineffectively, technology can truly muddy the waters of complex, people-focused organizations, such as government agencies. To learn more about digital transformation in the public sector, check out the webinar recording of “Digital Transformation: A Bit More Than Automation and Technology,” which includes insights from a Becker Digital leadership team member.
Generational Shifts in the Federal Workforce
Due to generational shifts in the American population, the federal government is experiencing age-based changes in workforce demographics. In 2022, only 7% of the full-time civil service was under the age of 30 compared with 38% of the overall population and 20% of the employed U.S. labor force. The average age of federal employees is almost 50 years old, with 72% being 40 years old or older. This presents numerous challenges to the federal workforce, including succession planning, knowledge transfer, and recruitment demands. As Baby Boomers retire, federal employees from Generation X, Millennials, and Generation Z are rapidly being promoted to fill these essential positions. This transition brings fresh perspectives and new approaches to public service. It also requires agencies to adapt their management styles and policies to support a multigenerational workforce's diverse needs and expectations.
Generationally informed management strategies, including communication training, mentorship programs, and team building, can help support the modern federal workforce. A few examples of this type of multi-generational support in action include OPM’s Executive Women in Motion (EWIM) Program, which promotes the advancement of women and men in the Senior Executive Service through interagency mentoring, and the U.S. Environmental Protection Agency Mentoring Program, which matches colleagues across organizational boundaries to enable participants to gain insight and perspective during the mentoring relationship. Additionally, federal agencies should prioritize continuing education regarding generation-based communication preferences, motivations and priorities, and management strategies.
Conclusion
The federal workforce is at a pivotal point, with significant trends shaping its future. By focusing on recruiting and retention, embracing hybrid and remote work, mitigating employee burnout, enhancing customer and employee experiences, and adapting to generational shifts, federal agencies can continue to fulfill their vital roles. These trends highlight the importance of innovation, flexibility, and a commitment to public service in ensuring that the federal workforce remains robust and capable of meeting the nation's needs. Agility, innovation, and a proactive approach to emerging challenges will be crucial for maintaining an effective and resilient federal workforce. As agencies navigate these changes, their ability to adapt and evolve will determine their success in serving the American public.
Federal Workforce Support - Next Steps
For public sector organizations seeking workforce support, Becker Digital is a trusted consulting firm that provides mission-driven organizations with customized support services. Contact us to discuss your organization’s mission support needs and goals!
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