Sponsored content powered by ICMA partner UKG.

In my 35 years working in public sector human resources, my guiding principle has been that the work of HR matters—and matters a great deal. I believe in government and the ability of government to help the people that it serves live meaningful lives.
 

The public sector today faces unprecedented challenges achieving this mission. Americans expect fast and high-quality government services delivered efficiently. If I can order directly from Amazon Prime with one click and have my purchase delivered to my home in a day or two, why can’t my local government deliver services just as efficiently? Or almost as efficiently?

But public-sector budgets are tight, forcing government increasingly to do more with less. Every dollar spent needs to be justified to the taxpayers who pay for government.

In this tough environment, government’s ability to deliver to the more than 340 million Americans who depend on the public sector every day requires a committed workforce. And HR is the key to attracting and retaining these talented people.

HR professionals (and others, I hope) take the critical contribution of HR as an article of faith. In the private sector, effective HR practices have been proven to drive financial outcomes such as profit, stock price, etc. However, the link between a high-performing workforce and “bottom line” outcomes in government has been harder to document.

Until now.

A First-of-Its-Kind Study

To fill this gap, UKG designed research to assess the impact of HR on local government performance. We partnered with Polco, a community engagement and data insights firm, and Barrett and Greene, Inc., a public sector research team. Our team surveyed local government HR departments across the nation to determine whether effective HR practices are linked to positive outcomes for residents.

The answer is a resounding yes.

Our research compared results from our survey of HR departments to resident satisfaction data from Polco’s National Community Survey of the people who live in these communities. We found statistically significant correlations between effective HR practices and residents’ satisfaction with government service quality, confidence in their local government, and—perhaps most important—quality of life in their communities.

In other words, as one of the HR directors we interviewed put it, “Happy employees, happy residents.” 
 

Effective HR Practices that Drive Resident Satisfaction 

Our findings offer a clear roadmap for why – and how -- governments should invest in their workforce. We found five key areas where local government workforce practices are correlated with resident satisfaction. In addition to our statistical analysis, we interviewed the directors of the most effective HR departments to understand the approaches they are taking to drive a high level of resident satisfaction with, and confidence in, their local government – and satisfaction with the quality of life in their communities. 
 

Managing employee performance 

Employee performance management was a strong predictor of resident satisfaction. Local governments that implemented structured, transparent, and regular performance discussions had high scores in residents’ satisfaction with their local government services and quality of life. Effective performance management practices include setting a few clear and achievable goals aligned with strategic plans, conducting regular check-ins—not just annual reviews—and providing actionable feedback. 

Recognizing and rewarding high performance—whether through bonuses, public recognition, or career advancement—reinforces a culture of accountability and excellence. Our research showed that when employees understand how their work contributes to broader community goals, they are more motivated and productive. The high-scoring HR programs also identified underperformance early, allowing for timely intervention and support.

Building HR staff capability

A high-performing HR department with a capable and well-trained team helps drive resident satisfaction with, and confidence in, government. These departments onboard HR staff by emphasizing not just technical skills but also mission, values, and culture. They also invest in professional development for their staff by supporting certifications, leadership training, and cross-functional learning. 

HR teams with strong interpersonal skills and a deep understanding of organizational dynamics resolve conflicts, support department leaders, and foster a positive workplace culture. Effective HR departments also rotate their staff through different departments to build knowledge, empathy, and insight on the challenges of each function.

Supporting employee well-being

Supporting well-being is no longer a “nice to have”—it’s a strategic imperative. Our study found strong correlations between employee well-being programs and resident satisfaction with customer service, quality of municipal services, confidence in municipal government, and quality of life in the community.

Local governments that prioritize employee mental health, physical wellness, financial literacy, and work-life balance have lower turnover, higher morale, and better resident satisfaction with service. 

The most impactful employee assistance programs include wellness challenges and flexible scheduling options, such as compressed workweeks. The high-performing local governments listen to employees through surveys and “stay interviews” that can uncover small, low-cost changes that have a big impact, like adjusting dress codes or improving breakroom amenities. When employees feel cared for, they are more likely to go the extra mile for residents. Well-being initiatives also help reduce absenteeism and improve productivity, making them a smart investment.

Recruiting and hiring effectively

Effective recruiting and hiring is the gateway to building a high-performing workforce that delivers for the public. High-performing organizations have streamlined hiring and reduced time-to-hire. They also allow mobile-friendly applications and communicate with job seekers throughout the process. 

Successful recruiting means branding jobs as opportunities for purpose and fulfillment, as well as marketing the total value of compensation, including benefits, and not just base salary. 

To expand the pool of talent, the high-performing HR departments are removing requirements (such as college degrees) that aren’t really necessary, and investing in on-the-job training. They use behavioral interviews to assess alignment with organizational values, to ensure new hires not only meet job qualifications but are also culturally compatible. 

Providing competitive compensation and benefits

Compensation is one of the most challenging yet impactful areas of HR, particularly in the public sector. We found that effective compensation and benefits practices correlate with residents’ perceptions of their local government’s customer service.

The high-performing governments in our sample regularly conduct comprehensive market surveys to ensure they are competitive. They offer flexible benefits—such as paid parental leave, student loan assistance, or additional days off—as a differentiator in a competitive labor market. They also provide new hires with vacation and sick leave immediately.

The high-performing municipalities also regularly assess pay equity. Employees who believe they are being compensated fairly are more likely to stay, perform well, and say good things about their employers. These organizations also ensure their compensation strategies are responsive to generational preferences, to appeal both to early-career and veteran employees.

In summary, our research found that these effective workforce practices are not just theoretical; they are actionable strategies that improve both the employee experience and resident satisfaction with, and confidence in, government and quality of life. By focusing on these practices, HR can become a strategic asset that drives measurable outcomes for their communities.
 

Why This Matters Now

Governments across the nation are asked to operate more efficiently to meet the public’s demand for better service, faster response times, and more transparency. To deliver, government must attract, develop, and retain a high-performing workforce.

As our research has revealed, investing in the workforce isn’t just about internal operations—it’s about delivering better outcomes for the people government serves. Public-sector leaders now have data-driven evidence that HR isn’t just a back-office function. It’s a frontline driver of public trust and confidence in government. 

For the first time, our research revealed that effective workforce practices in local government are linked to resident satisfaction with, and confidence in, government and—perhaps most important—quality of life in their community. Investing in the workforce is, therefore, a smart and fiscally responsible strategy that pays dividends for outcomes that matter. 

This research also provides a roadmap for these investments. By focusing on employee performance management, employee well-being, recruiting and hiring, HR capability, and compensation and benefits, governments can create workplaces where employees thrive and where residents have confidence in their government and its leaders.

The bottom line is that public-sector organizations must not think of their workforce as a cost to control or reduce. Instead, government must view the workforce as a strategic asset to invest in. And we now have the data to prove why.

Join Bob Lavigna and UKG at ICMA Annual Conference booth 547 to hear more about the study and continue this important conversation.