Key Takeaways

• Staffing shortages in local government are stretching HR and payroll teams thin, but automation is helping fill the gap.
• A high vacancy-to-hire ratio makes it harder to maintain services without smarter, more efficient systems.
• Self-service tools give employees faster access to what they need, reducing the load on HR teams.
• Streamlined digital workflows help boost morale by freeing staff from repetitive tasks.

Local governments across the country are feeling the strain of an ongoing staffing crisis. HR and payroll departments, already under pressure to comply with evolving regulations and serve employees fairly, are often stretched to the breaking point. Retirements, competition with private sector wages, and an unrelenting volume of administrative tasks leave many departments struggling to keep up.

The Bureau of Labor Statistics (BLS) reported that the state and local government sector has 570,000 job vacancies (excluding education) but only 156,000 new hires — a 3.7-to-1 vacancy-to-hire ratio. This ratio is more than twice as high as the private sector’s, highlighting a stubborn struggle to staff essential services.

Yet within this challenge lies an opportunity: Workflow automation tools are helping municipalities do more with less, easing the burden on staff while building stronger, more resilient systems for the future.

The Pressures Facing Public Sector HR and Payroll

For many local governments, the so-called “Silver Exodus” remains a major concern. Decades of institutional knowledge are walking out the door as experienced employees retire. While well-earned, these departures leave critical gaps that are not easily filled, especially when private employers can offer higher pay and benefits.

At the same time, HR and payroll professionals find themselves pulled in two directions. They must balance strategic priorities like recruitment and retention with a flood of daily administrative demands. Employee requests for past pay stubs, W-2 forms, or leave balances can overwhelm already short-staffed teams. Add in the need to stay compliant with laws like the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA), and it becomes clear why burnout is such a concern.

Where Automation Can Make a Difference

The most impactful automation opportunities lie in repetitive, rules-based processes that consume hours of staff time yet require little human judgment. For recruitment, automation can manage the entire candidate journey, from mobile-friendly applications to self-scheduled interviews and onboarding steps like background checks. For current employees, automation improves performance review tracking, goal management, and ongoing feedback collection.

Perhaps most impactful is employee self-service. Instead of contacting HR for basic documents, employees can log into a secure portal to download pay stubs, access W-2s, or submit time-off requests. Automated approvals reduce paperwork and keep leave balances and staffing levels accurate in real time.

Consider that 76% of government CIOs believe that fully digitizing workflows and internal processes will lead to improved employee morale. This shows that automation can improve employee retention, something every local government cares about.