People Are Your Core Competency: Why Government Agencies Must Prioritize Talent

By Michael Fryke, CEO of TrueComp

Government agencies rely on dedicated employees yet workforce planning often takes a back seat to other priorities. With 70-80% of agency budgets allocated to staffing costs (a typical range for many state and local governments, according to public finance reports), investing in talent should be a strategic focus. But are agencies proactively managing their workforce, or simply reacting to vacancies as they arise?

The challenge is that vacancies don’t wait for a plan. In today’s competitive job market, agencies without a clear strategy for recruitment and retention risk losing talent to organizations that offer better communication, stronger career pathways, and a more engaging employee experience. Job seekers want more than just a paycheck—they’re looking for workplaces where they feel valued. Public sector agencies have an advantage in fostering purpose-driven, people-first cultures, but when positions go unfilled, that strength quickly becomes a liability.

The High Cost of Empty Desks

Vacancies in government agencies aren’t just empty desks—they come with real financial and operational costs. When positions are unfilled, agencies face lost productivity, increased strain on existing staff, and budget inefficiencies. The true cost of turnover extends far beyond recruitment expenses and can often include overtime pay, burnout, and further attrition.

New survey data from the Center for Digital Government highlights just how serious these challenges are:

• 73% of government leaders report a decline in service delivery effectiveness due to prolonged vacancies
• 75% say unfilled roles lead to lower staff morale, increasing the risk of further resignations
• 68% cite increased workload levels for remaining employees, which can accelerate burnout and drive more departures

This cycle creates a compounding problem—as vacancies increase, agencies must rely more on overtime pay and temporary staff to fill gaps, further driving up costs. For example, an agency with 200 employees and a 10% turnover rate (20 separations) can face significant financial losses. With a turnover multiplier ranging from 30% to 200% of an employee’s salary, replacing a mid-level employee earning $60,000 could cost around $30,000. Multiply that by 20 separations, and turnover costs climb to $600,000—funds that could be invested in retention programs, training, and workplace improvements.

According to CPS HR, turnover costs aren’t limited to hiring; they ripple across the organization, affecting workload balance, employee morale, and institutional knowledge. Without a proactive retention strategy, agencies risk perpetuating a costly cycle of hiring and training without long-term workforce stability. But the impact goes deeper than budgets and balance sheets. Beyond the immediate financial burden, the loss of experienced employees impacts service continuity and institutional expertise. Agencies that invest in career development and engagement initiatives see stronger workforce retention and productivity, ultimately reducing the need for constant rehiring.

Rethinking Talent Management

Understanding the cost of turnover is the first step—but it’s not enough on its own. Agencies need to move from reactive hiring to proactive talent management. That means:

• Knowing your numbers – Calculate your agency’s actual turnover costs, including both direct expenses and hidden impacts like overtime and productivity loss.
• Investing in employee development – Provide clear pathways for growth and advancement so employees stay engaged and see a future with your agency.
• Creating a workplace people want to stay in
• Communicating your value – Many government jobs offer strong benefits, stability, and a sense of purpose. Make sure employees and candidates see the full picture, not just their salary.

In today’s competitive job market, simply filling vacancies isn’t enough. Agencies need to take a long-term approach—one that builds a strong, engaged workforce instead of just plugging holes. Success isn’t about having the biggest budget or the latest technology. It’s about recognizing that your people are your greatest asset and investing accordingly. The agencies that do this will thrive. The ones that don’t will struggle to keep up.