Workforce Analytics Can’t Wait — The High Cost of Recruitment & Retention

Public sector agencies are in constant competition with the private sector for talented and diverse applicants. At the same time, employees are job-hopping in search of higher pay and greater flexibility. Retention is no longer a secondary concern—it is just as critical as recruitment.  

Consider this: up to 40% of employees leave their jobs within the first year. While agencies devote considerable time, effort, and resources to hiring, they often underestimate the financial and operational burden of turnover. The cost of replacing a single employee can be up to 150% of the position’s annual compensation, a price that can’t be recouped easily. 

This was a key theme of our recent webinar, “Workforce Analytics Can’t Wait: The High Cost of Recruitment and Retention.” Our speakers, Jasmine Nachtigall-Fournier (co-founder of TrueComp, formerly GovInvest) and Sarah Town (Consulting Manager at Baker Tilly), explored how agencies can fine-tune their strategies for attracting top candidates while managing retention challenges—all within the constraints of a public sector budget. 

If you missed the discussion, here’s a breakdown of the key takeaways. You can also watch the full replay below for deeper insights. 

The Challenges of Public Sector Retention & Recruitment 

Public agencies today face a perfect storm of hiring challenges: A wave of retirements—many agencies are seeing a mass exodus of experienced personnel as a significant portion of their workforce reaches retirement age. Competition with the private sector—higher salaries, more flexible work arrangements, and perceived career growth opportunities make private sector roles attractive. Burnout and workload concerns—employees often feel overworked due to limited resources and increasing responsibilities, leading to decreased morale and productivity. Rigid work environments—inflexible policies, such as a strong resistance to remote work, deter talent from staying. Lack of pay transparency and equity—employees may leave if they feel undervalued or discover pay disparities. These factors result in a high turnover rate, causing disruption, lost institutional knowledge, and significant financial strain on agencies.  

How Data-Driven Workforce Analytics Can Help 

Agencies often don’t realize they are falling behind in compensation until retention becomes a crisis. Many don’t conduct compensation studies frequently enough to stay competitive. This is where real-time workforce analytics can be a game-changer. 

Our webinar highlighted how public agencies can use data-driven strategies to combat turnover and stay ahead in recruitment. Here’s what you can gain by leveraging workforce analytics: 

1. Understand the Real Costs of Turnover

Hiring a new employee isn’t just about salary—it involves recruitment costs, lost productivity, onboarding expenses, and potential rehiring if the new hire doesn’t work out. Agencies must track and quantify these costs to build a strong case for investing in retention strategies. 

2. Benchmark Against Comparable Agencies

Agencies must benchmark their pay structures and benefits against comparable organizations in real time. A one-time compensation study isn’t enough—ongoing analysis ensures agencies remain competitive in a fluctuating job market. 

3. Address Pay Compression & Career Progression

One issue agencies often face is pay compression, where newer employees receive starting salaries close to or higher than those of long-term employees. This discourages retention. Regular salary adjustments and structured career progression plans are essential to maintaining a motivated workforce. 

4. Offer More Than Just Salary

Compensation isn’t just about wages—it includes benefits, career growth opportunities, and workplace flexibility. Agencies that rethink their total rewards package—including remote work options, career development initiatives, and non-monetary incentives—see higher retention rates. 

Technology’s Role in Smarter Workforce Planning 

During the webinar, Jasmine introduced TrueComp’s Benchmarking solution, an innovative tool that enables agencies to access real-time compensation data and conduct more frequent pay analyses. Instead of spending months collecting and analyzing pay data manually, agencies can now instantly compare salaries, benefits, and other compensation elements across multiple public sector organizations. This empowers HR and finance teams to quickly identify where their agency stands in the market, evaluate pay gaps and retention risks, and make informed budget decisions based on up-to-date compensation data.  

This kind of data-driven decision-making allows agencies to move beyond anecdotal evidence and take proactive steps toward improving retention and recruitment. 

Key Takeaways & Next Steps 

To build a sustainable and competitive workforce, agencies must: 

• Treat retention with the same urgency as recruitment—The hidden costs of turnover add up quickly. Preventing employee departures is more cost-effective than constant rehiring.
• Use real-time workforce analytics—Having access to the right data enables agencies to benchmark salaries, understand labor costs, and plan for future workforce needs.
• Take a holistic approach to compensation—Beyond pay, agencies should focus on benefits, work-life balance, and career development to attract and retain top talent.
• Ensure compensation plans are transparent—Employees who understand how and why pay decisions are made are more likely to stay engaged and committed to their roles.
• Invest in workforce planning tools—Leveraging technology like TrueComp’s Benchmarking software can streamline decision-making and improve talent management strategies. 

Watch the Full Webinar 

The insights shared by Jasmine and Sarah can help agencies take a proactive approach to workforce planning and retention. If you missed the live session, don’t worry. You can watch the full webinar below.