Across the United States, government agencies across both federal and state, local, and education (SLED) sectors are facing a perfect storm:
- Critical talent shortages
- An aging workforce
- Outdated technology
Taken together, these challenges threaten the public sector’s ability to deliver essential services to their communities.
Luckily, there is a path forward.
Technology, when paired with a people-first approach, can help agencies overcome these challenges, attract (and retain!) top talent, and deliver better outcomes for the people they serve.
The Workforce Crisis in Government
Public sector leaders are navigating a workforce crisis that spans every level and sector of government operations. Education and healthcare shortages might dominate the headlines, but they aren’t the only government entities struggling to recruit and retain qualified professionals.
This crisis is compounded by demographic shifts and aging infrastructure, making it harder to maintain continuity, deliver services, and respond to emergencies. Understanding the scope of these challenges is the first step toward building a resilient, future-ready workforce.
Chronic Shortages Across Sectors
In areas like K-12 education, healthcare, and IT, the public sector faces persistent shortages in both specialized and high-volume roles. Teacher shortages, nurse vacancies, and a lack of cloud/AI specialists slow down operations and progress.
Burnout and a skills gap aren’t the only reasons for talent shortages.
Aging Workforce
A disproportionate number of government employees are older and nearing retirement age. While exact numbers can be hard to find, two different sources indicate an aging workforce.
Publicly available data shows that in FY2023, 42.5 percent of federal employees were aged 50 or older. In addition, the 2025 State and Local Government Workforce Survey found that 46 percent of respondents anticipate a large wave of retirements in the next few years.
Taken together, it’s clear the public sector needs to prepare for the loss of institutional knowledge as large numbers of employees retire over the next decade.
But people aren’t the only age-related concern in the public sector.
Outdated Technology
Legacy systems are expensive to maintain—and they’re a barrier to progress.
An even greater concern? The vulnerability to cyberattacks. In recognition of this ongoing threat, the U.S. Government Accountability Office (GAO) has designated information security as a government-wide high-risk area since 1997. GAO also shared that federal agencies reported 32,211 information security incidents in FY2023.
But federal government agencies aren’t the only ones at risk of cyberattacks. According to the Cybersecurity & Infrastructure Security Agency (CISA), “For K-12 schools, cyber incidents are so prevalent that, on average, there is more than one incident per school day.”
Without modernization, agencies risk more than just falling behind.
Modernize the Hiring Process
Hiring in government is often slow, manual, and burdened by red tape. But it doesn’t have to be. With IT modernization, agencies can streamline recruitment, reduce time-to-hire, and improve candidate experiences. Technology can accelerate hiring without sacrificing the human connection that makes public service meaningful.
While modernization in government requires an upfront investment, the benefits over time—like increases in efficiency and retention—greatly outweigh the costs.
Digitize Hiring Workflows
A digitized hiring workflow replaces manual, paper-based processes with integrated digital platforms that streamline every step. Examples include:
- Job postings
- Application intake
- Candidate screening
- Document management
- Onboarding
Digitizing the hiring process decreases the overall hiring time and speeds up service delivery, allowing public servants to focus on their mission—not paperwork.
Insight Global worked with one state agency to digitize their hiring workflow. The result? Time-to-hire dropped from 54 days to 12 days, and they cut backlogs by 80%.
Use AI to Screen and Match Candidates
AI tools can analyze resumes and match applicants to roles faster. Predictive analytics help identify high-retention candidates.
Our 2025 AI in Hiring Survey asked hiring managers how they utilize AI. Here are the most common responses.
92%
for screening resumes or pre-screening interviews
75%
for scheduling interviews
57%
for skills assessment
54%
for creating ads for open roles
But our survey also found that human connection is still critical.
Ninety-three percent of hiring managers agree that AI is a useful tool in the hiring process, but not a substitute for human decision-making. Furthermore, 100% of our respondents believe in the importance of human involvement in parts of the hiring process to ensure the application experience feels more personable.
In short, technology should enhance—not replace—the human connection in hiring.
Integrate Technology into Onboarding
Another way to modernize the hiring process is to digitize onboarding. Agencies can use secure online platforms to manage everything from new hire paperwork to background checks. Automated reminders and compliance tracking ensure nothing falls through the cracks. With on-demand training modules, new hires can get up to speed quickly.
Technology-enabled onboarding reduces manual errors and accelerates time-to-productivity, making it easier for agencies to welcome and retain top talent.
But new hire productivity isn’t the only positive outcome from better implementation of technology in federal and SLED entities.
Boost Productivity
Once talent is hired, agencies must ensure their teams are empowered to succeed. Technology can reduce burnout, improve training, and enhance service delivery—especially in high-pressure environments like education, healthcare, and emergency response. The right tools can help public servants do more with less, without compromising quality or care.
Automate Routine Tasks to Reduce Burnout
Automation can handle repetitive tasks, freeing up staff for higher-value work and reducing burnout. This is especially critical in high-pressure environments like education and healthcare.
We worked with one school district to integrate AI-based lesson planning tools, resulting in a 40% reduction in prep time for teachers. This helped retain staff who were otherwise on the edge of quitting.
Enhance Learning and Development
Technology-enabled learning platforms and virtual training modules help agencies upskill staff quickly and efficiently. These tools allow employees to access personalized learning paths, track their progress, and complete required certifications on their own schedule. As a result, agencies can close skills gaps faster and adapt to changing workforce needs.
Improve Service Delivery with Smart Tools
Smart tools enable real-time data sharing and collaboration across departments, improving decision-making and service quality. For example, chatbots and virtual agents manage citizen inquiries, while predictive systems optimize resource allocation and response times. By leveraging these technologies, public sector entities can deliver faster, more responsive support to the communities they serve.
Modernize Your Tech and Talent Strategy with Insight Global
Government agencies today face a unique set of workforce challenges, from talent shortages to outdated technology. But with strategic IT modernization, government entities can streamline the hiring process and improve productivity, allowing public servants to accomplish more with less.
Modernizing your technology and talent strategy doesn’t have to be overwhelming, especially with a partner like Insight Global. Together, we help public sector organizations build resilient teams, embrace innovation, and deliver better outcomes for the communities they serve.
Contact us today to find out what Insight Global can do for you.
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