Local government and small business face similar changes in the workplace

Everyone acknowledges that the world of work is being disrupted by new digital advances, cross-generational workplaces, a war for talent and increased regulatory pressures. For local government these changes are equally prevalent. Many local councils could be said to be operating like small businesses. They are accountable for revenue and costs, innovation and digitisation, as well as meeting the increasingly sophisticated needs of their ratepayers. And this is occurring at a time when budgets are constrained and the mantra of “doing more with less” is the new norm.

All businesses need a roadmap for transformation and local government is no exception. This roadmap encompasses both organisational strategy requirements as well as talent acquisition demands.

Just like any other small business, it’s important for council leaders to communicate clearly and identify both the positive and negative issues that will shape their future workforce and deliver on business objectives. This will include identifying how much work can be delegated to AI, for example, and how the “people” element of the workforce can be integrated into this new order.

In many SMEs, AI is now being incorporated into the workplace, resulting in an unprecedented situation of people and machines co-existing.

This also applies to local government. There is the opportunity to convert repetitive tasks from humans to chatbots which will continue to increase. Chatbots are perfect for responding to frequently asked questions or handling mundane tasks, such as helping you pay your dog licence online, or telling you when your next hard waste rubbish collection will occur.

Many businesses are finding that freeing up employees to concentrate on more creative work will become increasingly commonplace. And like SMEs, councils will have to manage this change carefully: the rise of robotics could spark a fear of job losses. It’s important for local councils to take their people along the transformation journey with them, so everyone understands their role and any changes, including up-skilling, related to it.

The disruptive market means job descriptions become increasingly fluid – in other words, employees should recognise that the job they are doing now may not be the one they are doing in 12 months’ time. It also means that talent can be outsourced and freelancers, contractors or consultants can be brought in temporarily to fulfil certain tasks that cannot be met in-house.

Diversity of thinking is also crucial to ensure that councils, like any other business, remain competitive and constantly coming up with new ideas. In order to facilitate this, councils should address the performance management environment and explore ways to measure and reward performance, within the legal and regulatory constraints, that will keep people focused and engaged. Monetary reward is important, but it’s not the only factor.

As social commentator Simon Sinek says, it’s all about the “why.” Employees who embody the “vision” of an organisation will be driven not simply by financial gain but a genuine desire to help the community. Being connected to a common purpose is inspiring and fulfilling.

This is especially pertinent to councils, as they are the closest level of government to the community. Everyone – ratepayers and employees alike – benefits from this streamlined approach.

Toni Jones, Partner and Local Government Lead, KPMG Enterprise