The public sector, from local councils to government agencies, keeps our society ticking. It delivers essential services that people depend on every day.
However, employees working within the sector are facing mounting challenges, leaving many feeling overworked, undervalued and disengaged. The impact of these struggles on public sector employee engagement is profound, with implications for both employees’ wellbeing and the effectiveness of public services themselves.
Related: How to boost employee engagement in 2025
From tight budgets to outdated processes, here are the top five factors negatively impacting public sector employee engagement — and what organisations can do to address them.
Budget constraints are a long-standing issue in the public sector, with many organisations forced to deliver the same — or increased — levels of service with fewer resources. This has led to widespread resource shortages, creating an environment where employees are under constant pressure to “do more with less.”
It’s no surprise that so many public sector employees report feeling close to burnt out, with excessive workloads cited as a major contributor. This relentless pressure not only diminishes productivity but also erodes morale, leaving employees disengaged and at risk of burnout. Our benchmark data shows that 31% of local authority employees feel unable to balance work and home life.
Listening to employees is the first step to keeping them engaged and motivated. Employee surveys provide insights into how resource gaps impact workloads and can guide leaders in prioritising investment or operational changes to reduce strain. By addressing these concerns, organisations can take meaningful steps to improve engagement in this sector.
Navigating red tape is often an unavoidable part of working in the public sector. While some bureaucracy is, of course, necessary, overly complex processes and rigid structures can leave employees feeling frustrated and powerless. Administrative burdens can also take valuable time away from core tasks.
Employees in the public sector frequently identify inefficient systems as a significant barrier to employee engagement. Streamlining workflows, adopting automation tools and empowering employees to propose process improvements can make a real difference. Leaders who encourage innovation and actively work to simplify procedures help create a more engaging and productive environment.
Pay stagnation and job insecurity are persistent challenges for public sector employees, often made much worse by political and economic instability. Recent industrial action across public services highlights just how dissatisfied many employees are with pay levels and the lack of assurances around job stability.
This uncertainty has a direct impact on public sector employee engagement. When employees feel financially undervalued or unsure of their future, it becomes difficult for them to remain motivated and committed to their roles.
While systemic pay issues may be outside the control of individual organisations, leaders can still take steps to rebuild trust and engagement. Transparent communication about pay and job decisions, coupled with efforts to offer non-financial rewards such as flexible working or professional development opportunities, can help employees feel valued and supported.
Related: How to build trust in the workplace: 12 strategies for 2025
Recognition and development are key drivers of public sector employee engagement, yet they’re often overlooked. Many employees enter the sector motivated by a strong sense of purpose, but without regular acknowledgment or opportunities for growth, even the most committed individuals can lose their enthusiasm.
Our benchmark data shows only 22% of central government employees say that their performance and contributions aren’t being appropriately recognised or rewarded. On top of this, only 44% say that their career aspirations are currently being met. And while they generally enjoy their work and environment, this ultimately means that they are much more likely to jump ship with in a few years, to explore different opportunities and to advance in their careers.
All of this highlights the urgent need for organisations to invest in training, mentoring and other development programmes that support employee growth.
When it comes to recognition, even small gestures can go a long way. Something as simple as a thank-you email or public acknowledgment of achievements can help to really boost morale. When employees feel their contributions are appreciated, they are more likely to stay engaged and motivated.
The mental health of public sector employees is a growing concern. Recently, we’ve seen mental health sick days surge in the public sector, with NHS staff and prison and council workers taking more than three times more time off than their private sector employees. This isn’t because public sector employees are unreliable or dispassionate about their work — they are simply coping with a lot. They have a lot on their shoulders and for many, their work is life-or-death, which is an extreme pressure to cope with. For most, factors such as high workloads, lack of resources and the emotional demands of public service roles contribute to this alarming statistic.
Poor mental health has a ripple effect on public sector employee engagement. Employees who are struggling are more likely to be absent, disengaged or leave their roles entirely, compounding the challenges faced by already stretched organisations.
To address this, organisations must prioritise mental health and employee wellbeing. Offering resources such as counselling services, training managers to support mental health and creating an open culture where employees feel comfortable discussing their struggles can all make a huge difference. When employees feel their wellbeing is supported, their engagement and commitment to their roles improve significantly.
The challenges impacting public sector employee engagement are both significant and complex, but they are not insurmountable. By listening to employees through staff surveys and by using tools such as 360 feedback, organisations can gain valuable insights into the root causes of disengagement and take targeted action to address them.
For public sector organisations, improving engagement isn’t just about making life better for employees — it’s about ensuring the delivery of high-quality services to the public. Engaged employees are more productive, innovative and resilient, helping organisations meet their goals even in challenging times.
Public sector employee surveys provide the data you need to take meaningful action and create a more engaged, motivated workforce. Contact us today to learn more about what drives engagement in your organisation.
