The Withering Work Force

The numbers are stark. Nearly one-third of state workers are over the age of 50. On average, 27 percent of state IT workers are expected to retire within five years (the percentages are even higher for federal and local government). 

When Public CIO magazine polled its readers last year, worker retention was rated one of the most difficult issues facing chief information officers today.

And the reasons the problem ranks so high are clear, according to a newly published survey by the National Association of Chief Information Officers (NASCIO): State IT Workforce: Here Today, Gone Tomorrow? Not only are the numbers of potential retirees disturbingly high, but most states have seen a decrease in IT applicants in the past five years, and yet few are taking action to change the situation. The survey, conducted in June 2007, received responses from 46 states.

Some highlights:

• 37 percent of respondents saw a decrease in IT applicants over the past five years. Less than 24 percent reported an increase.
• More than 93 percent of responses indicated their state was not offering incentives to postpone retirement. For IT workers, the situation was even worse: More than 95 percent of the respondents said their state offered no incentives to keep IT staff.
• 80 percent are having difficulty filling vacant IT positions.
• 54 percent said the recruiting problem was "hindering" their state's ability to achieve its strategic IT initiatives.
• More than 60 percent are not confident they can promote from within to replace workers who retire.

When it comes to recruiting new workers, state CIOs realize they have something to offer: an attractive benefits package that outshines what the average private-sector worker can expect. And state CIOs believe they have more workplace flexibility to offer potential workers, as well as challenging work once the recruit starts the job.

But those benefits come at a price. The public sector's civil service system, with its rigid hiring process and emphasis on seniority, is seen by the majority to be an impediment to outside recruitment. And salary rates, especially for IT workers, just don't match what the private sector can offer.

Given all these problems, you would think state CIOs would turn to contracted IT workers to fill the gap. But the response was mixed, with just 39 percent saying they had increased the use of contracted workers, while more than 30 percent said the numbers had actually decreased.

Nor is outsourcing seen as the answer. A solid majority (59 percent) indicated that outsourcing will play a very little part in their state strategy. Where outsourcing is likely to occur is in the area where state IT organizations are at their weakest in terms of skilled workers: Web and application development and support.

As a survey, the report provides little in the way of practical solutions to the problem. But it highlights a serious challenge that exists throughout the public-sector IT work force.

Some CIOs are thinking outside the box to find and attract new workers. In Missouri, Dan Ross and his executive IT team created a virtual presence in Second Life, the online world, in hopes of attracting attention among young professionals. The state of Delaware moved its IT professionals outside of the civil service system, offering them more pay based on performance. And Virginia and Texas have used variations of outsourcing to work around the problem.

But for the majority of public-sector CIOs, the work force problem is gathering strength and can no longer be ignored. The NASCIO report speaks of a "troubling future" that includes CIOs having to drop standards in order to hire more workers, and facing further delays in the deployment of critical projects. It's not a pretty picture.