Government departments must strengthen workforce planning to ensure digital transformation and AI deliver lasting improvements to public services, according to a new report from the National Audit Office (NAO).
The report, Government Workforce Planning – Lessons Learned, argues that workforce planning should be treated as a strategic management discipline rather than an HR function, helping departments improve productivity, build resilience and manage staff costs more effectively.
Drawing on findings from previous NAO work across government, the report identifies eight lessons for departments, including using workforce planning to identify productivity gains, understanding future skills requirements, improving workforce data and embedding workforce planning into wider organisational decision-making.
The NAO warns that workforce planning has become increasingly important as public services face rising demand, constrained public finances and rapid technological change.
Workforce planning should drive productivity
A central message of the report is that departments should use workforce planning proactively to understand how services and roles will need to change, rather than simply responding to staffing pressures as they arise.
The NAO says workforce planning should help organisations identify where productivity improvements can be achieved, support better decisions about recruitment and retention, and ensure workforces are aligned with future service delivery requirements.
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The report also highlights the importance of understanding future capability needs, particularly as technology changes the way public services are designed and delivered. It says organisations should develop a clearer picture of the skills they will require and plan how those capabilities will be built over time.
Better data needed for better decisions
The report identifies workforce data as another area requiring improvement.
According to the NAO, organisations need reliable workforce information and stronger analytical capability to understand their current workforce, forecast future requirements and assess the impact of workforce decisions on service delivery. Better data can also support more effective planning around recruitment, retention, training and succession.
The watchdog adds that workforce planning should not take place in isolation, but should be integrated with business planning, financial planning and wider organisational strategy to ensure departments have the people and skills needed to meet their objectives.
Recent government initiatives, including the Blueprint for Modern Digital Government, the evolution of the Service Standard and the expansion of AI across the NHS, have all emphasised the need to redesign services alongside technology adoption. The NAO report suggests workforce planning will be equally important if those programmes are to deliver sustainable improvements in productivity and public service outcomes.
