Complex Payroll Meets Rising Turnover Costs in State and Local Government

State and local government payroll is a different game. While these agencies face many of the same challenges as private-sector organizations, they also face unique ones. These include the specific compliance requirements of Generally Accepted Government Auditing Standards (GAGAS), heightened data security requirements, and tight budgets. But the complexity doesn't stop there. The workforce itself adds another layer.

For example, public-sector employees are more than five times as likely to belong to a union as their private-sector counterparts, resulting in multi-tier pay structures and bargaining requirements that add complexity and demand precision.

On top of this, almost half of state and local HR managers expect to see more retirements in the coming years — yet 61% of agencies have no succession plan in place. And with average turnover costs now exceeding $45,000 per employee, every vacancy hits harder.

All these challenges are magnified by legacy HR systems that rely on file transfers between disconnected platforms. Every transfer introduces risk — to data security, to accuracy, and to audit readiness — at a time when state and local agencies can least afford it.

For agencies already using Workday, OneSource Virtual (OSV) offers Workday-native solutions across payroll, benefits, and accounts payable. Our services are delivered directly within your Workday tenant, so your HCM data stays where it belongs. Our team handles the complexity so yours can focus on the work that matters most to your community.

Download the infographic to see the data behind state and local government's toughest workforce challenges and how the right Workday-native partner can help.