Leadership Talent Gaps and Organisational Culture: Key Challenges for Local Government CEOs in 2024
In the 2024 Australian Local Government CEO Index, leadership, people, and culture remain top priorities for council CEOs across the nation.
As local governments continue to navigate the complexities of a post-pandemic world, these elements have become increasingly vital in shaping the future of public sector leadership.
Leadership Talent Gaps
Leadership talent gaps and the challenge of finding employees with the right skills are significant concerns for most CEOs, as highlighted in the 2024 Index. The struggle to fill specialised roles—such as building surveyors, inspectors, engineers, planners, and senior management professionals—remains persistent. Nearly a third of CEOs (32%) expressed strong concern about leadership talent gaps, with an additional 54% indicating they were somewhat concerned. These concerns are compounded by the significant turnover in leadership, as many long-serving CEOs have recently concluded their tenures, taking with them a wealth of industry experience and knowledge.
Clare McCartin, Managing Partner of Davidson, emphasises the gravity of the situation, noting that “the sector is going through a significant changing of the guards.” These past two years we have seen a significant number of local government CEOs depart the sector or retire after long-standing tenures, resulting in the loss of in-depth industry knowledge. This runs parallel with one of the largest wars on good talent the sector has seen in some time and corresponds with 87% of CEOs telling us they are concerned about leadership talent gaps in the next 12 months.
Cultivating Organisational Culture
A strong organisational culture is the bedrock of effective leadership and employee satisfaction in local government. However, the Index reveals significant challenges in this area. Despite their efforts to foster leadership and strengthen organisational culture, many CEOs express concerns about the behaviour of elected officials and feel a lack of support. Around half of the survey respondents said they wanted the opportunity to participate in a CEO support network, almost double the responses for the next most popular opportunity - seeing what other local government areas are doing nationally and overseas.
The pandemic's impact on employee wellbeing presents a mixed picture. While 32% of CEOs observed positive effects, 49% believed the impact was negative. A significant challenge has been balancing flexible work arrangements with the operational needs of councils. With 62% of staff working three or four days in the office, managing expectations and maintaining a cohesive organisational culture has become a major point of friction.
As the sector faces these challenges, the importance of cultivating a culture where aspiration thrives cannot be overstated.
Discover more insights from over 170 local government CEOs. Download the full 2024 Australian Local Government CEO Index here.
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