The Public Sector Retirement Wave
By Eileen O’Brien Shaw, SPHR- SHRM-SCP
Public sector agencies can’t afford to wait. The retirement wave is real and thousands of public sector employees are approaching retirement age. Like many people functions, HR in state and local governments face mounting pressures to modernize how they attract, engage, and retain talent.
Think of your workforce as a relay team, each member carrying forward strategy, culture, and service. When one prepares to step away, it’s not just a transition, it’s a test of preparedness. Without a trained successor ready in the exchange zone, the handoff falters, and organizational momentum slows. Succession planning isn’t just smart; it’s mission critical.
Succession planning is the warm-up before the sprint. Developing internal talent ensures leaders are ready the moment the transition begins, not scrambling mid-race. While the urgency is clear, many agencies still prioritize daily operations over preparing for the inevitable: turnover. And in this case, it’s not just possible, it’s predictable. Public sector organizations must become more agile and intentional, refusing to wait until the final stride to pass the baton.
When agencies fail to prioritize succession planning in the face of the retirement wave, they invite a form of organizational drag that slows decision-making, disrupts service delivery, and erodes institutional memory. As seasoned employees exit without a structured knowledge transfer or leadership development, teams are left scrambling to fill gaps, often relying on external hires who require more time to ramp up or interim fixes that lack strategic continuity. This reactive process drains resources, stalls momentum, and undermines employee morale. The result isn’t just operational inefficiency; it’s a loss of strategic velocity at a time when public sector organizations need to be more agile than ever. And while recent layoffs may have flooded the market with applicants, public sector agencies, already grappling with a slower hiring cycle and onboarding timelines, struggle to compete with the private sector’s compensation and perks, making it all the more critical to think ahead; because in this race, if you’re not preparing your next runner, you risk falling behind before the baton is even passed.
Succession planning is the strategic conditioning that keeps any organization in peak form, ready to run its race without stumbling. It builds leadership continuity, preserves institutional knowledge, and ensures that when one runner finishes their leg, the next is already warmed up and aligned with the pace. By developing internal talent, agencies reduce disruption, boost morale, and maintain momentum on long-term initiatives. It’s not just about filling a vacancy, it’s about keeping the team in stride, minimizing handoff delays, and staying competitive in a race where agility and foresight determine who crosses the finish line with purpose.
Forward-thinking agencies know that timely succession planning fuels innovation, ensuring fresh ideas and leadership perspectives are always ready to enter the race. By developing internal talent, agencies minimize the high costs and long ramp-up times of external hires, allowing resources to be reinvested into strategic priorities. It also boosts employee engagement and retention, elevating the overall employee experience, as employees see a clear path forward and feel valued as a part of the team’s success.
In some large agencies, over 40% of the workforce is eligible for retirement, a potential disruption that could shake the foundation of service delivery and institutional continuity. Is your agency ready for that shift? Has it built a proactive strategy to offboard seasoned talent while onboarding the next generation through structured planning and purposeful development? Without it, the team bench thins, and instead of passing the baton, agencies find themselves chasing after the pack, playing catch-up in a race they should have been leading.
Fractional Source understands the unique dynamics facing public agencies, especially as the retirement wave accelerates and seasoned talent exits in record numbers. We take a hands-on approach to help agencies spot critical gaps, craft forward-thinking strategies, and build continuity plans that hold up under pressure. From offboarding legacy contributors to preparing the next generation of talent, we guide every step of the transition process with precision ensuring the baton is placed firmly in ready hands, so your team stays on pace, mission-focused, and built for the stretch ahead.