Digital Agility Becomes the New Gold Standard for APS Recruitment
In a significant shift for the Australian Public Service (APS), skills once considered optional extras have now become fundamental requirements for job seekers. Recruiters report that artificial intelligence (AI) proficiency and digital agility are making the difference between securing a role and being overlooked in today's competitive market.
From Bonus to Basic: The Evolving Skills Landscape
Brett Clarke, director for public sector at Randstad Australia, explains that the recruitment landscape has undergone a "significant transformation" away from traditional generalist expectations. "The new gold standard is digital agility," Mr Clarke emphasises. "For non-technical positions, public service clients now prioritise candidates with a digital-first mindset: demonstrating curiosity to learn and the ability to adapt seamlessly between new systems."
Skills that were previously viewed as advantageous additions – including data visualisation and prompt engineering – have become foundational for standard policy and project roles. "These aren't really 'bonus' skills anymore," Mr Clarke notes. "They're becoming part of the basic toolkit expected from applicants."
The Critical Skills Gap Revealed in Official Data
The 2025 State of the Service report from the Australian Public Service Commission (APSC) quantifies this emerging challenge. The data reveals:
- 79% of agencies with digital gaps identified cyber security as a critical shortage
- 53% could not find staff capable of building and training AI models
- Nearly half of all agencies struggled to find staff who could effectively "communicate data" to stakeholders
This skills shortage, combined with high volumes of generalist applications, has created what recruiters describe as a "two-speed" recruitment market within the APS.
Technical Demand Surges While Generalists Must Adapt
Matthew Kelly, ACT regional director for Hays, confirms that demand for specific technical capabilities has increased substantially. "We've certainly seen an increase across the board for technical skill sets," Mr Kelly states. "There's particularly strong demand within AI, cyber security, and cloud-based engineering roles."
However, for thousands of applicants targeting non-technical positions, the advice focuses on demonstrating "system resilience" – the ability to navigate software upgrades, system migrations, and technological implementations. "The most in-demand skill sets currently involve system resilience," Mr Clarke explains. "We see high demand for candidates who have successfully managed system migrations, software implementations, or HRIS/ERP upgrades."
Human Judgment Remains Paramount in Digital Transformation
Mr Clarke advises candidates to clearly specify which platforms they have used while also demonstrating understanding of technology's ethical boundaries. "Candidates should highlight that they understand the importance of human review of AI-generated content," he recommends. "The human element – including judgment, ethics, and empathy – along with role-specific skills requirements remains absolutely crucial."
Interestingly, the definition of "communication skills" has evolved alongside technological advancement. "We now tend to look at prompt engineering as a communication skill," Mr Clarke observes. "It's about a policy officer knowing how to effectively 'talk' to technical software to achieve optimal results, which significantly enhances overall efficiency."
Structural Barriers and Compensation Flexibility
Despite growing demand for digitally agile candidates, structural barriers persist within APS recruitment. Industry feedback indicates that security clearance processes – often requiring six to twelve months for NV1 or NV2 clearances – continue to hamper technical recruitment efforts.
Mr Kelly notes these delays frequently cause the APS to lose talent to the private sector. "The security clearance process represents a significant barrier," he acknowledges. "They do miss out on particular skill sets when private sector offers arrive before clearance completion."
For candidates who successfully navigate clearance processes while demonstrating required digital capabilities, compensation flexibility is increasing. APSC data shows 83% of agencies now use Individual Flexibility Arrangements (IFAs) to secure hard-to-find talent – a practice Mr Kelly describes as becoming "standard practice" for high-demand roles.
The Emerging Hybrid Candidate
The ideal "hybrid" candidate – combining digital literacy with traditional leadership capabilities – remains relatively rare in the current market. This scarcity creates opportunities for generalist applicants willing to embrace digital transformation.
"Non-technical candidates who demonstrate willingness to engage with new digital tools find themselves in a very strong position," Mr Clarke confirms. "While the market for technical specialists remains highly competitive, the gap is gradually closing for adaptable generalists who can showcase digital agility alongside their core competencies."
As AI adoption accelerates across government services, the message to APS job seekers is clear: digital skills are no longer optional advantages but essential components of professional success in the modern public service.
