Digital divide: ReadyTech research highlights need for improved online services in local government

26 November 2024 - Local councils need greater investment in online services to meet growing demand for better digital services, as new research from ReadyTech reveals a clear gap between what services are valued by community members and those prioritised by local government.

ReadyTech’s Customer Centricity Report 2024 shows community members are seeking faster, easier access to council services online. While 62% of community members accessed council services online in the past year, fewer than 50% of council executives believe their digital services are effective.

ReadyTech’s Chief Executive of Government and Justice, Daniel Wyner, said the findings highlight a lack of alignment between the views of communities and councils regarding key digital services.

“While councils prioritise internal functions such as payroll and financial reporting, the community wants easy access to information and streamlined digital services,” Mr Wyner said.

“One function highly valued by the community is a single customer portal where they can complete all their interactions online, whether that’s paying rates, submitting development applications, registering pets or requesting asset maintenance.”   

More than two-thirds (69%) of community respondents said their council should invest in an online customer page or portal. In contrast, providing a customer portal was the least valued digital service by local government respondents (8%). 

“People are becoming accustomed to being able to manage all their interactions with a service provider in the one place. This is a user experience that’s standard in a lot of industries, but not in local government,” Mr Wyner said.

“There is an opportunity for councils to invest in digital services that are valued by customers and that will enable the council to better engage with and serve its community.”

The Customer Centricity Report 2024 is based on the results of two surveys, commissioned by ReadyTech, on the attitudes, issues and needs of both communities and councils in relation to local government service delivery, challenges, opportunities and technology use.

Both community and council respondents agreed that investment in online access to council services is the best way to engage and serve their community. Yet only 40% of council respondents said their council has a digital transformation plan.

“Councils need to be proactive about strengthening their digital services to keep pace with community expectations,” Mr Wyner said.

“There is a significant generational change happening and a large cohort of digital natives are becoming ratepayers and reaching a stage in their lives where they are engaging with their council.

“Our research showed councils face some challenges in delivering effective digital services, including cost, outdated systems and software, and staffing. This highlights the need for strategy and investment in technology that improves community connections and interactions.

“The purpose of councils is to serve their communities and investing in digital transformation will enable them to do this better. By providing positive user experiences in areas that matter to customers, councils can create more connected, engaged and satisfied communities.”

ReadyTech Co-Founder and Chief Executive Officer Marc Washbourne said the research would help councils identify steps to improve digital access.

“By understanding community expectations and needs, councils are better placed to deliver useful and customer-focused services that make it easier for people to engage with local government,” Mr Washbourne said.

“Helping communities thrive is a core mission of ReadyTech and we’re proud to provide insights and information that can support this goal.”

Key findings from the ReadyTech Customer Centricity Report: Local Government Research 2024

  • The four most important online services council provides, according to community survey respondents, are property rates payment (80%); council payment processing (72%); an online portal for all interactions (70%); and a customer personal page or portal for bills, payments, properties and registrations (69%).
  • 56% of community respondents are quite or very satisfied with their council’s services overall, 32% are neutral, and 12% are quite or very dissatisfied.
  • The most valued functionalities as reported by Local Government Authority (LGA) respondents are property rates payments and information management; payroll management; payment processing; and financial reporting. The least valued is customers own personal page/portal.
  • Only 40% of the LGA respondents said their council has a digital transformation vision and strategy or plan, while 32% said their council doesn’t have such a strategy or plan. A further 28% of the LGA respondents don’t know if their council has such a strategy or plan, which indicates that if their council does have such a plan, it is not yet effectively embedded in their organisation.
  • The biggest challenges faced in terms of LGA digital delivery of effective community service and engagement are lack of financial and/or human resources (47% net); limitations and age of software systems/ICT (31% net); and lack of staff skills or expertise (26% net).

 

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About the ReadyTech Customer Centricity Report 2024

The ReadyTech Customer Centricity Report is based on the results of two separate surveys. In July-August 2024, Antenna Strategic Insights completed a survey of 1,022 ratepayers and renters in Local Government Authorities across Australia. Interface Research & Strategy interviewed 124 council executives and managers in August 2024.


You can download a copy of the report here.

 

About ReadyTech

ReadyTech is a leading provider of mission-critical SaaS for the education, employment services, workforce management, government and justice sectors. Bringing together the best in people management systems from students and apprentices to payroll, employment services, and community engagement, ReadyTech creates awesome technology that helps their customers navigate complexity, while also delivering meaningful outcomes. To learn more about ReadyTech's people-centric approach to technology, please visit www.readytech.io.

 

For more information, please contact:

Rebecca Magill

Head of Marketing & Communications, Government & Justice

+61 432 992 600

e. rebecca.magill@readytech.io