What the Public Sector Can Teach Us About Retention, Even When It Gets It Wrong

Introduction

The 2025 Cyprus Market Report, published by the Cyprus Institute of Marketing (CIM), shines a light on a critical and often overlooked workforce issue: public sector job dissatisfaction.
Despite the perceived stability of public employment, a large segment of public sector workers report feeling unmotivated, underutilised, and frustrated.

As employers across the private sector in Cyprus compete for talent, this research serves as a timely reminder: retention is about more than contracts, it’s about culture.

What the Research Says

In a dedicated section titled “The effect of management change on job satisfaction in the Public Sector in Cyprus”, the study reveals that:

  • Employees feel promotions are rarely based on merit
  • Innovation is discouraged
  • Skills are underutilised
  • Satisfaction with progression, engagement and recognition is low

 

And yet — turnover remains low. People stay.

Why Do They Stay?

The research identifies three core reasons:

  • Job security: Layoffs are rare and contracts are stable
  • Pension benefits: Still considered superior to most private schemes
  • Predictable schedules: Favourable hours and public holidays

 

For many, the certainty outweighs the frustration.

What Employers Should Learn

While the public sector can absorb disengagement due to structural protection, the private sector cannot.
To attract and retain high-performing professionals, companies must:

  • Recognise performance and promote based on merit
  • Create environments that value initiative
  • Empower skilled professionals to do meaningful work

Final Thoughts

This research may focus on the public sector, but the lessons apply to all of us.
If we want to build competitive teams in Cyprus, we must ensure the right people aren’t just hired – they’re engaged, progressing and valued.

Credits

“The effect of management change on job satisfaction in the Public Sector in Cyprus”
Authors: M. Socratous, C. Vassou, G. Vrasythoulou
Published in: 2025 Cyprus Market Report on the Labour Market
Publisher: Cyprus Institute of Marketing (CIM)
Read the full report here

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