Human resource management in the public sector. The challenges of the Industry 4.0

Purpose: The aim of the article is to present the issues of underinvestment of public administration bodies and its impact on problems related to human resource management. The article presents the consequences of underinvestment in public administration and other organisations in the budgetary sphere. The inference was based on the example of one of the state institutions. Design/methodology/approach: Ethnographic research methods were used in the project. 51 interviews were collected based on a partially structured scenario. The survey was conducted in 17 public administration units (with employees of various management levels and regular employees) and among the recipients of these offices. Findings: The research results clearly show the devastating effect of low wages on employee motivation. The collected field material indicates the specific negative consequences of under financing in the entire area of human resource management. Research limitations/implications: Despite the significant scale of the diagnosed problems, the authors are aware that it will be difficult to implement the recommendations formulated in the text in conditions of high inflation. However, in order to avoid the diagnosed risks, the strength of the remuneration offered should be taken into account at the stage of designing the institution's budgets. We are also aware that there are significant income inequalities within the public sector, so our recommendation should not be treated as a one-size-fits-all solution. Practical implications: The implementation of the proposed solutions in the examined institution may significantly improve the involvement of employees. It will also have a positive impact on their overall motivation to work. The effect of these actions can positively affect many processes taking place in the organisation. Overall the image might improve. Social implications: Practical changes could improve the image and prestige of the organisation. Moreover, changes might increase the social awareness and responsibility which is crucial for the public institution. Originality/value: The problem of under-financing of the public sector is not new, but its value comes from the conditions of a overheated labour market in Poland, which raises many new, unprecedented risks for public sector organisations.