From vision to reality
Department of Service and Innovation Annual Report 2025
Operational milestones
Award
Reykjavík City's Department of Service and Innovation won the Ský IT Award for best public digital service. The award recognized the Department's achievements and projects during 2025. The awards are given annually to solutions that stand out in digital development and services. This prize recognizes the city's robust and ongoing digital transformation guided by user-centered service design and data-driven approaches.
In its official statement, Ský noted:
The Department of Service and Innovation is at the heart of Reykjavík City's digital transformation, guided by service design, user-centered development, and data-driven decision-making. The department has simplified processes, increased accessibility and strengthened cross-functional collaboration, ensuring residents receive high-quality and efficient services.
In 2025, the department developed and implemented numerous digital solutions that improve continuity and self-service while shifting staff time from administration to creating value for service users. Notable examples include Veita, a unified financial assistance application system; SkólaBúa, which supports children's prosperity; a user-friendly AI assistant on the web that has significantly reduced the load on the service center; and the introduction of a digital workforce that handles repetitive tasks automatically.
International coverage
Reykjavík City captured international attention in October 2025 when Forbes published Jonathan Reichental's article "What Every City Can Learn From Reykjavik's Digital Transformation."
The piece held up Reykjavík City's digital transformation as a model for other municipalities, highlighting its commitment to user-centered services, digital administration, and the purposeful use of technology to improve services for residents.
International engagement
The Department of Service and Innovation actively participated in international conversations about urban digital transformation throughout the year. Department representatives shared Reykjavík City's experience with the inaugural Bloomberg LSE European City Leadership Initiative cohort in Berlin, discussing how to measure innovation impact and use data and service design to rethink city services and build a Better City for Children.
The department also attended the Smart City Expo World Congress in Barcelona, where a Reykjavík City representative joined a UN-Habitat panel on using digital innovation to improve access to housing and services.
Staff representatives and city councilors collaborated through the Cities Coalition for Digital Rights, a network Reykjavík City has supported for several years. The coalition focuses on the role cities play in safeguarding residents' digital rights, privacy, equity, and democratic accountability when introducing new technology.
Human resources
Strong workplace culture and active communication
Throughout 2025, the Department prioritized strengthening workplace culture, improving information flow, and boosting staff engagement. Staff meetings became an established communication and collaboration forum, with a goal of holding four annual gatherings to review the Department's key projects, results, and priorities.
The department also ran the staff satisfaction survey Púlsinn (The Pulse) several times throughout the year to gauge employee well-being. The positive results showed that staff experience a supportive work environment and find satisfaction in their jobs.
Great Place to Work®
The Department achieved an exemplary result in the 2025 Great Place to Work® assessment. Great Place to Work® is an international certification program that evaluates workplace culture based on employee experience and the management practices shaping the work environment.
The Department of Service and Innovation ranked second on the 2025 Great Place to Work® list of best workplaces in Iceland. Based on a confidential staff survey, the recognition reflects a strong workplace culture defined by trust, respect, collaboration, and a positive employee experience.
Best Workplace for Women™
The Department also earned a place on Iceland's Great Place to Work® Best Workplaces for Women™ list.
This recognition honors organizations that excel at creating work environments where women experience equality, fairness, and opportunities for professional growth. The assessment draws on anonymous staff responses and an analysis of workplace culture, leadership practices, and organizational values.
Earning this distinction reflects the department's ongoing commitment to equality, inclusion, and a work environment where everyone can grow and thrive.
Staff education and development
Staff education and development remained a priority throughout the year. Standout initiatives included:
- Communication skills training for staff
- Targeted onboarding education to smoothly integrate new staff
- Regular education and knowledge-sharing sessions that support professional development and build expertise across the department
Professional development day 2025
The Department of Service and Innovation held its annual professional development day on Oct. 2. The successful event featured strong staff participation, a positive atmosphere, and a varied program of activities that strengthened cohesion and collaboration across the department.
Diversity and inclusion
The Department continued to prioritize diversity and inclusion in the workplace. On May 16, the department marked the International Day Against Homophobia, Biphobia, and Transphobia with rainbow waffles and an educational talk for staff. Through such events, the department works to foster respect, visibility, and a work environment where everyone feels welcome and can be themselves.
Staff health promotion and welfare
The Department of Service and Innovation is committed to building a workplace where staff well-being comes first. Central to that commitment is offering various programs supporting health, culture, and sustainable transportation.
In 2025, staff took advantage of the following programs:
- Wellness support: 90 employees
- Sustainable commuting incentive: 69 employees
- Reykjavík Card (pool and Culture Card): 159 employees
This strong participation reflects staff interest in wellness, physical activity, and cultural engagement, supporting the department's goal of fostering a healthy, diverse, and appealing workplace.
