Staffing vacancies in public agencies are undeniably a pressing issue. When positions remain unfilled, current employees must take on additional workloads, often resulting in burnout, lower morale, and diminished service quality. These challenges impact employees and the public’s trust in government operations. California’s Assembly Bill 2561, effective January 1, 2025, aims to address persistent staffing vacancies in public agencies and introduce greater transparency in public sector staffing by mandating annual disclosures of workforce data. Proponents argue that these measures will help public agencies confront staffing shortages more effectively. Yet, questions remain about whether the law will deliver the intended results without imposing additional burdens on agencies.

AB 2561 mandates that public agencies present data at public hearings before finalizing their budgets, aiming to create a forum for accountability. During these hearings, agencies must disclose staffing levels, vacancy rates, recruitment data, and employee retention data, as well as a report on a review of policies and practices that may hinder hiring and employee retention. Additionally, for agencies with vacancy rates that exceed 20% in a single bargaining unit, AB 2561 requires extra data tracking. AB 2561 requires agencies to provide employee organizations with an opportunity to participate in public hearings. Including employees and bargaining units in public discussions about staffing challenges could foster collaboration and provide valuable insights.

This new law will also require many agencies to rethink how they collect and store data related to approved position allocations, recruitment, hiring, and employee retention. Many small cities and special districts do not have human resources staff, let alone savvy human resources information systems. Compiling these reports may drive them to invest in expertise and new systems to achieve compliance.

The implications of AB 2561 are significant for many government agencies. Many agencies have historically relied on “vacancy savings”—the practice of using unspent salary funds from unfilled positions to balance budgets. While AB 2561 may promote accountability around this practice, it does not address the structural funding gaps that drive it.

Ultimately, AB 2561 represents an effort to address staffing issues in California’s public sector, but its effectiveness will depend on how well agencies can implement its requirements. While compliance with AB 2561 might seem daunting, understanding where your organization stands is the first step.

Once the current status is identified, organizations have a choice about strategy. Simply complying with the data reporting requirements may not result in progress. By collecting and analyzing the right metrics and working collaboratively to obtain insight from employees, many organizations will learn that being an employer of choice is not all about salary.

Agencies will have to scrutinize their recruitment, hiring, and retention strategies and ask themselves:

• What are the bottlenecks in our organization’s recruitment and hiring processes?
• Are we an employer of choice in our region? If not, what can we change to become one?
• Does our workplace culture encourage employees to stay?
• What is unique about our working conditions?
• Does our organization regularly survey salary and benefits in our region?
• Can we improve the employee offerings without breaking the budget?
• Are we collecting the correct data to understand these questions and make good decisions about where to spend our efforts and money?

Organizations that take this opportunity to learn and improve can lower vacancy rates and increase employee retention. Will change happen overnight? No. Sustainable change takes time and Human Resources expertise is key. Becoming and continuing to be an employer of choice requires ongoing effort. Agencies that commit to improving organizational culture, employee engagement and retention efforts, recruitment processes, and hiring practices will shine.

Fanni Acosta | Human Resources Service Line Lead