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Home My WebLink AboutCC 2025-04-22_10a AB 2561 Workforce Vacancies ReportingItem 10.a. MEMORANDUM TO: City Council FROM: Ashley Garcia, Human Resources Officer SUBJECT: City Workforce Vacancies, Recruitment and Retention Trends Presentation (Assembly Bill 2561) DATE: April 22, 2025 RECOMMENDATION: 1) Conduct a public hearing regarding and receive and file the City of Arroyo Grande Workforce Vacancies, Recruitment, and Retention Trends presentation for the year ending December 31, 2024, to comply with Assembly Bill 2561; and 2) Find that the presentation about workforce vacancies, recruitment and retention trends is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.) IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The only cost associated with implementation of Assembly Bill 2561 (AB 2561) is the staff time associated with developing the report and presentation and interfacing with the bargaining units regarding presentations. Although AB 2561 created local mandates, it specifically precludes any reimbursement from the State for costs mandated by this act. BACKGROUND: Governor Newsom's signing of AB 2561 on September 22, 2024, introduced new annual requirements for public agencies to address and publicly report on staffing vacancies and recruitment and retention efforts. As part of this law, public agencies must also highlight hiring challenges and potential policy obstacles. If vacancy rates in a bargaining unit exceed 20%, agencies must provide further details on job openings, applicant numbers, hiring timelines, and strategies for improving compensation and working conditions. Additionally, employee organizations are given the opportunity to present their perspectives during these public hearings. This report outlines the City’s workforce composition, vacancies, and strategies to attract and retain employees. While recruitment and hiring remain top priorities, the City also focuses on long-term retention through employee recognition, internal promotion opportunities, and workplace improvements Page 66 of 98 Item 10.a. City Council City Workforce Vacancies, Recruitment and Retention Trends Presentation (Assembly Bill 2561) April 22, 2025 Page 2 such as alternative work schedules and professional development. All data collected is from the 2024 calendar year. At its April 8, 20251, meeting, the City Council adopted a Resolution adopting procedures for public hearings under Assembly Bill 2561 and directed staff to incorporate the procedure into the City Council Handbook. ANALYSIS OF ISSUES: There are four (4) bargaining groups (two represented and two unrepresented) at the City of Arroyo Grande, consisting of 86 authorized regular full-time equivalent (FTE) positions. For the purposes of vacancy tracking, staff excluded interns from the FTE count due to the transitory nature of the roles. To distinguish from the Personnel Summary included in the budget, the five members of City Council and contract City Attorney are also not included in the total position count for vacancy tracking. City staff also support the Human Resources function of Five Cities Fire Authority (FCFA); however, their agency-specific vacancy report will be presented separately to the FCFA Board of Directors on April 29, 2025. Table 1: Count of Regular Full- and Part-Time Positions by Bargaining Group as of December 31, 2024 City of Arroyo Grande Bargaining Group Position Count Service Employees International Union (SEIU) 29 Police Officers’ Association (POA) 27 Unrepresented Management Group 24 Unrepresented Part-time Employees1 6 Total 86 1Interns are excluded from this part-time position count to track vacancies, due to the transitory nature of the roles. Vacancies, Recruitment, Retention Vacancies Position vacancies are created for a few reasons, including when newly budgeted positions are approved, following internal movement such as a promotion or transfer, or when an employee leaves the organization due to retirement, voluntary resignation, or involuntary termination. When vacancies occur, it is a high priority for the Human Resources team and the City’s hiring managers to fill vacant positions to ensure continuity of services, maintain operational efficiency, minimize the need for overtime, and minimize disruptions to departmental functions. 1 https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=8e22fe14-5950-4a1e-96a9- f5e78b7b10e5&lang=English&Agenda=Agenda&Item=48&Tab=attachments Page 67 of 98 Item 10.a. City Council City Workforce Vacancies, Recruitment and Retention Trends Presentation (Assembly Bill 2561) April 22, 2025 Page 3 Timely recruitment and hiring efforts help the City sustain its workforce, meet community needs, and uphold service standards while also providing opportunities for internal growth and external talent acquisition. Although AB 2561 now requires staff to pre sent annually on the status of vacancies and efforts to recruit and retain staff, it has always been a priority for departments to fill vacancies as soon as reasonably possible. Throughout the 2024 calendar year, the City’s average vacancy rate across all bargaining units was 6.1%. The vacancy rate is calculated monthly as the quantity of vacancies divided by the quantity of positions. As of December 31, 2024, the vacancy rate for each bargaining group was below 20%: Table 2: Vacancy Rates by Bargaining Group as of December 31, 2024 City of Arroyo Grande Bargaining Group Vacancy Rate Service Employees International Union (SEIU) 6.9% Police Officers’ Association (POA) 3.7% Unrepresented Management Group 12.5% Unrepresented Part-time Employees 0% Citywide 7% Vacancies created in 2024 stem from a combination of factors, including resignations for employment opportunities elsewhere, retirements, unsuccessful completion of probationary period, and other personal reasons. In calendar year 2024, there was one retirement in the Unrepresented Management group and one retirement in the Police Officers’ Association bargaining group. Retirement is typically planned and predictable and is considered natural turnover which is excluded from avoidab le turnover and retention metrics. Recruitment and Retention The Human Resources team recognizes recruitment is about identifying, attracting, and hiring the right people, and retention is about keeping employees engaged, satisfied, and committed to the organization long-term. Both are critical for the success of the organization, especially in today’s competitive job market. In calendar year 2024, the City successfully filled 14 vacancies. The average amount of time to fill a regular vacant position was 117 days for external recruitment and 76 days to fill internally via promotion. The City received 220 job applications in 2024. While the City’s average vacancy rate during 2024 was 6%, hiring for certain regular positions remains a challenge. Contributing factors include the rising demand for talent in specific sectors, such as civil engineers and police officers, the high cost-of-living in the South San Luis Obispo County area, and its geographical distance from a major metropolitan center, which can limit the applicant pool. Page 68 of 98 Item 10.a. City Council City Workforce Vacancies, Recruitment and Retention Trends Presentation (Assembly Bill 2561) April 22, 2025 Page 4 To assist in recruitment and retention efforts specific to the Police Department, the City Council approved the Lateral Police Officer Recruiting Incentive Program in 2019. While these incentives come with a cost, the benefits of filled positions far outweigh the minimal expense. In 2024, the Police Department successfully hired 2 lateral Police Officers as a result of the incentive program. To reduce the time to hire and attract qualified applicants, staff is exploring recruitment process enhancements such as developing targeted marketing flyers, expanded use of social media to promote jobs available, and outreach to specific professional associations and local schools and colleges to attract candidates specifically interested in local government career opportunities. Filing vacancies and recruiting top talent are critical to delivering core services to the community and carrying out Council’s priorities, but retaining that talent is equally essential for sustaining long-term success and minimizing future vacancies. While the City has excelled in employee retention, internal workforce trends are shifting. Employees with less than five (5) years of tenure with the City are leaving more frequently. For example, in calendar year 2024, 60% of all City resignations stemmed from employees with less than five (5) years of City service. Exit interviews from these employees and national trends indicate that employees are increasingly prioritizing flexibility, remote work, opportunities for advancement and other evolving workplace values. For the calendar year 2024, the City’s retention rate was 88%, reflecting a strong ability to retain employees. The retention rate is calculated as the quantity of employees at the beginning of the calendar year, divided by the quantity of those employees who remained with the organization through the end of calendar year. The average tenure for City employees is 8.6 years, demonstrating a stable workforce. To meet the changing desires of employees, the City incorporates several retention strategies including offering alternative 9/80 work schedules, and hybrid telework options to help employees balance work and personal life. Employees are encouraged to use their paid-time off to rest and recharge, reducing burnout and supporting a healthy work - life balance. Second, the City has invested in professional development and training programs to help prepare employees for career advancement as well as enhance employee engagement. Employees are also recognized formally through an employee recognition committee. This ultimately leads to higher retention rates, as employees feel more valued, aligned with their roles, and connected to the City’s mission. In closing, the City has made significant strides in addressing vacancies and recruitment, and retention is a crucial element for continued focus. By investing in employee engagement, wellness, professional development, recognition, and open communication, the City can continue to foster an environment where talent not only thrives but stays long-term. Page 69 of 98 Item 10.a. City Council City Workforce Vacancies, Recruitment and Retention Trends Presentation (Assembly Bill 2561) April 22, 2025 Page 5 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Conduct a public hearing; and receive and file the City of Arroyo Grande Workforce Vacancies, Recruitment, and Retention Trends presentation for the year ending December 31, 2024 to comply with AB 2561; 2. Direct staff to present the status of vacancies and recruitment and retention efforts during a public hearing more than once per fiscal year. The law only requires such reporting on an annual basis before a budget is adopted, and providing updates more frequently does not allow for collection of sufficient data to present accurate and appropriately representative reporting; or 3. Provide other direction to staff. ADVANTAGES: The recommended action complies with the requirements of AB 2561. DISADVANTAGES: None. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s webs ite in accordance with Government Code Section 54954.2. ATTACHMENT: 1. City of Arroyo Grande Workforce Vacancies, Recruitment, and Retention Trends presentation Page 70 of 98 Workforce Vacancies, Recruitment and Retention Trends (AB 2561) City of Arroyo Grande April 22, 2025 ATTACHMENT 1 Page 71 of 98 Agenda 2 City-wide Workforce Information Vacancy Information Recruitment Information Hiring Issues Retention Information Page 72 of 98 City-wide Workforce 86 Total Budgeted/Authorized Full-Time Positions provide the following services to the public: •Community Development •Recreation Services •Police Services •Public Works •City Administration •Administrative Services •Human Resources •Legislative & Information Services 3Page 73 of 98 2024 Calendar Year Vacancies 4 Calendar Year 2024 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec # of Vacancies Created 2 1 0 2 3 2 3 1 0 1 3 2 # of Vacancies Filled 0 0 0 0 2 2 1 1 3 1 3 1 # of Remaining Vacancies 2 3 3 5 6 6 8 8 5 5 5 6 # of Budgeted FTEs 85 85 85 85 85 85 86 86 86 86 86 86 % of Vacancies 2.4%3.5%3.5%5.9%7.1%7.1%9.3%9.3%5.8%5.8%5.8%7.0% •Average % of Vacancies at the End of Each Month: 6% •Highest % of Vacancies at the End of a Month: 9.3% •Lowest % of Vacancies at the End of a Month: 2.4% Page 74 of 98 Vacancies by Unit 5 City of Arroyo Grande Bargaining Group Number of Vacancies Budgeted FTEs Vacancy Rate Service Employees International Union (SEIU)2 29 6.9% Police Officers’ Association (POA)1 27 3.7% Unrepresented Management Group 3 24 12.5% Unrepresented Part -time Employees 0 6 0.0% Citywide Total 6 86 7.0% Vacancy Rates by Bargaining Group as of December 31, 2024 Page 75 of 98 Recruitment Statistics 6 Recruitment Type Number of Vacancies Average Time to Fill New Internal/External Recruitment 11 117 days Internal Promotional Recruitment 3 76 days Citywide Total 14 Calendar Year 2024 Vacancies Filled Page 76 of 98 Hiring Issues •The City identified the following potential obstacles leading to a limited applicant pool: •Rising demand for talent in certain sectors (Engineering, Law Enforcement) •High Cost of Living in SLO County •Geographical distance from a major metropolitan center •To address these obstacles, the City will: •Continue to highlight the Lateral Police Officer Hiring Incentive Program •Promote jobs available through targeted outreach 7Page 77 of 98 Retention Statistics Annual Staffing Turnover Rate: 12% 8 Reasons for Vacancies Created Number of Vacancies Newly Budgeted Positions/Staffing Growth 3 (2 FTE) Internal Promotional Opportunity 4 Retirement 1 Voluntary Separation 10 Citywide Total 20 2024 Vacancy Reasons Page 78 of 98 SEIU Presentation 9Page 79 of 98 ? Questions & DIscussiOn 10Page 80 of 98 Summary of Vacancy Report 11 Next Steps •Continue to keep vacancy rate low by reducing time to fill •Pursue new strategies to attract talent for difficult to fill positions •Invest in employee development and engagement Addressing Vacancies Recruitment Challenges Focus on Retention Page 81 of 98 Public Comment Page 82 of 98