First, the good news: After years of layoffs and hiring freezes stemming from the 2008 economic downturn, state and local governments are finally hiring again.

In a survey of 300 human resources managers conducted earlier this year by the Center for State and Local Government Excellence (SLGE; http://slge.org), the International Public Management Association for Human Resources (IPMA-HR; http://ipma-hr.org), and the National Association of State Personnel Executives (NASPE; http://www.naspe.net), 66 percent of respondents reported hiring new employees in 2013. Fifty-five percent hired more than they did in 2012 (see Figure 1).

This uptick in hiring—at its highest rate since the recession hit—is a sign of the country’s improved economic growth, and it is a welcome development for local officials.

The Rising Tide

At the same time that new workers are coming in, however, older ones are going out. Forty-nine percent of survey respondents also reported an increase in retirements in 2013, while 22 percent said eligible employees accelerated their retirements. These realities, combined with widespread hiring freezes and layoffs in the first years after the Great Recession, translate into smaller local government workforces compared with 2008 levels.

This recent increase in retirements around the country signals that the “silver tsunami” of retiring baby boomers is in full force. With many boomers now eligible for retirement, and others who postponed retirement plans when the recession hit now leaving the workforce, governments are facing a considerable exodus of talent.

This wave of retirements comes at a time when many local governments also face increased benefit costs, particularly for health care. Sixty-one percent of respondents reported that their governments made changes to health benefits in the past year for both current and retired employees, with the most common change—at 53 percent—being to shift costs from the employer to employees (see Figure 2).

Meanwhile, 35 percent of respondents reported changes to retirement benefits, with about one-fourth of those requiring increased contributions to pensions from both current and new employees.

With pressure on benefits mounting and the pace of retirements intensifying, local governments are paying more attention to succession planning and what they can do to attract and retain talent. Recruiting and retaining qualified personnel, staff development, and workforce succession planning were the top three workforce issues that human resources managers identified as important to their organizations.

So, what can be done to address the problems posed by an aging local government workforce and an acceleration of retirements? And what have local governments done already?

A Multipronged Approach

When San Mateo County, California, hired a consultant in 2006 to conduct a review of its workforce, the 30 recommendations ultimately made to the county “created a sense of urgency” among its city managers and department heads to make succession planning a top priority, said Donna Vaillancourt, San Mateo County human resources director.

The county has since worked with its local governments to implement a systematic, multidimensional workforce management and succession strategy to perform a spectrum of functions, from promoting the county as an employer of choice to supporting career growth and development at all organizational levels.

This effort includes an annual executive leadership academy that targets potential candidates for promotion at the management level. This program and others like it have largely been successful, with a high percentage of selected candidates receiving promotions.

San Mateo County has also partnered with neighboring Santa Clara County to form the Two County Next Generation Committee, through which local government agencies in both counties come together to address common workforce challenges. The committee’s primary goals are to accelerate employees’ development, retain high-potential talent, and attract young and diverse employees to local government.

Key initiatives include a management talent exchange program that has seen 75 percent of participants gain promotional opportunities within two to three years, as well as a regional internship program for college students.

Success Breeds Success

Like San Mateo County, San Antonio, Texas, has benefitted from a multidimensional succession strategy. When City Manager Sheryl Sculley was appointed in 2005, one-third of executive-level positions in San Antonio were either vacant or had interim directors. Naturally, the city council was looking for dramatic change, Sculley said.

What the city came up with was a comprehensive succession strategy that addresses the full range of San Antonio’s organizational needs. It includes an executive leadership program, a management development institute for mid-level managers, and a supervisor training academy for front-line supervisors.

Each of these programs has been extremely effective, according to Sculley. “You can see how success can breed success. Employees who have gone through the programs are putting into practice what they’re learning, and it is improving the overall quality of the organization,” she added.

Both Sculley and Vaillancourt acknowledge that support from leadership is essential to the success of these initiatives. “The biggest challenge is always the ability of current executives and managers to embrace the value of coaching younger employees. It takes time, resources, and a strong commitment from everyone involved,” Vaillancourt said. “But I don’t think we have a choice.”

Sculley added, “It’s all about investing in people now to be sure we have a well-prepared workforce that can meet the needs of our community now and in the future.”