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Audit finds Palo Alto needs formal succession policies, updated recruitment procedures and structured implementation of strategic plan
Summary
An independent audit found Palo Alto has improved vacancy and time‑to‑hire metrics but lacks a formal implementation approach for its recruitment strategic plan, up-to-date written recruitment policies, and a centralized, formal citywide succession program with knowledge‑transfer procedures.
Baker Tilly presented results of a recruitment and succession planning audit and the Policy and Services Committee voted to recommend the report to City Council.
The audit team reported improvements in hiring metrics since 2021: vacancy rates fell from nearly 17% in 2021 to about 13% in 2024, and average time to hire decreased from about 80–100 days to roughly 60 days. The auditors also noted a slight decrease in turnover. However, auditors found management had not adopted a clear, prioritized implementation plan for the 31 initiatives recommended in an earlier recruitment strategic plan produced by Municipal Resource Group (MRG). The audit recommended a formal implementation approach with priorities, timelines, assigned resources and regular monitoring, including metrics such as quality of hire and candidate experience.
Auditors also found that recruitment and hiring policies have not been updated (the citypolicy referenced had not been revised since 1999) and recommended comprehensive, current written policies covering posting, screening, interviewing and selection, with an annual review and revision history. On succession planning, auditors noted the city had piloted a workforce career advancement program based on a Cal ICMA template but had not centralized or formalized a citywide succession program or a written knowledge‑transfer process. The audit recommends designation of a responsible owner, formal policies and structured knowledge transfer to retain institutional expertise.
Human Resources staff told the committee they recently completed an internal recruitment for a new recruitment division manager (selected from among 87 applicants), that the city uses Neogov for applicant tracking and plans an RFP to reassess applicant tracking systems and potential integration with HR systems, and that many of the strategic plan initiatives are already in progress. Assistant Director of Human Resources Nick Raich said the existing HR policy allowed flexibility that staff used to implement new practices, and that the new division manager role is intended to provide strategic oversight of recruitment, metrics and implementation.
The committee voted to recommend City Council accept the audit results. Auditors and HR staff discussed next steps including system integration, updating policy, and establishing monitoring and knowledge transfer procedures.
