The Quiet Cost of Vacancies in Local Government

Across local government, budget-conscious leaders often see an open position as a welcome break for their bottom line. With no salary to pay, it’s easy to chalk up a vacancy as a short-term savings. In fact, some agencies deliberately delay hiring, viewing prolonged vacancies as a strategy to reduce expenditures during budget shortfalls or uncertain fiscal periods. 

But this logic is flawed. 

In reality, unfilled roles aren’t savings—they’re hidden costs. And if your agency intends to fill that vacancy eventually, each day it remains unfilled is racking up a quiet but measurable financial loss. From burnout and turnover to missed deadlines, overtime costs, and decreased service quality, the expense of “saving money” with an open position adds up quickly. 

Let’s break down why vacancies are more expensive than they appear—and why filling them strategically (not slowly) is the smarter financial move. 

1. Vacant Roles Drive Overtime and Burnout

When one person leaves, the work doesn’t go with them. 

That workload is redistributed—often to already overstretched employees. In many cases, agencies must approve overtime for staff who pick up the slack, sometimes at time-and-a-half pay. What looks like savings on a $95,000 annual salary can easily become tens of thousands in unexpected OT costs. 

More concerning is the human cost. Overloaded employees burn out, disengage, or leave altogether, compounding the vacancy issue. And replacing them only adds more time, money, and organizational strain. 

2. Every Vacancy Delays Essential Work

Government work doesn’t slow down just because a position is empty. 

Permits still need to be issued. Inspections still need to happen. Cases still need to be reviewed. Whether it’s public works, planning, human resources, or finance, every unfilled role affects service delivery—internally and externally. 

For roles tied to compliance, budget planning, or essential infrastructure, delays can ripple into even costlier consequences. For example: 

• A delayed procurement could result in missed grant deadlines. 

• A backlogged planning department might slow down economic development. 

• An unstaffed HR role could stall recruitment for other vacancies, multiplying delays. 

The longer a role is open, the more expensive the consequences become—not just in dollars, but in public trust. 

3. You’re Losing Talent Every Day You Wait

When your job sits open for months, you’re not just waiting—you’re losing. 

The labor market has changed. Top government talent doesn’t wait around for six-month interview processes. If you’re not moving fast, you’re losing out to agencies (or even private employers) that are. 

In our article The Hidden Costs of Hiring in Local Government, we break down how long hiring timelines directly correlate with increased drop-off rates. For every extra day the process drags on, agencies risk losing qualified applicants who move on or lose interest. 

In short: the longer the vacancy, the harder and more expensive it becomes to fill. 

4. Vacancies Obscure True Budgeting Needs

One of the most overlooked consequences of delayed hiring is inaccurate budgeting. 

When vacancies are left open for long periods, budgets can appear artificially under control. But this “savings” is just deferral—not true cost reduction. 

Worse, it creates a false picture for the next budget cycle. Decision-makers may assume the agency can function with less staff, underestimating true workforce needs. That means lower future allocations, fewer authorized positions, and even more pressure on the team. 

It’s a cycle that creates structural underfunding—at a time when recruitment and retention are already difficult. 

5. Every Open Role Comes With a Real Price Tag

Let’s quantify the cost. 

In most cases, the total cost of a vacancy goes far beyond lost salary. If a $100,000 role is vacant for 90 days, the salary savings is just under $25,000. But add in: 

• Overtime costs for coverage 

• Hiring costs (recruiters, ads, screening time) 

• Productivity loss 

• Delayed project costs 

• Employee burnout and attrition risk 

… and the true cost of that 90-day vacancy can easily exceed the amount you “saved.” 

And it’s not just us saying that. Industry research consistently shows that every unfilled role in local government has a cost per vacancy day—a number that varies by job type and location but often exceeds $500 to $1,000 per day. 

If your agency has 10 vacancies open for 3 months, that could be a hidden six-figure hit to your budget. 

6. Long Vacancies Undermine Workforce Planning

Vacancies aren’t just a line item—they’re a symptom. 

When your agency sees persistent openings, it’s often a sign that workforce planning isn’t aligned with reality. Are the salary ranges competitive? Is the hiring process too long? Are job descriptions outdated? Are internal teams equipped to recruit effectively? 

Strategic workforce planning means more than posting jobs—it means forecasting needs, streamlining hiring, and budgeting with real-time data. That’s why agencies are turning to platforms like TrueComp to analyze vacancy trends, hiring bottlenecks, and compensation benchmarks in real time. 

So, What Should Agencies Do Instead? 

If your agency is operating under the assumption that vacancies are budget-friendly, now’s the time to change the mindset. 

Instead: 

• Treat vacancies as a cost center, not a savings tool. 

• Track the daily cost of each open position—including indirect costs like overtime and lost productivity. 

• Benchmark your hiring timelines and see where delays are costing you top candidates. 

• Re-evaluate your workforce plan to reflect real needs and market dynamics. 

• Use data to drive decisions, not assumptions. 

The Bottom Line 

In local government, every dollar matters. But not every dollar saved is a dollar earned. 

Vacancies may look like a budget win on paper—but in reality, they’re bleeding time, talent, and public trust from your agency. By reframing how we think about open roles, we can make better decisions, move faster, and serve our communities more effectively. 

It’s time to stop seeing vacancies as savings—and start treating them like the costly delays they really are. 

For a deeper dive into how long hiring timelines and unfilled roles impact your agency, explore The Hidden Costs of Hiring in Local Government.