As presented to Council at the pre-budget retreat in March 2023, the top budget priority for FY 23-24 is employee compensation. Staff has identified contingency funds in FY 22-23 to begin the City’s third comprehensive classification & compensation study. Previous studies were conducted in 2015 and 2019 (completed in 2020). In additional to the goals listed below, study objectives include addressing some long outstanding compensation issues such as certification and incentive pay, as well as, considering solutions to the problems of lack of avenues for job progression, internal compression issues, and recruitment and retention challenges.

Four key goals of the study:

1. Properly classifying positions in the City to reflect actual knowledge, skills, and abilities, as well as the essential duties of each position;
2. To have competitive compensation within Schertz’s competing labor market and benchmark cities;
3. To promote internal and external compensation equity; and
4. To foster productive and tenured employees, in part, through a fair and balanced compensation system.

The City released a Request for Proposals (RFP) for these services, and three proposals were received. Proposals were reviewed and scored based on criteria including qualifications and experience, company operational information, cost, reputation, capability, resources, and project design and strategy.

After initial review and evaluation of all proposals, each respondent was invited to participate in an interview to conduct a short presentation on their proposed study process and methodologies, and answer staff questions. Staff representatives from City Management, Human Resources, Police, and Fire participated in the interview process and provided input on the final selection recommendation. The group unanimously recommended Public Sector Personnel Consultants (PSPC) for this project.

Though PSPC comes in with the highest cost, their demonstrated competency in classification and compensation studies and superior knowledge of local government operations and Texas market conditions make them the most qualified to meet the City’s needs for this critical project. Please see attached Final Evaluation Summary for additional notes and details.

Engage a qualified firm to conduct a comprehensive classification and compensation study, and to implement study results to benefit current and future employees.

Staff recommends Council approval of Resolution 23-R-52 authorizing the City Manager to enter into an agreement with Public Sector Personnel Consultants to conduct a Classification and Compensation Study.
 

Staff recommends Council approval of Resolution 23-R-52 authorizing the City Manager to enter into an agreement with Public Sector Personnel Consultants to conduct a Classification and Compensation Study.