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AGENDA ITEM REVIEW FORM |
6.B.
Special City Council Meeting
- Meeting Date:
- 01/25/2023
- Department Head:
- Adela Cortez
- Submitted By:
- Adela Cortez, Director Human Resources, Human Resources Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding consulting services to conduct a Total Compensation Study and a Classification & Analysis/Total Compensation Study. (Adela Cortez, Human Resources Director)
SUMMARY:
The Human Resources Department is seeking the City Council’s approval to secure HR consulting services to conduct studies of Classification and Compensation.
In order to determine appropriate salaries for positions so that we are not underpaying and risking losing talent nor overpaying and negatively impacting the bottom line, we need to have dependable and up-to-date compensation data.
The last Total Compensation Study was conducted by CPS HR Consulting in July 2018, after which a four-year salary plan was prepared with specific market target rates to reach. Since then, the City has incrementally increased salaries within budgetary and statutory constraints to meet the target market rate goals of the salary plan. These rates are outdated.
Research of vendors was conducted, which included a breakdown of completing a complete Classification and Total Compensation Study vs. a Total Compensation Study alone.
Public Sector Personnel Consultants
In the meantime, since the current benchmarks are outdated, we are also asking for approval to contract with CPS HR Consulting to conduct just a Total Compensation Study (base pay & benefits package), which can be completed in 6-7.5 months to analyze and update current pay plan and have up-to-date benchmarks. Updating the current pay plan can carry us on for two (2) years while the full study of Classification Analysis and Total Compensation gets completed.
The total for these two (2) studies will be $124,970, which is well below the total amount budgeted of $151,650. Purchasing procedures under the San Luis City Code § 3.05.080 require City Council approval for professional services in excess of $45,000.
Furthermore, due to the urgency of updating our current pay plan, staff would like to ask to move forward with the Total Compensation Study and use the allocated budget.
In order to determine appropriate salaries for positions so that we are not underpaying and risking losing talent nor overpaying and negatively impacting the bottom line, we need to have dependable and up-to-date compensation data.
The last Total Compensation Study was conducted by CPS HR Consulting in July 2018, after which a four-year salary plan was prepared with specific market target rates to reach. Since then, the City has incrementally increased salaries within budgetary and statutory constraints to meet the target market rate goals of the salary plan. These rates are outdated.
Research of vendors was conducted, which included a breakdown of completing a complete Classification and Total Compensation Study vs. a Total Compensation Study alone.
Public Sector Personnel Consultants
- Complete study inclusive of Classification Review & Analysis and Total Compensation Analysis –$71,000.00 (Duration of project: 12 - 14 months)
- Total Compensation Study (Salary & Benefits) – $38,000.00 (Duration of project 6 -7.5 months)
- Will not accept new projects until the end of 2023/beginning of 2024
- Provides a warranty of one (1) year to ensure effective implementation of the new plan
- Based out of Mesa, AZ
- Complete Study inclusive of Classification Review & Analysis and Total Compensation Analysis - $196,050.00 (Duration of project 14 - 17 months)
- Total Compensation Study (Salary & Benefits) - $53,970.00 (Duration of project 6 -7.5 months)
- Can start on March 2023
- Based out of Sacramento, CA
- Complete Study inclusive of Classification Review & Analysis and Total Compensation Analysis - $99,750.00 (Duration of project 8 - 10 months)
- Total Compensation Study (Salary & Benefits) - $55,750.00 (Duration of project 4 - 6 months)
- Can start on March 2023
- Based out of Indianapolis, IN
In the meantime, since the current benchmarks are outdated, we are also asking for approval to contract with CPS HR Consulting to conduct just a Total Compensation Study (base pay & benefits package), which can be completed in 6-7.5 months to analyze and update current pay plan and have up-to-date benchmarks. Updating the current pay plan can carry us on for two (2) years while the full study of Classification Analysis and Total Compensation gets completed.
The total for these two (2) studies will be $124,970, which is well below the total amount budgeted of $151,650. Purchasing procedures under the San Luis City Code § 3.05.080 require City Council approval for professional services in excess of $45,000.
Furthermore, due to the urgency of updating our current pay plan, staff would like to ask to move forward with the Total Compensation Study and use the allocated budget.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO DIRECT STAFF TO ANALYZE THE RAW DATA THE CITY HAS AND PROVIDE A SALARY STRUCTURE.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $124,970
- BUDGETED AMOUNT:
- Yes
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Contractual Services 100-999-80000 $149,582
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We have budget available this fiscal year to complete the two compensation studies. Due to constraints from providers we will do a portion this year, and the remaining part of the compensation will be done with a different firm in FY 2024. We will budget accordingly in FY 2024.
Attachments
- Public Sector Personnel Class & Comp
- CPS HR Comp
- CPS HR Class & Comp
- Total Reward Solutions Class & Comp