HomeMy WebLinkAboutMcGrath ProposalCity of San Luis Obispo – Benchmark Compensation Study 1
Professional Proposal Prepared for
City of San Luis Obispo, California
Benchmark Compensation Study
Featuring McGrath’s 360Comp™ Methodology
By
McGrath Human Resources Group
Dr. Victoria McGrath, CEO
victoria@mcgrathhumanresources.com
815.728.9111
Proposal Opening: April 6, 2020
City of San Luis Obispo – Benchmark Compensation Study 2
March 26, 2020
City of San Luis Obispo
990 Palm Street
San Luis Obispo CA 93410
Thank you for the opportunity to submit our qualifications to provide a Benchmark
Compensation Study for the San Luis Obispo, California in support of your Major City Goal
Workplan for Fiscal sustainability and Responsibility.
Developing and maintaining a competitive classification and compensation plan in today’s
fiscally conservative environment is extremely challenging, yet essential. McGrath Human
Resources Group understands the issues public sector entities are facing and will assist in
updating your compensation plan, so it attracts and retains competent professionals, as well as
fitting within fiscal constraints. At McGrath Human Resources, we take the time to understand
your compensation philosophy, your organizational culture, and the vision you have for your
community; and integrate these components into a comprehensive compensation program.
Why should you choose McGrath Human Resources Group for your project?
We do not ask you to adapt to an off-the-shelf solution.
❖ Even in municipalities that appear to be similar, we find that each entity has unique
qualities, culture and needs.
❖ We work hard to understand your goals, fiscal realities, and compensation history so
that we can offer options for a compensation system that address your uniqueness
while holding to best practices to maintain validity in the system.
We specialize in, and understand public employment and local municipalities:
❖ An investment in your employee’s compensation plan is an investment in your
community, and we recognize that the investment you are making is with taxpayer
dollars.
❖ We specialize in public sector consulting; thus , we are in a unique position to
understand and work with your City’s stakeholders to make a sound investment that will
benefit the City of San Luis Obispo.
City of San Luis Obispo – Benchmark Compensation Study 3
Our long history brings a unique breadth of experie nce.
❖ We have experience not only with the development of various approaches, but
knowledge of climates where those approaches usually succeed to help us tailor the
best system for you.
❖ We spend the time to foster a partnership with our clients by pursuing a depth of
understanding of your philosophy, culture, challenges and successes so that the synergy
outcome provides a compensation system that makes sense philosophically and fiscally
for your organization.
We are successful.
❖ As we start our 20th year in business, with over 350 clients in 37 states, we are proud
that 99% of our projects have been fully adopted and implemented.
❖ Our success stems from sound principles, and best practices throughout our work and
the relationships we build through honest and transparent communication from the
beginning of the project through the adoption, implementation and follow-through.
Detailed information regarding our firm, consultants, methodology , and required information
are presented within this proposal. We accept the terms and scope of the project as listed in
the Request for Proposal. To ensure timely submission, this proposal is current as of March 28,
2020. We will be happy to discuss any changes or modifications needed due to addendums that
were published after this date. Dr. Victoria McGrath is the individual with the authority to bind
McGrath Human Resources in any negotiations and contracts.
As you review the proposal, if you have any questions or require additional information, please
do not hesitate to ask. We look forward to the opportunity to work with the City of San Luis
Obispo and its employees on this important project.
Sincerely,
Victoria J. McGrath
Victoria J. McGrath, Ph.D., CEO
815.728.9111 (office)
815.307.2781 (direct)
victoria@mcgrathhumanresources.net
City of San Luis Obispo – Benchmark Compensation Study 4
City of San Luis Obispo – Benchmark Compensation Study 5
TABLE OF CONTENTS
Company Profile ......................................................................................................................... 6
Qualifications and Experience .................................................................................................... 6
Firm Expertise .........................................................................................................................6
Statement of Past Contract Disqualifications ...........................................................................7
Consulting Team ......................................................................................................................... 7
References ................................................................................................................................ 11
Classification Philosophy .......................................................................................................... 13
Philosophy.............................................................................................................................13
Job Classification and Evaluation ...........................................................................................13
Scope of Work and Communications........................................................................................ 14
Scope of Services ...................................................................................................................14
Compensation Component ................................................................................................14
Classification Component ..................................................................................................15
McGrath 360Comp Integration ..........................................................................................15
Employee Communication and Engagement .....................................................................16
Methodologies and Strategies .................................................................................................. 16
Methodology Overview .........................................................................................................16
McGrath 360Comp™ Methodology Workflow and Process ...................................................17
Modifications to Our Site Visit Plans ..................................................................................17
Project Orientation ................................................................................................................17
Internal Equity - Job Audit and Evaluation .............................................................................18
Data Analysis – Metrics & Market Survey ..............................................................................19
Organizational Impacts and Workforce Metrics .....................................................................19
External Market Survey .........................................................................................................20
Updating the Compensation System .....................................................................................22
Feedback, Finalizing, Reports and Presentation .....................................................................23
Implementation and Support ................................................................................................24
Introduction to Employees ................................................................................................24
Ongoing Maintenance .......................................................................................................25
Project Timeline ....................................................................................................................25
Fees and Terms ......................................................................................................................... 26
Other Additional/Optional Services: ..................................................................................27
A Final Word ............................................................................................................................. 27
City of San Luis Obispo – Benchmark Compensation Study 6
Company Name McGrath Human Resources Consulting
Parent Organization McGrath Consulting Group, Inc.
Established May 1, 2000
Type of Firm Private Corporation
Illinois, USA
Company Address
P.O. Box 190
Wonder Lake, IL 60097
Phone Number (815) 728-9111
Fax Number (815) 331-0215
Responsible Party CEO – Dr. Victoria McGrath, Ph.D., SPHR
Email Address victoria@mcgrathhumanresources.com
Direct Email victoriaphd@comcast.net
Principals Dr. Victoria McGrath, CEO
Dr. Tim McGrath, President
Insurances Admiral Insurance, State Farm Insurance,
ACE American: Certificates will be
provided as needed
*Certificate of insurance will be provided upon award of contract. Due to our State -wide Stay-
At-Home Order, we are unable to obtain certificates in the format requested.
Firm Expertise
McGrath Consulting Group, Inc. is an organization that specializes in public sector consulting
predominately in the fields of human resource management, fire, EMS, police, and
communications. We work with primarily local governmental entities with an employee base of
10 - 1,500 employees. The principals of the company have over 50 years of public sector
experience.
We have two very distinct divisions within the company: Human Resources – overseen by Dr.
Victoria McGrath and Public Safety – overseen by Dr. Tim McGrath. We have found that having
expertise in public safety is beneficial in public sector compensation studies. Thus, the McGrath
Human Resource Group consultants have access to experts in Police and Fire compensation
systems to address the unique laws and best practices these two professions add to most
public-sector compensation systems.
Qualifications and Experience
Company Profile
City of San Luis Obispo – Benchmark Compensation Study 7
Statement of Past Contract Disqualifications
No officer or employee of McGrath Consulting or McGrath Human Resources Group have ever
been disqualified, removed or otherwise prevented from bidding on, or completing a federal,
state or local government project because of the violation of law, a safety regulation or for any
other reason, including but not limited to financial difficulties, project delays or disputes
regarding work or product quality.
Victoria McGrath, Ph.D., SPHR – Chief Executive Officer – Project Manager
Dr. Victoria McGrath has an extensive background in the field of human resources,
predominately in the public sector; but she also has experience in the private sector having
worked in health care, banking, and education. Thus, she brings over 19 years of practitioner
experience in all phases of human resources prior to her years as a consultant.
Her professional experience includes the City of Brookfield, WI, which had over 500 employees,
including five (5) labor unions; the Elmbrook School District, WI – the 2nd largest school district
in Wisconsin, also with 5 labor unions; and Citicorp Banks. She has dealt with labor/employee
relations; policy, procedure and labor compliance; benefits and compensation; recr uitment and
staff development. Dr. McGrath’s local government experience touched all local municipal
services including police/sheriff, fire, public works/highway, engineering, library, health
department, administration, courts, jail, and more.
Dr. McGrath has provided management assistance to more than 200 local government clients
on a variety of management issues. In addition to working with governmental organizations,
Dr. Victoria McGrath
Oversight of Overall Project
Malayna Halvorson Maes
Data Analysis and Interviews
Lisa Eickholt
Data Analysis and Interviews
Michelle Lach
Becky Harter
Market Study and Comparables
Communication
Dr. Tim McGrath
Ron Moser
Public Safety Advisors
Consulting Team
City of San Luis Obispo – Benchmark Compensation Study 8
she has been a sought-after speaker for professional organizations and worked with tw o (2)
organizations in developing courses in human resource management to current and upcoming
supervisors. Further, she is an adjunct professor – teaching in areas such as human resources,
organizational development, management, and research – at Northwestern University
(Master’s in Public Policy Administration Program).
Dr. McGrath’s doctoral dissertation dealt with Government as a Learning Organization. Her
research dealt with government efficiency in providing services and how governmental services
can become more effective.
Education
University of Wisconsin – Milwaukee, WI
Ph.D. – Municipal Government as a Learning Organization
Cardinal Stritch College, WI
Master of Science - Management
University of Wisconsin – Milwaukee, WI
Bachelor of Science – Industrial Relations & Finance
Malayna Halvorson Maes – Senior Consultant – Analyst
Malayna Halvorson Maes has been a Consultant with McGrath since 2014. She previously
served as a human resource professional in both the private and public sectors for over 20
years. She worked previously in health care human resources, engineering, and as the Human
Resources Director and senior advisor for a large county in northwestern Wisconsin. Thus, she
has direct experience with the many challenges facing municipal employers.
During her time in county government, Ms. Maes advised the organization through the
significant changes at the State level (referred to as Act-10) that resulted in a reduction from
five (5) collective bargaining units to one (1) unit, due to reduced legal authority of organized
labor in the public sector. As a change agent, she facilitated the development of significant
policy changes for the organization. This included conducting a complete evaluation of the
compensation system for the county which included a rewrite of all job descriptions, and the
implementation of a pay for performance evaluation system. This system was created through
the work of a combined employee – manager committee and included the implementation of a
performance management software system to streamline the 360-evaluation process. She
brings a practical understanding to the development and implementation of pay -for-
performance compensation systems.
As a former Human Resources Director, she is knowledgeable of all facets of local government,
including police, public works, engineering, health services, and more. She has been active in
several professional organizations including SHRM, Chippewa Valley Society of Human Resource
Management; WIPFLI Senior HR Forum; Wisconsin Association of County Personnel Directors,
and the National Public Employer Labor Relations Association. In addition, she served on the
WACPD training Committee, Chair of the Legislative Affairs Committee, a Board of Dire ctor
member as well as a member of the Services Committee for WPELRA; thus, she takes an active
role in defining the profession.
City of San Luis Obispo – Benchmark Compensation Study 9
Education
Luther College, Iowa
Bachelor of Arts – Psychology
Lisa Eickholt, SCP – Senior Consultant - Analyst
Lisa Eickholt brings over 30 years of local and state governmental Human Resource and
management experience. Most recently, she served as a county Human Resource Director for
over 18 years in north -central Kansas. She not only brings current human resource
methodologies but also knowledge of county government. In her county, she not only served as
the Director of Human Resources but was also relied upon by the County Board to function in
an assistant county administrator role. Thus, she brings not only personnel but ov erall county
operations knowledge and experience to the project.
Ms. Eickholt was responsible for developing and eventually was hired as the County’s first
human resource professional. In the position, she had responsibility for developing all the
County’s personnel practices and policies, as well as compensation systems.
Due to her 25 plus years of experience in local government, Ms. Eickholt has been a presenter
at workshops and seminars on various HR and Leadership topics to county and city leaders an d
employees with the Kansas Association of Counties; Kansas County Commissioners Association,
as well as Wichita State University to name a few. Further, Ms. Eickholt is a certified trainer and
presenter of True Colors (Personality Type Indicator) which has been useful in building
cooperation and efficiencies within departments.
As a Human Resource Director, she is knowledgeable of all facets of local government including
the sheriff, public health, community corrections, treasurer, county clerk, public wo rks,
property appraisal as well as other services provided by a county.
Ms. Eickholt was a co-founding member and charter president of the Kansas County Human
Resource Association; co-founding member and charter secretary for the IPMA-HR – Kansas
Chapter; and, is a member of National and Kansas IPMA-HR chapters, and National and Kansas
SHRM Chapters. Ms. Eickholt has completed all the necessary work and testing and maintains
certification as a Senior Certified Professional from both IPMA-HR and SHRM.
Education
Kansas State University
Bachelor of Science – Business Management
Michelle Lach - Senior Consultant – Market Study
Ms. Lach has been a Consultant with McGrath Human Resources Group for over fifteen years.
She has authored employee handbooks, job descriptions and is currently our primary market
survey Consultant; responsible for developing and conducting our market surveys to solicit
external market data. With her many years of experience, Ms. Lach excels at gaining a
substantial return and subsequently preparing that data for further analysis. Thus, we are
obtaining reliable and quantifiable data for our clients.
City of San Luis Obispo – Benchmark Compensation Study 10
Ms. Lach brings over nine years of management experience as a Human Resource Director. She
brings expertise and experience in the areas of affirmative action, human resource planning,
recruitment, compensation, FLSA, performance management, job descriptions, employee
relations, developing employee handbooks, training and development, and worker’s
compensation.
Because most of Ms. Lach’s work experience was in the private sector, she understands the
matching of public-sector positions to private-sector comparables. Her professional human
resources experience has included major manufacturing, pharmaceutical, and professional
service companies bring a broad experience of understanding professional employees in
administration, attorneys, information technology and medical professionals as well as support
services staff including clerical, maintenance, laboratory and customer service position s that
can be compared to some municipal jobs.
During her human resources leadership tenure, Michelle was involved in several professional
and community organizations including membership in the Society for Human Resource
Management (SHRM).
Education
Bowling Green State University
Bachelor of Arts – Communication and Organizational Development
Becky Harter – Consultant Associate
Becky Harter assists the team as a Consultant Associate. Her background in administrative
support and early childhood education brings organizational and communication benefits,
specifically in our compensation survey services. Ms. Harter assists our Consultants in
communications and survey tracking to assure we are obtaining the best quality and most
timely results.
Education
Central Texas University – Ft. Riley, Kansas
Coursework in education
Advisors
McGrath Human Resources will partner with the parent company – McGrath Consulting Group
in the areas of public safety, as needed. Dr. Tim McGrath has over 30 years of experience in fire,
EMS, communications and emergency management. Ron Moser brings 34 years of law
enforcement experience as a retired Police Chief and heads the law enforcement division. In
addition, to his law enforcement experience, Mr. Moser has served as the Director of
Emergency Management and as a Village Manager for a municipality in Cook County, Illinois.
Both Consultants are on staff to assist in any issues or concerns that need to be addressed in
the area of public safety.
City of San Luis Obispo – Benchmark Compensation Study 11
Staff Assignments and Additional Consultants
The Consultants were selected for this project based upon their areas of expertise and
specialties and the references contained in this proposal are projects these consultants have
staffed. A principal of the company is actively involved in every project. However, we operate
under the philosophy of total team involvement and each team member has experience in all
facets of project work and will work together to meet the goals of your project.
If necessary, we have the flexibility to involve other consultants with our organiz ation to bring
their unique perspective and expertise.
The following list is a sampling of projects that captures the depth and comprehensiveness of
our experience in compensation and classification consulting. Additional client names, projects
and locations are viewable on our website at www.mcgrathhumanresources.com
Client Name Description
City of Stayton, OR
Contact: Alissa Angelo
Title: Deputy City Recorder
Phone: 503-769-3425
Email: aangelo@ci.stayton.or.us
Conducted a Total Compensation Study for all union and
non-union employees.
City of Arlington, WA
Contact: Paul Ellis
Title: City Manager
Phone: 360-403-3447
Email: pellis@arlingtonwa.gov
Conducted comprehensive compensation analysis of all
union and non-union positions within the City. Included the
development of separate salary schedules for police, fire,
union and non-union – however, keeping internal equity
and compression issues in line.
City of Marysville, WA
Contact: Gloria Hirashima
Title: Chief Administrative Officer
Phone: 360-363-8000
Email: ghirashima@marysvillewa.gov
Conducted a compensation study for all non-union
positions. Have completed a similar study for two union
groups.
Clearfield City, UT
Contact: Summer Palmer
Title: Assistant City Manager
Phone: 801-525-2701
Email: summer.palmer@clearfieldcity.org
Comprehensive compensation study for all full and part-
time positions within the City. Special emphasis on
recruitment of police officers which entailed created a
separate schedule toward the end of the study and re-
researching market data on police officer salaries as market
conditions showed a sudden shift mid-study. Clearfield City
is in the Salt Lake City metropolitan area.
Village of Niles, IL
Contact: Hadley Skeffington-Vos
Title: Deputy Village Manager
Conducted an audit of all human resource
functions/services. Developed a comprehensive list of
References
City of San Luis Obispo – Benchmark Compensation Study 12
Client Name Description
Phone: 847-588-8009
Email: hsv@vniles.com
priority recommendations for the department. Conducted
supervisory training on performance management.
Village of South Elgin, IL
Contact: Megan Golden
Title: Administrative Services Director
Phone: 847-741-3894
Email: mgolden@southelgin.com
Conducted a comprehensive compensation study in 2007
for all positions. This system was updated 2014-15 and
again in 2018. South Elgin is in the Chicago metropolitan
area.
City of Northfield, MN
Contact: Michelle Mahowald
Title: Human Resources Director
Phone: 507-645-3012
Email:
michelle.mahowald@ci.northfield.mn.us
Comprehensive compensation schedule of union and non-
union positions was developed into one (1) classification
system, and job descriptions were updated. Compensation
system had to be compliant with the State of Minnesota’s
Pay Equity Act. Northfield is in the Minneapolis-St. Paul
metropolitan area.
City of Rochester Hills, MI
Contact: Pam Gordon
Title: Human Resources Director
Phone: 248-656-4708
Email: gordonp@rochesterhills.org
Comprehensive compensation study for two (2) union
groups and non-union positions, and development of job
descriptions. The compensation plan includes an added
value step increase. Developed performance evaluations
and rules for movement into these new steps. Rochester
Hills is in the Detroit metropolitan area.
St. Croix County, WI
Contact: Pat Thompson, County
Administrator
Phone: 715-331-5816
Email address:
Patrick.thompson@co.saint-croix.wi.us
Comprehensive compensation analysis of all positions
within the County and consolidating numerous salary
schedules into two (2) separate salary systems with
approximately 400 job titles. Currently contracted to
conduct updates. This County is in the Minneapolis-St. Paul
metropolitan region.
Pueblo City-County Library District, CO
Contact: Terri Daly
Title: Human Resources Manager
Phone: 719-562-5632
Email address:
terri.daly@pueblolibrary.org
Conducted a compensation study to update the current
compensation system for this large Library District with
several branches.
Everett Roehl Marshfield Public
Library, WI
Contact: Lori Belongia
Title: Library Director
Phone: 715-389-2745
Email: lbelongia@marshfieldlibrary.org
Developed a classification and compensation system for all
library positions.
City of Clayton, MO
Contact: Janet Watson
Title: Finance and Administration
Director
Phone: 314-290-8445
Email: jwatson@claytonmo.gov
Comprehensive compensation analysis of all positions
within the City. Created a system that placed positions to
lead the market. Utilization of an employee committee for
review and approval of all comparable data. Rehired to
develop job descriptions. Comprehensive Market update
conducted in 2019. Clayton is in the St. Louis metropolitan
region.
City of San Luis Obispo – Benchmark Compensation Study 13
Client Name Description
City of Kirkwood, MO
Contact: Georgia Ragland
Title: Assistant Chief Administrative
Officer
Phone: 314-822-5809
Email: raglangl@kirkwoodmo.org
The comprehensive compensation schedule of union and
non-union positions was developed into three (3)
classification systems. Kirkwood is in the St. Louis
metropolitan region.
The Older Persons’ Commission, MI
Contact: Renee Cortright
Title: Executive Director
Phone: 248-608-0255
Email: Rcortright@opcseniorcenter.org
Developed a compensation system that provided
competitive salaries for full-time and part-time positions for
a state-of-the-art senior community resource facility that is
funded and governed by three (3) municipalities.
Redeveloped the organizational structure for organizational
efficiency.
Philosophy
In any governmental organization, salaries and benefits are, by far, the largest budget item. An
investment in your employee’s compensation plan is an investment in your community, and we
recognize the investment you are making is with taxpayer dollars. We also understand a
competitive compensation system is an important element for the City of San Luis Obispo’s
ability to hire, cultivate, and retain employees who provide service and value to all City
stakeholders.
Similarly, internal equity, proper classification, career opportunities and addressing of any
compression issues serves to enhance the employee’s feeling of value and willingness to
actively engage in their work for the organization. Therefore, it is important for the City to have
a classification and compensation system that promotes the active engagement of employees,
is legally defensible, and efficient to manage. Thus, we tailor our compens ation systems to
meet the needs and unique structure and culture of your City.
Job Classification and Evaluation
We typically use a point factor system to complete position classification analysis. We go
beyond the typical “Knowledge, Skills and Abilitie s” (KSA’s) and delve deeper into factors that
are unique to public sector positions including the following aspects of a job:
➢ Tasks & Responsibilities
• Records, Reports and Programs
• Complexity and Judgement including:
Classification Philosophy
City of San Luis Obispo – Benchmark Compensation Study 14
▪ Problem-Solving
▪ Supervision Received
▪ Procedures/Guidelines Available
• Impact of Decisions & Consequents of Errors
• Planning
• Confidential Data
➢ Contact with Others (both inside and outside the organization)
➢ Stress (degree of mental or emotional fatigue or stress inherent to the job and sustained
through concentration, work pressure or critical incidents.)
➢ Tools and Resources
• Equipment, Machines & Tools
• Technology
• Budget, Financial and Cash Handling Responsibilities
➢ Leadership & Supervisory Responsibilities
➢ Education & Experience
➢ Work Environment & Physical Requirements
We find that the point factor system of job analysis is the easiest for us to train our clients to
continue using on their own should they choose. Thus, the compensation system is more likely
to be kept up-to-date and relevant which extends the lifecycle of a plan.
Scope of Services
The City of San Luis Obispo is seeking a consultant partner to conduct a Benchmark
Compensation Study. We understand that a competitive compensation system is an important
element in the City’s ability to hire, cultivate and maintain employees who provide service and
value to all City stakeholders. Similarly, internal equity and addressing of any compression
issues serves to enhance the employee’s feeling of value and willingness to actively engage in
their work for the organization.
Compensation Component
✓ Guide the City in confirming or developing your organization’s compensation
philosophy including your desired position in the market, recognition of tenure,
recruitment and retention priorities, usage of performance-based pay, and other
aspects of a sound compensation philosophy.
✓ Develop a cooperative plan of action utilizing the basic methodology outlined in this
proposal but tailored to your specific project.
Scope of Work and Communications
City of San Luis Obispo – Benchmark Compensation Study 15
✓ Meet with stakeholders in each department to gain information regarding any
recruitment and retention challenges and/or changes in position assignments and
expectations since the last study.
✓ Complete an analysis of the existing salary schedule and employee movement through
their respective ranges to identify any existing issues to be addressed during project.
✓ Determine comparable organizations that are an accurate reflection of the City’s
location and current market.
✓ Obtain and establish compensation position within the external market through a
survey of mutually identified, comparable entities.
✓ Conduct a Total Compensation Analysis with top competitors to include key benefits
and salary.
✓ Provide a Benefit Comparative Overview of employer-provided benefits.
✓ Complete an analysis of the existing salary schedule and employee movement through
their respective ranges to identify any existing issues to be addressed during project.
✓ Determine comparable organizations that are an accurate reflection of the City’s
location and current market.
✓ Obtain and establish compensation position within the external market through a
survey of mutually identified, comparable entities.
Classification Component
✓ Obtain information on each position for the job audit, which assists in position
placement for internal equity, through position description questionnaires, existing
positions descriptions and interviews as needed.
✓ Examine and/or create career ladder/promotional opportunities, as appropriate, for job
families.
McGrath 360Comp Integration
✓ Integrate the data from the external market, internal market, and job audit to update
the current compensation system, or develop a tailored classification and
compensation system if a new system is recommended.
✓ Prepare budget impact projections for proposed changes for both immediate
implementation and strategize phased implementation options as needed.
✓ Support implementation of approved changes to the compensation systems.
✓ Review and recommend compensation policy and procedure changes that will assure
consistent implementation and application of the compensation system.
✓ Provide a plan for on-going maintenance of the system, in accordance with all
applicable compensation practices by the City.
✓ Analyze positions to designate proper FLSA exemption status.
✓ Develop final reports and documents; and present final recommendations to
governing body.
✓ Provide training to the administrative professional(s) for maintaining the compensation
system.
This will be accomplished in a participatory environment whereby McGrath Consultants listen
to the administration, departments director, and staff, is sensitive to the unique qualities of the
City, and is responsive to your needs.
City of San Luis Obispo – Benchmark Compensation Study 16
This will be accomplished in a participatory environment whereby McGrath Consultants listen
to the administration, departments director, and staff, is sensitive to the unique qualities of the
City, and is responsive to your needs.
Employee Communication and Engagement
As shared throughout the project steps, you see there are many opportuniti es to engage all
levels of staff in the processes. Each client has different requests for employee communication
during the project. This can include kick-off meetings, electronic or printed updates, etc. We are
prepared to develop and deliver information to the depth, and in the manner, you prefer.
Methodology Overview
Orientation
Confirmation of
Project Scope
and
Compensation
Philsophy
Stakeholder
Meetings
Analysis
Job Audit &
Analysis -
Internal Equity
Study
Market Analysis -
External
Compensation
Study
Update or
Design
Update or
Construct
Compensation
System
Develop
Corresponding
Policies &
Practices
Reports
Final Reports
Presentation
Implementation
Implemention
Communication
Training Human
Resources Staff
Methodologies and Strategies
City of San Luis Obispo – Benchmark Compensation Study 17
McGrath 360Comp™ Methodology Workflow and Process
Our methodology and approach are characterized by a systematic, logical series of tasks aimed
at assuring thoroughness, consistency, and objectivi ty. Our goal is to meet the needs of your
organization. Therefore, the proposal steps can be discussed and adjusted to meet the project
phases of the City of San Luis Obispo.
Modifications to Our Site Visit Plans
Amid ongoing concern about the Coronavirus COVID-19, McGraths top priority is the health,
safety and well-being of our clients and consultants. We understand the concern and
uncertainty, as well as resource re-allocation challenges you may be experiencing around the
evolving situation, and we're committed to being responsive and flexible to meet our customers'
needs.
Like the State of California, all our consultants are currently subject to state -wide stay-at-home
orders. We are adhering to CDC recommendations as well as national and state orde rs
regarding social distancing, travel recommendations, etc. Therefore, while the methodology
described throughout this proposal references our preferred/standard flow of on -site and
remote conference visits, we are able to carry out any and all aspects of the project through
remote site visits and fluid scheduling as conditions change.
Project Orientation
The first trip is an exciting and critical site visit. Because we do not have a “canned”
compensation system/plan to mold you into, we want to meet with representatives of the City
to map out the project. A clearly defined plan will result in a successful solution for your
organization.
Meet with Stakeholders
Confirm/
Develop
Compensation
Philosophy
Develop
Benchmark
Lists
City of San Luis Obispo – Benchmark Compensation Study 18
In these initial meetings, we will meet with your stakeholders to gain an understanding of the
City’s pay philosophy with regard to your desired position in the market, recognition of tenure
and performance, recruitment and retention priorities, and other aspects of a sound
compensation philosophy.
We will explore your organization’s current compensation system; and meet with the City
Manager, Human Resources Director, and other senior management level leaders, Elected
Officials or other stakeholders as appropriate, to gain an understanding of the City’s goals,
values and structure. We will also meet with each Department Director to gain an
understanding of the department’s structure, any unique responsibilities associated with
positions, problems with the current system, or issues in attracting/ retaining employees.
During this site visit, comparable organizations and benchmark positions will be identified and
agreed upon by the Consultants and City Administration.
During this visit, the Consultants will review also all documents of the project – current
compensation system, policies, and/or ordinances attached to the compensation system(s), and
gain data regarding current employees. A list of data needed will be sent to the project
designee prior to this visit so the City will have time to prepare. Document sharing
software/sites such as SharePoint or Dropbox is ou r preferred method of transmitting data.
Finally, optional short employee meetings can also be held to explain the process of a
compensation study, introduce the consulting team, and describe the general outcome of the
Study. Because of the variety of staff and working hours, if needed, the Consultants can be
made available in the early morning or evening hours as well.
Internal Equity - Job Audit and Evaluation
Position Questionnaires
Shortly after the first site visit, the McGrath 360Comp Position Description Questionnaire (PDQ)
will be sent to the City for distribution. We have designed our PDQ specifically for use in public
sector organizations; thus, ensuring points are given for the unique features encountered by
government agencies. Employees may complete it electronically or in paper form and will be
given two weeks to complete the questionnaire and return it to the appropriate supervisor.
This job analysis questionnaire will be completed on all job titles for purposes of:
Position Description
Questionnaire
Evaluate
Positions to
Competencies
Interview
Employees (as
needed)
City of San Luis Obispo – Benchmark Compensation Study 19
❖ Expounding upon information provided in job descriptions to accommodate factors
included in a formal job evaluation plan.
❖ Evaluating position responsibilities with regard to necessary competencies, experience,
education, finances, judgement, decision-making and other expectations which provide
value to the City.
❖ Clarifying instances where statements in the existing job descriptions are vague or
absent.
❖ Probing for the interrelationship with other positions and how the position serves to
fulfill the City’s overall values, vision, and objectives.
❖ Auditing and updating FLSA exemption status.
Each department managers/directors will be given a specified time to review the completed
questionnaire for content and accuracy and to make comments in a designated area of the
document. They will sign off on their review prior to submission to the Consultants. However,
the employee’s responses are to be unaltered.
Group Interviews
In addition to the initial governing body, administration and department director interviews,
sometimes a more complete picture of a job’s responsibilities may be gained by involving
other supervisors and employees in the process through on -site interviews.
The RFQ has requested interviews, therefore we will conduct group interviews. These are used
as an opportunity for the Consultant to gain a more complete understanding of the various jobs
within the organization and their unique qualities for job analysis phase. Each job title should
be represented in these interviews. As previously mentioned, these interviews, if necessary, can
be conducted through electronic conferencing means.
Data Analysis – Metrics & Market Survey
Organizational Impacts and Workforce Metrics
Workforce Demographics Analysis
Throughout the McGrath 360Comp process, the Consultants will gather and analyze
demographic data and analytics regarding your workforce. The data analysis generally includes:
Solicit Compensation and
Benefit Data Data Analysis Job Audit
City of San Luis Obispo – Benchmark Compensation Study 20
➢ Age of the current workforce.
➢ Employee’s tenure within the organization as well as tenure in current position.
➢ Turnover rate for the organization.
➢ Local geographic and economic factors impacting the attraction and retention of
employees.
Compensation-Related Policy Review
The Consultants will review your compensation-related policies for compliance and best
practices. We will make recommendations for policy updates or considerations that impact the
City of San Luis Obispo. Some topics have historically included:
➢ Residency requirements
➢ Recruitment or retention incentives
➢ Organizational structure opportunities
➢ Audit of FLSA Exemption status.
External Market Survey
We will design and send out a market survey of benchmarked positions. We do not restrict the
number of benchmarked positions, but at the same time, do not want the survey to be so
unwieldly as to prohibit its completion. Thus, we will attempt to obtain data on as many
positions as possible. As we begin receiving the survey results, McGrath Human Resources may
ask the City to contact organizations that are not responding to the Consultants to solicit their
assistance in completing the survey.
Establishing Comparables – Public and Private Sector
Public Sector - A list of public sectors comparable organizations will be developed
cooperatively. Criteria for comparable organizations is usually the surrounding area in which
the City competes for talent, organizations of similar size, EAV, population, etc. The goal being
to establish a comprehensive list of organizations that are similar in scope and/or in job
responsibilities.
Private Sector – A number of organizations ask for comparisons to the private sector. If the City
desires, McGrath Human Resources will look to the private arena. However, there are several
inherent problems in collecting this information.
✓ First, there are limited numbers of positions that compare to municipal jobs.
Comparisons are usually restricted to clerical and manual labor classifications.
✓ Second, the mixture of salary to benefits – or total package compensation – is vastly
different than the public sector. This includes the potential of higher wages in the
private sector in lieu of benefits, whereas, public sector has typically offered average
wages in exchange for higher levels of benefits. These differences must be taken into
consideration.
City of San Luis Obispo – Benchmark Compensation Study 21
✓ Third, comprehensive data from the private sector is difficult to obtain. Unlike municipal
organizations which are required through freedom of information to provide the data,
there are no such requirements in the private sector.
With these restrictions in mind, we have been able to obtain information from specific
employers within the area through phone calls and a separate survey. Further, we can review
any private sector data the City may have obtained through associations with the Chamber of
Commerce and relationships established with primary private se ctor organizations. However,
the amount of private information will be limited.
Other Data Sources - If the City participates in a centralized compensation data source that
administration believes is up-to-date and valid, McGrath can utilize that data and supplement it
with a shorter survey to the selected comparable organizations to solicit only information not
contained in the centralized data source.
Survey Participation - McGrath Human Resources generally has great success at obtaining
market survey data. Our process includes contacting the selected comparable organizations
before and during the survey process to obtain their cooperation, find the best contact point
and assist them in completing the compensation survey. We follow-up at least two (2) times
with those who are not responding to the survey. After that, we will ask a designee from the
City to contact those entities not responding to the survey request. After these multiple
attempts, the organization will be given the option to delete that comparable from the Study or
make a public records request to obtain the data. Any cost to request records will be added to
the final invoice.
Benefit Survey and Analysis
Included in the McGrath 360Comp methodology is an optional Total Compensation Analysis.
This analysis places a monetary value on the major benefits along with salary. The process for
this analysis involves the Consultants and City cooperatively selecting top three-five (3-5)
competitors in your market. Through a re-analysis of the average incumbent salary, health
insurance, and pension – we develop a picture of where the City fares within the market.
Another optional analysis is a Benefit Overview Analysis. With this, we conduct a broader
benefit survey, review the data and report the City’s general position in the market for the
offering of benefits. This might include paid leave and holiday comparisons, number of
insurance plans offered, and overall deductible/co-pay comparison, mandatory and optional
retirement offerings, and other pay practices as mentioned previously.
City of San Luis Obispo – Benchmark Compensation Study 22
Updating the Compensation System
Current Salary Schedule Analysis
We will examine the status of your current compensation system. We analyze the structure,
conduct a compression analysis, and incumbent pay analysis. These examinations speak largely
to internal equity.
The compression analysis gives our consultants guidance in updating the salary schedule as well
as giving the municipality information regarding amount of overtime being utilized. The
incumbent pay analysis gives our Consultants guidance in developing implementation strategies
to help recognize and retain tenured employees.
Salary Data Analysis
When data is received through the market survey, the Consultants will tabulate and analyze the
salary data, and identify any trends and/or areas of concern regarding the City’s current salary
as compared with the Market.
Compensation System Recommendation
With the market survey analysis and the job audit information, the Consultants will make a site
visit (virtual or in person) to:
❖ Confirm the recommended compensation philosophy.
❖ Meet with appropriate City personnel to discuss the data obtained and share the
preliminary trends found in our analysis as it compares to the current Compensation
System.
❖ Discuss the future compensation and classification system – should it continue in its
current form; make minor modifications to the current system; or develop a new
process?
❖ Discuss the tie between the compensation system and performance and/or tenure ,
if appropriate.
After this meeting, the direction for the future Classification and Compensation System will be
finalized. The Consultants will make recommendat ions based on our observations and
experience with input from the City regarding any previous experiences with a specific system,
any unique positions that might lend themselves better to one system over another, and the
City administration’s professional opinions on which system is more sustainable for the
organization moving forward.
Analysis of Current
Compensation System
Review Results of
Data Analysis
Compensation
System
Recommendation
City of San Luis Obispo – Benchmark Compensation Study 23
The Consultants will then draft the tailored salary schedule and begin the process of placing
positions on that schedule.
Feedback, Finalizing, Reports and Presentation
Department Director/Administration Input
Once the System is updated, the Consultants will meet with appropriate City personnel to
review the draft Compensation System. This third site visit will include meetings with a
representative of Administration and each Department Director to review placements within
the Compensation System to identify any potential placement problems prior to finalization of
the System. This provides an opportunity to discuss any changes in placement in the current
system and/or ensure proper placement if the system is redesigned.
Fiscal Analysis
Also, at this on-site meeting, the Consultants will have developed the initial, detailed fiscal
impact of the Compensation System. The Consultants will present implementation strategy
options that fit the fiscal needs, culture, and compensation philosophy of the City of San Luis
Obispo. While some entities can fully implement the compensation system immediately, some
clients have utilized a phased approach. We will work with the City to assure that any phased
approach fits with best practices and your fiscal realities.
Draft and Final Report Preparation
McGrath Human Resources will provide a Policy/Procedure Manual. This report details the:
✓ Study methodology and findings.
✓ Recommended compensation modifications.
✓ Recommended position title or career progression changes.
✓ Fiscal impact and implementation strategies.
✓ Policies and procedures necessary to administer and maintain the system in-house.
We will also work with human resources and administration to assist in any training that might
be necessary to successfully implement the compensat ion program.
In addition to the Policy Manual, McGrath Human Resources will develop an Executive
Summary Report for distribution as the City sees fit. This provides a summary of the
Analyze and Calculate
Final Costs
Determine
Implementation
Options
Prepare and
Present Reports
City of San Luis Obispo – Benchmark Compensation Study 24
methodology, issues, and recommendations; however, all the information re garding on-going
administration of the system is only in the Policy Manual.
McGrath Human Resources will provide the City with electronic copies of the Executive
Summary and the Policy Manual for reproduction, along with editable versions of
Compensation System and fiscal impact spreadsheets, etc. for future modification and
implementation; thus, the compensation plan is not dependent upon McG rath Human
Resources for future modifications, unless requested by the City.
As requested, redacted copies of two client reports are included in separate files with this
proposal.
Presentation of Findings to Administration and Department Directors
As appropriate and necessary, a site visit or teleconference may be scheduled to present final
findings and recommendations to Administration and Department Directors before presenting
to the governing body. This will be a final 360-degree transparent check-through to assure all
stakeholders, who will be the ones utilizing the system daily, understand our recommendations
for the designed compensation system, final position placement , and implementation strategy
and on-going use and maintenance.
Presentation of Findings to Governing Officials
The cost of the Study includes a presentation to your governing officials, administration and
other appropriate personnel.
Implementation and Support
Introduction to Employees
McGrath Human Resources Consultants continue to work with your organization throughout
the implementation of the compensation system. We can introduce the plans to the employees
through on-site mini presentations to discuss the methodology, the compensation/pay plan,
position placement and answer questions.
Alternatively, we can prepare communication tools and presentation materials for you to
introduce the approved plan to the employees of the City. These can include correspondence,
brochures, presentation slides and/or other communications ready to be distributed
electronically, in hard-copy or presented by your staff.
Communication Training Ongoing
Maintenance
City of San Luis Obispo – Benchmark Compensation Study 25
Administrative Training
During the presentation site visit, training will be provided to Administration or other
designated staff for maintenance of the Compensation System and Salary Schedule.
We are always available to answer your questions and offer returning -client pricing for more in-
depth assistance in placing new or updated positions into the Compensation System.
Ongoing Maintenance
The City will have the option to maintain the Compensation System, or have our Firm provide
recommendations for maintenance. If the City chooses to maintain the Compensation Plan, we
will provide training to the member(s) of the Human Resources Department who will be
expected to provide that maintenance.
Some clients prefer that McGrath Human Resources continue as the source to resolve current
and future pay grade placements rather than the City, and if so, the point factor matrix remains
with the Consultants. This can be done for a nominal fee depending upon the time involved in
the placement. Whether it is done by McGrath Human Resources or the City of San Luis
Obispo can be discussed and is at the discretion of the City.
Project Timeline
McGrath Human Resources Group takes pride in meeting its time commitments. We want to
meet your expected timeframe while doing our best work for you. Our methodology relies on
tailored salary surveys to assure we are making accurate comparisons of positions. It is difficult
to estimate the impact on local governmental organization and how quickly they will be able to
respond to market surveys. We will do our best to meet your desired project delivery in
September. However, we will request that this timeline remain fluid with frequent dialogue
throughout the project regarding the status of the project. We, therefore, propose the
following timeline at this time:
Task Ma
y
Ju
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Project Initiation - Site Visit
Data Collection & Questionnaires
Job Audit – Point Factoring
Market Survey & Analysis
Review of Market Survey Findings & Employee
Interviews – Site Visit
Update or Development of Salary System
City of San Luis Obispo – Benchmark Compensation Study 26
Task Ma
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Oc
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Review Plan, Dept. Director Meetings, Report
Preparation – Site Visit
Employee Placement & Development of
Implementation Options/Cost Calculations
Presentation of Compensation Plan; Training of Staff
– Site Visit
*This timeline will be adjusted based on the agreed upon Project Initiation date and other
factors.
McGrath Human Resources sets project fees based on the total project. Because we tailor the
project to your needs, we do not charge a “per hour” fee, nor do we charge per diem,
transportation or office expenses.
Therefore, the fees listed below include all consulting professional fees, administrative costs,
and other costs.
Compensation and Classification Study including Benefit Survey: $24,589
Pay will be made in three installments: $5,000 upon signing of the contract; $12,589 upon
submission of the draft report; and the balance$7,000 upon submission of the final report.
Travel costs will be submitted separately and will include airfare, car rental, hotel, and dinner.
Terms of Payments and Professional Recommendations:
All invoices are due within 30 days of receipt. Proposal cost is good for a minimum of 90 days
from April 6, 2020. Dr. Victoria McGrath is the individual with the authority to negotiate and
contractually bind McGrath Human Resources in any type of negotiations and contracts.
Our work for your organization will be drawn greatly from our professional experience in
providing similar services to others for the past 20 years. We will, to the degree possible,
preserve the confidential nature of any information received from you or developed during the
work in accordance with our professional standards and practices.
The project results, our recommendations and all written mat erials provided by us represent
our professional judgment based on the information available to us. Neither McGrath
Consulting, Inc. nor McGrath Human Resources Group has been a party to any litigation,
administrative or state ethics board or other adverse proceedings. Our liability, if any, will not
be greater than the amount paid to us for the services rendered.
Fees and Terms
City of San Luis Obispo – Benchmark Compensation Study 27
Other Additional/Optional Services:
In most compensation studies, there are areas that must be addressed that are not planned for.
In the 20 years McGrath Consulting Group, Inc., has been in business, it has never increased the
agreed upon price and will address these areas. In the event the work is so beyond the scope of
the original project, the Consultant will work with the City to either bill the service at an hourly
rate, plus travel fees; or determine a fixed price. However, no work will begin until an
agreement with the City has been approved.
The compensation system is designed to be self-sufficient by the City. There are times that
additional projects develop, or the client asks for assistance to maintain the compensation
system. All items for continued service will be dealt with and priced according to the project
and what it entails. Ongoing consultation and support on the developed system is normally
included at no extra fee.
McGrath Human Resources Group is confident that we can meet the goals and objectives to
maintain a credible, competitive, fiscally sound classification and compensation system. We
take the time to understand your culture and the vision of your organization and then make
recommendations that align with your needs.
Our firm is large enough to employ the necessary resources to ensure success, yet small enough
to make certain our clients are a priority and ensure open communication and transparency
throughout the entire process. Please feel free to contact us if you have any questions.
A Final Word