3-Attachment A Scope of Work.pdf

ATTACHMENT A: SCOPE OF SERVICES

RFP 2025-28

Fiscal Year (FY26) Classification and Compensation Study

Background & Purpose The Town of Hilton Head Island last updated its salary ranges in September 2020. Since then, evolving labor market dynamics and economic conditions have highlighted the need to ensure the Town remains competitive. At the same time, local factors such as housing costs and transportation challenges create additional pressures on attracting and retaining talent. To strengthen the Town’s ability to recruit and retain a high-quality workforce, a consultant is sought to review the current classification and compensation system and recommend updates that promote fairness, competitiveness, and long-term sustainability.

Scope of Work The consultant will conduct a comprehensive review and update of the Town’s classification and compensation system. The Town has used its current structure for more than 10 years. While the system was originally built on established job factors, it has since been adapted to reflect evolving market conditions and organizational needs. A fresh review will help ensure the system remains consistent, objective, and aligned with best practices. The study will evaluate the current structure, recommend improvements, and propose updated pay ranges that reflect today’s economic environment.

Project Objectives

• Ensure the classification system is current, equitable, and aligned with Town objectives.

• Update salary ranges to reflect competitive labor market conditions.

• Explore alternative pay scales, including potential step systems for Uniformed Fire positions and Dispatchers.

• Provide tools and policies to support ongoing administration and sustainability of the system.

Scope of Services

Review of Current System

• Assess the Town’s classification and compensation structure, identifying strengths, weaknesses, and gaps.

• Review alignment with organizational goals, mission, and total rewards objectives.

• Examine pay equity and recommend strategies to achieve and maintain fairness.

Classification Study

• Review and update job descriptions, as necessary.

• Develop a consistent classification framework that supports organizational objectives.

Job Evaluation

• Recommend and apply an appropriate and reliable job evaluation method.

• Provide a process that allows employees and supervisors to submit positions for review and re-evaluation within the classification system, including updated job descriptions as appropriate.

• Confirm results with leadership and provide training to designated staff for future use.

Compensation Study

• Identify benchmark positions and select appropriate comparison markets.

• Collect and analyze external salary data to build updated pay ranges.

• Recommend model pay structures, including options for Fire and Dispatcher classifications.

• Provide implementation options, including cost estimates for phased or multi-year adjustments.

Implementation & Administration

• Develop written guidelines for ongoing maintenance of classifications and pay ranges.

• Recommend policies for pay progression, adjustments, promotions, reclassifications, and merit allocations.

• Suggest reliable market data sources for annual updates and future salary structure adjustments.

• Provide recommendations to strengthen the connection between pay, performance, and the Town’s budget.

Deliverables

• A comprehensive written report summarizing methodology, findings, and recommendations.

• Updated classification structure and compensation plan.

• Presentations of results tailored for the Senior Management Team.