354-HR27-11 Classification and Compensation Study.pdf

Request for Proposal: 354-HR27-11

Title: Classification & Compensation Study

Issue Date: September 3, 2026

Due Date: September 30, 2026

Issuing Department: Human Resources

Direct all inquiries concerning this RFP to:

Ashley Lategan

Interim Human Resources Director Email: CaryClassPay@carync.gov

*Late proposals will not be accepted mailto:CaryClassPay@carync.gov

Issued By: Town of Cary Human Resources 316 N. Academy Street Cary, NC 27513

RFP Name: Classification & Compensation Study - RFP No. 354-HR27-11

Issue Date: September 3, 2026

Pre-Proposal Meeting:

N/A

Questions Due Date: September 11, 2026

Direct Inquiries To: Ashley Lategan

CaryClassPay@carync.gov

Proposal Due Date: September 30, 2026

Submission Delivery: Electronic – NC eVP https://evp.nc.gov

Proposers are cautioned not to make changes to any of the term and conditions in this solicitation.

Doing so may render a proposal unacceptable and unresponsive for award. Question and inquiries must be made in writing as outlined within the RFP.

https://evp.nc.gov/

1 INTRODUCTION

1.1 Purpose

The Town of Cary, NC (Cary) is solicitating proposals from one or more consulting firm(s) to review and research its classification and compensation structures to ensure positions are appropriately classified and compensation remains fair, competitive and clearly structured. The intent is to attract, retain, and develop our high-performing, skilled employees, in an ever-changing and challenging labor market, making sure that

Cary’s pay practices keep pace with the market. These efforts help attract and retain talent, strengthen service delivery, and help ensure Cary remains well positioned to meet community expectations.

Cary currently has approximately 1,352 full-time regular positions covered by 480 job classes assigned to one of the following departments: AI and Data Management; Facilities, Construction and Field Services; Finance; Fire; Fleet; Human Resources; Information Technology; Inspections and Permits; Legislative; Parks, Recreation, and Cultural Resources; Planning and Community Development; Police; Public Works; Stormwater;

Town Manager’s Office, which includes 311, Budget, Environment, Marketing, and Organizational Development; Transit; Transportation; and Utilities. The three biggest departments – Fire, Police, and Public Works – make up 63% of Cary’s workforce. On average, employees have worked for Cary for 10 years and the average salary is $86,340.

The more detailed scope of services is provided in Section 3, Scope of Work, of this document.

All information related to this solicitation, including any addenda, will be posted to the North Carolina electronic Vendor Portal at: https://evp.nc.gov. All questions related to this solicitation must be submitted in writing (via email) to:

Ashley Lategan, Interim Human Resources Director

Questions submitted via telephone or to any other email will not be answered.

1.2 Background

Cary, North Carolina, is a thriving, forward-looking community nationally recognized for its exceptional quality of life and top-tier services. More than 190,000 residents within 61 square miles call Cary home, making it the seventh-largest municipality in North Carolina, behind Charlotte, Raleigh, Greensboro, Durham, Winston-Salem, and Fayetteville.

Conveniently located between Raleigh, the state capital, and Research Triangle Park, the largest research and technology hub in the United States, Cary offers unparalleled access to innovation, education, and opportunity. Cary consistently outperforms national averages in home values, job creation, household income, and population growth. The community benefits from an educated workforce, excellent public schools, universities, major health care facilities, and a strong regional economy.

Cary has been nationally recognized for decades as a community of excellence. Our police, fire, and parks departments are nationally accredited. Cary maintains a sound financial foundation and high-quality services from prudent planning and conservative fiscal management. Cary holds an AAA credit rating from all major rating agencies, reflecting its strong fiscal health, stable tax rates, and capacity for strategic investment.

Cary’s strength has been rooted in its people, both those who call this community home and those who serve it every day. A high-performing workforce continues to be the engine behind Imagine Cary’s SERVE Policy 6, which commits Cary to delivering world-class services in a timely, responsive, and equitable manner. Investing in staff directly ensures that Cary has the organizational capacity to meet growing and changing community needs, uphold the high service standards Imagine Cary envisions, and support the kind of responsive, accessible government that makes Cary a desirable place to live, work, and do business.

1.3 Project Overview

The intent of the study is to review Cary’s job classifications and Cary’s compensation (pay and grade) structure against benchmark comparable public markets, and when appropriate private sectors, using scientific methods and tools to provide recommendations.

Cary is committed to administering a compensation system that is fair, consistent, competitive, equitable, and compliant, while also aiming to:

• Attract and retain highly qualified employees;

• Maintain a classification plan with applicable titles for all Cary positions, which may include identifying new roles with the proper classification or consolidating roles.

• Ensure positions performing similar work with the same level of complexity, responsibility, and required knowledge, skills, and abilities are classified together;

• Validate exemption status of positions compliant with the Fair Labor Standards Act;

• Maintain a competitive market position with other comparable government entities and private employers (as applicable) within the same geographic areas.

• Identify salaries commensurate with assigned duties and competitive with market;

• Maintain Cary’s long-standing pay for performance program;

• Provide justifiable pay differential between job classifications;

• Address any possible pay compression and internal equity issues; and

• Outline promotional opportunities and career advancements, with recognizable compensation growth;

Cary’s fiscal year (FY) is from July 1 through June 30th; the study is based on current data.

Recommendations accepted from the study are targeted to be implemented for FY28.

1.4 Request for Proposal (RFP) Timeline

Provided below is a list of the anticipated schedule of events related to this solicitation.

Cary reserves the right to modify and/or adjust the following schedule to meet the needs of the service. All times shown are Eastern Time (EST):

RFP Process Date and Time

RFP Advertisement Date September 3, 2026

Deadline for Written Questions September 11, 2026

Cary’s Response to Questions September 21, 2026

Proposal Due Date and Time September 30, 2026 @ 5:00 PM ET

Interviews (May be multiple rounds) October 14 - 16, 2026

Selection Announced (tentative) October 30, 2026

1.5 Proposal Questions

Requests for clarification and questions to this RFP must be received by Cary not later than the date shown above in the RFP Timeline (Section 1.4) for the submittal of written inquires.

The firm’s failure to request clarification and submit questions by the date in the RFP

Timeline above shall be considered to constitute the firm’s acceptance of all Cary’s terms and conditions and requirements.

Cary shall issue addenda reflecting questions and answers to this RFP, if any, and shall be posted to North Carolina electronic Vendor Portal (NC eVP). No information, instruction or advice provided orally or informally by any Cary staff, whether made in response to a question or otherwise in connection with this RFP, shall be considered authoritative or binding. Respondents shall be entitled to rely only on written material contained in an Addendum to this RFP.

All questions related to this solicitation must be submitted in writing (via email) to Ashley Lategan, Interim Human Resources Director at CaryClassPay@carync.gov. Questions submitted via telephone will not be answered.

It is important that all Respondents submitting to this RFP periodically check the North Carolina electronic Vendor Portal (NC eVP) for any Addenda. It is the Respondents’ responsibility to ensure that all addenda have been reviewed and, if required signed and returned.

1.6 Proposal Submission Requirements and Contact Information

Proposals must follow the format as defined in Section 2 (PROPOSALS) and be submitted electronically through the North Carolina electronic Vendor Portal at https://evp.nc.gov.

Proposals must be clearly marked with the name of the submitting company, the RFP number (354-HR27-11), and the RFP Title.

The electronic version of the Proposal must be submitted as a viewable and printable Adobe Portable Document File (PDF). The proposal must be received by Cary on or before the RFP due date and time provided in RFP Timeline (Section 1.4).

Proposals received after the RFP due date and time will not be considered. It is the responsibility of the firm to ensure that their proposal successfully arrives to CaryClassPay@carync.gov by the due date in the RFP Timeline (Section 1.4).

Any requirements in the RFP that cannot be met must be indicated on Appendix III:

Exceptions to the RFP and submitted with the proposal. Proposers must respond to the entire RPF. Any incomplete proposal may be eliminated from competition at the discretion of Cary.

Cary reserves the right to reject any or all proposals for any reason and to waive any informality it deems in its best interest.

1.7 Communications

All communications of any nature regarding this RFP with any Cary staff, elected Cary officials, evaluation committee members, are strictly forbidden from the time the solicitation is publicly posted until award. Questions must be submitted in writing to the individual designated in Section 1.1 (Purpose), prior to the deadline provided in the RFP Timeline (Section 1.4). Violation of this provision may result in the firm’s proposal being removed from consideration.

1.8 Lobbying

By responding to this solicitation, the firm certifies that has not and will not pay any person or firm to influence or attempt to influence an officer or employee of Cary or the State of North Carolina, or any elected official in connection with obtaining a contract resulting from this RFP.

1.9 RFP Terms

It shall be the Proposer’s responsibility to read the instructions, terms and conditions, all relevant exhibits and attachments, and any other components made a part of this RFP and comply with all requirements and specifications herein. Proposers also are responsible for obtaining and complying with all Addenda and other changes that may be issued in connection with this RFP.

1.10 Rights to Submitted Material

All proposals, responses, inquiries, or correspondence relating to or in reference to this RFP, and all reports, charts, and other documentation submitted by Proposers (other than materials submitted as and qualifying as trade secrets under North Carolina law) shall become the property of Cary when received and the entire proposal shall be subject to the public records laws of the State of North Carolina except where a proper trade secrets exception has been made by the Proposer in accordance with the procedures allowed by North Carolina law.

Cary reserves the right to retain all proposals submitted and to use any ideas regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the Proposer of the conditions contained in this RFP. All information submitted in conjunction with this RFP and the evaluation process will not be returned.

All costs incurred by the Proposer in the development of a response to this Request for Proposal or any other activities associated with this procurement including but not limited to any onsite (or otherwise) interviews and/or presentations, and/or supplemental information provided, submitted, or given to Cary and/or its representatives will be the responsibility of the Proposer.

Cary shall reserve the right to cancel the work described herein prior to issuance and acceptance of any contractual agreement/purchase order by the recommended Proposer even if the awarding authority for each entity has formally accepted a recommendation.

1.11 Proposer Acceptance

Submission of any proposal indicates a Proposer’s acceptance of the conditions contained in this RFP unless clearly and specifically noted otherwise on Appendix III-

Exceptions to RFP and submitted with proposal. Cary is not bound to accept a proposal on the basis of lowest price, and further, Cary has the sole discretion and reserves the right to cancel this RFP, and to reject any and all proposals, to waive any and all informalities and/or irregularities and reserves the right to re-advertise this RFP with either the identical or revised scope and specifications if it is deemed to be in the best interests of Cary to do so. Cary reserves the right to accept or reject any or all the items in the proposal, and to award the contract in whole or in part and/or negotiate any or all items with individual Proposers if it is deemed in the best interest of Cary to do so.

Moreover, Cary reserves the right to make no selection if proposals are deemed to be outside the fiscal constraint or not in the best interest of Cary.

2 PROPOSALS

To be considered complete, responses, which cannot exceed 20 pages, must follow the format below - base RFP document, any attachments, and any addenda. Responses should be divided using tabs to separate each section, listed sequentially as follows.

Tab 1: Cover Letter

Provide an introduction letter summarizing the unique proposal to meet the needs of the scope of work. The letter should be presented on the firm’s letterhead and signed by an authorized representative of the firm who has the authority to enter into contract with Cary. The name, address, telephone, and email address of the individual who serves as the point of contact for this solicitation must also be included.

Tab 2: Corporate Background and Experience Include background information on the firm and relevant information regarding the firm’s experience with similar projects.

A list of all similar contracts performed in the past 10 (ten) years should be provided.

Include the total amount invoiced for each listed project, the length of the project, and list of those involved in the project who are also proposed for the subject project named in this solicitation. Failure to provide a list of all similar contracts in the specified period may result in the rejection of the firm’s proposal.

Provide at least three references specifically noted in Appendix II. The evaluation team reserves the right to contact any or all listed references, and to contact other public entities regarding past performance on similar projects.

Tab 3: Financial Information Review and provide one of the following three (3) financial statement options:

1. Recent audited or reviewed financial statements prepared by an independent certified public accountant (CPA) that shall include, at a minimum, a balance sheet, income statement (i.e., profit/loss statement) and cash flow statement and, if the audited or reviewed financial statements were prepared more than six (6) months prior to the issuance of this RFP, the Proposer shall submit its most recent internal financial statements (balance sheet, income statement and cash flow statement or budget with entries reflecting revenues and expenditures from the date of the audited or reviewed financial statements to the end of the most recent financial reporting period (i.e., the quarter or month preceding the issuance date of this RFP)).

OR

2. Recent compiled financial statements prepared by an independent CPA that shall include, at a minimum, a balance sheet, income statement (i.e., profit/loss statement) and cash flow statement and, if the compiled financial statements were prepared more than three (3) months prior to the issuance of this RFP, the Proposer shall submit its most recent internal financial statements (balance sheet, income statement and cash flow statement or budget with entries reflecting revenues and expenditures to date), and other evidence of financial stability such as most recently filed income tax return, evidence of a line of credit/loans/other type of financing with statement of amount in use/outstanding balance (e.g., a complete copy commitment letter, loan agreement, billing statement reflecting the line of credit or statement from lender acknowledging the commitment to fund the Proposer’s stated financing), personal guaranty with copies of personal income tax filing and statement of net worth or such other evidence that is accurate, reliable and trustworthy regarding the Proposer’s financial stability.

OR

3. Include a certified, signed statement from a licensed CPA regularly engaged in the review of the firm’s financial information verifying the financial viability of the firm.

All financial information, statements and/or documents provided in response to this solicitation shall be kept confidential provided that EACH PAGE is marked as follows:

“CONFIDENTIAL – DO NOT DISCLOSE EXCEPT FOR THE EXPRESS PURPOSE OF

PROPOSAL EVALUATION. “

Consolidated financial statements of the Proposer’s parent or related corporation/business entity shall not be considered, unless: (1) the Proposer’s actual financial performance for the designated period is separately identified in and/or attached to the consolidated statements, (2) the parent or related corporation/business entity provides the State with a document wherein the parent or related corporation/business entity will be financially responsible for the Proposer’s performance of the contract and the consolidated statement demonstrates the parent or related corporation’s/business entity’s financial ability to perform the contract, financial stability and/or such other financial considerations identified in the evaluation criteria; and/or (3) Proposer provides its own internally prepared financial statements and such other evidence of its own financial stability identified above.

Proposers are also encouraged to explain any negative financial information, and to provide documentation supporting those explanations and demonstrating the financial strength of the firm.

The firm’s failure to provide any of the above-referenced financial statements may result in the proposal being removed from consideration.

Tab 4: Team Firm, Experience and Certifications The proposed staff to be assigned to this project, to include experience of all executives, managerial, legal, and professional personnel to be assigned to this project, including resumes citing experience with similar projects and the responsibilities to be assigned to each person, along with a project-specific agency chart to illustrate the responsibilities, roles, and the reporting relationships of each team member should be included.

Tab 5: Project Understanding, Approach and Schedule for Scope of Services Provide a comprehensive response to demonstrate the firm's understanding and approach to accomplishing the tasks in Section 3, Scope of Services. A description of each task and delivery and the schedule for accomplishing each must be included.

Tab 6: Cost Provide the cost schedule for the proposal provided, fully reflected of all costs, to include hourly rates and projected hours, all applicable overhead and profit (including lodging, meals, and transportation). Attach any additional pricing details.

3 SCOPE OF SERVICES

The selected consultant will conduct a classification and compensation study for Cary that will result in an achievable, market-competitive classification, and compensation system aligned with Cary’s organizational goals, workforce strategy, and fiscal priorities.

The consultant should provide a detailed project approach that succinctly documents Cary’s

Compensation Philosophy and outlines the methodology, timeline, milestones, communication and engagement plan, and deliverables for completing the study, as described below. The project plan should identify key activities, stakeholder engagement opportunities, reporting frequency, communication and engagement methods, and target audiences throughout the engagement.

For the study, Cary will provide access to the following information as requested: existing job descriptions, existing pay ranges for all job classifications, current compensation-related policies, current organizational charts, electronic files with employee data to include job titles, pay rates, hire dates, etc. and additional relevant information.

Classification and Compensation Analysis Conduct an evaluation of the existing classification and compensation system, including:

• Assessment of the current classification structure, to include all current classifications and exemption status in accordance with the Fair Labor Standards Act.

• Assessment of the current compensation structure to include salary structures and pay ranges.

• Market comparison using agreed-upon comparable public-sector organizations and, where appropriate, private-sector organizations for hard-to-fill or specialized positions.

• Custom salary survey utilizing benchmark classifications that represent all major job families and levels to analyze classifications (ex. Minimum qualifications);

• Consideration of actual employee pay and internal equity compared to practices and philosophy;

• Review and recommendation of a job evaluation criteria, methodology, and approach that supports ongoing maintenance of the classification system, including, but not limited to, an evergreen tool if recommended

Classification Plan Recommendations Develop a comprehensive classification plan that includes:

• Recommendations for revised job classifications and titles.

• Development of job descriptions for revised classifications.

• Identification of career pathways and career ladders, where appropriate.

• Recommendations for placement within the structure based on qualifications to include education and experience.

Compensation Plan Recommendations Develop a comprehensive compensation plan that:

• Establishes a competitive market position, to include salary schedules, pay grades, minimums, midpoints, maximums, range spreads, and grade progression, consistent with Cary’s philosophy.

• Recommendations on compensation of current employees within the recommended classification plan above, including identification and resolution of internal equity or pay compression, when applicable.

Implementation Strategy Provide multiple implementation options, including estimated costs, timelines, and strategies for addressing classification recommendations, market adjustments, pay equity, compression, and any other recommendations. If needed, provide phased implementation options with associated financial impacts to support informed decision-making.

Implementation strategy should include internal communications and employee engagement strategy.

The intended implementation timeframe is to begin July 1, 2027.

4 PROPOSAL EVALUATION

4.1 Evaluation Criteria

Proposals received will be evaluated in accordance with the criteria contained below, considering the material and substantiating evidence presented in the response and not based on what is inferred. The interview will also be given weight.

The scoring is based on the following:

• Corporate Background and Experience

• Firm Financial Stability

• Project Understanding

• Project Scope, Approach, and Timeframe

• Team Firm Experience

• Proposed Cost

• References

• Interviews

A list of firms may be invited to participate in interviews and/or another stage of the evaluation process, after which negotiations for a contract with the most qualified firm will commence. Cary will pursue negotiations with the next most qualified firm if negotiations are unsuccessful. All Proposers will be notified following Cary’s decision.

Cary shall not be bound or in any way obligated until both parties have executed a contract.

And Cary also reserves the right to delay the award of a contract or to not award a contract.

4.2 Notice to Proposers Regarding RFP Terms and Conditions

It shall be the Proposer’s responsibility to read the Instructions, Cary’s Standard Principal Agreement (https://carync.box.com/s/3f6sqlmj3qym3byf4bf5ir0on2qmm57l), all relevant exhibits, attachments, and any other components made a part of this RFP and comply with all requirements and specifications herein. Proposers are also responsible for obtaining and complying with all Addenda and other changes that may be issued in connection with this RFP.

4.3 Contract Term

The awarded consultant will have to complete the work based on the project schedule agreed to and/or incorporated in the contract, with the recommendations and implementation options to be presented, such that any approved recommendations can begin July 1, 2027.

Any change to the schedule and completion date stated in the contract can only be made by a duly authorized amendment to the contract. The consultant will agree to provide support for one additional year after the completion of work without any additional cost.

https://carync.box.com/s/3f6sqlmj3qym3byf4bf5ir0on2qmm57l

5 APPENDIX

APPENDIX I - PROPOSAL COST FORM

Classification and Compensation Study, RFP No. 354-HR27-11

Provide details of all fees and services to be included as part of the proposed services.

Total Not to Exceed Fee:

The fee below must include all professional services, supplies, and travel to complete the scope of work as per the RFP. Travel, if applicable, will be billed to Cary at the current State of North Carolina government mileage and per diem rates without mark-up. No additional out-of-pocket expenses shall be paid including, but not limited to, fuel and other associated travel costs. All non-labor related project costs will be billed to Cary at cost without mark-up.

Price quoted must be held firm for one year (365 days) after the RFP is due.

Total Fee: $_______________

Proposer’s Signature: Date: __________________________

By signing above, I certify that I have carefully read and fully understand the information contained in this RFP; and that I have the capability to successfully undertake and complete the responsibilities and obligations of the Proposal being submitted and have the authority to sign the Proposal on behalf of my organization. It is the offeror’s responsibility to ensure that all addenda have been reviewed prior to proposal submission.

BY (Printed): __________________________________________________________

TITLE: _______________________________________________________________

COMPANY: ___________________________________________________________

ADDRESS: _____________________________________________________

TELEPHONE: _____________________________________________________

EMAIL: _____________________________________________________

APPENDIX II - REFERENCES FORM

ACTIVE OR FORMER CLIENTS

Proposers must supply (3) three client references for either current, active, or former clients for whom similar work has been performed during the past (5) five years. At least one or more reference(s) from a local government or public sector entity is preferred. Proposers are cautioned to provide accurate reference information. References will be checked during the evaluation period.

PROPOSER: ________________________________________________________________

CITY, STATE, ZIP: __________________________________________________________

Reference # 1

Agency or Firm Name: _______________________________________________________

Business Address: ____________________________________________________________

City: ____________________________ State: ________ Zip Code: _____________

Phone Number: (____) ______________________ Fax Number: (____) ______________

Email Address: _____________________________________________________________

Reference # 2

Agency or Firm Name: _______________________________________________________

Business Address: _____________________________________________________________

City: ____________________________ State: ________ Zip Code: _____________

Phone Number: (____) ______________________ Fax Number: (____) ________________

Email Address: ______________________________________________________________

Reference # 3

Agency or Firm Name: ________________________________________________________

Business Address: ______________________________________________________________

City: ____________________________ State: ________ Zip Code: _____________

Phone Number: (____) ______________________ Fax Number: (____) ________________

Email Address: ________________________________________________________________

APPENDIX III - EXCEPTIONS TO THE RFP

CHECK ONE:

☐ NO EXCEPTIONS, PROPOSER COMPLIES WITH ALL DOCUMENTS IN RFP.

☐ EXCEPTIONS ARE LISTED BELOW:

RFP Page #, Section, Name, Title, Item #

Exceptions

(Describe nature of Exception)

Explain Why This is an Issue

Proposed Alternative

Indicate if exception is Negotiable (N), or

Non-negotiable (NN)

FAILURE TO IDENTIFY ANY EXCEPTIONS WILL INDICATE ACCEPTANCE OF ALL TERMS AND CONDITIONS, AND REQUIREMENTS OF THE RFP AND ANY CORRESPONDING ADDENDUM ISSUED. THE TOWN, AT ITS

SOLE DISCRETION, MAY MODIFY OR REJECT ANY EXCEPTION OR PROPOSED CHANGE.

Firm: Authorized Signature: Title:

Printed Name of Signer: Date: