Advisors to municipal bond issuers and borrowers, as well as rating agencies for municipal bonds, want to know that local governments and public agencies are on top of their financial and organizational management. Data-driven initiatives are one component to help monitor the goings-on of public agencies that help communicate what is and isn't going in the right direction.
Data-driven local governments and other public agencies might sound like a complex subject or something difficult to attain, but that could not be further from the truth. Weld County in Colorado is an example of one public sector organization that embraced data to modernize its pay structure, build trust with stakeholders, and ensure competitive compensation for its employees.
The county, in collaboration with Baker Tilly, conducted an extensive data collection and analysis project, gathering data from 12 peer organizations and three published surveys. In addition, each of the county's 520 positions were reviewed line-by-line with department leaders. The goal was to present data-driven recommendations to the Weld County Board of Commissioners to modernize their pay structure (which had not changed in nearly four decades!).
By modernizing its pay structure, Weld County elevated itself to be an "employer of choice" with a competitive pay structure. Accurate data helped support the placement of each job in the pay structure, ensuring the pay bands were wide enough for growth and compensation aligned with market conditions. This approach is helping the county retain top talent and attract new employees.
Using a data-driven approach, Weld County also increased its trust with stakeholders. By basing decisions on validated data, the county government demonstrates fairness and transparency in its pay practices. This, in turn, built trust with employees, citizens, elected officials and other stakeholders. The county's use of data shows that decisions are based on facts rather than feelings, reinforcing the county's commitment to being an employer of choice.
Weld County reviewed technological infrastructure and employee skills development. A new organization-wide initiative ensures job descriptions are current and accurately reflect the required duties, education, experience, knowledge, skills and abilities. In addition, the county implemented a new HR system that streamlines employee data while making the total compensation transparent and relevant to employees.
Counties are not the only government entities embracing data-driven decision-making. This approach can be used by municipalities, cities, towns, villages and districts. Organizations of any size — with any budget, a can-do mindset, and any level of technological infrastructure — can reap the benefits of becoming more data-driven. By their very nature, public sector entities have access to data, and this data can be harnessed thoughtfully to improve operations, increase financial and human resources efficiency, and create a better overall community.
Khala Stanfield and Al Zelinka are directors with Baker Tilly's public sector advisory practice.
