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Concerns linked to trust persist as to the optics of the move to new company

 

The Austin City Council Monday night, during its work session, agreed to an employee engagement alternative to the company that originally conducted the city’s employee survey.

The decision to move from Employee Strategies to Assessments International would result in significant savings for the city, but it also raised the specter of distrust among city employees reflected in the employee survey taken earlier this year.

The council’s initial agreement with Employee Strategies would have cost the city $25,000 for a two-day planning session with a 2024 Employee Pulse Survey and Blueprinting Session adding an extra $20,000.

But it was the leadership 360’s that drew the most conversation Monday night. The Employee Strategies cost for 360’s would have cost the city $45,000 with $4,500 being added or subtracted for each evaluation.

According to a memo from City Administrator Craig Clark to Mayor Steve King and the board, after the council’s decision in October to stay with Employee Strategies, Council member Jason Baskin went and spoke to an individual in HR at the company he works, which is Hormel Foods, in an effort to look for more cost efficient alternatives, where he learned about Assessments International.

Baskin was not in attendance at Monday night’s meeting.

Clark and Human Resources Director Trish Wiechmann then spoke with a representative from the company and learned of the company’s proposal.

It was identified that 33 positions in the city have some level of supervision. There would be a set-up fee of $1,300 with a standard 360 assessment costing $180 each coming to $5,940 for all 33 assessments.

The package also includes review and virtual coaching sessions that would last between 1.5 to two hours for those who were given 360s. That price ranges from between $1,200 to $1,800 depending on management level and would come out to a total of $45,600 for all 33 assessments.

Additionally, a council recap session with consultants from the company would cost $1,800 and last about two hours.

In total, the cost for everything would line up to $52,840.

Council member Mike Postma liked the idea of making the move and that it would give the city more bang for its buck.

“It’s not close in price,” he said. “We can include so much leadership”

However, despite the savings some were still concerned about switching companies this late in the process as well as how it would affect the lack of trust employees have in leadership.

Council member Laura Helle supported a slower, staggered approach that ensured Assessments International would have access to the employee survey. She argued that what she had been hearing were fears that this new company would be unfamiliar with the survey conducted by a company they trusted.

“The survey was pretty clear about problems at a leadership level,” Helle pressed, adding: “I’m comfortable going forward with the company and proposal, but I think we should take our time, start with city administration.”

Ann Kasel, city clerk, speaking when the floor was opened to department heads, also raised concerns of trust she was hearing from employees.

“The council had a plan two weeks ago and now we have a completely different plan,” she said. “Employees trust this company. There’s that appearance that something happened in these two weeks that shifted that plan.”

That point was echoed further by Austin Public Library Executive Director Julie Clinefelter.

“There’s concern about moving from the original group on to somebody new,” she said. “They know where we’re at. There’s discomfort from moving away from that original company.”

To further emphasize the point, there were calls that part of the process going forward was making sure that the council and administration is clear to the employees as to the reason the change was being made.

“I also see what this is doing to our employees who are already disgruntled as we are told,” Council member Joyce Poshusta said, who asked Clark if the city approached Employee Strategies about lowering the price. Clark said they would not. 

“There is value in this, but we have to make it absolutely clear why we’re making this decision,” she continued.