For years, public agencies have relied on consultants to manage workforce planning, compensation studies, and labor negotiations. Consultants provided specialized know-how and an extra set of hands that agencies sometimes lacked in-house.

But recent market shifts have made relying solely on consultants less desirable—budgets are tighter, staff are stretched, and decisions are often needing to be made quickly with data already on-hand. For HR and Finance leaders, however, that ‘on-hand’ data is often not current or complete. The key is striking a balance: providing teams with the right tools to expand their in-house capability, while still partnering with trusted consultants when strategic guidance and facilitation is needed.

In a recent NASPE report, fewer than 30% of government HR leaders said they use current compensation data when preparing for negotiations. Instead, most rely on incomplete or anecdotal benchmarks, which translates to negotiating with blinders on. When outdated or missing data drives compensation decisions, it is difficult for agencies to stay competitive with private sector peers, and they can risk agreeing to terms that are not financially sustainable.

A balanced approach, which leverages in-house tools plus external expertise, offers agencies the best of both worlds: real-time insights coupled with expert support. Yet many agencies still hesitate to embrace a shared approach in default to a consultant-only model.

The Risks of a Consultant-Only Strategy

There is no denying that consultants play a valuable role in workforce analytic expertise, but outsourcing entire compensation studies or labor strategies can create several risks:

• High financial costs: Market studies and pay plan analyses often cost tens of thousands of dollars, which becomes a significant budget strain, especially with recurring needs
• Outdated data: When negotiations and decisions are on the line, current market data can be a gamechanger. To stay informed and competitive, agencies need to work with real-time insights, not months-old reports that don’t reflect current market conditions
• Dependency: Without in-house tools, agencies must wait for the next consulting engagement to adjust strategies or respond to new challenges
• Knowledge gaps: When consultants complete a project engagement, agencies can be at a disadvantage to replicate or update the work that was performed

While the risks are real, there is also a unique opportunity for an agency-consultant partnership that emerges—one that leverages the value of outside expertise alongside in-house capabilities.

Making a Case for Increasing In-House Capacity

Expanding in-house capacity means agencies can do more of the heavy lifting themselves, without relying exclusively on outside consultants. Beyond saving on consulting fees, it signals trust in agency employees and their capabilities, which helps build confidence and empowers better decision making.

With a modern workforce analytics platform, like TrueComp, HR and finance teams can:

• Benchmark compensation in real time rather than waiting for a consultant-led study to be completed
• Model pay scenarios instantly to anticipate negotiation outcomes
• Validate labor costs quickly, ensuring budgets are accurate, timely, and defensible
• Retain institutional knowledge and reduce reliance on one-off studies

By equipping internal staff—who are already familiar with the agency’s culture, budget constraints, and local labor dynamics—with the right tools, they are now able to make more confident, data-driven decisions. At the same time, having real time data readily accessible, elevates the conversations with consultants and allows them to focus on strategy and outcomes instead of data wrangling.

Recent industry stats help tell the story:

• According to the Public Sector HR Association only 22% of agencies feel “very confident” their benchmarks are accurate and competitive. Real-time in-house benchmarking ensures confidence every time
• Retention Impact: Agencies with modern pay strategies see retention improve by up to 11%. Considering that turnover costs can run 1.5–2X salary per employee, this creates massive long-term savings
• Negotiation Power: Fewer than 30% of HR leaders enter negotiations with current compensation data. That leaves agencies vulnerable to agreeing to terms they can’t sustain
• Cost Avoidance: Even a 5% improvement on a $50M personnel budget equals $250,000 in annual savings.

When those insights live in-house, agencies don’t just save money—they gain control. And when the stakes are especially high, pairing that control with an outside consultant’ expert facilitation, such as CPS HR, helps agencies enter negotiations and workforce transitions with unmatched confidence.

A Smarter Way Forward: CPS HR + TrueComp

TrueComp partners with CPS HR Consulting, a nationally recognized leader in public sector HR solutions. CPS HR brings decades of experience helping agencies navigate compensation, classification, and workforce challenges. By combining expertise with real-time analytics, agencies can:

• Build their in-house capability to run data and models on demand
• Realize a faster turnaround, more credible results, and a stronger foundation for negotiations and long-term planning
• Build independence while having trusted consulting guidance when needed

Consultants will always play a critical role in the public sector. But agencies can’t afford to outsource their insights, visibility, and decision-making.

With TrueComp, they gain the independence to own their data and be able to act in real-time. And with partners like CPS HR, they gain strategic guidance to turn analytics into action.

The future isn’t about choosing between in-house teams or consultants—it’s about leveraging the value of each and making both stronger.

Case Example: The Silver Tsunami and the Need for Speed

One of the biggest workforce shifts in history is underway: the “Silver Tsunami.”

• In 2024 alone, 1 million Americans turned 65
• Within five years, nearly 30% of government employees will be retirement-eligible

This wave of retirements creates urgent challenges in recruitment, retention, and succession planning. Agencies that rely solely on periodic consultant studies risk always being behind the curve.

With TrueComp, agencies can:

• Forecast retirements and model their impact on budgets
• Benchmark salaries instantly to attract new talent
• Test different pay strategies before negotiations

And with CPS HR as a partner, agencies gain expert guidance to translate those insights into workforce strategies—from succession planning to employee engagement.

Ready to See It in Action?

TrueComp helps public agencies hire competitively, retain top talent, and negotiate with confidence—while strengthening the impact of consulting partnerships like CPS HR.

Watch a Demo and see how TrueComp expands your in-house capacity and empowers smarter collaboration with your consulting partners.