Building Total Compensation That Works

When it comes to keeping employees happy and engaged, compensation is usually near the top of the list. But in public sector workplaces, finding the right balance between fair pay and limited budgets isn’t always easy.

That’s where salary benchmarking and benefits planning come in. Together, they help create a full picture of what employees are offered and how those offerings stack up in the broader job market.

What Salary Benchmarking Really Means

Salary benchmarking is simply a way to compare your pay ranges with similar roles in other organizations. For municipalities and other public sector teams, that might mean looking at nearby towns or similar departments across the province.

Getting this right matters. When employees feel like their pay is fair, they’re more likely to stay and feel good about the work they do. It also helps with hiring. If your salaries are much lower than others, it’s harder to attract qualified candidates.

Benchmarking can help you:

• Understand where your pay sits compared to others
• Spot roles that might need review
• Plan ahead for salary increases
• Support fair and consistent decision-making

Start with What You Have

You don’t need to build a brand new system to start benchmarking. Most teams begin by reviewing current job descriptions and grouping similar roles. From there, you can look at salary surveys and public data or have conversations with other HR professionals.

Some good questions to ask:

• Are we offering pay that reflects the role’s responsibilities?
• Are we seeing more turnover in certain jobs?
• Have job duties shifted over time without a salary review?
• Are we competitive for hard-to-fill or in-demand roles?

Even reviewing this information once a year can give you a clearer view of where you stand and what changes might be needed.

Benefits Matter Just as Much

Salary might get the most attention, but it’s only part of what employees consider when looking at a job. Things like health benefits, pensions, vacation time, and wellness support all play a big role in how employees feel about their overall compensation.

In many cases, strong benefits can help offset salary limitations. When employees know their mental health, family needs, and personal well-being are supported, they’re more likely to feel valued. This can have an impact even if there’s no room for a big pay increase.

Benefits can also help reduce stress, cut down on absences, and improve overall morale. It’s not just about coverage, either. Clear communication and regular reminders go a long way in helping employees understand what they have access to.

Planning Compensation as a Whole

In a lot of organizations, salary planning and benefits planning happen separately. But bringing them together can lead to better conversations and more balanced decisions.

For example, if there’s a limited budget for salary increases one year, could you improve employee support in another way? Maybe that means reviewing mental health coverage, offering flexible scheduling, or running more wellness programming.

Some organizations also create simple compensation summaries for staff. These one-page documents show the full value of what’s being offered such as salary, benefits, pension contributions, and anything else the organization provides. For many employees, seeing the bigger picture written out makes a real difference in how they feel about their role.

Having the Right Conversations

Any time changes to pay or benefits come up, internal conversations can be tough. HR teams often need to help leadership understand why these updates matter and how they connect to larger goals.

Here are a few ways to guide the conversation:

• Bring data from salary comparisons or employee feedback
• Share any patterns seen in exit interviews
• Link compensation to bigger outcomes like retention or engagement
• Keep the focus on long-term value, not just yearly costs

These are never easy decisions, but they’re important ones. When compensation planning is thoughtful and clear, it helps everyone feel more confident. That includes the finance team, leadership, and frontline staff.

A Few Final Thoughts

Salary benchmarking and benefits planning are ultimately about creating a better experience for the people behind the work.

When employees feel that their contributions are recognized and their needs are supported, it strengthens their connection to the organization. Even small steps, like improving communication or offering a clearer picture of total compensation, can make a lasting impact.

With a thoughtful approach, HR teams can help build workplaces where employees feel supported, respected, and motivated to stay.