Ontario Municipal Human Resources Association

In today’s dynamic talent market, municipal HR leaders across Ontario are being asked to do more with less—while delivering equitable, competitive, and future-ready compensation programs. Between shifting legislative requirements, budget pressures, and rising employee expectations, salary benchmarking and benefits planning are no longer annual to-dos. They are strategic imperatives.

The good news? With the right approach, these processes can drive more than compliance or cost containment—they can be levers for attraction, retention, and long-term workforce sustainability.

Benchmarking That Goes Beyond the Spreadsheet

Too often, salary benchmarking is treated as a one-and-done market check. But in the municipal context, it needs to be more nuanced. Ontario municipalities operate within a web of public accountability, union dynamics, internal equity standards, and political oversight. That means your benchmarking strategy must reflect more than just salary data—it needs to tell the story of how your roles, responsibilities, and service demands are evolving.

Start by asking:

• Are you benchmarking to the right comparators? Your closest geographic neighbours might not be the most relevant for every role.
• Are you accounting for internal pay compression risks as you align to market?
• Are you using benchmarking to support succession planning and future workforce design—not just backfilling today’s gaps?

A forward-looking approach includes analyzing your organizational structure against other municipalities and a broader talent market, working with up-to-date public sector compensation data and cross-functional collaboration—especially with Finance and your leadership team—to ensure the insights drive action to uncover gaps or challenges that surface.

The Evolving Benefits Conversation

While salaries may grab headlines, benefits are where differentiation often lives—especially in a constrained public sector budget. For many municipalities, benefits have remained largely static for years. But with employee expectations shifting—particularly post-pandemic—benefits planning must evolve to reflect modern workforce needs.

Employees are asking for more flexibility, wellness support, and relevance. Consider:

• Are your benefits inclusive across life stages (e.g., fertility support, elder care, gender affirmation)?
• Do you offer proactive mental health resources—or just reactive coverage?
• Are part-time, seasonal, or contract workers receiving equitable access?

Many municipalities are taking a fresh look at paramedical caps, EAP utilization, and virtual care access. But beyond just updating plan design, benefits communication is key. If employees don’t understand or value what’s offered, even the most competitive package can fall flat.

Balancing Transparency with Strategy

Ontario’s Pay Equity and Pay Transparency legislation means HR leaders in the municipal space must walk a fine line: providing clarity without compromising strategic flexibility.

Publishing salary bands, articulating your job evaluation methodology, and communicating how market adjustments are made can build trust. But transparency doesn’t mean revealing every negotiation detail or abandoning discretion—it means being intentional and consistent in how you communicate and apply your compensation strategy.

If you haven’t already, consider documenting your compensation philosophy. It doesn’t need to be complex, but it should reflect your values: internal equity, market competitiveness, fiscal responsibility, and strategic alignment. This can be a powerful tool for Council engagement, union discussions, and employee communications alike.

Data Is the Start, Not the Solution

Yes, salary surveys and benchmarking reports are important. But the real value comes from what you do with the data.

Effective HR leaders in Ontario’s municipalities are pairing compensation insights with workforce analytics, attrition data, and employee feedback to inform their overall people strategy. They’re not just reacting to talent market shifts—they’re anticipating them.

This proactive approach can help you:

• Advocate for better budget forecasting and workforce planning
• Prioritize compensation adjustments by impact, not just urgency
• Build a stronger case for Council approvals or cross-functional alignment

For example, a Total Rewards leader recently shared that their organization implemented three years’ worth of salary increases for unionized employees—amounting to roughly a 10% bump. However, their managers received only modest adjustments, resulting in significant pay compression between the two groups. By anticipating these impacts, they were able to assess and communicate their solution.

Written by Kathleen Jinkerson, Vice President, HR & Total Rewards Solutions, The Talent Company