Ontario’s Minimum Wage & The Inflationary Wage Spiral

With the minimum wage in Ontario set to increase significantly by +6.7% in October, we’re seeing many employers in this high inflation environment budgeting for increases of between 3% to 5% (or more) — much higher than the historical average of 1.5% to 3.0%. Hourly wages increased on average by 4.0% in 2022, compared to the historical pre-pandemic average of 2.5% (+/-). 2023 is not over but early data suggests wages at the macro-level could increase at a higher pace again this year than the historical norm (following a CPI increase last year of +6.7% – which is why the Ontario minimum wage is going up by that amount in October – it is tied to the annual CPI measurement).

Hopefully inflation will cool but current trends are not yet consistently supporting that view (July CPI was 3.3% vs the same month last year, though economists were predicting it would be lower, at 3.0%).While the economy contracted at an annualized rate of 0.2 per cent in the second quarter of 2023 (which was far weaker than forecasters had expected) it remains to be seen if this is indeed a sign of tapering that will continue in the quarters ahead. At the same time, it appears that wage gains are finally outstripping inflation, meaning there is real growth in wages for the first time, in a long time.

“Entry level” staff seem to be the most difficult to attract and retain right now and it remains to be seen if a higher minimum wage in October will address this shortage. Not unlike 2018 when the provincial government increased the minimum wage to $14.00 (from $11.60), there was a huge cost-crunch for employers that also threw off the internal equilibrium in many organizations with lower-wage workers making as much as more skilled counterparts due to the sudden jump.This will occur again but to a lesser degree (compression between lower paid staff and mid-range employees).

Higher salary budgets may be required for some time, even in the face of a weakening economy. Targeted actions may also be required to address internal-equity imbalances, particularly after the October hike to the minimum wage (we are also mindful that these above-average recommendations themselves contribute to the inflation we are all experiencing). We are told that inflation will cool this year and next, and if that holds true, we should see increases reduce to the 2-3% range again. Time will tell.

 

(Need more information or other Human Resources advice?  Please feel free to contact us for more information about our services including our HRLive platform, a turnkey solution built to address the HR needs of small-to-medium municipalities).

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Just what is a Municipal CAO?

Whenever I tell someone, I was a municipal CAO earlier in my career, I see their eyes glaze over and they slowly respond, “Ohhh??”, in a questioning tone and with a realization they have absolutely no idea what that is.

Yet, she or he might be the most important person you’ve never heard of.” [i] .

A municipal CAO plays a role – arguably perhaps the most important municipal role, that affects you on a day-to-day basis.

Here’s the Textbook Description:

Your municipal chief administrative officer is the top administrator in a local government and is directly involved with many key decisions that impact your everyday life.  

They exercise general control and management of the municipality for the purpose of ensuring the efficient and effective operation of the municipality.  They are also visionaries who continually look for new and innovative ways to enhance and improve services for citizens, all the while balancing public expectations with financial feasibility.   

The CAO has a direct influence on everything from planning for the future of the municipality to how your garbage is picked up.

So, why don’t folks know about them? 

Well, mostly because they are typically the unsung heroes who work away in the background. The CAO role is not an elected position and they typically do not act as the public voice for the municipality – that’s the role of Mayor or Council. 

Candidates for CAO positions are hired – generally after a grueling and lengthy interview process, and then appointed to the position by By-Law.  They are highly trained and experienced individuals.

CAOs are not politically motivated, nor are they Chiefs of Staff for a Mayor. They provide recommendations to Council but at the end of the day, Council makes the decisions that govern every aspect of a municipality.

I totally understand why folks do not know what a municipal CAO is.  I sure never grew up saying I was going to be municipal CAO!  But, from my experience, being a municipal CAO is one of the most interesting and rewarding careers you will ever have.

So, get to know your CAO – and consider a career in municipal government!

Susan Shannon, CEO muniSERV.ca

[i]  San Grewal, Urban Affairs Reporter, Toronto Star – Wed., June 1, 2016

 

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Would you recognize these behaviours as acts of wrongdoing?

A new MuniServ whistleblowing service partner in helping to maintain a healthy workplace and municipality.

WOULD YOU RECOGNIZE THESE BEHAVIORS?

First, understand what is going on!

Differentiating between abuse, harassment, discrimination management rights and conflict situations is not always easy. These case studies demonstrate a variety of scenarios, and allow you to test your knowledge and challenge if you have the right tools in place.


Jade’s story

Jade is back at work after an absence of a few months. She preferred not to inform her colleagues and supervisor of the reason for her absence. However, she knows that rumours are circulating that she was depressed following her break-up with her partner. Since her return, her manager has given her routine administrative tasks and has told her regularly that she does not want Jade to get sick again. 

A new project has just been accepted and Jade’s entire team needs to be involved.  It’s an exciting project and Jade suggested to her manager and team members that they become actively involved. Her manager met with her and told her that she would prefer that Jade not be involved in the project. One of her colleagues also told her that it was probably best for Jade to stick to her regular duties. What do you think is happening?

This is a situation of discrimination.

Mary’s story

Mary works for the Municipality and has begun working from home full-time since the pandemic.  Mary’s spouse has become verbally and physically abusive and to the point that Mary is afraid for her safety and the safety of her children.  Over the past three months, the situation has been getting worse.  Mary has been unsure of where to turn.

Is this a workplace issue, a domestic issue, or both? What should be done?

This is a situation of harassment and abuse.  As Mary works from home, this situation involves the workplace.  If the city has a whistleblower line that covers domestic violence, Mary can report this and and the municipality can provide her support based on predetermined tools (such as those provided by Alias).

Brian and John’s story

Brian and John work together at the municipality in administration.  Brian oversees city maintenance. Brian recently bragged about how he gets the city maintenance team to do the landscaping at his own house as part of their route.  Brian and John are friends, but Brian knows that this is wrong and a misuse of city funds and resources.  Brian doesn’t want to disrupt the relationship with John and is unsure what to do.

What do you think is going on? What should Brian do?

This is a fraud situation.  Brian should use the whistleblower line to report this.


Communicating inappropriate conduct helps maintain a healthy work environment.

Several options are available:

  • Talk to your manager
  • Notify Human Resources
  • Talk to the person committing the inappropriate behaviour
  • Make a report through the whistleblowing service

 

The ALIAS Reporting Mechanism (whistleblower program) is an external tool that your municipality can consider as a service to promote a healthy workplace and a city free from harassment, abuse, fraud and to ensure sound and efficient governance.

For more information, please reach out to Danny Weill, EVP, Alias at:

[email protected] or 416-606-8209

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Change takes time. The Future is approaching.

So, our first piece of advice is to start thinking about it now. And yes, you can ease into the future; it does not have to happen tomorrow.

When organizations are planning out their new, or enhanced physical security needs we are often asked what are the trends that are likely to shape physical security in the future?

The same question is usually followed up with… “If we do this, or if we buy this, will this sustain us in the future?”

Which also can be interpreted to… “So, we don’t have to buy something else, and that this will last us a long time, right?”

Good questions, but always a challenge to answer. Many factors play out as resistance or even catalysts to these questions and their subsequent decisions. Risk exposure, budgets, actual realized events, change in the organization’s focus, change in the organization’s leadership, campaign promises, or even change in some environments, regulation or legislation “forcing” a change, all impact the ‘future’ question.

What are those future trends shaping physical security? Some trends outlined in the list below may be a surprise, some may appear too futuristic.

  1. Increased use of biometric security measures: Biometric security measures, such as fingerprint scanners and facial recognition technology, are becoming more popular as they offer a high level of accuracy and are difficult to bypass.
  2. Rise of smart security systems: Smart security systems are becoming more common, and these systems often use artificial intelligence (AI) and machine learning to analyze video footage and detect potential threats.
  3. Greater emphasis on cybersecurity: As more security systems become connected to the internet, cybersecurity is becoming an increasingly important consideration. Companies are investing in measures to protect against cyber-attacks that could compromise their security systems.
  4. Increased use of drones: Drones or Remotely Piloted Aircraft System(s) (RPAS) are being used more frequently for security purposes, such as patrolling large areas, inspecting high-risk locations or even in response to incidents in providing real-time surveillance.
  5. Greater use of virtual reality (VR) and augmented reality (AR) in training: VR and AR are being used to train security personnel in simulated environments, allowing them to practice their skills and respond to potential threats in a safe and controlled setting.
  6. Integration of physical and cybersecurity: As threats evolve and become more sophisticated, it is increasingly important for physical security and cybersecurity to work together to provide comprehensive protection. This integration may involve integrating cybersecurity measures into physical security systems, such as installing firewall protection on security cameras.

Biometrics, smart security systems, cybersecurity emphasis and the integration of physical and cybersecurity have been on our radar for several years now and have been introduced into our past and current projects with great adoption by our client base.

The trend not mentioned here but remains a constant for us, is the due diligence required to ensure the “paperwork” is complete, up to date, used and enforced. Your policies, and procedures, training programs, guidance documents and standards are the backbones for all these physical security tools to work in the manner they were intended for your organization.

Of course, great planning and the execution of that plan is essential. Planning is a cyclical process that can start, stop, and reset when required. The future is changing. Be prepared.

Plan the Work. Work the Plan.

Reach out. We can help.

Should your Municipality need assistance, contact Michael White Group International today, and we will be happy to answer your questions. Visit michaelwhitegroup.com/contact/

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Leading succession and employee development with talent optimization at the City of Ottawa

Ottawa, Canada’s capital and fourth largest city, is home to more than 1 million people and houses some of Canada’s most famous tourist attractions. It is the role of the City of Ottawa to “provide day-to-day services that enhance citizen’s quality of life”.

The City of Ottawa as an employer is committed to its employees. This commitment is demonstrated by the recognition of the City of Ottawa as a National Capital Region’s Top Employer 10 times. City Manager, Steve Kanellakos states, “It is the people who work here who make the lives of our residents better, safer and healthier. We strive to meet the needs of our residents through a commitment to a diverse workforce that is reflective of the population we serve.”

See the City of Ottawa Case Study and learn how the introduction of the Predictive Index Behavioural Assessment, from Predictive Success has made a difference in the City of Ottawa

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Accessing Municipal Compensation Information Just Got Easier

INTRODUCING THE MUNICIPAL COMPENSATION DATABASE

Every municipality needs to undertake periodic compensation reviews to keep their compensation current and attract talent.

Municipalities generate vast amounts of compensation data that other municipalities need, but there is no easy way to access or share it.

Engaging third-parties to conduct a review is expensive and the day the report is presented, the data is already outdated.

Conducting your own compensation reviews is not efficient and results in a duplication of work.  How many times last year, were you asked your salary and benefits information, by comparator municipalities conducting their own compensation reviews?

The Ontario Municipal Administrators Association (OMAA) and muniSERV have once again partnered to bring a new tool to Ontario municipalities to address these issues.  Along with support from the Ontario Municipal Human Resources Association (OMHRA), the Municipal Compensation Database (MCD) was developed under the guidance of a joint CAO/HR Advisory Committee.

The MCD is a cloud-based platform to collect and aggregate current municipal compensation and human resources information.  It revolutionizes the ease at which municipalities share and access compensation and human resources data, when and how they need it.

Benefits for Municipalities:

  • Single source access to improved municipal salaries & benefits data and HR information
  • Comprehensive, Convenient, Collaborative and Confidential
  • Easy access 24/7 right from your desktop or device, from any location
  • Access to real-time, statistically valid information
  • Includes Council Compensation, Job Descriptions and Organizational Charts
  • Enhances efficiency – eliminates duplication
  • Guarantees measurable cost savings
  • Real-time reports created in a matter of minutes

The Province of Ontario encourages municipalities to work together and share services and the MCD fits the bill.

Learn more and participate in the Municipal Compensation Database, or to request a demo, email [email protected] or call 705 538 0176 or 905 459 9200.

By: Susan Shannon, CEO, muniSERV.ca

 

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You’re Invited: Everything DiSC Showcase!

Today, organizational culture cannot be an afterthought. It must be focused on—intentionally and continually—to ensure recovery and results. That’s where Everything DiSC® on Catalyst™ comes in. Sign up for the Everything DiSC on Catalyst Showcase to learn about how DiSC can benefit your business.

In this 60-minute interactive, virtual event, participants will:

  • Discover the value of strong organizational culture and its connection to success
  • Explore the Everything DiSC on Catalyst learning experience
  • View a live demo of the Catalyst platform
  • Participate in a live Q&A with the showcase presenters

 

Everything DiSC on Catalyst helps people:

  • Better understand themselves
  • Appreciate and value difference in perspective and approach
  • Readily and consistently adapt to the unique needs of each person or situation they encounter

 

The Everything DiSC showcase will be on June 7th, 2022 at noon EST. Sign up here: https://forms.gle/jv3uK3E3nzCRdZECA

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Considerations for Employees who are Working Remotely – Part 2

cartoon of people on a zoom call

Part 2 – Clearly outline when the employee is considered to be in the physical work environment and when they are not.

In our last article we noted that Covid-19 changed the way many organizations do business and organizations have had to learn how to navigate the many challenges of remote work: lack of face-to-face supervision, keeping employees engaged and motivated and managing the work environment are just some of the challenges with remote work. During the pandemic, many employers shifted to a full or hybrid remote work arrangement, but with COVID restrictions being lifted and life slowly returning to the pre-pandemic norm, what was just a temporary measure necessitated by the COVID pandemic is becoming a more permanent arrangement by choice.

Whether you choose to adapt to a fully remote workforce or a hybrid remote work arrangement, employee’s activities while working remotely should be subject to the same standards that are applied at the organization’s offices regarding confidentiality, security, quality, and access to business documents just to name a few. In addition, an employer must continue to comply with applicable employment legislation and continue to ensure the health and safety of employees to minimize the risks of workplace injuries while working remotely. To help minimize liabilities, employers who are considering implementing a permanent remote work arrangement should ensure that they establish and implement a clear remote work policy along with a well drafted remote work agreement between the employer and the employees.

In Part 1 we talked about these key areas to consider when creating a remote work policy; Availability and Hours of Work, Physical Environment & Security.  Here are some additional areas to consider when creating a remote work policy. 

Client Confidentiality

Some employer’s client information may be particularly sensitive. Customers have a right (both legal and moral) to expect their confidential information to be protected. Employees who are working remotely should be reminded of their obligation to take appropriate precautions to ensure that confidential information not be exposed to third parties, including family members, visitors or any other persons residing, working or simply present at the remote work location.

Health and Safety

The remote work location is an extension of the physical office. While the Ontario Health and Safety Act appears explicitly to not apply to work performed by the owner or occupant in or about a private residence, the employer should practice due diligence and it would still be considered best practice to direct employees to observe all applicable health and safety policies when working remotely.

Remote work may also be conducted in locations other than the employee’s home. This could be highlighted in the policy and employees reminded that they could consult with their health and safety representative (if applicable) in respect of best practices in setting up a remote-work location. Employers continue to be responsible to take every reasonable precaution to protect the well-being of their employees. And in the context of a “distributed workplace” employers should be clear about the employer’s and employee’s shared responsibility to ensure a safe workplace.

Injuries sustained at the employees’ homes would be treated as a workplace-related injury, so it is imperative that organizations continue to manage health and safety for employees who are working from home. To minimize the health and safety risks associated with working from home employers should ensure that the remote-work policy covers the following:

  • Define the workplace. Where does the workplace extend to and how does the workplace extend into the employee’s home?
  • Clearly outline when the employee is considered to be in the physical work environment and when they are not.
  • Be clear about break times and ensure that employees understand that breaks are time away from work.
  • Employees should be made aware that just as they are expected to maintain a safe work area free of safety hazards while in the office environment, they are required to do the same in their home workspace.

Confusion of expectations and disconnections between employees and employers from not having a clear remote work policy can result in undue risk to both parties. An effective remote work policy should establish the guidelines and expectations for performance while working remotely, along with providing a framework for monitoring and addressing situations of non-compliance. By doing so the employer may enjoy a competitive edge, even during trying and difficult times, as they provide employees the opportunity to continue to contribute to the organization’s ongoing success in an evolving understanding of how work gets done.

By Adrian Johnson, ASSOCIUM Consultants

Through our collaborative approaches, innovative HR products and customized advisory solutions we impact four leadership priorities: managing risk, driving productivity, strengthening talent capabilities and supporting your bottom line.

Let’s connect to find out how ASSOCIUM Consultants can help your organization.

 

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Considerations for Employees who are Working Remotely – Part 1

Office items on a desk

Part 1 – Your remote work policy should outline the importance of protecting confidential information in remote work settings.

Covid-19 changed the way many organizations do business and organizations have had to learn how to navigate the many challenges of remote work: lack of face-to-face supervision, keeping employees engaged and motivated and managing the work environment are just some of the challenges with remote work. During the pandemic, many employers shifted to a full or hybrid remote work arrangement, but with COVID restrictions being lifted and life slowly returning to the pre-pandemic norm, what was just a temporary measure necessitated by the COVID pandemic is becoming a more permanent arrangement by choice.

Whether you choose to adapt to a fully remote workforce or a hybrid remote work arrangement, employee’s activities while working remotely should be subject to the same standards that are applied at the organization’s offices regarding confidentiality, security, quality, and access to business documents just to name a few. In addition, an employer must continue to comply with applicable employment legislation and continue to ensure the health and safety of employees to minimize the risks of workplace injuries while working remotely. To help minimize liabilities, employers who are considering implementing a permanent remote work arrangement should ensure that they establish and implement a clear remote work policy along with a well drafted remote work agreement between the employer and the employees.

Below are some key areas to consider when creating a remote work policy:

Availability and Hours of Work

A remote work policy should clearly outline availability expectations. One of the disadvantages of working remotely is that employees are in various locations. This sometimes makes it difficult to have spontaneous meetings or pop by someone’s desk for a quick meeting or chat about business. A solution for this may be to incorporate schedule requirements including structured, periodic check-in times with employees. While there has been much written recently about the value of flexibility for employees who can have greater control over their schedules while working remotely, it may still be necessary to set parameters for hours of work and set rules for overtime. So, regardless of the flexibility of work schedules, the employer may want to set expectations for employees to be accessible during particular hours and to be available to respond promptly to any time-sensitive calls, emails, or other communications from the organization’s clients or other third parties critical to the organization’s purposes.

Physical Environment

If there is a preference for a physical working environment for your employees, outline these expectations in your policy. Ensure your employees know what the requirements are for a physical working environment whether it be in the employee’s home or alternative location. If necessary, the employer may require employees to provide addresses and locations from which they are working remotely and update these when necessary. Employers may wish to establish expectations for dependent care arrangements and personal responsibilities to ensure that employees are able to meet their job responsibilities without interruption or distraction.

Security

Security is a big concern with remote work. Your remote work policy should outline the importance of protecting confidential information in remote work settings. Your policy should set guidelines for working remotely to secure records and prevent unauthorized disclosure of confidential business information.

Employers should consider the processes for storing business documents, especially sensitive and/or highly confidential files, on the organization’s secure servers and not on the employee’s remote hard drives.

Your organization might consider specific policies mandating secure internet connections or virtual private networks with a strict exclusion of public wi-fi. And there should be a policy and process for reporting a security breach if the employee has any reason to believe that business information has been accessed by any unauthorized person(s).

And, of course, if budgets permit, it may be prudent to provide remote-work employees with secure computers and other hardware, owned by the organization. Related policies could then restrict the processing or storage of any of the organization’s information on the employee’s personal equipment.

This is a two-part conversation, so watch next week for Part 2 of our article, where we’ll cover, Client Confidentiality and Health & Safety considerations. 

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Through our collaborative approaches, innovative HR products and customized advisory solutions we impact four leadership priorities: managing risk, driving productivity, strengthening talent capabilities and supporting your bottom line.

By Adrian Johnson, ASSOCIUM Consultants

Let’s connect to find out how ASSOCIUM Consultants can help your organization.

 

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Find your Dream Employee in 2022

Your next hire, on us.

Find your Dream Employee in 2022 with The Predictive Index® – New Talent Optimization Software from Predictive Success

See the power of predictive analytics in hiring a perfect fit. Your all star candidate is in the driver’s seat. Seize the opportunity by offering them the perfect job fit, backed by scientific data.

This Complementary Offer is Valid for muniSERV Members: One free job model and five free PI Behavioural Assessments® for your top candidates. 

To redeem: Contact Mitch LePage, your Managing Principal with Predictive Success at [email protected] or (905) 430-9788 x110

See the full brochure on this special offer: MuniSERV Offer – Your Next Hire on Us with Predictive Success

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