By MC Advisory

Just as the last 5 years has challenged organizations, 2025 will continue to require employers to demonstrate agility, adaptability and a commitment to embracing change to maintain operations and meet the needs of the workforce.  In the municipal sector, municipal government should be aware of and welcome these three HR trends to help foster progress and evolving work environments.

Remote and Hybrid Work Arrangements

COVID-19 necessitated employers rapidly adapted to provide remote and hybrid work arrangements for employees.  Without this dramatic and swift change, organizations likely would have been much slower to integrate these flexible work models.  Within municipal government, like much of the broader public sector, there has generally been a traditional in-office work model.  This is generally attributed to ensuring that public services are not interrupted, and that staff are present, visible and readily available to the public.  While not all roles are suited to remote or hybrid work arrangements, municipal government must consider adapting and promoting these arrangements to attract and retain top talent.

Promoting flexibility through offering remote and hybrid work arrangements offers benefits to both the employer and employees.  Employees reduce their commute times, improve their work-life balance and can be more productive working without interruptions.  Employees appreciate this flexibility, giving them an opportunity to balance their personal and work responsibilities more appropriately.  Employers benefit through these arrangements from promoting healthier, more productive work environments which can reduce sick leave usage, health insurance costs and increase job satisfaction.  Offering these arrangements allows municipal government to also expand their pool of interested and qualified applicants.  Without requiring employees in-office full-time, candidates from other regions may came forward when recruiting which helps build a stronger workforce. In fact, we have witnessed municipalities struggle to attract candidates to key roles such as planning roles due to their lack of a hybrid model.  Finally, promoting flexible work arrangements demonstrates that employees are trusted to do their jobs and shows a commitment to their well-being leading to greater employee retention.

The first step towards preparing your municipality for adopting remote and hybrid work arrangements is to establish an effective policy which details which positions are suitable and eligible for these types of arrangements, the expectations on the employee and employer and the appropriate mechanisms for managing remote and hybrid work.  Having the appropriate policy in place ensures that these work models are well-managed and productive to the municipality.

Focus on Inclusion, Diversity, Equity and Accessibility

Inclusion, Diversity, Equity, and Accessibility (IDEA) have become central to the operations of many organizations, and in 2025, these principles will be even more critical for municipal governments. Embracing IDEA fosters not only a more inclusive and equitable workplace but also strengthens organizational performance and builds public trust. Integrating these principles is not merely a moral imperative—it is increasingly a legislative and strategic priority across Canada. For instance, in Nova Scotia, municipalities are mandated to implement a strategy addressing systemic hate, inequity, and racism by April 1, 2025. This legislative shift underscores the growing importance of proactive action in creating equitable communities.

Municipal governments must prioritize IDEA initiatives, from recruitment and hiring practices to day-to-day operations. Some examples include: unbiased recruitment processes (inclusive language on job postings, promoting accessible work environments, integrating assistive technology devices for inclusive communication (internally and externally), or creating employee groups that represent equity deserving communities in your municipality.

Additionally, municipal governments should regularly review and update their policies and practices to ensure they promote equity and inclusivity. This includes ensuring all documents use gender neutral language, gender neutral signage, holiday policies and celebrating diverse ethnicity.

A strong commitment to IDEA will help municipal governments build a workforce that reflects the diverse communities they serve, leading to better decision-making and more effective public service delivery.

Focus on Employee Well-being and Mental Health

Overall, about 500,000 Canadians are unable to work due to poor mental health every week.  And 38% have taken time off work in the last five years due to mental health issues, including stress, anxiety, depression and burnout.  Given this, employee well-being and mental health have become increasingly important topics in the workplace, and this focus will continue to gain momentum in 2025. Municipal governments need to recognize the significance of supporting their employees’ mental and physical health to foster a productive and resilient workforce.

Many organizations have embraced a shift from supporting traditional wellness supports, such as gym memberships, to offer a more holistic approach to employee health and wellness.  Offering comprehensive wellness programs that focus on a variety of aspects of well-being and that are suited to the individual needs of employees.  Providing access to or funding towards mental health resources, fitness and nutrition programs or services and financial and retirement planning are some of the ways in which municipal governments can show a dedicated commitment to the overall health and well-being of their teams.

Combining this type of offering with flexible work arrangements as previously described largely contributes to improving employee’s wellness.  Healthier employees, who feel a concentrated effort by their employer to improve their personal and professional lives will benefit from enhanced engagement, reduced leave usage and lower turnover.

In summary, municipal governments should embrace these top three HR trends for 2025 to remain competitive and effective. By adopting remote and hybrid work models, prioritizing IDEA initiatives, and focusing on employee well-being and mental health, they can create a more dynamic, inclusive, and resilient workforce. As the landscape of work continues to evolve, staying ahead of these trends will be crucial for municipal governments to meet the needs of their employees and the communities they serve.

Want to learn more? Contact Sally Ripley, Senior Advisor at sally.ripley@mcadvisory.com or by phoen 782 – 377 -7456