Senior staff attraction and retention measures

in small rural municipalities

April 2010

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Table of Contents

Table of Contents ....................................................................................................... 2

Senior Staff Attraction and Retention Policies in Rural Communities .................................. 3

Municipal Internship Program (MIP) - AMCTO and MAH, Ontario .................................... 4

Succession planning and the Acting CAO program - Sioux Lookout, Ontario .................... 4

Next Generation Project - Nova Scotia ....................................................................... 5

Small Community Economic Development Capacity Building Program - British Columbia .. 5

Rural Action Plan -Prince Edward Island ..................................................................... 6

Community Government Human Resource Development System - Northwest Territories .. 7

Other Attraction/Retention Measures ............................................................................ 8

Learning contracts - Port Moody, British Columbia ....................................................... 8

Three general managers system - Kapuskasing, Ontario ............................................... 9

Tailor-made training program - North Bay, Ontario ...................................................... 9

Alberta Municipal Internship Program, Alberta Municipal Affairs ................................... 10

Local Government Resource Handbook - Service Nova Scotia and Municipal Relations .... 10

Trio Plans - Newfoundland and Labrador ................................................................... 11

Links ...................................................................................................................... 12

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Senior Staff Attraction and Retention Policies in Rural Communities One of the rising issues for municipalities across Canada is senior staff attraction and retention policies. In the next five years, many of the senior staff including the CAOs and CFOs will retire, leaving municipalities in need of talent. Rural municipalities are even more affected as they struggle to raise resources to provide competitive compensation packages to senior staff.

When it comes to fulfilling senior positions in their administration with skilled individuals, human resources experts recommend several options for municipalities. First, because they are already experienced and trained for their current position, municipalities may want to offer incentives to retain their current staff through compensation packages (salary, benefits, professional development opportunities, etc.).

When it comes to fulfilling positions with new staff, municipalities may want to try to attract new employees by putting together compensation packages and brand their assets (natural environment, quality of life, low cost of living, etc.) that would interest potential staff. However, when it comes to hiring senior and specialized employees, small rural municipalities have to compete with wealthier and larger cities and it has proved to be a challenge for rural communities.

Fortunately, small municipalities have alternatives to fill their senior positions. For example, municipalities may want to invest in succession planning. They can provide professional development opportunities to their employees. Because smaller municipalities often face financial constraints, they may want to make sure their staff is flexible and able to multi-task. In that case, municipalities may want cross-trained staff. That option provides for an easier succession planning process and several options in case one employee has to leave. Other cost-effective solutions for small municipalities may include apprenticeship programs and sharing of human resources with other municipalities.

While human resources consultants and experts recommend the afore-mentioned solutions, Canadian rural municipalities appear reluctant to implement them. In fact, our research has shown that rural local governments rarely have strategies in place to retain or attract senior staff and skilled employees. That being said, some ministries and municipalities have implemented some measures aimed at solving—directly and indirectly—their human resources issues.

Overall, examples of innovative retention and attraction measures put in place by small rural Canadian municipalities are scarce. ICURR proceeded by sending out a survey to every rural municipal association in the country, interviewed governmental officials, contacted municipal officials through the Canadian Association of Municipal Administrators (CAMA), undertook a literature scan and searched through our customized search engine. Our research provided us with only a handful of adequate examples. However, we added innovative measures from larger municipalities that may be relevant to smaller rural municipalities.

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Municipal Internship Program (MIP)—AMCTO and MAH, Ontario The Municipal Internship program (MIP) is an innovative internship program that is specifically designed for management positions. Launched in 2007 as a partnership between the Association of Municipal Managers, Clerks and Treasurers of Ontario (AMCTO) and the Ministry of Municipal Affairs and Housing with additional funding coming from FedNor, the Federal development agency for Northern Ontario, the internship program aims at helping municipalities to best manage for succession planning of management positions.

Although it is not specifically designed for small rural municipalities, several of them have already benefitted from the program. Oliver Paipoonge (5,700 inhabitants) and Marathon (3,863 inhabitants) have each hosted management interns since the launch of the initiative. So far, at least one intern has been hired as CAO and two other have been hired in full time senior municipal positions. So far, the program has garnered rave reviews and as of now, 18 municipalities have participated in the MIP.

Reference: Internal document, Ministry of Municipal Affairs and Housing of Ontario.

Succession planning and the Acting CAO program—Sioux Lookout, Ontario The municipality of Sioux Lookout’s approach to succession planning has been to create “Assistant Manager” positions for all departments. Not only are the assistants the “go-to” people when the Manager is absent, they also ensure back-up in case of departures. Assistant managers are not guaranteed to accede to the manager positions, but they will be given training—both courses and on-the-job—to help them be ready. In addition to the succession planning is an “Acting CAO” program. Participants take turns acting as CAO in the absence of the current CAO, with a briefing before he leaves and a de-briefing/coaching review when he returns. Each participant attends the intensive Municipal Leadership Development Program at York University’s Schulich School of Business (the only new budget item allocated to the program). The participants are also consulted as a group on key issues, such as collective agreement negotiations. The annual performance review process assesses each participant’s progress and future training needs, while the incumbent CAOcoaches participants on an ongoing basis as to how he approaches issues as CAO. References: Winegard, Bill “Succession Planning in northern Ontario municipalities.” Association of Municipalities in Ontario. http://www.amo.on.ca/AM/Template.cfm?Section=Home&TEMPLATE=/CM/HTMLDisplay.cfm&CONTENTID=157460

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Next Generation Project—Nova Scotia The Next Generation Project is a Nova Scotia strategy to attract the next generation of municipal government managers in municipalities across Nova Scotia. The Association of Municipal Administrators felt that it was important to explore and develop strategies that could be used to effectively identify, attract and recruit the next generation of local government managers in urban and rural municipalities. The AMA with the assistance of SNSMR and the UNSM has therefore developed a report entitled “Reality Check: Do You Know Where Your People Are? Attracting the Next Generation of Municipal Government Managers.” The report was prepared for Nova Scotia Association of Municipal Administrators, which draws its core membership from Nova Scotia’s urban and rural municipalities and local government special purpose bodies. The key areas and supporting strategies identified include the following: when trying to attract younger workers, governments will need to concentrate on partnerships with universities and colleges to ensure their programs are responsive to municipal needs. The Municipal Internship Program is intended to compliment the Association of Municipal Administrator’s Next Generation initiative to bring a greater awareness of municipal government as a career choice for today’s youth. It also provides an opportunity for young, well educated Nova Scotians to gain experience in local government administration and ultimately find rewarding careers in local government in Nova Scotia. In addition, the Internship Program provides an opportunity for knowledge transfer from current administrators to future administrators. Reference Charlton, Patricia and Angela Matheson-Coutu (11 September 2006). “Reality Check: Do You Know Where Your People Are? Attracting the Next Generation of Municipal Government Managers in Nova Scotia.” Service Nova Scotia and Municipal Relations. http://www.amans.ca/index.php?option=com_docman&task=doc_download&gid=22&Itemid=76

Small Community Economic Development Capacity Building Program—British Columbia British Columbia recognizes the challenge of local government employment in rural municipalities and aims to promote senior staff retention/attraction policies in rural communities. The Small Community Economic Development Capacity Building Program is a program lead by Northern Development Initiative Trust Corporation and is based on the recognition that, while every grant dollar attached to small communities is “economic development” as the funds are new dollars spent in the community, very small and rural communities have a challenge recruiting and retaining administrative staff to focus on economic development and grant/loan proposal writing.

This program provides an enhanced capacity for small communities to hire post-secondary coop students or contract staff to write grant proposals to the Northern Trust, other foundations, endowments, and other funding programs.

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References Goldenberg, Mark (March, 2008). “A Review of Rural and Regional Development Policies and Programs.” Canadian Policy Research Networks. http://www.cprn.org/documents/49496_EN.pdf

Rural Action Plan—Prince Edward Island Through consultation with Islanders, the Department of Fisheries, Agriculture, and Rural Development has developed the Rural Action Plan that addresses the challenges in all sectors of the economy. The provincial plan identifies that human resources pose a significant challenge in rural areas for both industries and local governments. The Plan sets out to develop human resource base by addressing labour market issues, fostering apprentices, developing leaders, and capitalizing on the leadership and experience of seniors. Under the Rural Action Plan three new leadership programs will be implemented by Rural Development PEI, including: Rural Leadership Development Program—the program will focus on the development of emerging leaders in rural communities. The program will consist of a two-year seminar-based program designed to provide a broad perspective on the challenges facing the community, within provincial, regional, national, and even international contexts. The program will feature experiential learning seminars to nurture an appreciation of rural Prince Edward Island issues, as well as seminars on emerging opportunities such as those presented by science, technology, and the knowledge economy. The seminars will focus on developing leadership skills, communications, board governance and analytical skills.

Leadership at Work—the program will help community groups develop sound practices. The program will be designed to help voluntary and community-based organizations become more sustainable. The program will leverage the Community Internship program to perform foundational work with groups, help them build succession plans, develop sound governance practices and processes, and develop strategic plans. Prince Edward Island Leadership Forum—the forum will be held to recognize leaders within rural communities, to share success stories, and celebrate the importance of volunteers. References Department of Fisheries, Aquaculture and Rural Development Prince Edward Island. “Rural Action Plan: A Rural Economic Development Strategy for Prince Edward Island.” http://www.gov.pe.ca/photos/original/FARD_REDS.pdf

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Community Government Human Resource Development System—Northwest Territories Northwest Territories provides toolkits for human resources management in local communities. The Community Government Human Resource Development System (CGHRDS) has been designed specifically to assist northern communities with their human resource capacity building needs.

The human resources toolkit encourages local governments to proactively support their employees through effective human resource management practices. It promotes activities that support employees and it helps municipalities identify and correct issues that impact successful attraction and retention of employees. The toolkit includes a sample of a human resources plan that outlines strategies, priorities, and implementation costs for retaining and attracting senior staff. The template includes succession planning for finance clerks and finance officers.

References Northwest Territories Municipal and Community Affairs (June, 2008). “Community Government Human Resource Development System.” http://www.maca.gov.nt.ca/school/tools/CGHRDS%20Manual%20.pdf

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Other Attraction/Retention Measures During our research of examples of existing initiatives made by or for small rural municipalities, we encountered interesting measures implemented by larger municipalities or other measures that did not quite meet the criteria of our research but still prove to be of interest. The following examples illustrate that the issue of senior staff retention is not exclusive to small rural municipalities. Although they reflect a different context, these measures are worthy of mention.

Learning contracts—Port Moody, British Columbia One of the most interesting initiatives encountered are the professional contracts offered by the City of Port Moody in British Columbia. Under that initiative, the city offers to pay for professional training of employees in exchange for their commitment to continue working for the city for a specific amount of time.

According to Gaëtan Royer, City Manager, attraction and retention of key staff is an issue for Port Moody because of its inability to pay high wages. Located in the Greater Vancouver area, Port Moody is not in a remote region, but with only 32,000 inhabitants, “it is difficult for them to compete on the basis of salary with the surrounding larger cities”. With several hundred thousand residents, neighboring municipalities like Vancouver, Surrey, Richmond and Burnaby offer generous compensation to their senior executives. Mr. Royer also pointed out that the problem is not confined to the more senior positions: “Attraction and retention are also an issue for us for middle managers, technicians and supervisors.”

Six years ago, Port Moody decided that to use “career-focused professional development as a way to distinguish itself in the employment marketplace.” The city decided to offer learning contracts and professional development opportunities. Port Moody often hired people for their potential rather than for the competence they offer on their first day at work. Then it custom-tailored a professional development program to match the career path that has been discussed with professionals. In essence, the city buys people’s loyalty by becoming a partner in their career progression.

In exchange, the employee agrees to be bound to work and apply their new skills in Port Moody for up to two years. The length of time is based on the amount invested in the employee. If an employee decides to leave earlier than the end of the contract, they have to reimburse a pro-rated portion of what the city spent training them.

“This is a highly personalized and tailored approach. The program is administered by HR but it is managed by department directors. Directors follow up on the progress of succession plans.”

References Royer, Gaëtan. Response to ICURR’s question on the Canadian Association of Municipal Administrators (CAMA) e-Brief bulletin. Message to Richard Copeland. April 16th 2010. E-mail.

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Three general managers system—Kapuskasing, Ontario The Town of Kaspuskasing has adopted a system of three general manager positions, each reporting to the CAO, with all other positions reporting to one of the general managers. “More decision-making will be delegated to the general managers.” This structure makes the general managers a natural training ground for future CAO’s, and it also makes the CAO position less daunting for internal candidates. The plan also envisions:

• a number of management development activities for general managers, • team decision-making among senior staff, • encouragement for more delegation of authority to staff below the general managers • more specific performance reviews and planning for all management staff

References Winegard, Bill “Succession Planning in northern Ontario municipalities.” Association of Municipalities in Ontario. http://www.amo.on.ca/AM/Template.cfm?Section=Home&TEMPLATE=/CM/HTMLDisplay.cfm&CONTENTID=157460

Tailor-made training program—North Bay, Ontario In 2006, the senior management team began identifying the critical positions at all levels where employees would soon have their OMERS retirement numbers (pension). With HR assistance, the senior management team then identified internal employees who had demonstrated transferable skills and the potential to meet the city’s future needs. The city then worked with the local Community College (Canadore) to tailor the Ontario Management Diploma Program to the city’s needs. Smaller municipalities in the North Bay vicinity are also benefitting. Some opportunities in the North Bay/Canadore program will be offered to management staff or trainees from neighbouring smaller municipalities.

In addition, the CAOs of several municipalities in the North Bay region are investigating whether the local Industrial Training and Adjustment Board1

could take on the manpower needs of the municipal sector. For example, certified municipal professions such as water/sewer operator, engineering technologist or building inspector are a particular concern across the north.

References Winegard, Bill “Succession Planning in northern Ontario municipalities.” Association of Municipalities in Ontario. http://www.amo.on.ca/AM/Template.cfm?Section=Home&TEMPLATE=/CM/HTMLDisplay.cfm&CONTENTID=157460 1 There are 25 Industrial Training and Adjustment Boards in Ontario. Funded by the Ministry of Training, Colleges and Universities, their mandate is to disseminate information and facilitate partnership in their community. They may also conduct and disseminate research and work with other stakeholders to find solutions to their community labour-related issues.

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Alberta Municipal Internship Program, Alberta Municipal Affairs In 2005, Alberta Municipal Affairs in partnership with Alberta’s municipalities sponsored the Municipal Internship Program. The program is designed to attract recent post-secondary graduates to the field of municipal administration. The program provides funding and training recourses to selected Alberta municipalities to hire and train interns over a one-year period. The selected municipalities include several rural municipalities. The objectives of the reintroduced program are to assist Alberta municipalities in their succession planning efforts to recruit, train and retain competent municipal employees who can progress into leadership positions; encourage more individuals to enter the local government field and offer recent graduates who are interested in a career in municipal administration the opportunity to have first hand, real life, practical experience and training in the Alberta municipal environment; and focus on retention of interns in the local government field as part of a successful succession planning strategy. Several CAOs indicated that they believe the program will be particularly helpful in addressing a perceived decline in the attractiveness of a career in local government, especially in smaller, rural municipalities. References Nichols Applied Management Management and Economic Consultants (July, 2005). “Municipal Internship Program Review.” http://www.municipalaffairs.gov.ab.ca/ms/internship/docs/ProgramReview.pdf

Local Government Resource Handbook—Service Nova Scotia and Municipal Relations The Local Government Resource Handbook prepared by Service Nova Scotia and Municipal Relations outlines procedures for succession planning for small municipalities in the province. Succession planning presents particular difficulties for those small municipalities who may employ only a small number of employees. However, certain aspects of the succession planning process may be adapted to fit individual circumstances. Mentoring is one aspect of the succession planning process that can become an invaluable asset to even the smallest municipalities. Mentoring can be particularly important to the small municipality because it provides access to resources that a small municipality may not normally be in a position to access. For example, a small municipality might have a clerk treasurer on staff where a large urban municipality might have a whole department of financial specialists. References Local Government Resource Handbook (January, 2004). “Succession Planning.” Service Nova Scotia and Municipal Relations. http://www.gov.ns.ca/snsmr/muns/manuals/PDF/LGRH/LocalGovernmentResourceHandbook_4.4.pdf

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Trio Plans—Newfoundland and Labrador In 2008, the province provided $25,000 to support Newfoundland Municipal Employee Benefits Inc. NLMEB, now re-branded as “Trio”, provides pension, health and insurance benefits to municipalities and municipal organizations. The Trio plans are tailored to municipal needs and the benefit plan and packages offered through Trio are an important factor in recruitment and retention of municipal employees. Currently, there are approximately 80 municipalities participating in the insurance and benefit plans and over 40 municipalities invested in the pension plan which is valued at almost $50 million.

Through Trio, municipalities may afford to participate in benefit plans. The Trio plans are tailored to municipal needs and the benefit plans and packages include pensions, group health insurance and group life insurance. Interestingly, Trio designed a plan specifically targeted at rural communities called the “Small Town” Group Health Insurance plan which includes benefits and coverage that better suit the needs of smaller municipalities. For more information on this particular plan, see link below. References Municipal Affairs (8 October 2008). “‘Trio’ Launched With Provincial Government Support”. http://www.releases.gov.nl.ca/releases/2008/ma/1008n07.htm Trio Benefits and Plans: "Small Town" Group Health Insurance Plan. http://www.triobenefits.ca/small-town2.html

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Links

British Columbia

British Columbia Rural Network http://www.bcruralnetwork.ca/ Local Government Management Association http://www.lgma.ca/ Ministry of Community and Rural Development http://www.gov.bc.ca/cd/ Government Finance Officers Association of British Columbia http://www.gfoabc.ca/ Union of British Columbia Municipalities http://ubcm.ca/ British Columbia Local Government News www.civicinfo.bc.ca Alberta Alberta Association of Municipal Districts and Counties http://aamdc.com/ Alberta Rural Municipal Administrators Association http://www.armaa.ca/ Local Government Administration Association http://www.lgaa.ab.ca Government of Alberta Municipal Affairs http://www.municipalaffairs.gov.ab.ca/ CAO Survey 2004: Training, Priorities, and Succession Planning http://www.municipalaffairs.alberta.ca/documents/ms/caotrainingprioritiessuccessionfinalreport.pdf Saskatchewan

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Association of Rural Municipalities http://www.sarm.ca/ Rural Municipal Administrators’ Association of Saskatchewan http://www.rmaa.ca/ Ministry of Municipal Affairs http://www.municipal.gov.sk.ca/ Municipal Leadership Development Program http://www.mldp.ca/ Manitoba

Manitoba Municipal Administrators Association http://www.mmaa.mb.ca/contact.asp Association of Manitoba Municipalities http://www.amm.mb.ca/ Manitoba Local Government http://www.gov.mb.ca/ia/index.html

Manitoba Community Profiles http://www.communityprofiles.mb.ca/index.html CAO Shortage – June 2005 http://www.amm.mb.ca/PDF/Presentations/CAOShortage.pdf Ontario Ontario Rural Council http://www.torc.on.ca/index.shtml Ontario Municipal Administrators’ Association http://www.amo.on.ca/Content/OMAA/AboutUs/AboutOMAA/default.htm Rural Ontario Municipalities Association http://www.amo.on.ca/AM/Template.cfm?Section=About_Us7 Association of Municipalities in Ontario http://www.amo.on.ca/AM/Template.cfm?Section=About_AMO Ontario Municipal Employees Retirement System http://www.omers.com/About_OMERS.htm

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Rural Economic Development Data http://www.omafra.gov.on.ca/english/rural/indregionalstaff.htm Québec Ministry of Municipal and Regional Affairs http://www.mamrot.gouv.qc.ca/ Union of Québec Municipalities http://www.umq.qc.ca/en/index.asp Federation of Québec Municipalities http://www.fqm.ca/ Association of Municipal Managers of Québec http://www.adgmq.qc.ca/Default.aspx New Brunswick Ministry of Municipal and Regional Affairs http://www.mamrot.gouv.qc.ca/ Union of Québec Municipalities http://www.umq.qc.ca/en/index.asp Federation of Québec Municipalities http://www.fqm.ca/ Association of Municipal Managers of Québec http://www.adgmq.qc.ca/Default.aspx Nova Scotia Association of Municipal Administrators http://www.amans.ca/ The Next Generation Project http://www.amans.ca/index.php?/about-ama/projects-a-initiatives.html Union of Nova Scotia Municipalities http://www.unsm.ca/index.php?option=com_docman&Itemid=102

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Nova Scotia Municipal Finance Corporation http://www.gov.ns.ca/nsmfc/ Prince Edward Island Federation of Prince Edward Island Municipalities http://www.fpeim.ca/ Newfoundland and Labrador Professional Municipal Administrators http://www.pmanl.com/ Municipal Training and Development Corporation http://www.municipaltraining.nf.ca/Home.html Newfoundland and Labrador Municipalities http://www.municipalitiesnl.com/?Content=Programs/Overview

Northwest Territories

Northwest Territories Municipal and Community Affairs http://www.maca.gov.nt.ca/toolkit/human_resource/index.html Northwest Territories Association of Communities http://www.nwtac.com/ Local Government Administrators of Northwest Territories http://lgant.ca/ Northern Employee Benefit Service http://www.nebsnorth.com/dnn/ Sample Human Resources Plan http://www.nwtac.com/ICSP%20Documents/HR%20Plan%20table.pdf