Without Pay Equity, Municipalities Cannot Compete

Municipal governments are facing a crisis. Political push back has placed equity programs under threat, even as budgetary constraints force cuts to public services and heighten scrutiny of every expenditure. At the same time, rising retirements and shrinking institutional knowledge are leaving critical roles unfilled. The workforce challenge municipalities face today is how to recruit and retain the right talent in this financial environment.

The answer is pay equity. Pay equity ensures that employees are compensated fairly for the work they do. It creates loyalty, strengthens morale, and aligns directly with employee values. Without equity at the center of workforce strategy, municipal capacity will erode further and public trust will continue to weaken.

The Staffing Reality

Municipalities are hemorrhaging talent and institutional knowledge. Retirements are accelerating, and replacements are not keeping pace. Workforce participation across the United States is still lagging pre-pandemic levels (NCSL, U.S. Chamber).

Filling vacancies is slower and costlier than ever. In mid-2025, hiring a single municipal role takes 36 to 42 days and costs about $4,700, while nearly 70 percent of public sector employees report stress or negative feelings about their jobs (Munitemps). This is not just a numbers problem. It is a morale and mission problem.

Why Pay Equity Is a Survival Strategy

Pay equity is not optional. It anchors recruitment and retention by ensuring employees understand their compensation is fair, defensible, and consistent. In a competitive labor market, that confidence is critical.

Pay equity also aligns with employee values. Today’s workforce wants purpose, fairness, and representation. A municipality that champions pay equity becomes more than an employer. It becomes a civic beacon, signaling to residents and employees alike that it is serious about fairness and community trust.

Where Pay Equity Could Make the Difference

• Texas Water Utilities: Facing mass retirements, Texas utilities warn that staffing shortages threaten water infrastructure and public safety. Pay equity would provide a defensible and attractive compensation structure, helping municipalities compete for scarce skilled labor (Axios).
  
• New England Towns: Municipalities struggling with permitting backlogs are turning to shared services and outreach to keep inspections moving. Pay equity could strengthen these efforts by ensuring competitive and transparent pay structures, which are key to attracting and retaining employees in tight labor markets (CT Insider).

These examples highlight the stakes. Without pay equity at the center, municipalities risk deepening capacity challenges. With it, they gain a powerful tool to stabilize their workforce and preserve critical public services.

Public Trust and Scrutiny

Every taxpayer dollar is questioned. Every staffing decision can end up in the public record or the press. In this climate, pay equity signals intentional stewardship rather than token compliance. When pay scales, job descriptions, and classification systems are reviewed through an equity lens, municipalities reduce legal risk and strengthen public credibility.

Methodology as the Bridge

This is where methodology matters. Moore Cooperative’s approach is grounded in data, community engagement, and equity-centered frameworks. Our process turns compliance into capacity. By aligning legislative requirements with workforce realities, we deliver outcomes that are not just compliant, but clear, implementable, and defensible.

The Bottom Line

Municipal governments are facing one of the toughest labor markets in decades. Without pay equity at the center of compensation and classification strategies, the shortage of talent will deepen and public trust will fray. With it, municipalities have a chance to turn a staffing crisis into an opportunity to strengthen both workforce and community resilience.