It\u2019s no secret that employers throughout Canada are concerned with recruitment. Indeed, the country has seen a significant labor shortage which has made employers\u2019 lives very difficult.<\/p>\n
According to a labor shortage study by the BDC, more than half (55%) of Canadian entrepreneurs are struggling to hire the workers they need and more than a quarter (26%) are having difficulties retaining their employees.<\/p>\n
This shortage is not related to the pandemic, rather it\u2019s a result of Canada\u2019s aging population.<\/p>\n
\u201cWe\u2019re in the midst of a completely unprecedented staffing shortage. I\u2019ve been in the staffing industry for 35 years and I\u2019ve never seen anything like it and it\u2019s across all sectors,\u201d said PJ Ferguson Sparks, Founder and CEO of ABL employment, during an Innovators Alliance roundtable discussion on the hiring dilemma.<\/p>\n
According to the BDC, nearly two in three entrepreneurs have lost business opportunities either because they could not find qualified staff or they could not retain them. Indeed, as job markets tighten employees look for greener pastures leaving the companies that often trained them behind. But there is something that employers can do to keep from losing their employees.<\/p>\n
\u201cTypically, in September and October these are the most challenging times to find people. And we often suggest to our customers that instead of doing raises at the beginning of the year you should actually do them in September and October because that\u2019s the time of year the market is tightest and your people are most likely to get head hunted,\u201d Sparks added at the roundtable.<\/p>\n
Sparks further explained that COVID-19 has also seen a decrease in immigration which means that competitors have less employees and may go after others\u2019 employees. Everyone at the round table agreed that during the pandemic people were moving more easily from job to job, leaving behind employers unable to cope. This was mostly related to a younger generation of employees who is not looking to stay at the same place for a long time.<\/p>\n
\u201cThe next generation coming up is mobile friendly. They don\u2019t think they will stay at one company for their entire career. In fact, that\u2019s not a goal for most of them,\u201d Sparks explained.<\/p>\n
But because the labour market is so robust, it\u2019s really hard for employers to find people to replace those who leave.<\/p>\n
\u201cDemand is up and supply is down\u2026A lot of our challenge isn\u2019t just that it\u2019s hard to find people, it\u2019s that I\u2019ve never had so many requests,\u201d explained Sparks.<\/p>\n
To deal with that challenge, Sparks has taken at two-fold approach: she has removed the barriers from a complicated recruitment process, such as too long interviews, and she has suggested time-bound perks such as bonuses for employees who stay long and do well in a position.<\/p>\n
She even suggested giving appreciation bonuses with heartfelt thank you notes. She says that these measures, despite being a little costly, are less expensive than turnover.<\/p>\n
The roundtable discussion then moved forward to the issue of work life balance. The roundtable agreed that people were no longer interested in working overtime or travelling much.<\/p>\n
Sparks discussed how one way to keep people in their companies is by giving them a higher calling so that they feel that they are doing more than just a job. \u201cIf people feel they are good at something, they\u2019ll stay and do it,\u201d she said.<\/p>\n
Sparks added that in terms of labour shortage, if it\u2019s 100% problem about 60% of it is not permanent. Other participants highlighted the importance of making retaining workforce just as important as attracting it.<\/p>\n
Indeed, retaining workforce might be one key to businesses functioning at optimum levels despite aging populations continuing to put downward pressure on labour force participation and growth.<\/p>\n
BDC offered the following solutions to the ongoing recruitment crisis: offer more flexible working options (such as telework), train internal less qualified employees, hire students and younger works, bring in more immigrants, automate certain areas of the work and bring back retired workers.<\/p>\n