Recruitment in Canada: The Hiring Dilemma – Insights from Our Round Table

It’s no secret that employers throughout Canada are concerned with recruitment. Indeed, the country has seen a significant labor shortage which has made employers’ lives very difficult.

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.

This shortage is not related to the pandemic, rather it’s a result of Canada’s aging population.

“We’re in the midst of a completely unprecedented staffing shortage. I’ve been in the staffing industry for 35 years and I’ve never seen anything like it and it’s across all sectors,” said PJ Ferguson Sparks, Founder and CEO of ABL employment, during an Innovators Alliance roundtable discussion on the hiring dilemma.

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.

“Typically, 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’s the time of year the market is tightest and your people are most likely to get head hunted,” Sparks added at the roundtable.

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’ 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.

“The next generation coming up is mobile friendly. They don’t think they will stay at one company for their entire career. In fact, that’s not a goal for most of them,” Sparks explained.

But because the labour market is so robust, it’s really hard for employers to find people to replace those who leave.

“Demand is up and supply is down…A lot of our challenge isn’t just that it’s hard to find people, it’s that I’ve never had so many requests,” explained Sparks.

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.

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.

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.

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. “If people feel they are good at something, they’ll stay and do it,” she said.

Sparks added that in terms of labour shortage, if it’s 100% problem about 60% of it is not permanent. Other participants highlighted the importance of making retaining workforce just as important as attracting it.

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.

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.

These measures along with the suggestions made by Innovators Alliance roundtable members could be the key between thriving as a business or struggling to make ends meet. At Innovators Alliance we always encourage the conversations that will bring forward positive change and progress for your business. To find out more visit us at: www.innovators.org.