Yahoo Finance Canadian employers struggling to find talent in a tight labour market
Record-low unemployment is pitting Canadian companies against each other, as they duke it out for new talent.
Employment agency Hays Canada says even though 63 per cent of employers surveyed say a strong economy will boost their bottom line, less than a quarter plan to bump salaries by more than 3 per cent. Hays found raises beyond the cost of living hit a five-year low.
Instead, companies will open up their wallets to entice new recruits. More than half of employers surveyed say they plan to hire permanent staff in the year ahead.
More than 60 per cent of employers surveyed admit they have hiked salaries to attract candidates, even at the risk of losing current staff.
A lack of raises could help push employees out the door, considering 41 per cent say they are seriously considering leaving for higher pay.
Good help is hard to find
The most movement is likely to occur in IT. Demand at tech companies continues to outpace the supply of skilled candidates. And yet, IT employees are the least likely to call their current salary competitive. Smaller companies could bear the brunt of a talent war.
“We strive to be competitive with our salaries but know that we are up against big players that have endless resources,” says Dinesh Kandanchata, Chief Operating Officer at Macadamian.
Kandanchata says he’s had to be creative and uses company culture as a selling point.
Nearly three-quarters of employers say a shortage of skilled workers has resulted in heavier workloads and increased stress.
“From an employer’s perspective, the job market is extremely competitive and without the right people in place, next year’s business goals could end up in doubt,” says Rowan O’Grady, President of Hays Canada.
O’Grady says cutting back on raises for current staff isn’t the solution.
“The intent may come from a good place, but this is a band-aid solution,” says O’Grady.
O’Grady suggests a more holistic approach to staffing.
