Employers across Canada are losing sleep over labour shortages, which are expected to last throughout the next decade. These shortages affect a company’s revenue and growth, increasing costs associated with wages and benefits, requiring existing employees to work longer hours, and influencing competitiveness because of deteriorating quality or unfulfilled services—not to mention a frenzy of recruitment wars.
Labour shortages affect organizations of all sizes but are particularly concerning for smaller employers. A recent survey conducted by Business Development Bank of Canada found that 39 percent of small to medium-sized companies are having difficulty finding new employees. Why? Because a labour shortage leads to a job seekers’ market. Job seekers can place higher demands on employers because the number of job vacancies is high. Job seekers have options and they know it; many employers are fighting for the same talent. So the next question is: what can employers do?