Companies Still in Fierce Competition for Workers Despite Possible Recession
London, Ontario - August 24, 2022
Concerns about an economic slowdown and possible recession have not eased the labour shortages facing companies across Canada, which are still engaged in fierce competition for workers, according to a new study from The Harris Poll commissioned by Express Employment Professionals.
To prevent employees from leaving and to attract new workers, two-thirds of Canadian companies say they are increasing wages this year (66%). Close to half also say they have enhanced benefits (48%), with more sick leave (17%), better health care benefits (16%) and more paid time off (16%) among the most common improvements.
In addition, almost two-thirds of Canadian hiring decision-makers (63%) say their company is taking steps to make hiring new workers easier - including offering remote work (24%), offering higher starting salaries (20%) and hiring bonuses (17%). Some companies are expanding the geographic area where they advertise open positions (14%), reducing qualification criteria for open jobs (14%) and/or offering better benefits (13%).
Despite improved pay and benefits, more than one-third of companies (35%) have experienced an increase in employee turnover so far this year. Both better pay/benefits (36%) and better perks (28%), like summer Fridays or unlimited vacation days, offered elsewhere are leading reasons.
Companies expect lack of competitive pay (21%) and/or expanded benefits (16%) to continue to be the biggest hiring challenges they will face over the next year.
But two-thirds of Canadian companies say it is impossible to offer all the benefits that employees want now (65%) - a sentiment that has held steady since 2021 (67%).
"In southwestern Ontario, there has been no slowdown in companies hiring and their need to hire", said James Norris, franchise owner of the London Express franchise office. "Getting people into your organization is only half the battle, companies need to have a retention plan in place to reduce turnover. As more companies start to increase starting wages to attract new employees, there is more of a risk of losing employees to a competing business that is paying even $0.25 or $0.50 more an hour. Business leaders need to be critical of their onboarding process and training, and ensure they are setting new employees up for success, to help reduce turnover."
Investing in quality employees who bring value to the table is imperative to the success of any company, according to Express Employment International CEO Bill Stoller.
"Not all businesses can offer everything job seekers desire for employment, but oftentimes, reasonable pay and benefits, coupled with a healthy work environment, will attract the right workers at the right time," he said.
Survey Methodology
The survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between May 3-23, 2022 among 504 Canadian hiring decision-makers (defined as adults ages 18+ in Canada who are employed full-time or self-employed, work at companies with more than one employee and have full/significant involvement in hiring decisions at their company). Data were weighted where necessary by company size to bring them into line with their actual proportions in the population.
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About Express Employment Professionals
At Express Employment Professionals, we're in the business of people. From job seekers to client companies, Express helps people thrive and businesses grow. Our international network of franchises offers localized staffing solutions to the communities they serve across the U.S., Canada, South Africa, Australia and New Zealand, employing 586,000 people globally in 2021 and 10 million since its inception. For more information, visit ExpressPros.com/CA.
The London Express office is located at 300 Dundas Street, Suite 200, and serves the London, Middlesex, St. Thomas, Strathroy, Stratford, Woodstock, Ingersoll, Tillsonburg, and Southwestern Ontario. Local businesses and applicants are encouraged to visit https://expresspros.com/london/ or call (519)672-7620.
About Bill Stoller
William H. "Bill" Stoller is chairman and chief executive officer of Express Employment
International. Founded in Oklahoma City, Oklahoma, the international staffing franchisor
supports the Express Employment Professionals franchise and related brands. The Express franchise brand is an industry-leading, international staffing company with franchise locations in the U.S., Canada, South Africa, Australia and New Zealand.