September 29, 2021 2:53 P.M.
A study by the Business Development Bank of Canada found that more than half of Canadian entrepreneurs struggle to hire the workers they need. According to the entrepreneurs interviewed, the difficulty in hiring is mainly attributed to the lack of candidates (45%) and the lack of technical or non-technical skills required (44%).
According to the study How to Adaptation to the Labor Shortage Situation: Hiring Difficulties Are Not Going Away, published today by BDC, 64% of entrepreneurs say that the labor shortage limits their growth, 55% of small and mid-sized companies find it difficult to hire, 49% need to increase wages and benefits, and 44% have delayed or are unable to deliver orders to customers. A press release explained that the study was based on a survey of 1,251 Canadian entrepreneurs and a survey of 3,000 Canadians about their jobs. He revealed that two out of three small and medium-sized businesses have lost business opportunities due to a lack of workers.
The shortage is more acute in Quebec and for rural businesses, but affects all provinces and regions. Suggested solution that includes adopting new technologies, using a formal hiring process, and offering a total compensation package. The arts, entertainment and recreation sector has more difficulty than others in retaining workers, followed by agriculture.
“As the economy recovers, this labor shortage is reaching worrying highs, jeopardizing economic growth and compromising the competitiveness of Canadian businesses,” said Pierre Cléroux, Vice-President, Research and Economist. chef at BDC. Fortunately, while the labor shortage is here to stay, entrepreneurs can take key steps to limit the impact of this situation on their growth. “
“Canada’s labor shortage has been a challenge for a decade due to an aging population, but the COVID-19 pandemic has exacerbated it. Entrepreneurs will need to spend more time hiring and retaining workers than before. “This underlines the importance for entrepreneurs to adopt new solutions to support their long-term growth and productivity, and automation should be a priority,” said Cléroux.
The study reports that companies that have automated certain areas of the business are twice as likely to find hiring easy and 1.9 times as likely to see above-average sales growth for the industry, compared to companies that had not automated. And yet, only one in four Canadian SMEs has fully automated one or more functions of their business.
Other highlights of the study:
– Wanting higher wages (57%) is by far the biggest reason workers will choose to change jobs in the next year, followed by a desire for more benefits (32%).
-20% of workers who lost their jobs during the pandemic have changed job field
-Entrepreneurs invited to chart the course for Small Business Week, October 17-23, 2021
This report is posted at: https://www.bdc.ca/en/small-business-week