Employers share blame for labour shortage

December 23, 2017

Employers share the blame for Canada’s current labour shortage and rise in staff turnover, according to eighth annual Hays Canada Salary Guide which found that stagnant wage increases and a reliance on temporary workers are common.
“Employers appear to have an increasing appetite for hiring temporary and contract help while offering teams salary increases of less than 3 per cent,” the influential survey contends.
Nearly 75 per cent of employers surveyed by Hays believe there is a skills shortage in Canada. The residential construction industry is among those affected by an ongoing shortage of skilled trades, according to industry reports.
Hayes also found that 90 per cent of employees would consider leaving their current role for one that met their expectations—a sentiment Hays believes may trigger considerable business-threatening employee departures in 2018.
“The dark days of the downturn are a fading memory for most of Canada’s employers, but our research shows they’re staring down the barrel of extreme retention challenges,” said Rowan O'Grady, president, Hays Canada. Frankly, employees have already told us they are ready to be lured away. All the warning signs are there and those who refuse to acknowledge this reality are taking their biggest risk in at least five years.”
The survey found that 53 per cent of employers expect to offer a salary increase of less than 3 per cent in 2018, while only 7 per cent said they would increase salaries by more than 5 per cent.
When asked what was the biggest challenge in hiring workers, however, 54 per cent said it was applicant salary expectations.
Hays Canada is a subsidiary of Hays plc, the largest specialist recruitment consultancy in the world.