Recruitment specialist warns they are overlooking growing discontent among staff.
Manufacturers that are having trouble finding and retaining the people they need may be making the problem worse.
The annual Hays Canada Salary Guide survey shows despite business success this year and greater confidence, employers have growing appetite for hiring temporary and contract help while offering teams salary increases of less than 3%.
The Toronto-based recruitment specialist warns they are overlooking growing discontent among staff. It found 90% of employees would consider leaving their current role for one that met their expectations – a sentiment Hays believes may trigger considerable employee departures next year.
Conducted in the fall, the survey revealed employer confidence is back to pre-recession levels with 70% saying their growth prospects look good for the year to come. Even employers in the parts of Canada hardest hit by the recent oil and gas slump expressed optimism about the strengthening economy. More than a third of respondents across the country plan to add permanent headcount in 2018, which is on par with numbers seen four years ago.
But temporary staffing levels were double the rate employers anticipated in 2017 and 26% said they plan to boost their reliance on contingent workers again next year. Hays says this suggests poor forecasting and a reluctance to commit to permanent staff that contributes to eroded morale and increased workplace stress. Adding to the discontent, more than half of respondents said raises for staff will be less than 3% even though they’re aware of increasing competition from companies that pay more.
Nearly three quarters of respondents feel that Canada suffers from a skills shortage, and as a result, their staff is stressed (71%), morale is impacted (43%), inefficiencies are up (42%) and errors/accidents are also on the rise (28%). And employers should be concerned that a majority of employees would quit their current job if a better offer came their way and many (58%) are heading into the new year unsure if their salary is competitive with the market average.
Hays says employers also seem to have backed themselves into a corner with an inability to hire the talent they need and have used recruitment tactics that could be demotivating to their existing teams.
Nearly a third of employers admitted their company lacks a network of candidates and 40% admit they have increased salary offers in an effort to secure specific candidates.
“Employers would be wise to think about the message they’re sending to staff,” said Rowan O’Grady, president of Hays Canada. “When overworked teams get little in the way of raises but see their employer inflate salary offers to incoming candidates, they tend to look for the exit sign. We expect this is already happening and ‘churn’ will be the big word in 2018.”
Many employers have begun to familiarize themselves with what people expect in their role and have started making changes to their workplace.
In 2018, more than half of employers are emphasizing the ability to work from home, 29% say more training, and 65% have started to focus on company culture as a competitive differentiator.
Additional highlights from the survey:
• Economic outlook is highest in Quebec where 50% of employers believe it will strengthen in 2018. BC follows at 46% while Alberta and Ontario sit at 44%.
• 52% of employers will increase salaries in 2018 by less than 3%.
• 7% will increase salaries by more than 5%.
• 54% say the biggest recruitment challenge is total salary/compensation.
Hays Specialist Recruitment Canada is a wholly owned subsidiary of Hays plc in the UK.