Canadian companies failing to invest in their people: survey [INFOGRAPHIC]
Businesses are failing to address the real reasons why recruitment and retention are on-going issues.
TORONTO — In an economic climate where organizations must strategically balance their budgets while satisfying their employees, a workplace survey by Lannick Group of Companies reveals that while businesses in the Greater Toronto Area (GTA) have come a long way, there is still progress to be made.
Many employers assume all hiring flaws come from unreliable individuals, but companies are failing to address the real reasons why recruitment and retention are on-going issues.
“Talent attraction and retention is vitally important to the strength of a company, and what employers are willing to do to address their workplace satisfaction issues,” said Peter Jeewan, CEO of Lannick Group. “Companies must be willing to invest time and money in the unique skills that every individual brings to the organization.”
Key survey findings include:
- Over 40% of companies surveyed will see no change to their staffing budget this fiscal year compared to last, and over 30% will see only a minor increase (0-5%).
- The top two reasons cited for difficulty retaining staff were lack of budget and lack of work/life balance within their organization.
- Contrary to this, over 72% of respondents feel it is difficult to attract top talent in the current marketplace. Almost 50% say that this is due to a deficit of qualified applicants rather than their own hiring process and work environment.
- Although there is clearly a high concern about staffing, it is not necessarily being addressed. Over 12% of employers stated their own company is not positioned in an appealing way to target talent, which can have a critical impact on a company’s hiring process and work environment.
- While over 15% of executives don’t believe in their own hiring system, over 70% rate their internal HR department as the number one resource they rely on to recruit new talent.
- Canadian companies are taking advantage of the current economic climate: almost 30% of executives are lessening their measures to retain talent simply because the market is currently employer versus employee-driven. The time is now for employers to take action – a happy employee is an effective employee.
To strengthen workplace satisfaction, company must Invest in employees as they do in your clients: the immediate, short-term return on investment may not be seen, it is necessary for companies to invest time and resources internally to build a more sustainable business in the long-term.
Evaluate and evolve hiring strategies: companies that rely heavily on their own internal hiring system while not necessarily seeing the success rate they desire, Lannick says. Engage professional recruitment and staffing firms, use external online job boards, or reassess the referral process.
Understand the effect corporate culture has on employees. Employees place prominent value on factors such as flexibility and balance, not just monetary reward and status. People will be increasingly willing to leave a position with your company knowing there are other options in the marketplace better suited for them.
- The majority of respondents (87%) predict no change or increase of staffing budgets compared to previous years. Nearly 13% say budgets will decrease.
- The top staffing concern is motivating and encouraging staff (37%) followed by retaining top talent (27%).
- Overall staffing levels are predicted to stay the same (66%) or increase (24%). The number one reason for increased staffing levels is because their company is in a growing market.
- Almost 73% of respondents find it difficult to find top talent. This is due to perceived lack of qualified applicants (47%) and lack of budget for staffing (30%).
- Almost 30% of executives are lessening their measures to retain talent because the market is currently employer-driven not employee-driven.
- The top ranked reasons for high turn-over rates are lack of budget (28%), lack of work/life balance (24%) and lack of a positive work environment (17%).
- Executives find that many employees tend to leave their organization for better opportunity/career growth, or because they are not happy and don’t feel it is the right workplace fit.
- The greatest challenge when dealing with staff is lack of time and resources (39%) followed by motivating employees (35%).
- Work experience and soft social skills were both found to be more important to employers than actual technical skills when considering candidates.
- Over a third of executives cited online and social media research as part of their potential recruitment background checks. Over 50% conduct criminal checks, and 25% check credit ratings.