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Canadian SMEs Face Talent Shortage

October 22, 2024 from Benefits Canada

A recent survey by Robert Half Canada highlights a significant challenge for Canadian small and medium-sized employers (SMEs): 88% report difficulty finding skilled talent. This widespread issue is impacting business operations and driving employers to adopt new strategies to attract, hire, and retain employees.

 

Key Challenges for Canadian SMEs

The survey, which polled over 400 Canadian SMEs, identified several key concerns:

  • Retaining top talent (82%): Employers are struggling to hold onto skilled employees.
  • Finding talent quickly (77%): The speed of recruitment is critical to maintaining operations.
  • Finding qualified candidates (77%): The talent pool is shrinking for specialized roles.
  • Keeping business projects on track (75%): Delays due to staffing shortages are a growing issue.

 

Strategies to Retain and Attract Talent

To address these challenges, SMEs are implementing a range of strategies:

Retention Efforts

  • Increased compensation (43%): Offering competitive pay to retain employees.
  • Enhanced professional development (40%): Providing opportunities for skills growth.
  • Recognition programs (40%): Boosting employee morale through acknowledgment.
  • Retention bonuses (36%): Offering financial incentives for loyalty.

 

Attraction and Recruitment Initiatives

  • Flexible schedules (38%) and hybrid roles (35%): Providing work-life balance options.
  • Higher starting salaries (32%): Attracting top talent with competitive offers.
  • New benefits and perks (30%): Making roles more appealing to candidates.

 

Comprehensive Benefits to Support Employee Well-Being

Nearly all SMEs are investing heavily in employee well-being through expanded benefits:

  • Employee Assistance Programs (95%): Supporting mental health and personal challenges.
  • Extended health insurance and paid time off (93%): Promoting physical and mental well-being.
  • Retirement savings plans and life insurance (93%): Securing employees’ futures.
  • Leaves of absence and mental health benefits (91%): Addressing work-life balance and stress.
  • Dental insurance (86%): Enhancing overall health coverage.

 

The Importance of Employee Well-Being

A competitive labor market requires more than just higher salaries. SMEs are increasingly recognizing the importance of employee well-being as a critical factor in attracting and retaining talent. A workplace that prioritizes flexibility, mental health, and comprehensive benefits can gain an edge in this competitive environment.

 

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