In its last report, the development bank of Canada (BDC) analyzed the labour shortage in Canada. For this study, a survey was conducted among 1200 SME managers. The goal is to understand this labour shortage and how Canadian companies can address it.
The main conclusions of this study are the following:
- 39% of SMEs are already struggling to recruit new employees, and the situation is not expected to improve by at least a decade.
- The lack of workforce affects business growth. Indeed, some SMEs can no longer meet the demand and have to refuse orders.
- This labour shortage is experienced differently in different regions. It is higher in Atlantic Canada, British Columbia and Ontario.
This study is punctuated by case studies that provide valuable advice on how companies can address this shortage. Here are the main points:
- The strategies most commonly used by SMEs to overcome this shortage are to employ less skilled and/or younger workers, improve productivity by simplifying processes or increase employees’ working hours.
- The strength of HR policies is making a real difference. Indeed, companies with HR policies have less difficulty to attract and retain employees and their growth increases.
- Automating process can allow a company to increase its productivity without increasing its number of employees.
- Recruiting new entrants to Canada is a quick and easy way to benefit from a skilled workforce. But it is also the least preferred solution by Canadian SMEs.
To find out all the facts and figures on Canada’s labour shortage and BDC’s advice on how to deal with it, read the full study.