Canadian companies having difficulty attracting critical-skill employees
Many Canadian companies are finding it relatively easy to attract or retain workers, with one major exception – critical-skill employees. A new survey from global professional services company Towers Watson shows that Canadian companies have trouble finding and keeping the workers they need most.
According to the survey, almost six out of 10 Canadian companies (57%) report problems attracting critical-skill employees – compared to 20% for their workforce overall. Forty-three percent also have difficulty attracting top-performing employees. Additionally, more than one third (39%) are experiencing challenges retaining critical-skill employees.
The Towers Watson Talent Management and Rewards Survey, a study of 316 North American organizations, including 98 from Canada, also found that nearly two-thirds of respondents expect their employees to work more hours now than they did prior to the recession and see this trend continuing for some time. Additionally, a majority of respondents are concerned about the impact of organizational changes they made in response to the recession on their employees’ work/life balance and productivity. As a result, many employers have made or are planning to make changes to their reward and talent management programs.
“Although hiring rates have increased moderately since 2009, employers are still experiencing difficulties finding and recruiting employees with critical skills,” said Ofelia Isabel, Canadian Talent Management and Rewards leader for Towers Watson. “Organizations are taking longer to fill these positions, and more of them are open. There is clearly a greater-than-normal mismatch between the skills employers seek and those that are available in the marketplace. In short, organizations need a more appealing offering to attract critical-skill employees.”
Overall, 60% of Canadian respondents report that employees have been working more hours over the past three years, and just under half (47%) expect this trend to continue over the next three years. Additionally, a quarter (25%) of the employers surveyed said their employees have been using less of their vacation or personal time off over the past three years.
The study also found that almost half (48%) of Canadian organizations are concerned about the long-term effects of changes they made during the recession on their employees’ ability to maintain a healthy balance between work and their personal lives. Employers have good reason for concern. Employees, who were surveyed separately, consistently ranked work-related stress as the top reason they would leave an organization. Given the ongoing economic and workforce pressures, almost two-thirds (62%) of Canadian organizations reported making significant changes in the HR area – reward and talent management strategies, organizational structure, job evaluation process and competencies – and many expect to continue to do so.
“In the short-run, having employees work extra hours can increase productivity, but in the long-run, extended hours can negatively affect employee well-being and retention,” said Julie Naismith, a Senior Rewards consultant at Towers Watson. “Employees at many organizations are already suffering from change fatigue. As a result, when the labour market does recover, employers can expect a sharp increase in voluntary turnover, especially if they do not address employee concerns and deliver reward and talent management programs more effectively.”
