Stereotypes sometimes die hard. But now there is a study that could sweep away clichés about SMEs. Indeed, a survey by the Canadian Federation of Independent Business (CFIB) has found that SMEs offer quite respectable working conditions to their employees.
At present, three employees out of five in Quebec are employed by a SME, according to a study titled “Des faits sur les conditions de travail dans les PME” (Facts on working conditions in SMEs), sponsored by the CFIB. Again according to this report conducted last August with 1,021 managers of Quebec SMEs, a relatively substantial number of SMEs offer good working conditions to employees. Furthermore, 58% of organizations interviewed want to hire in the next twelve months. Three SMEs out of 10 plan to hire production or trade staff, 16% in sales, 15% for administrative or technical services. Finally, 5% are thinking about hiring executives or managers.
SMEs pay their employees better. Their median hourly pay is $17, 64% more than the minimum wage, which is set at $10.35. Their average hourly wage is $18, 73% more than the minimum wage. In addition, 64% of companies surveyed plan to raise their employees’ pay this year. While wage growth should be around 1.3 point on average, 17.1% expect to raise their employees pay from 1.6% to 2% this year, 7.3% from 2.6% to 3%, and 6.3% expect to raise wages by at least 3.1%.
SMEs generous with benefits
SMEs are not stingy when it comes to benefits granted to employees. 22.4% of them offer their employees a retirement savings plan. 37.1% offer disability insurance while 38.6% finance medical insurance and supplementary health coverage, and 38.5% drug insurance. Regarding human resources arrangements, 51.9% of companies interviewed plan to pay for employee training in the next twelve months, and 8.5% to implement or optimize measures to reconcile work and private life.
87% of the organizations surveyed offer measures to allow their employees to combine work and non-professional life. 63.4% are flexible in their employees’ choice of leave and 43.3% in their work schedule. 30.8% give them the opportunity to opt for reduced working time. 22.4% grant them paid leave for a personal imperative, 49.3% unpaid leave for the same reasons. In addition, 82% of SMEs believe that such measures are beneficial to their organization. 67.2% believe that it improves employee relations, 63.1% note increased employee satisfaction and 51% increased staff loyalty. However, these arrangements appear to be a challenge to SMEs since 33.3% of the organizations surveyed find their costs are high and 49.6% find implementation complex.