Skills shortage: 66% of companies suffering

Year after year, the number of hirings does not match the level of forecasts, according to the 2014 salary guide published by Hays. However, Canadian business leaders are indicating at the same time that they are having to face a shortage of skills on the labour market. They are also optimistic for growth in 2014.

While hiring and business are below the levels forecast in recent years, the optimism of Canadian business leaders is nonetheless at its highest in three years, according to the survey by the Hays firm. 64% predict an increase in their activities in 2014. According to Rowan O’Grady, president of Hays in Canada, it is interesting to note that managers remain optimistic even though the data suggests that it would be more prudent to temper the outlook. For them, companies have every incentive to produce more precise analyses on their growth prospects to adjust their hiring plans accordingly.

Middle managers most affected

Despite this background, the problem of skills shortage persists. This  is shown by the survey, which shows that two thirds (66%) of Canadian companies are suffering from it. This finding is especially true for middle managers, for whom it is even more difficult to successfully fill vacancies. Interviewed on the possible causes of this phenomenon, one third (33%) cite the lack of training and professional developments, while another third (35%) believes that too few candidates are entering the job market.
The recruitment firm highlights several options for these companies who are frustrated by the inability to find qualified professionals. First of all is hiring a candidate with less experience in a particular field but having transferable skills. They will then be trained and supervised to become the ideal employee in time. At the same time, this proposal obliges employers to invest more in their human capital.

Anticipating retirements

Next is that the time when the baby-boomer generation is approaching retirement and succession planning is another challenge to meet. The lack of transfer of knowledge from one generation to another will exacerbate skills shortages in all industrial sectors even more, the survey reveals. Skills transfer is already becoming a key issue for many companies who will be losing employees born after the war in the next few years. Although 57% of organizations have implemented or will be implementing a succession plan, this number is still considered too low. There are many avenues to reflect on this year to try to reverse the trend.