Business Development Bank of Canada, September 2021 Report
“Canada’s labour force problem did not begin with the pandemic. It is the result of the ageing population and related declining labour force participation, which started over 20 years ago. The pandemic has amplified the problem by destabilizing an already-precarious situation.
Luckily, this study shows that proven solutions can help Canadian SMEs reduce the impact of labour scarcity.
These strategies include the following:
Adopting new technologies and automation
Adopting technology that can complete repetitive and easily replicable tasks with reduced human input, freeing up workers for more value-added tasks.
Using formal hiring processes
A formal hiring process minimizes the time needed to recruit and hire employees. Moreover, it helps businesses find strong matches and high-quality employees, which, in turn, boosts business performance and reduces employee turnover.
Offering a total compensation package
Offering customizable elements such as competitive salaries and benefits, flexible work arrangements and employee mentoring. The total compensation package helps to make employees feel valued and appreciated and, therefore, acts as a strong retention tool.
Projections show that labour force growth will continue to slow for years. Given the downward trend, entrepreneurs must adapt their business practices to sustain their growth over the long run.”
