The repercussions of a global pandemic have left the province of Québec, and, in fact, all of Canada facing longlasting labour shortage issues with thousands of unfilled jobs. According to a recent report from the Canadian Federation of Independent Business, 81% of small and medium sized enterprises in Québec say they are feeling the strain of the labour shortage.
According to its findings, 59% of the managers employed by such enterprises and 43% of their regular employees had to work longer hours in the first month of 2022 to make up for the lack of available workers. Faced with this reality, it is undeniable that many employees are unhappy and switching jobs, making it more difficult for employers to recruit. Considering this unprecedented labour shortage, there are several options that employers may want to explore to both retain their existing employees and attract candidates to join their workforce.
Improving Existing Conditions
Many Québec employers are not only struggling to recruit new employees; they are struggling to retain talent. According to a recent study, almost a third of young employees between the ages of 18 and 34 in Québec are thinking of leaving their jobs in the next year due to salary, benefits, lack of professional challenges and advancement opportunities.
Therefore, employers must be prepared to meet employees' expectations by offering them sought-after job amenities such as flexibility, better working conditions and an increase in compensation, whether in the form of a salary increase or a bonus. In this new work-from-home era, employers may also want to consider extending this option on a permanent or hybrid basis, while also offering home office support in the form of an equipment allowance or a home office budget. Flexibility is clearly becoming an increasingly desired perk for the modern employee.
Ultimately, it is important to keep top performers on-board, discuss advancement opportunities, invest in training and development, and reward good performance. Employees also generally value an increase in benefits such as vacation entitlements, childcare assistance, wellness support and healthcare insurance. Implementing mentorship programs or offering tuition reimbursement can also be a great addition to an employer's extended onboarding toolbox.
Inspired by Ontario's Measures
To attract new employees, employers may also want to adopt measures in line with the new legislation enacted in our neighbouring province of Ontario which restricts the use of non-competition agreements and requires employers to have policies allowing employees to disconnect from work.
In fact, this new legislation follows the European trend to introduce limits on employer expectations regarding employee availability during non-core business hours. The federal government is also currently exploring a similar right-to-disconnect amendment to the Canada Labour Code. Québec employers may therefore want to consider adopting policies which allow employees to disconnect from work, thereby emphasizing a healthy worklife balance and conveying the message to employees that they are cared for and appreciated. Excluding restrictive covenants such as non-compete and non-solicitation undertakings from employment agreements can also incentivize potential candidates, especially those who would consider occupying a position in Ontario.
Temporary Foreign Workers
Truth be told, solutions to increase salaries and improve benefits merely shift the labour force around. New workers will not magically materialize. An interesting solution for employers could be to consider hiring temporary foreign workers.
To meet growing labour needs, the Québec government has implemented several measures to stimulate the workforce and ease recruitment requirements by investing $3.9 billion to add 170,000 workers in certain priority sectors. These priority sectors are health care, education, childcare, information technology and construction. The measures adopted by the government to facilitate the hiring of foreign workers in the province of Québec include raising the maximum number of temporary foreign workers allowed in low-wage positions to be hired in certain designated sectors. Employers can now hire up to 20% temporary foreign workers in a single workplace (an increase of 10% for most employers) until December 31, 2024. The increased limit is intended to integrate more immigrant resources to fill job vacancies in sectors facing significant labour shortages, such as:
- retail;
- food and lodging;
- food, beverage and tobacco manufacturing;
- management of companies and enterprises;
- health care;
- forestry industry;
- rubber and plastic products manufacturing;
- wood, pulp and paper processing.
Québec government has also updated the list of high-demand occupations for which employers do not need to prove recruitment efforts when hiring temporary foreign workers as required under the Labour Market Impact Assessment process. The new list has been significantly expanded from last year's list of 181 occupations. There are now 222 occupations on the list that qualify for the new facilitated process taking into account the labour needs of all regions of Québec. The Québec government estimates that newcomers, particularly temporary foreign workers, will fill 22% of job vacancies by 2026.
In addition, the government is offering financial assistance to support businesses that choose to recruit internationally. Up to 50% of the costs incurred for an eligible international recruitment activity may be reimbursed to the employer, up to a maximum of $1,200, which will allow certain employers to recruit talent abroad at a lower cost.
Retain Experienced Workers
Sometimes it may not make sense for employers to search abroad for a solution when the most experienced workers are within the organization. Compared to other Canadian provinces, aging workers in Québec tend to leave for retirement more quickly. Quebecers between 60 and 64 years old had an employment rate of 54% in 2021, compared to 60% in Ontario and a national average of 58%.
As such, employers may want to look into financial incentives and flexible work schedules to keep older workers on the job longer.
Overall, there are many solutions that employers should consider if they are affected or want to prevent being affected by Québec's growing labour shortage. Employers must explore their options to stand out from their competitors during these labour-intensive times, as workforce issues can become a huge impediment to growth.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.