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Career Edge Blog

Dec 03
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2024 reflections

2024 Reflections on Recruitment and Workplace Trends

By General

As we near the end of 2024, we have been reflecting on our journey this year and the trends we have seen working with a number of our employer partners. It’s always a great idea to reflect, learn, and apply those lessons to improve our practices in the upcoming year.

As the new year starts, employers should take stock of their hiring practices, workplace culture, and overall strategies. This year has seen significant shifts in labour demand, recruitment trends, and employee expectations. Whether you’re an SME or a large organization, these changes impact how you attract, hire, and retain top talent.

In this article, we’ll review key data points from the past year, reflect on hiring challenges, and explore opportunities for improvement as you plan for 2025. Let’s dive in and uncover actionable insights to refine your strategies moving forward.

2024 Reflections on Recruitment Trends

This year, they brought notable changes to the labor market, from declining vacancies to shifts in workforce demographics. Reflecting on these trends can help employers refine their strategies for attracting and retaining talent.

Declining Job Vacancies

2024 witnessed a steady decline in job vacancies, with the vacancy numbers dropping by 59,000 (-9.2%) in Q2 alone. This marks the eighth consecutive quarterly decline, with total vacancies now at their lowest since Q1 2020. Full-time positions saw a sharper drop (-9.5%) compared to part-time roles (-8.3%).

For employers, this trend signals tighter labor availability and a need to optimize recruitment channels.

Unemployment and Workforce Composition

Canada’s unemployment rate remains unchanged at 6.5% in Q4. Interestingly, male employment rose by (1.8%) while female employment fell (-0.8%).

For SMEs and large organizations alike, the emphasis should be on creating inclusive hiring practices to tap into diverse talent pools.

Key Takeaways for Employers

  • Are you reaching the right candidates effectively?
  • Is your employer brand competitive in a selective market?
  • Is your hiring process efficient?
  • How has your organization adapted its DEI initiatives this year?
  • Do you offer opportunities for underrepresented groups—newcomers, people with disabilities, and women re-entering the workforce?

2024 Reflections on Labor Market Highlights and Challenges 

Understanding labor market shifts can reveal opportunities and challenges for employers. Highlighting key industry trends, employment shifts, and areas for reflection will prepare you for 2025.

Payroll Employment Growth

Despite falling vacancies, payroll employment increased by 62,000 (+0.4%) in Q2. This stability in filled positions suggests organizations are making strides in retention and workforce utilization. The payroll employment rate, however, declined in Canada by (-0.3%) in September.

Small Business Employment Trends

With 97.9% of businesses in Canada classified as small (1-99 employees), SMEs comprise a significant share of the labour force. Therefore, it is vital to reflect on hiring challenges unique to smaller organizations.

Industries to Watch

The service-producing sector employs 79.5% of the workforce, while industries like mining, oil, and gas are driving growth. For those in thriving industries, the focus must shift from simply hiring to upskilling existing teams.

Key Takeaways for Employers

  • Are you offering competitive salaries and benefits?
  • Is your company culture conducive to retention?
  • What steps are you taking to ensure your workforce is prepared for industry-specific advancements like automation and AI?

2024 Reflections on Workplace Culture and Retention

Retention is no longer just about compensation; it’s about building a workplace where employees want to stay. Reflecting on workplace culture can reveal how well you’re meeting employee expectations and fostering satisfaction.

Turnover Rates and Employee Satisfaction

One of the persistent challenges for employers this year has been managing turnover. As job seekers increasingly prioritize workplace culture, flexibility, and growth opportunities, traditional retention strategies may no longer suffice.

Case in Point
A Toronto-based organization restructured its workweek by implementing flexible hours and saw a 20% reduction in turnover. Simple adjustments like this can have profound impacts.

Key Takeaways for Employers

  • Have you conducted employee satisfaction surveys this year?
  • Are you addressing feedback effectively to retain top performers?

2024 Reflections on DEI Practices in Recruitment 

Creating a diverse, equitable, and inclusive workforce isn’t just good ethics—it’s a business imperative. This year, the focus on DEI grew as candidates actively sought employers who were committed to meaningful representation and equity.

Inclusive Hiring Practices

Employers who prioritize inclusivity attract a broader pool of candidates and build stronger teams. Job postings that use inclusive language and provide opportunities for individuals with disabilities or newcomers to Canada, as well as accessibility during interviews and onboarding processes, can go a long way.

Employer Branding

Your commitment to DEI should be visible in your employer brand. Candidates research organizations thoroughly before applying—what do your website, social media, and employee testimonials say about your values?

Key Takeaways for Employers

  • Are your job descriptions designed to attract diverse talent?
  • Have you communicated your DEI initiatives effectively to candidates and employees?

2024 Reflections on Hiring Practices

Effective recruitment isn’t just about filling roles; it’s about building sustainable teams. Revisiting your hiring practices can uncover inefficiencies and ensure a better candidate experience.

With the ongoing labor shortage, employers need to evaluate how they approach recruitment. Key areas to reflect on include:

  • Job Descriptions: Are they inclusive and reflective of actual job responsibilities?
  • Screening Processes: Are you leveraging technology to streamline candidate evaluation?
  • Onboarding: Is your onboarding process setting up new hires for success?

A Look Ahead: How Can You Prep For 2025

As you set goals for the new year, focus on the evolving priorities of both employers and candidates. This section outlines the steps to stay ahead of the competition and build resilient teams.

Evolving Candidate Expectations

Candidates are increasingly being picky, and for good reasons: They prioritize roles that offer purpose and growth.

Employers must keep up by offering:

  • Transparent career development pathways.
  • Competitive compensation packages.
  • Flexible work environment.
  • Work-Life balance.

Emerging Job Roles

Jobs like data scientists, IT analysts, and healthcare professionals remain in high demand. Are you sourcing talent in these fields efficiently?

Leveraging Technology

Technology will play a pivotal role in 2025, from applicant tracking systems (ATS) to AI-driven sourcing. Reflect on your tech investments this year and how they’ve impacted hiring outcomes.

Working With The Right Partners

At Career Edge, we specialize in connecting employers with skilled candidates while saving time and resources.

Closing the Gap: Why Collaboration Matters

Reflecting on the past year reveals one critical insight: employers can’t do it alone. Building partnerships with organizations like Career Edge can help bridge gaps in recruitment, ensure a diverse talent pipeline, and align hiring practices with 2025’s demands.

If your recruitment efforts fell short this year, partnering with us could make all the difference in 2025.

Ready to redefine your hiring strategies for 2025? Partner with Career Edge to access top talent and save time on recruitment. Let’s build a better workforce together. Contact us today to get started.

Oct 25
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Microaggression at Work: The Silent Workplace Culture Killer

By Diversity and Inclusion

In today’s workplace, it’s important to foster an inclusive and respectful environment as defined in Canada’s employment framework. Yet, many people may unknowingly engage in behaviors that undermine this goal. Small and subtle comments or gestures that convey dismissive or derogatory messages often slip under the radar. However, they can have a profound impact on employee morale, trust, and overall company culture. Psychologists often compare them to death by a thousand cuts!

If you’ve ever found yourself wondering whether a seemingly innocent remark might have unintentionally hurt someone, you’re not alone. Recognizing and addressing these issues can lead to a more supportive workplace for everyone!

This article aims to unpack the concept of microaggression at work, explore the different forms, and offer practical insights for employers and employees alike.

What is Microaggression?

Picture this: during a team meeting, someone says to a colleague, “You speak such good English.” It sounds like a compliment, right? But to your colleague, it could imply that because of their background, they’re not expected to speak well. This is an example of a microaggression.

Microaggressions are everyday comments or actions that, intentionally or not, target someone based on race, gender, or other identity traits, often based on common myths or misconceptions. While they may seem small, their impact is significant. Often, these behaviors stem from unconscious bias—preconceived notions we act on without realizing. Microaggression at work can chip away at the mental health and morale of employees, which can impact the workplace culture.

Different Types of Microaggressions

Microaggressions at work can take many forms.

Microinsult: subtle jabs, like saying, “You’re so articulate for someone your age.” This is a comment that appears harmless but carries an underlying stereotype.

Microassaults: which are more overt, such as mocking someone’s accent or name.

Microinvalidations: happen when someone’s experiences are dismissed, like saying, “This wasn’t intentional,” or “I don’t see color,” which ignores a person’s racial identity and experiences.

Each of these forms reinforces the feeling of being an outsider, eroding trust and morale over time.

How Can Microaggressions Manifest at Work?

You might wonder how these subtle actions show up in a professional environment. They are often incorporated into everyday interactions. Examples of how microgeneration at work can manifest include:

Bias in hiring: It could be a hiring decision where a candidate with a “foreign” name gets passed over, or it could be the exclusion of a team member from important meetings because they’re seen as “different.”
Questioning qualifications: Asking a candidate from a marginalized background, “How did you qualify for this role?” implies that their presence in a professional setting is unexpected or unearned, suggesting doubt about their qualifications.
Exclusion: Not inviting people of color to meetings.
Undermining authority: when a woman in a leadership role has her decisions constantly questioned or has men on the team explain concepts or terms that she already understands, undermining her expertise and conveying a lack of respect for her skills.

These small slights add up, creating an atmosphere where certain employees feel undervalued or marginalized. Over time, signs of microaggressions become evident through low employee morale, decreased productivity, and high turnover rates, especially among underrepresented groups.

What If You Have Committed a Microaggression

We’re all human, and we all make unintentional mistakes. If someone called you for unintentionally making a comment or did something that qualifies as a microaggression, what should you do now?

1- Pause: take a deep breath to recognize what happened!

2- Do not center yourself: it’s uncomfortable to be in this situation, but it’s about the person impacted, not you. Put yourself in this person’s shoes, having to hear these kinds of comments and endure those actions a lot. It can be damaging to their mental health.

3- Apologize: resist the urge to explain or defend your intentions—focus instead on acknowledging the hurt caused.

4- Listen: give the person affected the space to share how they felt and really hear their perspective.

5- Reflect: take some time to think and ask yourself, “Why did I say or do that?” Understanding your own unconscious biases is crucial for personal growth and preventing future incidents. What’s most important is to know that no one is immune to biases, but recognizing them can help you make better choices in the future.

6- Follow up: offer the opportunity to continue the conversation in the future and share your personal growth plan, such as reading more about this topic and discussing it with your co-worker.

The Risks of Microaggression at Work

If microaggressions go unchecked, they can have serious consequences. Although they may not always constitute harassment or discrimination as defined under the Ontario Human Rights Code, they can contribute to a hostile or unwelcoming work environment, particularly when they are part of a pattern of behavior.

Beyond damaging relationships, microaggressions lower morale and can lead to poor mental health in the workplace. Employees who experience frequent microaggressions are more likely to feel isolated and eventually leave the company. This isn’t just a loss of talent—it’s also a reputation and brand issue, which can lead to repelling potential talent from your company.

In a time where workplace culture is increasingly important to job seekers, organizations known for tolerating discriminatory behavior will struggle to attract top talent. Businesses that foster an inclusive environment, on the other hand, are far more likely to thrive.

Responding to Microaggressions

If you witness a microaggression at work or are on the receiving end, it’s essential to evaluate the relationship and the situation. Sometimes, it is safer not to speak up. If you decide to address it, you don’t have to be confrontational to address the issue.

A simple “I don’t think that came across how you meant it” can open a conversation.

For those who are impacted, expressing how the action made you feel can help raise awareness. Saying, “That comment felt dismissive of my experience,” puts the focus on how the behavior affected you rather than blaming the other person.

While conversations like these can be uncomfortable, they are necessary to break down the ingrained behaviors that fuel microaggressions.

What Can Employers Do About Microaggressions?

For employers and leaders, responding to microaggressions is about more than just resolving conflicts. It’s about creating an environment where employees feel safe and supported. The first step is to listen carefully to any reports of microaggressions. Dismissing complaints or minimizing them is a surefire way to lose trust.

Once an issue is raised, take it seriously. Offer support to the employee affected and address the behavior of the person responsible. Implement regular unconscious bias training for all employees, provide clear, actionable steps for addressing microaggression at work, and follow the federal requirements to prevent harassment in the workplace.

This is not a one-time fix. It’s an ongoing effort to build a respectful and inclusive workplace culture.

What Not to Say in Response to Microaggressions

It’s important to know what to avoid when handling microaggressions.

✗ Never dismiss the complaint by saying, “You’re overreacting,” or, “That wasn’t my intention.” Intent doesn’t erase the impact.

✗ Never blame the person affected or turn the issue into a “misunderstanding”; this will only exacerbate the damage.

Instead, focus on acknowledging the hurt and taking steps to prevent it from happening again.

Reverse Microaggression

While microaggression at work diminishes employees’ identities, micro-affirmations uplift and validate them; these are small, subtle gestures or comments that recognize and validate a person’s identity, contributions, or experiences. They are positive affirmations that foster inclusion and support.

For instance, during a meeting, acknowledging a colleague’s unique perspective by saying, “That’s a great point; I hadn’t considered that before,” can make them feel valued. Similarly, acknowledging someone’s achievements by saying, “Your hard work on this project made a significant impact.” and actively including diverse voices in discussions or decision-making processes.

Microaffirmations play a crucial role in building a positive workplace culture. They encourage employees to express themselves freely and promote inclusivity. By intentionally practicing microaffirmations, leaders can create an environment where everyone feels appreciated and empowered.

Addressing microaggressions requires continuous reflection and action. Employers must look closely at how they contribute to a biased culture and what they can do to change it. The question is, how will you make sure that microaggressions have no place in your workplace?

Frequently Asked Questions (FAQs)

Q: What is a microaggression?
– A microaggression is a subtle, often unintentional comment or action that conveys a derogatory or dismissive message toward a marginalized group.

Q: How does microaggression differ from overt discrimination?
– Unlike overt discrimination, which is direct and obvious, microaggressions are often subtle and may go unnoticed by the perpetrator, making them harder to identify and address.

Q: Can microaggressions be unintentional?
– Yes, many microaggressions are unintentional and stem from unconscious biases. However, the impact on the recipient can still be significant.

Q: How can I recognize if I am committing microaggressions?
– Self-reflection and feedback from colleagues are crucial. If someone indicates that a comment or action was hurtful, take it seriously and examine your intentions and biases.

Q: What should I do if I experience microaggression?
– You can address it by expressing how the comment made you feel, either directly to the person or by seeking support from HR or a trusted colleague.

Oct 02
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AI-driven recruitment

8 Pitfalls of AI-Driven Recruitment and How to Overcome Them

By Recruitment

When AI became widely available to the public, it had many conflicting reactions from employers and employees. However, one thing we all agree on is that Artificial Intelligence (AI) has rapidly transformed many industries, including recruitment. It’s efficient, scalable, and capable of sorting through countless resumes in minutes. However, for job seekers, especially those from marginalized communities, the rise of AI-driven recruitment brings concerns that go beyond efficiency. From emotional distress caused by ghosting to the risk of unconscious bias, AI’s impact on recruitment is fraught with challenges that often go unnoticed.

This article explores the hidden dangers of AI in recruitment and why human-centered approaches are more critical than ever.

What Are Some of the Impacts of AI-Driven Recruitment?

While the benefits of AI recruitment are countless, saving time and working efficiently can be the top appeal for many people in the recruitment industry. However, some side effects can hinder your business and organization’s full potential.

1- AI Recruitment Tools Lack of Human Connection

One of the most glaring issues with AI-driven recruitment is its inability to establish genuine human connections. Hiring is a deeply personal process that involves understanding more than just qualifications and experience. It’s about reading between the lines—body language, communication style, and emotional intelligence, all of which are completely overlooked by AI.

For example, an AI-powered algorithm might reject a highly qualified candidate based on subtle data points that have nothing to do with their actual potential. This lack of human touch can make employers miss out on top talent.

According to a Resume Builder survey, 4 out of 10 companies would allow AI to communicate with candidates, and 1 out of 7 would let the technology make the final hiring decision.

2- AI Tools Overly Rely on Data

AI systems are designed to make decisions based on the data provided. But what if the data is incomplete or inaccurate? Over-reliance on AI narrows the talent pool, with only candidates who meet strict algorithmic criteria making it through the filters.

Imagine losing out on a candidate who might not have a perfect match on paper but could bring unparalleled creativity, problem-solving skills, or leadership. AI simply isn’t equipped to recognize the intangibles that make a person truly qualified for a role.

3- AI Recruitment Tools are Biased

While AI is often marketed as a tool that can eliminate human bias in hiring, ironically, it can sometimes reinforce or even magnify biases.

AI systems are trained on historical data. If an algorithm is fed biased data, it will continue to make biased decisions. This is a particularly concerning issue in recruitment, where diversity, equity, and inclusion are critical.

In one corporate fail example, Amazon decided to abandon an AI recruitment tool because it discriminated against female candidates based on historical data that favored male-dominated resumes.

AI doesn’t have the cultural sensitivity or awareness to make nuanced hiring decisions. It may, for example, reject high-quality candidates for having a non-Western name or attending a lesser-known university, which often affects people from marginalized backgrounds. Without human oversight, these biases can go unchecked, further entrenching inequality in the hiring process.

4- AI Tools Security Concerns

AI tools come with security risks, from ChatGPT data breaches to tools that collect, store, or process candidate data that fall under compliance regulations. Non-compliance can significantly damage an employer’s reputation, impacting candidate trust.

Organizations must also implement robust cybersecurity measures, as reliance on AI for sensitive information increases the risk of data breaches and misuse. While AI can enhance efficiency, its integration into recruitment must be approached cautiously to mitigate these security concerns.

5- AI-Driven Hiring Negatively Impact Job Seekers

While AI can enhance the candidate experience by providing swift responses and making the hiring process more efficient, it can also take a toll on their mental health and the company’s reputation if something goes wrong.

Ghosting Candidates: One of the main challenges in AI-driven recruitment is “ghosting,” where candidates receive no communication from employers after completing multiple stages of the hiring process. This lack of communication leads to frustration, anxiety, and feelings of low self-worth among job seekers. Without feedback, candidates are unable to improve their future applications.

Impersonal Hiring Process: AI can strip the recruitment process of empathy. Job seekers today crave a connection—they want to feel seen and valued during the hiring process. When an automated system is their first (and often only) interaction, it leads to dissatisfaction, resentment, and negative perceptions of the company.

Dehumanizing Job Seekers: AI-driven recruitment tools use algorithms to sift through resumes for specific keywords, but this approach can make job seekers feel reduced to numbers. This can be especially harmful for non-traditional candidates. Feeling dehumanized can also impact employer branding, as candidates may lose trust in the company over time.

6- AI Recruitment Can Hurt Employer Branding

Your brand isn’t just the products or services you offer but also the experience candidates have when engaging with your hiring process. Ghosting and bias caused by AI don’t just harm candidates—they can also damage the employer’s reputation. Candidates who feel ghosted or dehumanized by an impersonal process will likely share their experiences online, which can harm the company’s brand. In today’s competitive job market, a negative reputation can make it difficult to attract top talent.

7- AI Tools Pose Legal and Ethical Risks

Many employers are eager to implement AI tools, but few understand the legal ramifications of using biased algorithms. AI systems, left unchecked, can easily violate these laws. Failing to address biases in recruitment processes could expose organizations to legal challenges.

The tutoring company iTutor Group used AI-powered recruiting software that automatically rejected female applicants ages 55 and older and male applicants ages 60 and older, leading to more than 200 qualified applicants being automatically rejected by the software. It ended up costing them $365,000 to settle a lawsuit brought by the US Equal Employment Opportunity Commission (EEOC).

8- AI-Driven Hiring Requires Adaptation and Training Budget

Many employers think AI might be a good way to save money in the short term; as technology evolves, employers may need to continuously train HR staff to use AI tools effectively and manage their implications. This can create ongoing costs and resource allocation challenges.

How To Overcome AI Recruitment Shortcomings?

To mitigate these risks and build trust with candidates, companies must adopt a more transparent and human-centered approach to AI in recruitment. This includes:

1- Human Centric Hiring Practices

While AI can handle many aspects of recruitment, it’s important to keep human judgment as part of the process. This hybrid model uses AI to support recruiters rather than replace them, preserving the personal touch that candidates value. When employees feel valued from the very beginning, it can lead to higher job satisfaction and lower turnover rates.

At Career Edge, we commit to genuine, people-centered recruitment. We believe that hiring should be about relationships, not just data points. Unlike AI-driven systems, we take the time to get to know both candidates and employers, ensuring that each match is a true fit. This focus on human connection leads to better hires, increased retention, and a more positive experience for all involved.

2- Genuine Relationships Result in Perfect Matches

This people-first approach ensures that employers get more than just qualified hires—they get individuals who fit seamlessly into the company culture, are passionate about their work, and have the potential for long-term success.

At Career Edge, we believe in a simple yet powerful idea: people hire people. Everything we do is built on fostering genuine relationships between employers and candidates. We don’t use algorithms or automated systems to assess someone’s worth. Instead, we take the time to understand each candidate’s unique strengths, skills, and potential.

3- Communication and Transparency

Candidates should be given clear information about how AI is used in the recruitment process and, where possible, feedback on why they were not selected. This openness can help demystify the AI process and build trust.

One of the key ways we stand out is by maintaining open communication with candidates throughout the hiring process. We provide feedback at every stage, ensuring that candidates know where they stand and what they can do to improve. This approach not only builds trust but also improves the candidate’s experience and leaves them feeling valued—even if they aren’t selected for the role.

4- Regular Audits of AI Systems

Regularly reviewing and updating AI algorithms is mandatory to prevent bias and maintain fairness in the hiring process. This proactive approach helps identify and address any biases unintentionally built into the system. Companies should ensure that the data used to train AI systems is diverse and representative. This helps prevent the AI from developing biased decision-making patterns and ensures a fairer recruitment process.

Diversity is more than a checkbox for us. Unlike AI systems that may unintentionally perpetuate bias, we actively seek out diverse talent from underrepresented groups. We understand that diversity drives innovation, creativity, and better business outcomes, which is why our recruitment process is built on inclusivity, not exclusion.

Don’t Let AI Take the Lead—The Future of Recruitment Needs Human Connections…

While AI may offer convenience, it lacks the human touch that is so crucial in recruitment. The risks of biased algorithms, a loss of genuine connection, and impersonal hiring processes should make any employer think twice before over-relying on technology.

Partnering with an organization like ours ensures that your recruitment strategy is based on real relationships, empathy, and diversity—everything AI can’t replicate. Don’t let technology decide the future of your workforce; let us help you find people who are not only qualified but who will thrive in your company. Are you ready? Contact us today!

Frequently Asked Questions (FAQs)

Q. What are the drawbacks of AI recruitment?
AI driven recruitment tools can introduce biases, overlook qualified candidates due to rigid algorithms, and eliminate the human touch essential in assessing soft skills and cultural fit. There are also concerns about data privacy and compliance with regulations like GDPR and CCPA.

Q. What are the problems with the AI hiring process?
AI hiring processes can lead to ghosting candidates, overlook diversity, and favor candidates who optimize their resumes for AI, leaving out potentially great hires. Additionally, they lack the personal interaction crucial for understanding a candidate’s potential beyond their qualifications.

Q. How do you beat AI in recruitment?
To increase your chances, optimize your resume with relevant keywords, keep formatting simple, and be mindful of what AI systems prioritize, such as clearly defined job titles and qualifications. However, showcasing your soft skills and experiences in interviews remains key.

Q. What are the ethical issues with AI in recruitment?
AI in recruitment raises concerns over potential bias, lack of transparency in how decisions are made, and data privacy risks. Ethical issues also arise from its potential to favor certain demographics and exclude candidates with unconventional career paths.

Q. What security risks are involved with AI-driven recruitment?
AI systems that handle personal data can be vulnerable to breaches, raising concerns about data privacy and regulatory compliance. Employers need to ensure robust cybersecurity measures to protect candidate information.

Q. Can AI replace human recruiters completely?
While AI can streamline many recruitment tasks, it lacks the ability to assess soft skills, empathy, and cultural fit. The human element remains essential in making well-rounded hiring decisions.

Q. How can AI improve recruitment?
AI can speed up resume screening, reduce human bias in initial stages, and automate repetitive tasks, allowing recruiters to focus more on relationship-building and final selection processes.

Sep 04
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8 Impacts of Skilled Labour Shortage in Canada

By Employer

In today’s fast-paced and competitive environment, businesses constantly strive to stay ahead. But what happens when they have difficulty finding the right talent for important roles? The impact of skilled labour shortage has far-reaching effects on the organization, influencing productivity and employee morale.

This article will explore the significant challenges a lack of skilled labour poses and its impact on businesses.

What are some of the reasons for the labour shortage?

The current labour shortage is driven by several factors, including an aging workforce, changing demographics, and the growing demand for skilled professionals in emerging fields. Additionally, some employers contribute to the problem by maintaining outdated hiring practices, being inflexible, or harbouring biases that deter high-quality and qualified candidates.

A lack of diversity and inclusivity in the workplace can further exacerbate the shortage, as talented individuals from underrepresented groups are overlooked. Addressing these issues requires better recruitment strategies and a shift towards more equitable and supportive work environments.

One of the biggest burdens companies face due to a skilled labour shortage is hiring candidates who may not be the perfect fit for the role. According to a report by The Public Service Commission of Canada (PSC), many employers make hiring decisions based on their unconscious bias, which leads to overlooking a better fit and missing growth opportunities.

While those unconscious decisions might cause labour shortage issues, they have many implications that could lead.

In a survey conducted by the Canadian Manufacturers & Exporters (CME), manufacturers highlighted three major impacts of skills shortages such as hiring unqualified or wrong candidates, missed opportunities, and low-quality outcomes. These challenges are just the start, so let’s explore how the shortage of skilled labour can affect various aspects of a business and the economy as a whole.

1- Driving up Costs

As companies scramble to attract and retain talent, they often have to increase wages, benefits, and training costs. Businesses are engaged in fierce competition for skilled workers. However, this competition has a downside:

  • Frequent Turnover: Skilled workers are in high demand and often move from one employer to another for better pay and benefits. This turnover forces companies to repeatedly invest in training new hires, which can be costly and time-consuming.
  • Offering Attractive Wages and Benefits: With so many job openings, companies have little choice but to offer higher wages to retain their employees and prevent them from jumping ship to competitors.
  • Unfair Advantage for Small Businesses: Small businesses often struggle more than large corporations during labour shortages, as they may lack the resources to offer competitive wages or comprehensive benefits. While large companies can invest in automation or relocate operations, small businesses face unique challenges, such as higher recruitment costs and difficulty retaining talent. This disparity can widen the gap between small and large enterprises, making it harder for smaller players to survive in a competitive market.

2- Increasing Safety Risks

The shortage of skilled labour can also pose safety concerns, especially in industries where specialized knowledge and training are essential. Here’s how a lack of qualified workers can lead to high safety risks:

    • Inadequate Training: Well-trained and experienced workers typically gain an understanding of safety protocols. However, when companies are forced to hire less skilled workers, these individuals may not be fully aware of the risks entailed by those tasks, leading to accidents and injuries.
    • Increased Workload: Existing workers and supervisors may end up with additional responsibilities or work longer hours to compensate for lacking the required skills. This can lead to fatigue, which also increases the likelihood of accidents.
    • Delayed Maintenance: A shortage of skilled repair workers can lead to postponed maintenance of heavy equipment, increasing the risk of wasted time, breakdowns, and workplace accidents.

3- Hindering Productivity

Productivity often takes a hit if your company struggles with a skilled labour shortage. This can manifest in several ways:

  • Missed Deadlines: When you have non-qualified people or if your organization is understaffed, projects may be delayed, or deadlines may be missed altogether, as skilled workers aren’t available to do the job efficiently.
  • Lower Quality of Work: Inexperienced workers may produce poor work, leading to costly mistakes and rework.
  • Lost Revenue: Delays and errors can result in missed revenue opportunities, further straining the company’s bottom line and profit projections.

4- Missing Opportunities

A skills shortage not only affects day-to-day operations but also hinders companies from pursuing growth opportunities. Some key areas where businesses may fall short include:

  • Delayed Projects: Labour shortage can result in missed opportunities, impacting customer satisfaction and the company’s chance to thrive.
  • Reduced Innovation: Skilled workers are often creative and bring new perspectives and strategies, which are essential for staying competitive and relevant.
  • Impeding Growth: Whether you want to expand operations or offer new products and services, it can become challenging without a skilled workforce. Which can limit the company’s ability to tap into new markets.  

5- Impeding Canadian Economic Growth

If you think the effects of a skilled labour shortage only affect individual businesses, think again! It impacts consumers and local communities; the impact can get as big as economic growth.

Organizations lacking the necessary skills and knowledge may struggle to keep up with competitors. This can lead to:

  • Lower Productivity: A less skilled workforce can result in lower output, reducing a company’s ability to compete.
  • Slower Adaptation: Organizations may struggle to adapt to new trends or utilize new opportunities without skilled workers.
  • Economic Discrepancies: Regions that rely heavily on skilled labour may experience slower economic growth than areas with a more diverse job market.

As businesses struggle to find skilled workers, production slows, leading to higher prices and delayed services, which may result in job losses and high turnover.

💡 Did you know that our Career Edge program contributed to generating 1$ billion for the Canadian economy by helping newcomers find job opportunities in Canada?

6- Worsening Unemployment

While a skilled labour shortage can lead to higher wages and increased competition for jobs, it can also contribute to higher unemployment in specific industries or regions. Here’s how:

  • Job Losses: Industries that require highly skilled workers may suffer job losses if companies can’t find the talent they need to operate efficiently. These gaps might force companies to downsize or shut down entirely if they cannot recruit workers with the required skills and certifications.
  • Reduced Job Creation: Companies may be hesitant to create new jobs if they need help finding the skilled workers needed to fill them.
  • Underemployment: Workers may end up in jobs that don’t fully utilize their skills and qualifications, leading to frustration and decreased job satisfaction. Higher unemployment rates may result from workers needing help finding employment that matches their experience and skill level. And that’s something we already see with many of our Career Edge Candidates.

7- Decreasing Employee Morale

When companies struggle to fill skilled positions, the burden often falls on existing employees, which is the human cost of this issue. This can lead to:

  • Burnout: An increased workload is often the result of a labour shortage. The overworked suffer from increased stress and burnout. According to a Robert Half report, 42% of Canadian Professionals reported experiencing burnout.
  • Limited Career Advancement: In fields where skilled workers are in high demand, companies may struggle to provide opportunities for career growth. This can leave employees feeling stagnant and uncertain about their future.
  • Frustration and Discontent: A survey by Monster.com found that 73% of workers feel their employer doesn’t understand the frustration of working in an understaffed company.
  • Quiet Quitting: This discontent can lead to lower employee morale and higher turnover rates. So, employees might do the absolute minimum until they find an opportunity well suited to their skills and values.

8- Worsening the Mental Health Crisis

The pressure of working in an understaffed environment can take a toll on employees’ mental health. Long hours, increased stress, and lack of support can contribute to burnout, anxiety, and depression. According to WHO (The World Health Organization), depression and anxiety cost the global economy around $1 trillion annually.

Many people who are struggling with underemployment or unemployment are struggling with mental health issues. A Monster poll on Mental Health in the Workplace reveals that 75% of workers say their mental health at work is negative. The study uncovered the following five factors contributing to their negative mental health:

  • 62% say that a toxic work culture is to blame.
  • 53% blame a bad manager.
  • 48% blame the fear of being laid off.
  • 43% say it’s the lack of growth opportunities.
  • 43% blame an increased workload.

What can you do as an individual employer about Labor Shortage?

The skilled labour shortage presents a significant challenge for businesses across industries. However, by understanding the potential impacts and taking proactive steps to address these challenges, companies can better navigate this issue and continue to thrive in a competitive market.

One idea is for employers to start tapping into new pools of candidates and keep an open mind about new potential. If you’re ready to take on this challenge and do your part in the Labour Shortage problem, connect with us!

Aug 08
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Labour shortage in canada

Labour Shortage in Canada: Reasons, Impact, and Solutions

By Employer

More and more every year, the labour market faces the significant challenge of a widespread labour shortage in Canada.

Employers nationwide need help finding the right talent to fill their open positions, threatening productivity and growth. Addressing this issue is crucial for sustaining economic stability and ensuring business continuity.

With the changes in the economy, work environment, and dynamics, along with technological influence, we might need more workers to fill the gaps of those retiring.

What are some of the reasons for the labour shortage in Canada, and how can you, as an employer, avoid (or overcome) it? Read on for some great insights!

Understanding the Labour Shortage

We all saw it coming. Boomers, who make up 24.9% of the workforce, are retiring in the next five years. However, there is an imbalance in the Canadian workplace. The number of younger generations entering the job market doesn’t equal the number of Boomers retiring. In November 2023, more than 4.4 million people aged 55 and older had a job Vs. about 2.7 million Canadians aged 15 to 24 who were employed.

According to a survey by Peninsula Employment Services Ltd., which polled 79,000 SMEs across Australia, Canada, Ireland, New Zealand, and the U.K., more than 40% of SME employers say labour shortages and employee retention are among their top business concerns for 2024.

What Are Some of The Reasons for The Labour Shortage in Canada?

A labour shortage occurs when there are more job openings than qualified candidates to fill them. Industries like technology, healthcare, and trade have been severely affected, experiencing critical shortages that impede their operations.

In Canada, this issue has been exacerbated by an aging population, evolving job market demands, and the aftermath of COVID-19. According to Statistics Canada, the job vacancy rate reached a record high of 5.7% in the first quarter of 2023. The number of vacant jobs decreased to 815,295 in March 2023, the lowest level seen since July 2021.

The overall unemployment rate increased to 6.4% in June 2024, with 1.4 million unemployed people, continuing its upward trend since April 2023.

Okay, so other than the aging population, we seem to have job vacancies and a number of unemployed people available. Where is the problem?  

1. Rising Inflation

According to Statistics Canada, 56.0% of businesses in Canada expected rising inflation to be an obstacle over the next months. Businesses with 5 to 19 employees were most likely to expect rising inflation to be an obstacle, while larger businesses with 100+ employees were least likely to expect obstacles related to rising inflation. In addition, factors like geopolitical trends also have a huge impact on the recruitment process.

Potential solution: If your business is struggling due to inflation, be sure to implement a recruitment strategy that will help you overcome this period while retaining your core employees to lower costs.

2. Shifting Expectations

The mismatch of what employers and candidates expect could create a challenge in finding the right talent.

Employers Expect Longer Working Hours: According to Statistics Canada, 83.3% of businesses anticipate that management and/or existing staff will work increased hours to compensate for labour shortages, which affects the retention of skilled labour. SMEs (with 20 to 99 employees) and larger businesses (with 100+ employees) were more likely than smaller businesses with 5 to 19 employees to anticipate increased working hours for their existing staff as a result of labour challenges.

Possible solution: Expecting workers to work for longer hours can hurt your business. It leads to burnout and sickness, and it’s not sustainable. Since the demand for convenient, satisfying work is trending, to retain your current employees, be sure to have reasonable expectations from them. In some cases, hiring a few new people might be the best thing to save your business.

Employers Expect Replacing Employees with AI: A report from beautiful.ai, which interviewed 3,000 managers, found that 66% would gladly replace employees with AI tools if the technology produced comparable work. 69% said replacing employees with AI technology would be financially beneficial, and 68% cited lower payroll costs as a reason.

Potential solution: Embracing technology can be an attractive solution for performing repetitive tasks to cut costs, it also allows human workers to focus on more complex responsibilities. This needs careful consideration regarding its impact on the workforce.

Talent Expect Flexibility: According to Randstad’s 2024 Workmonitor report, candidates now rank work-life balance as more important than salaries when making career decisions. Yet there is a potential mismatch between what they want and employers’ flexible working arrangements.

Potential solution: Offering flexible work arrangements, attractive packages, and benefits can be attractive to high-quality candidates.

3. Outdated Recruitment Practices

As an employer, staying up-to-date with the hiring trends is crucial to attracting top-quality talent, let alone overcoming the challenges of labour shortage with minimal cost. What used to work last year won’t necessarily be effective today.

Potential solution: Here are some of the outdated hiring practices to avoid.

  • Relying only on referrals and not looking for candidates outside your comfort zone.
  • Looking for the perfect candidate based on their resume
  • Attracting Candidates with Salary Alone
  • Not offering benefits, flexibility or remote work
  • Posting Vague or Ambiguous Job Descriptions
  • Wasting time in Lengthy and Time-Consuming Application Processes
  • Using outdated technology and services
  • The hiring process is too long. Learn how to speed up your hiring process.

4. Difficulty in Finding Qualified Candidates

Many employers are struggling to get applicants with the necessary skills and experience in the scientific, technological, managerial and economic fields. According to ManpowerGroup, 75% of employers struggle to fill job vacancies. Additionally, 23% said the available talent pool doesn’t match their needs.

At the same time, a significant 34% of job seekers identified companies that falsely claim to be hiring but are solely collecting applications and resumes as a major barrier in their job search, which is alarming, especially with the increasing number of job scams.

Potential solution: Some successful employers would develop talents to be the future workers you need. Investing in employee training can help bridge skill gaps and prepare the workforce for evolving job roles, especially when it comes to newer technology. Upskilling your staff has a high ROI and can benefit your company in the short and long run. By prioritizing their employees’ professional growth, businesses mitigate the effects of labour shortages, cultivate a skilled and motivated workforce, and fill gaps in the workplace.

Some specialists also suggest easing up the interview process and not to – too many unrequired qualifications. Some things can be learned on the job. According to the survey, 18% of employers mentioned that reducing qualification requirements helped them overcome the labour shortage.

5. Competitive Employer Market

Many companies compete fiercely for the limited pool of available talent, often driving up wages and benefits. According to the Peninsula survey, 25% of employers found increased job market competition, and 21% said uncompetitive benefits were a challenge.

Potential solution: Employ talents from commonly underemployed groups such as new Canadians, Indigenous people, retired workers or veterans, and people with different abilities.

Labour Shortage Can Hurt Your Business Beyond Repair

A skilled labour shortage is a significant challenge that can negatively impact industries on a global scale. The consequences can be far-reaching and detrimental to businesses of all sizes, and understanding these repercussions is essential for organizations and industry leaders. With a greater appreciation for the negative impacts, companies can proactively address a skills shortage before it becomes a more significant issue.

Unfilled positions can decrease productivity, increase operational costs, and cause revenue loss.

Addressing the labour shortage in Canada is essential to maintaining economic stability and business growth. Employers can overcome this challenge by adopting a multifaceted approach that includes upskilling, offering flexible work arrangements, attracting diverse talent, and partnering with organizations like Career Edge.

How Can Career Edge Help You Overcome Labour Shortage?

Partnering with Career Edge Organization can be a lifeline for many businesses struggling with labour shortages. We are dedicated to bridging the gap between employers and a diverse talent pool. We connect employers with a diverse talent pool, including recent graduates, internationally qualified professionals, and people with disabilities.

We have a track record of partnering with top Canadian employers, such as RBC, Bell, and Loblaw, who have successfully utilized Career Edge’s services to meet their hiring needs.

Benefits of Working with Career Edge

Employers benefit from having access to a diverse and motivated talent pool, low-risk hiring options, and support throughout the hiring process.

Our paid internship program matches employers with diverse, highly educated, and skilled professionals and provides businesses with internship programs tailored to employer needs. It provides a low-risk solution to the labour shortage and gives employers the chance to evaluate potential long-term hires.

How Does it Work?

  • We set up some calls to understand your labour needs. Then, we will work together to develop solutions and ways to overcome any challenges.
  • You provide us with the vacancies and/or skills you want to fill.
  • We conduct a phone screening to ensure the candidates fit and then provide you with a shortlist of highly skilled, job-ready candidates who are willing to have a regular interview process with you so you can assess their technical skills.
  • We do all the admin work for you, and the candidates will be on payroll for the duration of the internship.
  • Once the internship ends, you can convert the interns you like to full-time without any finder’s fees!

How to Get Started?

We at Career Edge offer innovative solutions and access to a diverse talent pool, providing a new perspective and a reliable way to bridge the labour gap. If you want to partner up with Career Edge to address your labour challenges, here is how to get in touch with us. Reach out via email or phone to start your collaboration with Career Edge.

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