Ninety-two percent of candidates in today's market passive, says expert
A recent Robert Half survey found that nearly half of employers (46 per cent) plan to hire new permanent employees during the first half of the year. For employers, this means it will soon be time to revisit and revise current benefits coverages to stay competitive.
Sandra Lavoy, regional director at Robert Half, notes that while optimism is growing, hiring trends are shifting, and employers must adapt to stay competitive as 49 per cent also plan to fill vacated positions. Additionally, 55 per cent are increasing the number of contract managers to help with projects in 2025, according to Robert Half’s recent State of Canadian Hiring Survey.
"What we found is that there was a slight decline in contract workers in Q4," Lavoy explains. "But one of the challenges is the skills gap in the market, driven by factors like retirements, baby boomers leaving the workforce, and people seeking new jobs. Almost 50 per cent of people today are actively looking for new opportunities."
Still, Lavoy cautions employers that the hiring process is no longer what it used to be. “The interview is not one-sided like it was five years ago. It’s now a two-sided conversation. Candidates are interviewing companies as much as companies are interviewing candidates,” she says. “It’s important that you show as a company, your best foot forward. Not only the job description, but your culture, your benefits and your perks.”
Attracting and retaining that talent is no easy feat in today's competitive job market. After all, Lavoy explains the primary reason people are looking for new jobs is due to higher salaries to battle the cost of living and inflation. That’s why Lavoy emphasizes employers should be offering robust benefits packages to stand out.
“If you cannot give people higher salaries, perks and benefits are key,” says Lavoy. She points to perks and benefits that could include generous vacation time, ample sick and personal days, strong retirement contributions, and flexible work arrangements as ways employers are sweetening the deal.
She also highlights the growing emphasis on mental health and well-being support, emphasizing that benefits should be offered “on a regular basis.”
“It is important for us to offer wellbeing benefits to keep our employees healthy and to address their wellbeing. It is okay not to be okay, but we need to be able to help employees. It could be wellbeing days, it could be a gym membership, higher [coverage] for massages or physiotherapy or EAP,” notes Lavoy. “These are really important because that affects an employee to come in and have their best foot forward every day.”
While generally not considered a perk in many benefits plans, if at all, Lavoy highlights that employees are even looking to employers who give back to communities or even the country. “That is one of the number one questions candidates will ask today: ‘How are you giving back? What are your initiatives?’
For Robert Half, that means giving back to mental health, to food banks, and to several local charities. “Employees want to see that, and they need that,” Lavoy says.
Lavoy points to several key factors behind the hiring plans among employers for 2025. Many organizations are attempting to restart projects delayed during the pandemic and economic slowdowns. “A lot of the ERP systems are becoming stale and not supported. We’re also seeing key initiatives around AI and technology that need to be rolled out,” she said. This surge in hiring is also fuelled by optimism that interest rate reductions and easing economic pressures will create a more favourable business environment.
"We're seeing a real need for skills that employers can't find right now," says Lavoy. Skills and people like data analysts, data scientists, and data engineers are in extremely high demand as companies look to upgrade their systems and roll out new tech initiatives. Compounding the skills shortage is the record number of leave of absences Lavoy says employers are experiencing, whether for personal reasons, travel, or temporary absences.
"Companies are really struggling to backfill those roles and keep projects and initiatives on track," she explains. "A lot of the projects and initiatives that were put on hold during the pandemic and economic challenges need to be completed.”
Ultimately, Lavoy believes this year’s hiring landscape will require a delicate balance of competitive compensation, attractive benefits, and a strong company culture. Those employers who can check all those boxes will be best positioned to land top talent in the year ahead as Lavoy asserts employees are always actively looking.
“Ninety two percent of candidates in today's market are passive, always looking,” she says. “Communication and regular check-ins with employees are key to a company's success.”
