Reskilling workers proves popular amid hiring troubles
Nearly half of Canadian employers are planning not to hire new staff this year, according to a recent report from Express Employment Professionals.
Overall, 41% are planning no growth in their employee count this year, and 8% plan to reduce their workforce.
Financial constraints appear to be hampering companies’ hiring plans. In fact, 73% of companies planning a workforce reduction point to the need to reduce costs as the main driver.
Meanwhile, 28% of companies that are either not planning to hire or reduce their employee count say they do not have enough room in the budget this year and cannot afford to hire.
“This is one of the most important factors I discuss with clients - rising costs are impacting payroll, whether it’s wages, increased mandates on statutory holidays and sick time, benefits, or the increased costs of training, development, and onboarding,” said Brent Pollington, Express franchise owner in Vancouver.
“These increased costs have made companies scrutinize more during the interview process, ensuring that if they’re going to make the investment, it’s with the right person.”
Job openings soared by 20% globally in July amid decreasing turnover and hiring rates, but employers are being "cautious" amid economic uncertainties.
However, employers are turning their attention more to reskilling workers, according to Express’ survey of over 500 Canadian hiring decision-makers, conducted May 16 – June 3, 2024.
After all, reskilling current employees “may be the key to balancing the desire to strengthen workforces and fill skills gaps, while keeping costs in line,” says Express.
More than half (52%) of survey respondents report they plan to re-skill employees this year (i.e., train a current employee for a new position or teach them new skills for their current role). That number is up from 43% in 2021.
Here’s how employers plan to reskill their workers.
Source: Express Employment Professionals
“Businesses here are hiring every day, there’s definitely demand in the market,” says Pollington. “However, the market is full of applicants who are applying to jobs without the necessary skills or qualifications. Companies are very willing to invest in training and development, especially when it comes to re-skilling for growth within a particular role, if they can find the right candidate.”
Pollington says that job seekers can also take initiative when it comes to upgrading their skills.
“Investing in their own training can be a powerful way to demonstrate their value and potential to a company,” says Pollington. “This shows the organization the employee is serious about their development and is likely to provide a return on that investment. The best training I can suggest for an employee or job seekers is one that aligns with their vision and career goals.”
Overall, 71% of workers would like to update their skills more often, and 80% believe employers should invest more to provide upskilling and reskilling opportunities for workers, according to a previous report from TalentLMS.
