Economy 'has had severe dent on business and employee confidence,' says expert
For most Canadians, job security is a top priority, even above pay, according to a recent report.
The survey, conducted in June 2024 by Robert Walters, included more than 300 Canadian employers and 1,500 ‘white collar’ professionals, found that four in five (80%) Canadians say they would now prioritize job security over pay.
This is the case even though 27% of Canadians admit that job security was not something that “crossed their mind” before.
Overall, 64% of Canadian professionals say that job security is a concern (on varying scale) when considering a new role, and 13% admit that fears around new job security has stopped them from applying for a new role in its entirety.
“It was just three years ago where we saw evidence of The Great Resignation – where professionals were taking new job opportunities at a record high, which was also matched with high new starter salaries. The emergence of ‘The Big Stay’ is testament to the volatility of the economy – which has had a severe dent on business and employee confidence,” says Martin Fox, managing director of Robert Walters Canada.
About two in three (65%) HR professionals feel confident about their job security, according to a previous report.
Job security questions during interviews
And Canadian professionals are letting employers know about their job security concerns, according to Robert Walters’ survey.
In fact, 74% of Canadian employers state that prospective employees now bring up the topic of job security during the hiring process – with 53% stating that this has been a more recent occurrence in 2024.
When asked further on renewed priorities, two-thirds of professionals (65%) state that the state of the economy plays a “significant role” in their decision on whether to move roles – with inflation (40%), unemployment rates (21%) and GDP growth (4%) being primary considerations.
“There is clearly a lot playing on the minds of professionals at the moment – even if a company can promise job security, the unstable economic environment is casting some serious doubts over any important life and/or career changes,” says Martin.
Nearly six in 10 (58%) Canadian CEOs believe that Canada is either already in a recession or will be in one soon this year, according to a previous report.
How to address job security concerns
But employers looking to hire workers appear to be stepping up to assure workers that their jobs will be secure should they decide to jump ship, according to Robert Walters.
Over eight in 10 (82%) hiring managers state that they have noticed an increase in prospective employees declining job offers in 2024. While the large majority (52%) state that this is down to salary or culture fit, many also point to job security (16%) or company stability (14%)
As a result, 67% of companies have made changes to their recruitment strategies in order to address concerns prospective employees may have over job security. These include sharing growth plans (52%) and being upfront about company performance (11%).
Also, 34% of employers say they are now very transparent about their organization’s financial health and long-term company plans. About a quarter (24%) are somewhat transparent and 15% are slightly transparent.
However, 27% state that they are not at all transparent about the financial health of the company during the recruitment process.
“It’s a tricky one for employers to know whether some details about an organization may deter professionals from accepting a job offer,” says Fox. “However, from my experience, when a company is fully transparent about their financial position or industry barriers – this only helps to ensure that the ‘right fit’ accepts the job and is frankly ‘up for the challenge.’”
More than half of employers globally plan to increase headcount due to artificial intelligence (AI), according to a previous report.
Employers benefit from workers’ job security
Offering your employees job security can have the following effects on your business, according to Indeed:
- Reduced turnover - By making your workers feel secure, you can reduce employee turnover and lower your hiring and training costs.
- Positive work environment - Employees who know their job is secure will likely feel better and have a more positive attitude about the company and work in general.
- Higher productivity - For some employees, knowing they don’t have to worry about their jobs lets them focus more on their duties. This allows them to get more done.
- Positive image - High job security also looks good to outside parties. If you’re known as a company with good job security that treats its employees well, your public reputation can get a boost.
