A new Express Employment Professionals-Harris Poll survey highlights a significant shift in how Canadian companies are addressing their skills needs. Faced with budget constraints, many organizations are opting to reskill existing employees rather than hiring new ones. The survey, conducted between May 16 and June 3, 2024, reveals that financial pressures are reshaping workforce strategies across Canada.
1. Current Workforce Trends:
- Hiring Plans: 41% of companies plan no growth in employee count, while 8% intend to reduce their workforce.
- Budget Constraints: 73% of companies planning reductions cite cost-cutting as the primary reason, with 28% indicating a lack of budget for new hires.
2. Rise in Reskilling Efforts:
- Increased Focus: 52% of companies plan to reskill employees in 2024, up from 43% in 2021.
- Training Methods:
- 67% will offer company-led training sessions.
- 61% will provide on-the-job training by colleagues.
- 38% plan third-party training or courses.
- 30% will cover costs for additional degrees or certifications.
- 10% will use AI to assist in training.
3. Impact of Rising Costs:
- Cost Pressures: Brent Pollington, Express franchise owner in Vancouver, highlights the impact of rising costs on payroll and training investments.
- Recruitment Challenges: Companies are increasingly scrutinizing candidates due to the high cost of hiring and training.
4. Opportunities for Job Seekers:
- Self-Investment: Job seekers can enhance their value by investing in their own training and aligning it with their career goals.
- Skill Alignment: Demonstrating a commitment to development can make candidates more appealing to employers.
5. Future Outlook:
- Evolving Roles: Bill Stoller, Express Employment International CEO, emphasizes the need for reskilling to address the evolving job market and skills gap.
- Long-Term Success: Investing in employee development is seen as key to successful recruitment, retention, and overall business performance.
As Canadian companies navigate budget constraints, the focus on reskilling existing employees has become a strategic priority. This shift highlights the importance of training and development in bridging skills gaps and preparing for the future workforce.
