The bank for Canadian entrepreneurs has made it official: there is a labour shortage in Canada. According to a study released in September 2021 by the BDC, 55% of Canadian entrepreneurs are struggling to hire the workers they need to sustain growth.
So more than half of Canadian entrepreneurs find hiring difficult. On top of that, the study “How to Adapt to the Labour Shortage Situation: Hiring Difficulties Are Not Going Away,” which surveyed 1251 Canadian entrepreneurs and 3000 Canadians about their jobs, also found that:Throughout history, workforce challenges have begot new hiring practices which receded once they were no longer required. We're at a point where workforce innovation is required again, so can history help us?
Julius Caesar implemented one of the first employee referral program, providing a reward of up to a third of a year's pay.
One of the first talent crises was during the Bubonic Plague in Europe where the labour force supply dropped drastically and surviving labourers were able to raise their prices sky-high. To combat this, European monarchies and ruling bodies passed strict labour laws, some including that anyone healthy and under the age of 60 had to work for anyone willing to hire them. In the end, these strategies failed and the European economy saw an increase in wages due to labour scarcity. While this strategy wasn't fruitful, at least we know for sure what not to do.
Throughout the twentieth century, one of the most successful talent recruiters was the military. One of their most successful recruitment marketing tools were recruiting posters. Think of the iconic, "I want you!" Uncle Sam posters the US military used during the First World War. However, Millennial and Gen Z workers are unlikely to respond to recruiter marketing slogans in the same way.
The history of workforce innovation is constantly shifting and it's important to remember what's worked - and what hasn't worked - in the past to inform strategies of the future. For example, it looks like Julius Caesar was on to something with his referral program. And current Canadian employers can provide their own incentives. In Canada, employers can pay for employee tuition in exchange for employee contracts.
The COVID-19 pandemic combined with an aging population have created a perfect storm for a labour shortage to occur. These strategies can help your business mitigate the Canadian labour shortage and sustain better business growth.
For the most part, these strategies remain underutilized. Eastern Ontario employers should adopt them to see business success and growth in the coming year. To find more resources for recruitment and retention in eastern Ontario, visit the Get Help With Recruitment page.
External links are provided as informational resources only and are not necessarily endorsed by Ontario East.
References:
https://www.bdc.ca/en/about/mediaroom/news-releases/labour-shortage-study