Canadian Companies Focus on Reskilling Amid Budget Constraints
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Reskilling Over Hiring: A New Trend in Canadian Companies
Canadian companies have plenty of job openings, but an increasing number are choosing to reskill existing employees instead of hiring new talent. This trend is largely influenced by budget constraints as revealed in a recent employment survey.
Survey Insights
A significant finding from the Express Employment Professionals-Harris Poll survey indicates that 41% of companies have no plans to increase their workforce this year, and 8% are considering downsizing. Financial pressures are evident, with 73% of companies intending to reduce their workforce citing cost reduction as the primary reason. Furthermore, 28% of employers not planning to hire note a lack of budgetary wiggle room.
The Reskilling Approach
Despite these challenges, over half of the surveyed companies (52%) have committed to reskilling their current employees. This marks a notable rise from 43% in 2021. Most organizations plan to implement company-led training sessions, either during regular work hours or after hours, allowing employees to learn without detracting from productive work time.
Training Initiatives
Among those focused on reskilling, many intend to provide practical training environments. A hefty 67% of organizations are set to use on-the-job training conducted by existing employees. Moreover, 61% plan to integrate third-party training resources, while 30% are willing to cover expenses for employees pursuing additional degrees or certifications. Additionally, some companies are exploring the use of artificial intelligence (AI) for employee training, with 10% having such plans in place.
The Impact of Rising Costs
The strain of rising operational costs is a key concern for businesses, as emphasized by Brent Pollington, an Express franchise owner. He highlights that increasing payroll costs driven by higher wages, regulatory requirements for additional benefits, and training expenses prompt companies to be more discerning during the hiring process. This scrutiny is essential, as businesses want to ensure that their investments are well-placed.
Addressing the Skills Gap
Pollington notes that one reason for the shift towards reskilling is the difficulty companies face in finding qualified job applicants. The labor market currently has numerous candidates, but many lack the necessary qualifications for the roles available. Companies are increasingly willing to invest in employees who demonstrate potential and align with their core needs.
Encouraging Job Seekers
Job candidates are also encouraged to take proactive steps toward enhancing their skill set. Pollington advises that individuals who seek further training can effectively showcase their value to potential employers. This proactive stance reflects dedication to professional growth, which is an attractive quality for companies looking to make strategic hires.
The Evolution of Job Roles
Rapid changes in job responsibilities suggest that reskilling is essential to nurture future talent. Bill Stoller, the CEO of Express Employment International, asserts that while there is no quick fix to the skill shortage issue, companies that prioritize investment in their workforce as their most valuable asset will ultimately benefit in recruitment, retention, and profitability.
Conclusion
The shift toward reskilling employees over hiring new ones illustrates a pragmatic approach amid budget constraints in the Canadian job market. As the landscape continues to evolve, investments in employee training may prove crucial for long-term success and stability in a rapidly changing economy.
Frequently Asked Questions
1. Why are companies choosing to reskill rather than hire?
Many companies are facing budget constraints that make it difficult to hire new employees. Reskilling existing staff allows them to fill skill gaps while managing costs.
2. What percentage of companies plans to reskill employees?
According to the survey, more than half (52%) of companies plan to reskill their employees this year, which is an increase from previous years.
3. What types of training are companies offering for reskilling?
Companies are offering various types of training, including on-the-job training, company-led training sessions, third-party courses, and support for employees seeking further education.
4. How are rising operational costs affecting hiring practices?
Rising costs related to wages, benefits, and training programs lead companies to be more selective during the hiring process, as they scrutinize their investments more closely.
5. What can job seekers do to improve their chances of employment?
Job seekers can enhance their attractiveness to employers by investing in their training and skill development, demonstrating their commitment to career growth.
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