It was the best of times; it was the worst of times. Well, sort of. Clearly the boom in Alberta is leaving employers scrambling for bodies, just about any body, in fact. It’s estimated that by 2026, Alberta will face a shortage of more than 300,000 workers. Further to the East, Ontario’s hard-hit manufacturing sector has opened up what has been a fairly tight labour market.
Still, from coast to coast, finding the right people with the right skills—and hanging on to them—has been a struggle for private and public companies alike. And the fight for talent can only continue. Boomers are retiring and there is not enough young blood coming up through the ranks, particularly in healthcare and financial services. At the same time, fewer people are moving into skilled trades.
Public companies, particularly in the West, have more obvious weapons in their arsenal to attract people, such as stock options. People want to share in that growth. Private companies don’t have the same liquidity. Plus, they tend to be smaller and can’t afford the same benefit arrangements.
For example, heavyweight, publicly traded natural gas producer EnCana offers salaried employees every other Friday off with pay. That was a retention strategy that has had a huge impact on private companies here in the West. Employees know they are in high demand and they know they are going to be paid above-market rates. They can get a job in a heartbeat elsewhere, and they will if private companies don’t come up with creative ways to attract and keep them.
That said, here are five best practices that will allow private firms to do just that:
Hire right
A company must have a very clear understanding of its culture and the type of people who best fit. What do you look for most in employees and what makes them successful? That’s the question you have to address. One auto retailer has built a profile of one of his most successful employees, and designed a questionnaire for job candidates that would allow him to get as close to that profile as possible.
Be clear with expectations
Companies that score high on employee satisfaction have regular, formalized feedback processes in place. Most successful organizations have employees aligned with the overall vision and direction of the company and everyone can tell you how they fit in the bigger picture.
Be flexible
This is particularly important for private companies in the booming West but holds true across the country. Flexible work arrangements—such as shorter work weeks and telecommuting—are a business reality. Be willing to accommodate staff who don’t want—or need—the typical nine to five, five-day work week.
Employees want to share in the growth of the company
This goes beyond a cash bonus. If there are no public shares of your company, you could create a phantom stock plan, or allow employees to participate in the ownership of the company.
Allow employees to enjoy what they do
Listen to your employees and remove the barriers that get in the way of people doing their job. Give them the ability to control their day. That’s how you keep people engaged and wanting to do their best in your organization.
As part of your company’s leadership, you always have to work on the environment you operate in. Survey your employees to measure their level of satisfaction and engagement. And most important of all, listen to your people and act on what they tell you.
Don Edmonds is PwC’s Private Company Services leader in the Audit and Assurance Group in Toronto and Ian Gunn is a partner and leader of PwC’s Private Company Services in Calgary.</