Although Canadian employers are optimistic about the economy for 2017, they’re worried about losing talent, in particular mid-level executives, according to an annual survey by Hays Canada.
The recruitment agency, which surveyed more than 4,000 employers and employees across Canada, found more than half (55 per cent) of employers expect to increase salaries by a nominal three per cent or less. And, despite employers reporting they use salary to entice candidates, only 52 per cent are certain their current employees are being fairly paid. Half of employee respondents said they don’t believe their salary reflects industry standard rates.
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“We’re seeing an unfortunately high proportion of employers who believe Canada’s skills shortage has made hiring very difficult and simultaneously admit they could be underpaying existing staff,” said Rowan O’Grady, president at Hays Canada, in a press release.
The survey also found 26 per cent of employer respondents have seen a management-level turnover rate between six and 10 per cent per year, which has led them to pay more attention to retaining mid to senior executive employees. In addition, 33 per cent of employers are considering performance bonuses and 25 per cent may adjust base salaries for executives.
Read: 65% of Canadians are ready to leave their current employer: survey
Among employer respondents in Alberta, half were forced to cut employees last year and 28 per cent believe the market will continue to flounder. But some 41 per cent of employers in the oil and gas sector believe business will rise in 2017.
“The challenges in Alberta are obviously severe, however, we’re seeing the same smart push for stability as in other sectors,” said O’Grady. “Employers are fixated on business-critical activities and most hiring in oil and gas has been for contract and temporary positions, which is all about flexibility.”
Read: Alberta’s hiring binge is over
While 41 per cent of employers across Canada continue to hire new graduates, only 32 per cent of hiring managers rate themselves as experts in the most recent interview techniques and most spend one day or less reviewing resumes to assess a candidate’s overall fit, according to the survey.
A serious problem emerges when employers are ill-equipped to effectively recruit people, noted O’Grady. “We highly recommend closing these gaps by zeroing in on salary expectations and embracing the career development opportunities employees crave. It’s also time for employers to build their recruitment strategies to insulate themselves against risk in 2017 and beyond.”
Read: Canadian salary increases to average 2.6% in 2017: survey