Originally from our sister publication, SmallBizAdvisor.ca.
A stronger economy is good for business, but bad for employee retention.
As the economy continues to improve, workers begin to explore new career opportunities and employers risk losing their best talent just when they need them the most. The Canadian economy added a net 81,500 jobs in the first quarter of 2012 and another 58,000 in April.
A new report from staffing firm Robert Half International says business owners should start preparing for talent shortages—especially in the technology and finance sectors. According to their research, 36% of executives say it is somewhat or very challenging to find skilled professionals today. Social media has further complicated the issue, since many employers think they should be able to source good contacts online, but few have the time and resources to do so effectively.
Furthermore, says the report, salaries are projected to rise by 3.2% to 4.4% in 2012. Employers will have to offer more money or other compelling reasons to join their firms—like a benefit or retirement plan—to attract and keep talent.