Canadian small business owners are having a difficult time finding good employees. According to American Express’s Small Business Monitor survey, 11% of small business owners have never found the right person for a position and 28% have had jobs open for up to three months before finding the appropriate candidate.
The survey also found that 74% of respondents believe it’s getting harder to find good employees and 64% believe the demands of today’s jobs exceed applicants’ qualifications.
Adding to the difficulty is the looming exit of baby boomers from the workforce. Of those surveyed, 46% said they anticipate a shortage of qualified job applicants in the coming years. A further 32% said they are concerned about the impact this will have on their operations and 23% expect to replace a significant proportion of their employees.
Despite this, 69% said they haven’t put a plan in place to deal with an impending labour shortage, such as modifying employment practices or offering incentives to employees to stay on after retirement age.
“Strong talent is the cornerstone of good business, especially small business, where the right people can mean the difference between a loyal customer and high turnover,” says Abhijeet Rege, director of small business services with American Express Canada. “But the survey also suggests that businesses should start looking to the future by thinking about the void that will be left as skilled workers start to exit these higher-level positions.”
Money isn’t the only motivator in attracting and retaining employees, which means employers need to understand that agile, flexible environments can help draw the brightest minds.
In fact, when asked what incentives were most effective for businesses looking to attract/retain staff, flexible hours were on equal footing as higher pay. Other top perks include having a dynamic business culture (62%), offering share/stock options (61%) and offering better health benefits (54%).
“We’ve seen changes in the way people are approaching their careers today—as people become more lifestyle-oriented, they are seeking improved work-life rhythm,” says Rege. “The biggest draw of working for a small business is job independence and flexibility. And while money remains important, business owners realize it isn’t the only factor to attracting and retaining top talent.”