Employers boost wages, benefits amid labour shortage

Many workers leaving current jobs for better salary, new career, more senior role

Employers boost wages, benefits amid labour shortage

Many smaller employers are boosting their offerings in trying to attract talent amid the ongoing labour shortage, according to a survey by ADP Canada.

Nearly half (46 per cent) of those who say hiring is difficult have increased wages while 27 per cent have increased benefits such as additional vacation time, and 19 per cent have introduced a shorter workweek.

"As recovery continues, businesses who are able to adapt to the changing demands of this new labour market are poised to come out ahead in the search for top talent,” says Helen Vesce, division vice president, service delivery, at ADP Canada.

While 79 per cent of small businesses that had to reduce their workforce in response to the pandemic have been able to rehire employees, many say they're seeing staff leave for a better salary (32 per cent), a new career (29 per cent) or to take on a more senior role (17 per cent), according to ADP.

Three-quarters (74 per cent) of Canadians would take a new job if the salary is higher, even if they like their old one, according to a separate report from LifeWorks.

Labour shortage

Currently, 33 per cent of employers say they are having trouble finding workers and 46 per cent say the talent shortage has grown because of the pandemic, according to ADP’s survey of 772 Canadian employers, decision makers and leaders in October.

More than half (55 per cent) of Canadian small and medium-sized employers are struggling to hire the workers they need, according to a previous report from the Business Development Bank of Canada (BDC).

And while many employers are having difficulties filling open positions, it’s the senior-level positions that are the most challenging, according to another study.

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