As we head into the New Year, the economic news across the country, especially as it relates to employment and jobs in Canada, would strongly suggest we are at or close to peak full employment in Canada. While some regions are more active than others, we are seeing in many cities and provinces the lowest unemployment recorded in over 40 years! Canada created over 422,000 jobs last year, the best year since 2002, and many are full time. Quebec is at a record low 4.9%, plus Ontario and the West are also performing.
Further economic indicators point to and back up this booming jobs market as wages have begun to creep up, a sure sign of a tight labour market. The Bank of Canada increased its rate a quarter point early this month, the 3rd increase since last July. The US economy looks to be also firing on all cylinders with recent massive tax changes which will only serve to increase the Canadian export economy provided a certain “very stable genius” doesn’t cancel NAFTA.
Here at Eagle, we are undoubtedly experiencing the effects of such a market in seeing a shortage of available candidates, candidates receiving multiple offers and down time between assignments being very short or non-existent. The ACSESS Staffing Index, a measure of billing hours in Canada among temporary labour, bears this out as it hits some of its highest levels in years. We also know that the “Technology” unemployment rate in Canada is likely less than half the nominal rate, likely in or around 2%.
Recent conversations with both the Federal Government and Ontario government suggest a looming crisis in attracting the next generation of technology professionals so desperately needed as their workforce ages out.
So what can clients, companies and governments do to thrive in a very tight job market? Here are a few suggestions meant to help navigate successfully to get the right people at the right time.
Review your hiring processes to be sure they are tight and efficient. Accelerate your hiring process where you can. Candidates with multiple offers — the “A” candidates — will not be available through an extended interview or hiring process in this market.
Hiring Managers need to review expectations. Many skills will not see multiple candidates to assess and therefore be sure you prioritize your “must have criteria” as the days of a candidate having 10 out of 10 requirements may no longer be realistic.
Work with your agency partners. Ensure a good and accelerated feedback loop exists, be proactive with your staffing partners on upcoming needs, be nimble on offers, and review competitive rates and salaries with your agency partners and others in the market to be sure your expectations align.
Make sure you understand your value proposition as a company to attract “A”candidates and articulate it to your partners so that we can help you. Know your organization’s “sizzle and its steak “. Understand your market, your comp structures and skills availabilities in your market and engage your staffing partners to fill in the gaps
It’s not the time to “overplay” your hiring hand. The market has changed and being slow to the market will not reward you. Be flexible. You will need valued partners because all but a very, very few elite companies will need help since the days of advertising an opening and sitting back to see what comes are gone
There will always be other ongoing events to stay abreast of, for example Toronto recently making the “shortlist” for the new Amazon HQ, (a move Apple no doubt is now likely to repeat). Although chances are slim they ultimately win, imagine if they did. It would present a huge game changer and competition for not only all of Toronto’s employers but many in Canada as well!
Organizations can still get the “A” candidates if they take to heart some of these and other suggestions and adapt to the marketplace. If not, it’s going to be costly with C and D level candidates.