With job vacancies in a growing number of economic sectors across Canada far exceeding the pool of people available to fill those jobs, businesses are running harder to recruit and retain staff.
It’s turning into a marathon. “We anticipate the employee-driven labour market will continue in the next few years,” says William Howard, director of HR research and advisory services at London, Ont. human resource consulting firm McLean & Company.
With the demographics of today’s workforce, Howard says, “it’s hard to imagine a situation in which the availability of cheap, educated workers returns to where it was a decade ago.”
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This means employees will have their pick of employers for years to come.
Given the unprecedented number of black swans in the past few years, Howard says it will always be wise to be prepared for volatility, but the trendline is entrenched.
Organizations are responding to today’s market by increasing base pay, by offering additional training and development opportunities, and by focusing efforts on a smaller number of identified critical roles to increase recruiting effectiveness.
What does this mean for agribusinesses and farms? A look at what’s happening in other industries could help farm businesses develop successful strategies for attracting and retaining the best and the brightest in a highly competitive market.
It may also help farmers predict which offers or hiring practices may be most effective.
With the move to remote work during the pandemic, for instance, multiple surveys have shown a reluctance by employees to return to the office. Businesses that cannot or are not providing remote work are at a disadvantage.
Farmers may ask if this affects them, since almost all their employees must work on or near the farm. Howard says agriculture should try to see the connection.
“Organizations that cannot offer remote work are 4.2 times more likely to report a negative impact on recruiting,” says Howard. They were also twice as likely to increase variable pay (i.e. compensation that is contingent on hitting performance targets) and vacation time.
The take-home is that potential employees may not see having to work on-site as a fatal objection if the offer is designed with the “on-site”reality in mind.
This puts the ball back in the employer’s court. On-site may mean total compensation per employee goes up, but it may also open the door to higher productivity.
McLean & Company has also conducted a survey of more than 800 business professionals in which it identified four HR trends that provide insight into what’s happening in the labour market. Howard summarizes the four trends:
Recruitment and retention: When someone leaves, the impact isn’t only from having that position empty, but also from the effort and time the recruiting team must exert to fill that empty position.
Likewise, when there’s an effective recruiting process in place (i.e. a positive candidate experience) employees are likely to stay with the organization for longer. It’s a positive feedback loop: candidates who stay longer reduce the burden on the recruiting team and allow recruiters to dedicate the time to finding the right candidates who will stay with the organization longer. And the cycle continues.
Adapting to a new world of work: Organizations that put more focus on employee well-being “can anticipate such benefits as increased employee availability, improved retention, enhanced ability to attract candidates and expanded talent pools,” Howard says.
The diversity tipping point: Initiatives that enable long-term equity and inclusion, rather than quick fixes, will decrease voluntary turnover and recruitment costs.
Skills in an age of change: Competencies such as resilience, change management and design thinking will be more important leadership qualities than ever in the coming year.
But are these real factors in the real world, or just so much HR jargon?
HR managers anticipate investing 25 per cent more time in recruiting in the coming year compared to last year, and in that work, McLean & Company says, “providing a great employee experience” has moved from the fifth-highest priority in 2021 to the second-highest in 2022.
There’s a wrinkle, though. Howard is surprised at how many HR managers rank “providing a great candidate experience” at the bottom of their list of 12 priorities, and he believes “organizations have to put more emphasis on the candidate experience given the recruiting challenges we’re facing.”
While there are dramatic differences between industries, Howard says that, in general, recruitment at all levels has become much more difficult.
Viewing employees’ wants and needs through a generational lens can help employers develop incentives and benefits that will attract and retain employees, says University of Guelph HR professor Dr. Nita Chhinzer.
Baby boomers (born between 1946 and 1964) placed a high value on job security and retirement benefits, but the millennial generation (or gen Y) is seeking work-life balance as this “sandwich generation” cares for both children and elderly parents.
Born between approximately 1981 and 1996 (25 to 40 years of age), this group is at high risk of burnout and they are seeking benefits that will help ease the financial and emotional toll of familial pressures.
As their children reach the age of post-secondary education, scholarships and internships for their children will help incentivize employees in this bracket to stick around.
Following on from the millennials, generation Z (which begins with the birth year of 1997) values protecting their privacy and time off to protect their mental health. “Older generations were more willing to sacrifice their weekends,” says Chhinzer.
On the other hand, inflation and soaring house prices have hit the youngest generation of employees hard. Housing affordability and transportation costs are top issues for this age group who would welcome employer subsidies for housing, transportation, internet and computers to offset the high costs they face in addition to student debt loads.
Chhinzer says the younger generation is also looking to see if the social, political and cultural values of a prospective employer align with their own. With a broad perspective, this younger generation views their community as the global community and may look to see how the employer responds to global crises such as the Ukraine conflict. “These are big drivers for new grads,” she says.
Howard adds that an employee’s stage of life will also have an impact on what they are seeking from an employer.
McLean & Company recommends keeping your eye on the individual’s preoccupations. Do they have kids? Are they hoping to buy a home soon? Are they approaching retirement? Such factors can help you build an offer that makes them see your farm as the right place to work.
Finding the best employees will remain challenging for the foreseeable future, Howard and Chhinzer agree. But it isn’t a zero-sum game. Watching labour market trends could help your farm offer potential employees what’s important to them and give your farm a leg up in a competitive job market.
