Canadian companies failing to invest in their most valuable asset, their people

In an economic climate where organizations must strategically balance their budgets while satisfying their employees, a recent workplace survey generated by Lannick Group of Companies reveals that while businesses in the Greater Toronto Area (GTA) have come a long way, there is still progress to be made. Many employers assume all hiring flaws come from unreliable individuals, but companies are failing to address the real reasons why recruitment and retention are on-going issues.
"The survey shows a severe disconnect between what employers know – that talent attraction and retention is vitally important to the strength of a company – and what employers are willing to do to address their workplace satisfaction issues," said Peter Jeewan, President & CEO of Lannick Group. "Companies must be willing to invest time and money in the unique skills that every individual brings to the organization. A happy and dedicated workforce will ultimately increase productivity and excel your business."
Management and executive-level employers across all industries in the GTA identified workplace trends faced by Canadian Companies today.
Key survey findings include:
Over 40 per cent of companies surveyed will see no change to their staffing budget this fiscal year compared to last, and over 30 per cent will see only a minor increase (0-5 per cent).
The top two reasons cited for difficulty retaining staff were lack of budget and lack of work/life balance within their organization.
Contrary to this, over 72 per cent of respondents feel it is difficult to attract top talent in the current marketplace.  Almost 50 per cent say that this is due to a deficit of qualified applicants rather than their own hiring process and work environment.
Although there is clearly a high concern about staffing, it is not necessarily being addressed. Over 12 per cent of employers stated their own company is not positioned in an appealing way to target talent, which can have a critical impact on a company's hiring process and work environment.
While over 15 per cent of executives don't believe in their own hiring system, over 70 per cent rate their internal HR department as the number one resource they rely on to recruit new talent.
Canadian companies are taking advantage of the current economic climate: almost 30 per cent of executives are lessening their measures to retain talent simply because the market is currently employer versus employee-driven. The time is now for employers to take action – a happy employee is an effective employee.
What can organizations do to strengthen their business by addressing workplace satisfaction?
Invest in your employees as you do in your clients. Although the immediate, short-term return on investment may not be seen, it is necessary for companies to invest time and resources internally to build a more sustainable business in the long-term.
Evaluate and evolve hiring strategies. Companies rely heavily on their own internal hiring system while not necessarily seeing the success rate they desire. It may be time to evolve how you attract talent. Think about engaging professional recruitment and staffing firms, using external online job boards, or reassessing your referral process.
Understand the effect your corporate culture has on your people. Employees place prominent value on factors such as flexibility and balance, not just monetary reward and status. People will be increasingly willing to leave a position with your company knowing there are other options in the marketplace better suited for them.
FACT SHEET - June 25, 2014
Majority of respondents (87.29 per cent) predict no change or increase of staffing budgets compared to previous years. Nearly 13 per cent say budgets will decrease.
The top staffing concern is motivating and encouraging staff (36.81 per cent) followed by retaining top talent (27.58 per cent).
Overall staffing levels are predicted to stay the same (66.43 per cent) or increase (23.98 per cent). The number one reason for increased staffing levels is because their company is in a growing market.
Almost 73 per cent of respondents find it difficult to find top talent. This is due to perceived lack of qualified applicants (47.24 per cent) and lack of budget for staffing (30.46 per cent).
Almost 30 per cent of executives are lessening their measures to retain talent because the market is currently employer-driven not employee-driven.
The top ranked reasons for high turn-over rates are lack of budget (28.06 per cent), lack of work/life balance (23.98 per cent) and lack of a positive work environment (17.03 per cent).
Executives find that many employees tend to leave their organization for better opportunity/career growth, or because they are not happy and don't feel it is the right workplace fit.
The greatest challenge when dealing with staff is lack of time and resources (38.61 per cent) followed by motivating employees (35.50 per cent).
Work experience and soft social skills were both found to be more important to employers than actual technical skills when considering candidates.
Over a third of executives cited online and social media research as part of their potential recruitment background checks. Over 50 per cent conduct criminal checks, and 25 per cent check credit ratings.
About the Survey
Results were collected via a prominent third-party web-based survey application over a three day period in June 2014. The 417 survey respondents are GTA-based chief executive officers, vice presidents, managers, controllers and directors at companies representing all industries with the majority working within the banking, manufacturing, financial services and insurance sectors. More than half (53.7 per cent) of survey respondents are employed by companies with annual revenues in excess of $100 million.

on June 27, 2014