Are your employees working more and more? Have you had to review every condition you offer to attract and retain employees? Is your growth being held back? Have you had to turn down orders or deliver them late? These consequences stem in part from the labor shortage currently affecting Canada. According to a recent study by the Business Development Bank of Canada (BDC), nearly 40% of Canadian small and mid-sized businesses are struggling to hire new employees, and the situation is unlikely to improve. The impacts of this shortage are numerous and significant. According to the same study, the businesses most affected by the labor shortage are 65% more likely to experience low growth. How can you respond quickly to the labor shortage?
Productivity improvement as a solution to the labor shortage
Productivity improvement through investments in technology and employee training appears to be a solution worth considering. According to the BDC study, 44% of entrepreneurs affected by the labor shortage are adopting efficiency improvement measures. Fortunately, the technology shift is well underway: according to the Quebec Industrial Barometer, 76% of Quebec manufacturing SMEs have integrated digital technologies or plan to implement them in the coming year. Now training programs must keep pace. With the labor shortage, employers have to turn to a less qualified, younger workforce that will need to work in highly technological and increasingly complex environments. Investing in training is essential so employees can develop the skills required by the technology shift.
Productivity gains through greater use of technology will allow manufacturers to reduce their dependence on labor. Continuous improvement plans, KPIs and dashboards are operational strategies that help small and mid-sized businesses cushion the effects of the labor shortage (BDC, 2018). Combined with a rigorous employee training program, these technology investments will help companies mitigate the negative impacts of the labor shortage.
Government investment
The Quebec government recently announced it would allocate CAD 11.2 million to businesses to help them boost productivity and offset the labor shortage. The funds will help businesses reorganize work, in particular through digitization and automation. 1,200 companies are targeted by the new measure, which took effect on March 4. From now on, the Ministry of Labour will cover 85% of costs related to work reorganization to increase productivity, up from the previous maximum of 50%. Get in touch with your local employment center right away!
