How Can Employers Overcome Labour Shortages In Québec And Across Canada?

The repercussions of a global pandemic have left the  province of Québec, and, in fact, all of Canada facing longlasting labour shortage issues with thousands of unfilled  jobs. According to a recent report from the Canadian  Federation of Independent Business, 81% of small and  medium sized enterprises in Québec say they are feeling  the strain of the labour shortage.

According to its findings, 59% of the managers employed by such  enterprises and 43% of their regular employees had to work longer hours in  the first month of 2022 to make up for the lack of available workers. Faced  with this reality, it is undeniable that many employees are unhappy and  switching jobs, making it more difficult for employers to recruit. Considering  this unprecedented labour shortage, there are several options that  employers may want to explore to both retain their existing employees and  attract candidates to join their workforce.

Improving Existing Conditions

Many Québec employers are not only struggling to recruit new employees;  they are struggling to retain talent. According to a recent study, almost a  third of young employees between the ages of 18 and 34 in Québec are  thinking of leaving their jobs in the next year due to salary, benefits, lack of  professional challenges and advancement opportunities.

Therefore, employers must be prepared to meet employees’ expectations by  offering them sought-after job amenities such as flexibility, better working  conditions and an increase in compensation, whether in the form of a salary  increase or a bonus. In this new work-from-home era, employers may also  want to consider extending this option on a permanent or hybrid basis, while  also offering home office support in the form of an equipment allowance or  a home office budget. Flexibility is clearly becoming an increasingly desired  perk for the modern employee.

Ultimately, it is important to keep top performers on-board, discuss  advancement opportunities, invest in training and development, and reward  good performance. Employees also generally value an increase in benefits  such as vacation entitlements, childcare assistance, wellness support and  healthcare insurance. Implementing mentorship programs or offering tuition  reimbursement can also be a great addition to an employer’s extended  onboarding toolbox.

Inspired by Ontario’s Measures

To attract new employees, employers may also want to adopt measures  in line with the new legislation enacted in our neighbouring province of  Ontario which restricts the use of non-competition agreements and requires  employers to have policies allowing employees to disconnect from work.

In fact, this new legislation follows the European trend to introduce limits  on employer expectations regarding employee availability during non-core  business hours. The federal government is also currently exploring a similar  right-to-disconnect amendment to the Canada Labour Code. Québec  employers may therefore want to consider adopting policies which allow  employees to disconnect from work, thereby emphasizing a healthy worklife balance and conveying the message to employees that they are cared  for and appreciated. Excluding restrictive covenants such as non-compete  and non-solicitation undertakings from employment agreements can also  incentivize potential candidates, especially those who would consider  occupying a position in Ontario.

Temporary Foreign Workers

Truth be told, solutions to increase salaries and improve benefits merely  shift the labour force around. New workers will not magically materialize. An  interesting solution for employers could be to consider hiring temporary  foreign workers.

To meet growing labour needs, the Québec government has implemented  several measures to stimulate the workforce and ease recruitment  requirements by investing $3.9 billion to add 170,000 workers in certain  priority sectors. These priority sectors are health care, education, childcare,  information technology and construction. The measures adopted by the  government to facilitate the hiring of foreign workers in the province of  Québec include raising the maximum number of temporary foreign workers  allowed in low-wage positions to be hired in certain designated sectors.  Employers can now hire up to 20% temporary foreign workers in a single  workplace (an increase of 10% for most employers) until December 31, 2024.  The increased limit is intended to integrate more immigrant resources to fill  job vacancies in sectors facing significant labour shortages, such as:

  • retail;
  • food and lodging;
  • food, beverage and tobacco manufacturing;
  • management of companies and enterprises;
  • health care;
  • forestry industry;
  • rubber and plastic products manufacturing;
  • wood, pulp and paper processing.

Québec government has also updated the list of high-demand occupations  for which employers do not need to prove recruitment efforts when hiring  temporary foreign workers as required under the Labour Market Impact  Assessment process. The new list has been significantly expanded from  last year’s list of 181 occupations. There are now 222 occupations on the  list that qualify for the new facilitated process taking into account the  labour needs of all regions of Québec. The Québec government estimates  that newcomers, particularly temporary foreign workers, will fill 22% of job  vacancies by 2026.

In addition, the government is offering financial assistance to support  businesses that choose to recruit internationally. Up to 50% of the costs  incurred for an eligible international recruitment activity may be reimbursed  to the employer, up to a maximum of $1,200, which will allow certain  employers to recruit talent abroad at a lower cost.

Retain Experienced Workers

Sometimes it may not make sense for employers to search abroad for a  solution when the most experienced workers are within the organization.  Compared to other Canadian provinces, aging workers in Québec tend to  leave for retirement more quickly. Quebecers between 60 and 64 years old  had an employment rate of 54% in 2021, compared to 60% in Ontario and a  national average of 58%.

As such, employers may want to look into financial incentives and flexible  work schedules to keep older workers on the job longer.

Overall, there are many solutions that employers should consider if they  are affected or want to prevent being affected by Québec’s growing labour  shortage. Employers must explore their options to stand out from their  competitors during these labour-intensive times, as workforce issues can  become a huge impediment to growth.

 

Source: BCF Business Law

Written By:  Nancy Boyle and Stefania Fratianni