A recent survey conducted by Morgan McKinley has shed light on the challenges faced by Canadian businesses in the hiring landscape for the upcoming year. The research, part of their 2024 Salary Guide, revealed that reduced budgets and headcount restrictions will hinder hiring growth.
According to the survey findings, 60 per cent of organizations in Canada reported hiring as ‘quite competitive’ in 2023. Among the challenges faced, 20 per cent of businesses lost out on hiring new talent in the last six months due to their inability to compete on salary and benefits. Additionally, 40 per cent of organizations cited ‘no sign-off for new headcount available’ as their greatest recruitment challenge in 2024.
Despite these challenges, 40 per cent of businesses in Canada are still planning to hire within the next six months.
However, the hiring landscape is shifting. Forty-five per cent of professionals are looking to change roles in the coming six months—a decline from the 76 per cent reported at the end of 2022.
“Hiring processes lengthened due to leaner TA teams and the influx of applicants impacting the ability to efficiently qualify and assess incoming talent, from both a technical and soft skills perspective. This poor recruitment experience frustrated many candidates,” said Ian Kinsella, managing director of Morgan McKinley Canada.
One concern highlighted by the survey is the dissatisfaction among Canadian workers regarding their benefits packages. Sixty-five per cent of respondents shared they feel ‘neutral’, ‘dissatisfied’, or ‘highly dissatisfied’ with their current benefits. The top five most desired benefits identified were as follows:
- Health insurance;
- Work-from-home options;
- Pensions;
- Health and well-being support;
- Life insurance
‘Higher salary’ and ‘meaningful and impactful work’ were identified as the most valued reasons for professionals wanting to change jobs, both cited by 23 per cent. Encouragingly, 55 per cent of professionals are optimistic about receiving a salary increase in 2024, and 43 per cent of employers plan to enhance salary offers for certain in-demand roles.
Furthermore, the survey indicated a shift towards contracting, with 79 per cent of professionals in permanent roles considering the switch to contracting. The reasons cited included ‘better rates of pay’, ‘greater opportunities to develop skills’, and ‘more flexibility’.
“With fewer ‘A’ players actively looking for work, organizations need to move fast to identify and secure top talent,” said Kinsella. “Also, a strong push toward contract hiring in early 2024 will help companies kick off transformation projects with little investment in new resources.”