Staffing Your Business In Tight Labor Market

Filed in archive Human Resources on June 28, 2006

The number of self-employed persons in Canada has doubled since 1976 to 2,412,700 (Statistics Canada, January 2004.) The same thing is happening with our neighbor to the south. In the last eight years entrepreneurial activity in the United States has grown from 7,200,770 businesses to 20,038,163 (according to the 2000 census).

The trend is clear: self-employment and small business is well entrenched in Canada and the US. However, the Canadian Federation of Independent Business states that one of the fastest growing concerns of small- and medium-sized enterprises is the shortage of skilled labor.

A Significant New Problem

Small- and medium-sized employers across Canada are finding it increasingly difficult to find the workers they need. For example, the construction industry had a long-term vacancy rate of 47% and 72.7% of Alberta employers expressed concern over a shortage of labor. (Source: Canadian Federation of Independent Business, Your Business Outlook Survey, 2004 and 2005)

The Answer Is...

Human resource planning needs extra care and attention from the executive suite. With unemployment rates at a 10 year low this problem will persist. Employers will need to pull out all the stops and start offering employees better benefits and compensation packages. Keep and grow the staff you have and always be on the lookout for future employees.

I recommend a Three Year Personnel Plan

In your personnel plan, you will want to include details for recruiting and hiring. Topics should include:

A three-year staffing estimate and budgets based upon the growth reflected in your business plan.

Demographics and makeup of your workforce. Identify the average age of your workers and trends in your industry.

The length of time that employees stay with the company before moving on.
Recruiting, benefits, and retention plan that sets out a framework for meeting the firm's staffing needs.