A new report by a multi-national HR firm reveals how Canadian small businesses are coping with the labour and skills shortage by embracing apprenticeships.
According to a Peninsula Group report, which surveyed 79,000 small- to medium-sized businesses in five countries, Canadian employers increased their use of apprenticeships by a staggering 217% in 2023, compared to the global average of 36%.
The report also found that 46.5% of Canadian employers invested in upskilling and training their existing staff, while 25.7% cited recruitment as their biggest staffing challenge.
Raj Singh, CEO at Peninsula Canada, commented on the findings.
“Despite the tough economic climate, there is an air of optimism amongst small business owners as we move into 2024. Compared to this time last year there has been a notable surge in employers dedicating greater resources to the development and growth of their staff,” said Singh.
“In 2022, we found that the top two concerns for employers were labour shortages and employee retention. Faced with these obstacles, (businesses) acknowledged that fostering employee retention was key. And one of the best ways to overcome these challenges, was to invest in their employees and that is what we saw happen last year.”
The report also noted that more than half of the employees surveyed received a pay raise or flexible working options in 2023.
In Canada, 82% of business owners ranked inflation as their biggest concern, followed by 47.8% who said labour shortage and 45.6% who cited employee retention.
Despite this, many Canadian businesses continue to be inclined to grow. In Canada, 44.7% of businessowners ranked growth as their top business goal for 2024.
Employers are hoping to entice skilled and talented workers to join with competitive financial remuneration. A total of 64.9% of Canadian respondents said that financial incentives were their main method to keep workers.
Other businesses are offering more flexible working hours or other forms of recognition.
