The old adage “the only constant is change” is widely apparent in 2020. As Canadian businesses consistently pivot, adjust and innovate in response to numerous new economic challenges (in some cases, with the help of government programs), a key area of focus is managing workforce costs. Likely responses to less predictable revenue include scaling back the workforce with furloughs and hiring freezes. While cash flow and the high costs of employee wages are legitimate concerns, businesses can also consider the benefits of seizing opportunities in a hot recruitment market.
Canada’s COVID-19 Economic Response Plan (CCERP) programs have assisted businesses with liquidity, wages and cash flow, and individuals with financial stability through the realities of unemployment – all in an effort to buoy the Canadian economy. Since their inception, these programs – and their intricacies, eligibility and benefits – have adjusted to address changing needs.
When the Canada Emergency Response Benefit (CERB) ended recently, it was replaced by the Canada Recovery Benefit (CRB), which has encouraged many Canadians to return to work. This is being accelerated by the CRB’s rule that $0.50 of the benefit for every dollar of net income above $38,000 must be paid back to the CRA at tax time. The shift in these programs has created a robust employer-favoured market full of the qualified unemployed, under-employed and unhappily employed. While job type, job level, education level, industry and geography all play a part in the unemployment rate and available candidates, the overall economic contraction has resulted in fierce candidate competition for available jobs.
Recruitment in this market could be an advantageous business move because the market is full of qualified candidates, whether they are dissatisfied in their current roles and want a change or are directly unemployed or underemployed due to the crisis. These candidates can bring with them a renewed gratitude for acquiring work in a competitive market, a renewed energy to work due to months of not working at all and feelings of trust and loyalty for their new employer, who was savvy, stable and forward-thinking enough to hire during tough times. A business that is actively recruiting demonstrates to the community they are healthy and can be counted on to contribute in tough times. Furthermore, recruitment provides good marketing at a time when more interaction is focused online.
Where the price tag for labour costs like employee wages and salaries are often the largest cost of business, there are ways to manage those costs when hiring. In addition to capitalizing on the appropriate CCERPs, employers can extend their innovative business approaches to the recruitment process by offering part-time, temporary, casual, piece-meal or seasonal employment contracts, rather than committing to full-time permanent agreements.
The recruitment landscape in Canada has not escaped the various economic effects of COVID-19, but it is apparent that candidates with a lot to offer are revived and available to re-enter the workforce. Consider seizing this opportunity now because it won’t last long.
Related content
