A survey commissioned by ADP Canada and conducted by Maru Public Opinion reveals that nearly half of small business owners and operators who find it difficult to recruit in the current environment have increased salaries accordingly.
More than a quarter (27%) have also increased benefits, such as additional vacation time, and nearly a fifth (19%) have implemented a shorter work week.
Small businesses are bouncing back
According to the survey, most small businesses that had to cut back on staff during the pandemic (79%) were able to rehire employees. However, one-third (33%) report difficulty finding workers, and nearly half (46%) report that the talent shortage worsened during the pandemic. This is a finding we made in a recent survey conducted by Isarta.
In addition to attracting new employees, small businesses also face the challenge of retaining those they already have in place. The reasons for potential departures? Small business owners surveyed report seeing staff leave the company for better pay (32%), to change careers (29%) or to take on a higher level of responsibility (17%).
The survey results underscore the strength of small businesses. After weathering an unprecedented storm, they are making a strong comeback,” said Helen Vesce, Vice President of ADP Canada’s Service Delivery Division. As the recovery continues, companies that are able to adapt to the changing demands of this new labour market have a head start in finding top talent.”
Work-life balance and flexibility: top benefits of working in a small business
Small business owners surveyed believe that better work-life balance (53%) and more flexible hours (48%) are among the top benefits of working for a small business.
Other benefits include a closer relationship with the owner and/or management (40%), a more cohesive team (36%) and more management attention to the well-being and mental health of their employees (35%).
“When we think of small businesses, we often think of retailers, but small businesses span all industries and often compete with large companies for talent. These findings, along with the rapidly changing priorities of workers, indicate that Canadian small businesses are well positioned to compete for and retain talent,” notes Vesce. “Small businesses can offer a welcoming, supportive and emphatic environment where employees can have more personal relationships with colleagues and company leaders. This, coupled with a better work-life balance, makes small business positions increasingly attractive.”
Survey Methodology
The survey was conducted October 7-17, 2021 by Maru/Blue’s sample and data management experts, among 772 Canadian small business owners, decision makers and executives. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3.5%, 19 times out of 20. Discrepancies in or between totals from the data tables are due to rounding.
